Funds, Debt, and Tiers: How SMB Lending Gets Done

There are possibly as many approaches to SMB lending as there are players in the industry.

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. 

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.

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