Lending To Small Businesses? Think Big Data

Big Data For Small Business

We’ve written about the advantages that Big Data has for both small and large businesses. While most small and medium-sized businesses (SMBs) are aware of the benefits of using these analytical tools, actually having the time and resources to do so are a different story. Banks, which have much of a business’ information due to their financial data, can provide SMBs with the needed Big Data, improving a business’ services and profits, and, consequently, their own.

An article in American Banker this week explained the power that banks have to help small businesses with the financial data already available. Banks can show SMB trends and patterns in how their customers pay, as well as annual revenues and geographical information. With current data, banks can often show their clients patterns in how often their customers pay by check, and how a business could accept payments in the most efficient way possible based on the most common forms.

“The more we get into the data, the more we uncover the need for pattern recognition as well as opportunities to extend the sales conversation in a more substantive way when our folks are dealing with existing clients or meeting new prospects,” the article wrote. “We can create a pathway to a more relevant conversation that solves issues for our corporate clients.”

In order to assist small businesses in this way, however, banks must have the necessary data engine software to accurately and securely keep this information. Since banks already have the data to help their SMB customers, with the right analytical tools financial institutions can provide more and stronger assistance.

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