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Be Like Uber and Lend More Competitively

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

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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.

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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

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