McKinsey Recommends Small Business “Digital Models” Like MinuteLender

The MinuteLender digital lending technology follows exactly the digital strategy McKinsey recommends for banks in its Whitepaper “Digital Models for Small Business in a Digital Age.”  Specifically they make four recommendations that match up to exactly to the digital technology platform in place for CashFlow Checking.

Make use of data readily available.

In today’s world of digital connectivity, all information needed for loan and account underwriting and delivery can be immediately available in the cloud.   Specifically, banks can counter non-bank competitors by exploiting customer data and targeting customers at the local level, as MinuteLender does.

Approve simpler and less complex loans quickly.

MinuteLender uses cloud-based technology to underwrite and set up bank loans and accounts in minutes with sound underwriting.

Simplify the process.

No filling out forms as the digital application asks the customer to confirm only six data points to completely underwrite and set up the loan and accounts.

Allow Retail Managers with little loan experience to focus on sales.

A relationship, branch or sales manager with no lending knowledge or experience can make a call with a tablet, phone or computer and let the customer set up documented, compliant loans in minutes.

As McKinsey and others point out, 80% of business are sole proprietors and 40% of all small business loans are under $50,000, averaging $12,000.  Yet this combined market represents $29 billion in revenue.  Digital lending and payment strategies like MinuteLender enable community banks to profitably sell to and serve this market and compete against the booming digital non-bank lenders.