In our final SBA Solutions Series post, we discuss the increased consumer demand for online lending.
The new $900 billion COVID-19 relief bill includes an extension of last spring’s Small Business Association (SBA) Paycheck Protection Program (PPP)–allowing $284 billion in forgivable loans for struggling small businesses.
When the first round of PPP rolled out, many banks and credit unions were unprepared. Subsequently, they missed out on the opportunity to grow their loan portfolio and provide economic relief to the community.
Financial institutions are now preparing for another surge of applications and the many challenges inevitably associated with high-volume lending. Despite these obstacles, there are solutions to fit your needs.
Obstacle No. 5: Failing to meet consumer demand for online lending options
Covid-19 accelerated the need for traditional financial institutions to embrace technology. In a recent study, 47% of small business owners want to work with their bank online and by mobile as much as possible. The stark reality is that consumers are increasingly doing business online. And if you aren’t meeting this need, they’re going to find it somewhere else.
What you can do:
PPP lending provides significant opportunities for financial institutions to grow their business, as long as it’s done effectively. Moving your lending process online saves your business overhead costs, provides a convenient solution and motivates consumers to choose you over the competition.
As the digital lending experts, we help our clients originate thousands of unsecured loans every day.