Lending Briefing: SaaS SMB lending competition heats up as more fintechs enter the market
- More fintechs are coming into the US market to offer banks solutions that digitize and streamline their SMB loan application and decisioning process.
- As this segment of the market is drawing more interest, we sit down with Ranqx to delve into its strategy of scaling in the US market.
More SMB lending fintechs are entering the US market to partner with banks
Banks have never really catered to the small and medium sized business sector, and this gap is being increasingly recognized. More fintechs are coming into the US market to offer banks solutions that digitize and streamline their SMB loan application and decisioning process.
Most traditional banks in the US don’t have proper functionality set up for SMBs to easily open accounts or get loans – almost none have straight-through digital origination and decisioning on a small business loan. It still requires human input.
“Not one traditional US bank has the online capabilities to provide a straight-through small business loan application for either unsecured or secured loans with an instant decision or offer to the customer,” a Deloitte report found.
Plus, even the banks that have enabled online account opening for small business customers have not invested beyond the account opening experience, leaving the door open to fintechs that provide additional capabilities.
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