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Wednesday, February 12, 2020

88% of Small Business Loans At Community Banks are Under $100k: A $4B Digital Profit Opportunity


Nothing more exemplifies the purpose of community banks than serving small businesses in their communities.  However, our research of 2019 FDIC shows 88% of small business loans held by community banks according are under $100k. 


These 2.5 million loans held by community banks have a loan face value averaging about $20k and an average outstanding balance of $7,745.  Research published by BAI from Paynet and FIC Advisors shows these loans cost $2,500 to underwrite and deliver even with some streamlined processes, making average costs of the loan over its life $714 a year.  Even at premium pricing providing an 8% net interest income rate, we estimate these loans generate an annual loss of $714 per loan.


 Digital technology specifically focused on this market like Business MinuteLender® generates an application in 15 seconds, a decision and loan offer in 30 seconds and provides all digital closing of documents in minutes.  This superior customer experience drives volume and efficiency.  Our client experience shows such technology turns the $1.8 Billion loss today into a $2.2B profit, or a total improvement of $4B!

$4B Small Business Loans<$100k Opportunity


Digital technology is changing FI strategy with sound underwriting.  Business MinuteLender® off-the-shelf digital technology allows FIs to provide a super customer experience in minutes on a smart device, in-branch or out, beating FinTechs.  All technology is under your brand, with sound underwriting you control for loans on your books.  Contact us for more information on how FIs from $13B United Community Bank to $200 MM Century Bank are driving small business digital lending results.



Tuesday, February 11, 2020

Banks Need To Offer Fintech-like Versions of Their Traditional Consumer Credit Services To Remain Competitive With Fintech Lenders

So states The Financial Brand as personal loan growth exceeds 40% in the last three years, but non-bank FinTechs are capturing the majority of the growth.  Fortunately, more banks are offering “express” version of their loans through a mobile device up to $30k to compete with FinTechs.  
The American Banker reports today that $177B HSBC is following $100B Compass bank in offering “express” loans that can be delivered in minutes.  Banks of all sizes are offering targeted "FinTech" loan processes to serve customers with mobile personal and small business loans in minutes, including $13B United Community Bank$4 Billion Stock Yards Bank$1Billion  Pinnacle Bank$500 MM Pennian Bank and $200 MM Century Bank.  Community banks can win in this space.  They have advantages with the lowest cost of funds, existing customer relationships, sound underwriting and documented compliance.  They just need end-to-end digital technology.   

For example, our MinuteLender® generates a loan application in 15 seconds, provides a loan offer or disposition in 30 seconds, and executes all loan documents and completion in minutes, in-branch or out, all digitally on a smart or mobile device.  All is under the FIs control of branding, underwriting, compliance, and control for loans on their books.  Visit us at RCGILTNER Services, Inc. to learn more.



Monday, February 10, 2020

Banks Lose $400B in Loans to FinTech Non-Banks Without All Digital Lending

HELOC loans held at banks, a favorite strategy of bank lenders, have dropped in half to $317B since 2010 according the FRB.  At the same time the personal loan market has grown to $305B. Consumers have found all-digital personal, auto and other consumer loans far simpler and quicker that bank HELOCs. Unfortunately, half the personal loan growth has gone to FinTechs, which had no market share in 2010.  What is going on?



FinTechs like Marcus, Sofi and others now provide all-digital personal loans to good credit customers in minutes compared to the weeks it takes to get a HELOC.  Speed and simplicity in customer experience easily win the day for consumers, without tying up the security of their home.  And borrowers with strong credit present highly acceptable risk, often a better risk than a HELOC where the bank does not also have the first mortgage. 

But banks have been slow to deliver express, all-digital loans, with only 6% offering all digital loans.  It is time to step up or watch another $400 Billion in loans dissipate to non-bank competitors in the next five years.  And not just loans, FinTech’s like Marcus and Sofi also provide deposit services.

The good news is community banks can win in digital lending.  They have the lowest cost of funds, established customer relationships, proven compliance and documented underwriting.  They just need the technology to compete.  That is why we provide community banks MinuteLender®, off-the-shelf, self-service digital lending technology for consumer and small business loans, in-branch or out.  All is under your brand, your control and your underwriting for loans on your books.  Best of all, the customer experience is superior to any fintech player.

Delay no longer to compete and assure your bank’s relevance in the rapidly growing digital lending opportunity.



Friday, January 24, 2020

All Online Lending Usage Doubled in 2019 As Banks Continue to Lose Market Share


Online lenders doubled in usage the Payments Journal reports while banks continue to lose market share.  Online lenders now have over half of the $300B personal loan market and over 40% of $200B small business lending!



