Fintech could enhance small business lending

Author: John Crabb | Published: 19 Dec 2017

New fintech infrastructure could modernise small business loans and streamline the lending process more generally for US banking institutions and consumers.

"Given our regulatory environment...and our legacy systems, we could not profit on loans under $300,000"

Bank lending is a multi-billion dollar market in the US, but in terms of core everyday experience, technology and lending don’t function together to the extent that other industries and sectors do. Nearly all of the applications for small bank loans are currently handled offline, requiring archaic systems like PDFs, printers, fax machines and expensive postal fees.  

According to Jerry Ernst, chief executive officer of Horizon Community Bank (HCB) in Arizona, the lender has been looking for some time for a way to utilise technology to carry out transactions with certain types of customers more efficiently - specifically business borrowers that want a relatively small amount of money.

"Given our...