The uncertain macroeconomic environment is incentivizing consumers to be disciplined around their spending, which hasn’t yet recovered to pre-pandemic levels.
Despite inflation and rising interest rates, consumers continue to show healthy behaviors when it comes to paying off their debt.
In 2021, alternate lenders led the uptick in SMB loan application approval, approving 24.5% of the loans, as against the 23.8% approved by institutional lenders.
Why have traditional lenders been unable to effectively meet SMB demand? Because they can't figure out how to do it profitably.