Banks and small business lending

May 30, 2017 Blog  Banking , Small Business Lending



Although lending to small businesses is a huge part of the banks customer base, they struggle to lend to them profitably.

It is very difficult for banks to assess small business credit risk in a cost effective way. “When it comes to lending, most banks still see the world falling into one of two categories: “consumer” or “commercial.”” However, small businesses are a category on their own.

In order for banks to assist small businesses, they must expand their technology tool set and this often means collaborating with Fintech companies.

This article is based on “Eating Soup with a Fork: Why Banks Struggle with Small Business Lending, and How to Fix It” which you can read here.


Image: SME Banking Club via Flickr (CC 2.0, resized)

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