BAI: Banks Must Address in 2020 That Only 13% of Consumers Say Loan Technology Is Competitive

In BAI Banking Strategies Executive Report, “Tackling 2020, Where to Take Action,” consumer loan technology is a presented as a key priority.  They cite specifically personal loans where FIs have allows FinTechs to grow from a standing start to half of the market.  As shown below, innovative banks of all sizes are responding with “express loan” technology and in minutes to compete with FinTechs.

Fortunately more banks are offering personal loans through a mobile device up to $30k and small business loans under $100k to compete with FinTechs.  The American Banker reports today that $177B HSBC is following $100B Compass bank in offering “express” loans that can be delivered in minutes.  Banks of all sizes are offering targeted specific unsecured loan processes to serve customers with mobile personal and small business loans in minutes, including $13B United Community Bank, $4 Billion Stock Yards Bank, $1Billion  Pinnacle Bank, $500 MM Pennian Bank and $200 MM Century Bank.

Community banks can win in this space.  They have advantages with the lowest cost of funds, existing customer relationships, sound underwriting and documented compliance.  They just need end-to-end digital technology.   

For example, our MinuteLender® generates a loan application in 15 seconds, provides a loan offer or disposition in 30 seconds, and executes all loan documents and completion in minutes, in-branch or out, all digitally on a smart or mobile device.  All is under the FIs control of branding, underwriting, compliance, and control for loans on their books.  Visit us at RCGILTNER Services, Inc. to learn more.