ABA: Community Banks Must Adopt Digital Lending Faster as Non-Banks Capture Half of Personal Loan Market

Panelists at the American Banker Annual Convention last week said community banks must adopt digital lending at a faster pace, according to the American Banker.  Community banks must invest more resources or risk becoming irrelevant.  It is easy to see their point: while only 21% of community banks say they plan to offer booking loans online in 2020, half the $300B market for personal loans has already been captured by non-banks.

And it’s not just personal loans where community banks are losing market share.  Fintechs now have over one-third of the small business market, and growing share of real estate and auto lending.  The American Banker reports panelist noted competitors like Marcus, Kabbage, Roostify and AutoGravity risk making community banks irrelevant.

The good news is community banks can win in digital lending.  They have the lowest cost of funds, established customer relationships, proven compliance and documented underwriting.  They just need the technology to compete.  That is why we provide community banks MinuteLender®, off-the-shelf, self-service digital lending technology for consumer and small business loans, in-branch or out.  All is under your brand, your control and your underwriting for loans on your books.  Best of all, the customer experience is superior to any fintech player.

Delay no longer to compete and assure your bank’s relevance in the rapidly growing digital lending opportunity.