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Friday, April 6, 2018

Community Banks Are Rapidly Losing Small Business and Consumer Market Share without Digital Lending Strategy


Two charts tell quite a story for community banks and the growth of digital lending.  

First, FDIC and Fintech industry data show community FIs have lost nearly half their market share of small business loans under $100k to large banks and fintech in the last seven years.  Small business has been a strength of community banks, and loans under $100k are a key pipeline for future loans.


Second, TransUnion reports that FIs are rapidly losing market share to fintech companies for personal loans.   The chart below incorporates our analysis to show this loss is particularly harsh for community banks.


What is the solution?  Community banks need the digital technology to deliver the customer experience and operating efficiency the market demands.  Community banks have the customer relationships, a lower and more stable cost of funds, sound underwriting and established compliance.  They can win if they just adopt technology like MinuteLender® that accomplishes an application and loan offer in a minute on a computer or smart device, in-branch or out, and all under your brand, for your loans, with your underwriting and under your control. In fact, digital lending for a community bank is now more efficient and profitable that credit card lending at the largest FIs.  See more at www.rcgiltner.com.





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