“Every major bank is working on this,” said John Barlow, president of Barlow Research. “This is really just the beginning of a re-engineering of the entire small-business lending process.” But not every bank will end up enlisting outside help. For instance, Bank of America Corp. has no plans to partner with online or alternative lenders in part because of potential dings to its reputation, Chief Executive Brian Moynihan has told analysts. In the case of OnDeck, J.P. Morgan determined that its technology, specifically the coding, and compliance operations were scalable. Many of the details are still under development. J.P. Morgan is planning to begin the partnership in select cities next year before launching in full, a person familiar with the matter said.

http://www.wsj.com/articles/big-banks-start-to-embrace-startups-1451874204