Report

Streaming Comes to SMB Lending: Don’t Be a Red Envelope

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In the SMB credit market, lenders that don’t use APIs to digitalize the borrower experience will come across as metaphorical red envelopes in a world of content streaming.
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February 14, 2023 – Across all commercial businesses, booking loans to SMBs is among the most important and scale resistant. Along with the vast and successful embrace of digitalized lending, Aite-Novarica Group took a closer look at a technology that could fundamentally transform the SMB lending world: APIs. Lenders are using this technology to integrate over the firewalls of credit seekers or borrowers and into their systems of record for faster, broader, and more granular underwriting.

This report examines lenders’ embrace of APIs as a tool for onboarding these borrowers to their credit ecosystem and accelerating underwriting processes. It is based primarily on 20 interviews completed during Q4 2022 with highly qualified SMB lending professionals and executives in the United States.

Clients of Aite-Novarica Group’s Commercial Banking & Payments service can download this report and the corresponding charts.

This report mentions Axe Finance, Baker Hill, Biz2Credit, Finastra, FIS, Forward.ai, Jack Henry & Associates, Intellect Design Arena, Loan Frame, Moody’s, nCino, Oracle, Q2, Plexe, Sopra Banking Software, and upSWOT.

About the Author

David O'Connell

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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