Financial intelligence

Good news. Banks are taking small business loan requests seriously.

Good news. Banks are taking small business loan requests seriously.

I have the good fortune to talk to banks and marketplace lenders almost daily. In every case, the focus is on expanding their portfolios and reviving the branch banking system. That’s right, reviving. Branch banking is dead, but it is also in the best position to help small businesses.

Not long ago, the average business owner visited their local branch about 29 times per year. Today, it’s less than 3. With all of the banks investment in technology, banking has become easier and you can do it from anywhere. Great for the consumer, terrible for the relationship manager who used to excel at talking to his business clients who visited the branch. 

7 steps to financial spring cleaning.

7 steps to financial spring cleaning.

After you’ve tackled that giant pile in the garage and removed all the weeds from the backyard, it’s time to take an even closer look at your company’s finances. Now that tax season is over and you’ve crunched the numbers from all angles, we suggest using that economic intel to prepare your business for the next year. Here are seven steps to scrubbing your financial statements.

Small Business Owners Need Financially Intelligent Lenders (Infographic)

Small Business Owners Need Financially Intelligent Lenders (Infographic)

As we've seen with the surge of alternative lenders moving into the banking space, now is a pivotal time for lenders to move towards the next wave of innovation. Small business lending is the largest and fastest growing and one of the most profitable sectors, with total revenues from nonemployers hit $989.6 billion in 2011.

The main bottleneck for many lenders in reaching their goals for this market is the time it takes to gather and organize financial statements from small business owners. The infographic below shows how investing in new business intelligence software systems can increases the productivity and overall success of small business lenders.

You're a Boring Banker

You're a Boring Banker

Nine out of ten lenders walk into a prospect meeting without knowing anything about the business. Their mode of operation is solely focused on trying to secure new clients by building rapport – they are what we call surface bankers. Their standard procedure for approaching new business includes looking up a NAICS code, visiting the manufacturer and utilizing various analysis tools. But they are missing a pivotal step – business acumen with a touch of enthusiasm!