Be Like Uber and Lend More Competitively

Posted by Trevor Knott, Sr. VP Business Development on Oct 26, 2016 4:44:58 PM


When the app-based driver service Uber hit the streets in 2010, it quickly siphoned off a large percentage of business from the taxi industry. Uber won over taxi riders with its on-demand response and digital delivery method.

Today, the same thing is happening with Online Lending and your customers.

In record numbers, consumers and small businesses alike are getting the short-term loans they need from online, non-bank lenders like LendingTree and OnDeck—preferring their rapid approval and delivery to traditional lending methods.

Unless you innovate like Uber, your institution could lose up to 60% of your retail and small business profits to non-bank entities in the next five years, according to a study by the consulting firm McKinsey & Company. 

The industry advisory firm Bain & Company concurs, saying, "Banks need to accelerate investments in digital lending if they are to avoid a material decline in profits and loss in market share."

In our latest guide, "Be Like Uber (not like a Taxi)," BSG Financial Group outlines why your institution should innovate like Uber and how doing so can help you lend more competitively.

Download "Be Like UBER" Playbook

As outlined in the playbook, a digital lending strategy can:

  • Grow your loan portfolio as never before
  • Monetize and enhance your current relationships
  • Enhance your institution's digital strategy

The key is automate the entire lending process with an end-to-end technology solution that allows you to profitably offer customers short-term lines of credit (from $10,000 to $100,000) online and in minutes, while you retain the loans on your balance sheet.

With the right digital lending partner, your institution can profitably compete with non-bank lenders that are re-defining the loan process at your expense.

Topics: Digital Lending, Innovation, Online Lending