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.
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.