The Small Business Market and Community Bank Digital Lending

New digital lending technology, now being widely adopted by banks, is a major opportunity for community banks.  Community banks (those under $10 Billion) have nearly half of the small business loan marketplace, but less than 10% of the market for loans under $50k, as shown below.  Yet, this market is a $7 Billion revenue market, and when loans $50k to $250k are added, it is a $20 Billion market, a huge revenue opportunity for community banks.

Historically, community banks have done poorly with this market because of the cost of their underwriting and service processes, whether by commercial lenders or retail bankers.  They were simply not set up to be efficient for this type of micro lending, and largely have given up the market to a handful of business credit card providers and alternative lenders.

But online digital underwriting using sound a proven bank underwriting delivered with fully secure cloud-based technology can put community banks back in the game.  The online or mobile technology through retail channels or mobile devices requiring no lender knowledge.. Community banks have checking deposit relationships with these small businesses, but just not the loan relationship.  Small business digital lending technology, like MinuteLender, drive revenue and relationship growth which making existing processes more efficiency.