Banks that expand their cash options provide a valuable service to the unbanked and underbanked—and attract new business.
As lending rises, banks and lenders should monitor these issues impacting credit risk management in 2017.
Bankers realize that to stay competitive—and not just viable—they must truly understand what small businesses really need from a lender. Yet it’s not all about interest rate numbers, but increasingly a chronological one: speed.
Going beyond traditional marketing, bankers now post blogs and white papers, offer credit coaching and extended hours and pay for leads to gain an edge in pursuing small business customers.
Automated decisioning can make small business lending more profitable for banks – as long as the process includes the human factor as well.
To fully capitalize on the opportunities available with small business customers, banks need to offer products and services that are relevant to their actual needs.
While bankers often criticize alternative lenders for unfair pricing, bottom fishing and irrelevance to the overall loan market, the smart ones should take a closer look.
While banks often struggle to lend to microbusinesses profitably, leveraging their branch sales force effectively can improve the odds.