Grow Reveneus by Adding Digital Lending to Your Small Business Strategy

The research report, Strategies and Best Practices of U.S. Community Banks, states clearly “Community banks are primarily targeting small businesses, as this profitable segment offers a high ROE of 35%.”

But your small business strategy needs to be updated for the new digital environment.  At the typical community bank, processes are in place to well service small business credit needs of $250k or more.  But loans under $100k which average only $15k have the same process of risk management and underwriting as more complex loans. As a result, community banks penetrate only about 10% of their small business checking accounts with loan services because the majority need only small loans.  The result is community banks are missing a $29 billion revenue source.

Further, new digital lenders as illustrated in the Harvard Business School study this year, “The State of Small Business Lending,” are stealing small business customers and moving into large loans with digital strategy.

But you can fight back today with your own small business digital strategy growing revenues 30% from existing customers and driving new customer growth.  Just check out our digital CashFlow Checking strategy for small business.