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Lending Briefing: Commercial digital lending — a lifeline for mid-sized banks?

  • Commercial lending is also one of the least digitized areas of operation for most lenders, as paper-based processes continue to be the norm.
  • As commercial loan underwriting is tailored to each business, digitization can allow banks to differentiate themselves in areas that have become commoditized.

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Lending Briefing: Commercial digital lending — a lifeline for mid-sized banks?

When it comes to digital lending, most of the spotlight has been on consumer or small business lending. A less talked about area, however, has been commercial lending – such as commercial real estate lending and commercial and industrial lending. 

This segment is hugely relevant to mid-size banks, which are squeezed in between the bigger banks and fintechs, especially in this new digital competitive arena. 

But commercial lending is also one of the least digitized areas of operation for most lenders – paper-based processes continue to be the norm, while tasks like underwriting and servicing still mostly rely on people, according to Alex Johnson, fintech research director at Cornerstone Advisors. 

And today, the competitive landscape is changing in favor of digital savvy lenders as the pandemic brought online experiences into the mainstream, and new technologies increased data accessibility. 


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