Efficiency key as small business loan approvals rise [Video]
Small business loan approval rates from big banks reached their highest level since the recession in May 2018, climbing to approximately twenty-six percent. Meanwhile, approval rates for small banks and alternative levels have been stagnant.
Positive economic conditions position major banks to invest more in small businesses. Regional banks and alternative lenders now face pressure to improve their efficiency to offer more robust services and better keep up with their larger competitors.
At this point, many small banks are struggling to reduce costs and create value opportunities in small business lending, a trend that needs to change.
Employing modern risk analytics solutions is critical in dealing with these small business lending challenges. Banks can use analytics platforms, such as our solution at GDS Link, to automate key processes, improve decisioning and create more value from small business lending.