Lending software is an essential tool for financial organizations of all sizes. Whether small businesses or individual borrowers are seeking assistance in payment options, it is important that banks are able to make sound decisions that will benefit them and their clients.
Two years ago, 13 large banks—including Bank of America, J.P. Morgan and Wells Fargo—said that they would increase lending to small businesses by $20 billion by September 2014. According to recently released data, combined small business lending increased by $17 billion, already at 85 percent of the $20 billion goal.
The Financial Services Roundtable, the American Bankers Association and the Consumer Bankers Association issued a statement saying that small businesses are vital to the American economy and job growth.
"Lending to small businesses is at its highest index in six years, according to the Thomson Reuters/PayNet Small Business Lending Index, because it is a core component of our industry," the statement said. "The industry's commitment is ongoing, and we believe its support of small businesses and entrepreneurs will continue to grow."
Additionally, the groups explained that they are not surprised by the 85 percent increase and that they are proud that participating member banks have made such progress in increasing loans to small businesses.
Even for banks that are not involved in this agreement, decisioning software can help the entire lending process. Financial institutions that want to continue to aid the economy as it rebuilds must also ensure that they maintain organizational success. Finding creditworthy borrowers—business or residential—is an important part of that process.