Forbes points out today in
their article on J.P. Morgan/Chase partnering with OnDeck to deliver small
business loans online in minutes that online digital lending is mainstream. Chase follows BBVA/Compass also partnering with OnDeck, Regions partnering with
Fundation, small banks like Bank of Newport partnering with Lending Club and $3
Billion Centier selecting our MinuteLender
digital lending technology platform.
Digital online lending helps
bank “do stuff we can’t do or don’t want to do,” points out Jamie Dimon. What is this “stuff”?
- Small business loans under $50,000 are a great example where current underwriting and delivery practices make serving this segment unprofitable for banks. Yet it represents 39% of all business loans and is a $20 Billion market.
- Banks have largely exited consumer lending, referring customers to just get a credit card. The market now is held by a handful of large players. But digital lending allows banks to do small consumer loans profitably, as non-bank digital lenders have illustrated. And the new payments preference of debit cards allows these lines of credit attached to a checking account to be more attractive that credit cards.
- Consumer loans to low to moderate income households have been particularly vexing for banks. Yet, CRA and other public policy seek to assure banks are serving this market. Digital online lending makes serving this market efficient and with sound underwriting beyond just credit scores.
It is time for your bank to
learn more about implementing the best digital online strategy for you. Join us for our Webinar: “Digital Online Lending for
Community Banks” on December 22nd at 2:00 pm, or contact us for
a demo.
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