Don’t be left behind
Tech-savvy business owners expect financial institutions to provide a fast, streamlined, and interactive loan process. They cannot wait weeks to hear if their loan will be underwritten and approved. Banks must digitally transform their technology platform, transform manual processes and provide a more efficient lending experience. Those who don’t, will be left behind.
McKinsey predicts that if financial institutions do not move quickly to engage with small businesses digitally, they risk losing as much as 60% of their overall profits to alternative originators over the next decade. Don’t let that be you.
The time is now
Financial institutions are still the first place small businesses turn when the need a loan. In fact, according to a Federal Reserve report, 95% of small businesses have applied for a loan at a traditional bank compared to only 24% of small business applying for credit through an alternative, online lender.
However, times are changing and there’s a shortfall in small business lending that alternative lenders are more than happy to fill. Online lender Kabbage is originating more than $5 million in small business loans every day, according to McKinsey. That number is expected to continue to grow.