Sageworks announces medallion-lending focused solution

Sageworks, a financial information company that provides loan portfolio solutions to banks and credit unions across the country, recently expanded its product suite to include a solution for lending. Banks and credit unions that offer loans to finance the purchase of taxi medallions are currently facing a common challenge; the value of medallions has substantially decreased in the past couple of years due to new transportation services such as Uber and Lyft. As a result, many of those loans became impaired, and, for financial institutions that have a sizable tax-medallion concentration, the Allowance for Loan and Lease Losses has increased substantially. Sharp increases in the reserve create significant pressure on capital as well as earnings.