Banks Need To Offer Fintech-like Versions of Their Traditional Consumer Credit Services To Remain Competitive With Fintech Lenders

So states The Financial Brand as personal loan growth exceeds 40% in the last three years, but non-bank FinTechs are capturing the majority of the growth.  Fortunately, more banks are offering “express” version of their loans through a mobile device up to $30k 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 "FinTech" 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.