small business lending

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. 

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.