Over Half of Community Banks Now Target Digital Lending

A recent survey by the FED shows that more than have of community banks now offer online loan applications or digital lending, or plan to introduce it.  Digital lending allows banks to efficiently serve and soundly underwrite consumer and small business loans online in minutes with platforms they own and underwriting they control.

Seasoned community bank past Chief Credit Officer and CEO Bob Critchfield points out that digital technology simply automates proven FICO and other underwriting banks have done for years.  Many community banks rightly avoid “black box” and third party partnerships that could steal their relationships.  But digital lending technology where they use FICO scores and credit reports, control the underwriting and own the relationships and loans give community banks a major revenue opportunity. 

For years community banks have lost consumer loans to large banks and credit card companies, and 80% of their small business checking customers have no lending relationship with the bank.  New technology platforms like MinuteLender let community banks set their underwriting with sound and proven criteria, but fully automate all operations for both the user and the bank.