Why?  Recent studies show users report online loans are simpler and faster and available on a mobile device more than at banks, driving adoption.  FIs can compete with our all-digital MinuteLender® generates a loan application in 15 seconds, provides a loan offer or disposition in 30 seconds, and executes all loan documents and completion in minutes, in-branch or out, all on a smart or mobile device.  All is under the FIs control of your branding, underwriting, compliance, and control for loans on their books.  Visit us at RCGILTNER Services, Inc. to learn more.






Wednesday, December 18, 2019

BAI: Banks Must Address in 2020 That Only 13% of Consumers Say Loan Technology Is Competitive

In BAI Banking Strategies Executive Report, “Tackling 2020, Where to Take Action,” consumer loan technology is a presented as a key priority.  They cite specifically personal loans where FIs have allows FinTechs to grow from a standing start to half of the market.  As shown below, innovative banks of all sizes are responding with “express loan” technology and in minutes to compete with FinTechs.


Fortunately more banks are offering personal loans through a mobile device up to $30k and small business loans under $100k to compete with FinTechs.  The American Banker reports today that $177B HSBC is following $100B Compass bank in offering “express” loans that can be delivered in minutes.  Banks of all sizes are offering targeted specific unsecured loan processes to serve customers with mobile personal and small business loans in minutes, including $13B United Community Bank$4 Billion Stock Yards Bank$1Billion  Pinnacle Bank$500 MM Pennian Bank and $200 MM Century Bank.


Community banks can win in this space.  They have advantages with the lowest cost of funds, existing customer relationships, sound underwriting and documented compliance.  They just need end-to-end digital technology.   


For example, our MinuteLender® generates a loan application in 15 seconds, provides a loan offer or disposition in 30 seconds, and executes all loan documents and completion in minutes, in-branch or out, all digitally on a smart or mobile device.  All is under the FIs control of branding, underwriting, compliance, and control for loans on their books.  Visit us at RCGILTNER Services, Inc. to learn more.





Sunday, December 8, 2019

FIs Need to Update Overdraft Services to Meet Competitive Alternatives

New apps like Dave, MoneyLion and Earnin have made it easy with apps on your phone to access funds from your upcoming paycheck early.  When a customer’s paycheck is deposited, the advance is deducted along with fees.  The customer is in control of the choice to have the access to funds and the timing.  They can access the funds regardless of their “Reg E” status.

Consider bank overdraft services as a competitive alternative.  The customer is does not make the decision to pay an item, the financial institution does.  The customer does not feel in control.  Access is limited by regulatory transaction types of which most consumers are unaware.

The financial institution is the best able to serve customers with short-term liquidity needs with safe, integrated options.  But innovation, access and service have not changed in 20 years.  It is time for FIs to deliver liquidity and overdraft services in new ways.  Customer demand for overdraft and liquidity services from FIs has survived regulator concerns, but FIs will see their services wane if they do not offer innovative choices for customers.  That is why we offer with ODManager® and SafeLink® and other features a range of overdraft and liquidity services to access overdfraft services on a smart phone regardless of REG E status.  We enable FIs to maximize compliance, customer choice, efficiency and revenue.  Contact us for a free analysis of the opportunities for your bank. 



Wednesday, November 27, 2019

Biggest Threat to Banking: 74% Report Complacency and the Unwillingness to Digital Change


So states, Jim Marous, of The Financial Brand in his Top 5 Digital Transformation Trends for 2020.  His conclusion is backed up by the data.  While half of personal loans and over one-third of small business loans are provided digitally by FinTech companies, only 6% of FIs today are providing a fully- digital loan online.  74% report they have no immediate plans to change!


Fortunately more banks are offering personal loans through a mobile device up to $30k and small business loans under $100k to compete with FinTechs.  The American Banker reports today that $177B HSBC is following $100B Compass bank in offering “express” loans that can be delivered in minutes.  Banks of all sizes are offering targeted specific unsecured loan processes to serve customers with mobile personal and small business loans in minutes, including $13B United Community Bank$4 Billion Stock Yards Bank$1Billion  Pinnacle Bank$500 MM Pennian Bank and $200 MM Century Bank.


Community banks can win in this space.  They have advantages with the lowest cost of funds, existing customer relationships, sound underwriting and documented compliance.  They just need end-to-end digital technology.   

For example, our MinuteLender® generates a loan application in 15 seconds, provides a loan offer or disposition in 30 seconds, and executes all loan documents and completion in minutes, in-branch or out, all digitally on a smart or mobile device.  All is under the FIs control of branding, underwriting, compliance, and control for loans on their books.  Visit us at RCGILTNER Services, Inc. to learn more.