Small business relief programs have held bankers’ undivided attention lately. What was once considered a largely underserved segment in the financial industry is now at center stage.Businesses are relying on their banks now more than ever before to provide the relevant financial tools that they need to survive. But the responsibility does not end with lending. Bankers Read More
COVID-19 has disrupted our communities and cost us greatly, but it has also breathed new life into our sense of community and improved how we communicate and work together. Banks are no exception; they are a great example of acting fast to serve their communities.As a part of an unprecedented effort to protect small businesses, financial institutions Read More
Cash is the original real-time payment. In fact, more than 27 percent of all payments are still made in cash, according to the most recent study from the Federal Reserve. That stat may surprise digital enthusiasts but for millions of consumers and small businesses, cash is critical to their day-to-day life. Who uses cash these days? More Read More
Is growing the small business loan portfolio on your bank or credit union’s agenda? If so, you’re not alone. A recent survey by the American Bankers Association found that 61 percent of banks surveyed plan to moderately or aggressively grow their small business lending (loans between $3 million and $100 million) over the next two years. In other words, many financial institutions Read More
Small businesses represent banks’ best opportunity to grow deposit balances, improve spreads and obtain overall superior relationship profitability. So why do so many small business owners feel a bit like the girl so attractive that she can’t get a date for Saturday night? Many are turning away from banks: more than 20 percent of small businesses that Read More
Banks know, perhaps all too well, the growth strategy of targeting small-to-midsize business clients (SMBs) to win over more of their fee-generating accounts. That trodden path for banks of all sizes dates to at least the wake of the financial crisis. And it’s not always a path to riches: A recent BAI Industry Insights presentation at the Read More
Growth remains a universal, timeless goal for financial institutions and many pursue loan growth to offset rising compliance costs and maintain profits. Yet those loans also undergo constant examiner scrutiny, meaning banks must employ prudent underwriting and review strategies. That noted, one strategy works toward both a bank’s growth goals and risk management requirements: lending to quality, Read More
More and more, transparency occupies the online lending industry spotlight—but it’s no highlight. The Federal Reserve’s 2016 Small Business Credit Survey found that half of all businesses were dissatisfied with online lenders due to a lack of transparency, while an overlapping half singled out high interest rates and unfavorable repayment terms. Unfortunately, some online lenders have combined Read More
It’s little wonder that small businesses mean big business for today’s banks and credit unions. Small businesses are mushrooming. The 28 million small businesses in America account for 54 percent of all sales, according to the U.S. Small Business Administration. Meanwhile, they’ve added jobs at twice the rate of corporate America over the past two decades. No Read More
There are 28 million small businesses in the United States. Let’s take a closer look at that number: It comes to one business for every 11 or 12 people in the U.S. Clearly, this market is ripe with opportunity. And yet, reasons abound as to why banks haven’t fulfilled small business loan requests. For starters, small business Read More
