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
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.