NOVEMBER 2, 2017
Small Business Loans = Big Opportunity
By Mark Loehrke, Editor, Financial Managers Society
Small business lending has long been one of the bedrock capabilities of most community institutions. In fact, community banks held 43% of all loans to small businesses in the second quarter of 2017 – to the tune of almost $300 billion.
Even bedrock can erode over time, however, and in the case of the small business customer, a slow or complicated or paperwork-intensive loan application process may ultimately be the undoing of a long-standing lending relationship with its local institution. But there are steps that institutions can take to help modernize their loan application processes and thus preserve those ever-important small business ties.
While these ideas cover a wide range of potential time-saving actions, the broad theme is pretty clear: utilize more technology. From digitizing the loan application to streamlining the process for collecting supporting documentation to improving analytical capabilities for better and more efficient use of existing data, there are plenty of opportunities for institutions to tap into tech to keep those local small business owners coming back to where they’ve always felt most comfortable when looking for a loan.