SBA Head Says Digital Lending Can Drive Bank Loan Profits

Karen Mills, previously head of the SBA and now at Harvard Business School, presents in The Future of Small Business Lending that 40% of all businesses want loans for $50,000 or less.  However, she states what bankers know:  the majority of these loans are provided through community banks, and these loans are not profitable for banks.  

The Future of Small Business Lending

Yet, she points out that these are the very businesses that drive the majority of employment and economic growth.  What can be done to drive the growth of profit for both community banks and our economy? She explains the answer is digital technology.  Digital lending can profitably deliver loans to small business with sound underwriting in a low-cost, automated manner.  Specifically, it can:

·         Drive the funding needs of the 28 million small businesses that have 10 employees or less.

·         Drive growth for our economy and employment.

·         Drive revenue and profit growth for community banks.

It is time for you to learn how your bank can deploy a digital lending platform like MinuteLender entirely under your brand and control to drive loan and revenue growth for your bank.