Boston, April 22, 2021 –Lending to small and midsize businesses (SMBs) is big business. Plenty of these entities need credit on a regular basis—let alone during a crisis such as a pandemic. Giving rise to ambiguity is the complexity and channel multiplicity of the many FIs active in this market. These institutions tend to have multiple channels that engage with an SMB during its life cycle, each with different skill sets and processes. Among the examined vendors, only 25% of lenders were very satisfied with their ability to profitably lend to SMBs at scale.Â
This Impact Report will be of interest to senior-level managers at FIs lending to SMBs as well as the various vendors providing process automation and data to such organizations. Aite Group surveyed 21 FIs in North America active in lending to SMBs and 16 vendors providing capabilities for automating processes. Parameters examined included where in an FI SMB loans were structured and underwritten, the systems relied upon, and lending FIs’ takes on the advantages and disadvantages of different approaches.
This 25-page Impact Report contains 15 figures and two tables. Clients of Aite Group’s Wholesale Banking & Payments and Retail Banking & Payments service can download this report, the corresponding charts, and the Executive Impact Deck.
This report mentions Abrigo, Baker Hill, Biz2Credit, Comarch, Finastra, FIS, Fiserv, Intellect Design, Jack Henry, Jocata, JUDI.AI, LinearFT, Linedata, Loan Frame, Loxon, nCino, Nucleus Software, Numerated, Sopra, Q2, and Wolters Kluwer.
About the Author
David O'Connell
David O’Connell is a Strategic Advisor with the Commercial Banking team at Datos Insights, where his primary coverage area is lending. A former commercial lender of 14 years, David brings to his lending coverage extensive hands-on and granular knowledge of banks’ challenges in building businesses that lend safely, cost-effectively, and at scale. Broadly scoped, David's coverage of lending encompasses the...
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Datos Insights
We are the advisor of choice to the banking, insurance, securities, and retail technology industries–both the financial institutions and the technology providers who serve them. The Datos Insights mission is to help our clients make better technology decisions so they can protect and grow their customers’ assets.