Monday, June 29, 2015

Banks Can Win with Online Lending

“Online Lenders Offer New Competition for Banks,” reports the Wall Street Journal today, while charging higher rates than banks.  It is the convenience, simplicity and speed that makes online and digital lending so popular.  Investors are rushing to fund these growing providers.




Goldman Sachs Group projects $11 Billion in lost revenue from banks to digital lenders.  But it does not have to be so.   Banks can provide digital lending services and grow revenues they currently forego because they business lending is not efficient or profitable for small loans.  80% of bank business checking customers have no loan with the bank, but over half have loans elsewhere.  With the digital lending technology platform we provide like MinuteLender, our clients do not lose revenue to non banks, but find digital small business and consumer lending their fastest growing revenue opportunity.




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