* This chart and data were pulled from The SMB Lending Report by Business Insider Intelligence. Purchase the report here to get immediate access to the full analysis. |
Small- and medium-sized businesses (SMBs) are vital creators of wealth, income, and jobs in the global economy. For example, they make up 99.9% of all private sector businesses in both the UK and the US, and they employ 60% and 48% of all workers in those countries, respectively.
However, incumbent financial institutions are falling short of SMBs' lending wants and needs. Fintechs — including alt lenders, payment providers, and lending platforms — are filling the gap and capturing an increasingly large sliver of the SMB lending market. To quickly incorporate new models and technologies within their businesses, incumbents can partner with alt lenders in these ways: |
- White-labeling a fintech solution. Some alt lenders have started white-labeling their solutions, enabling third parties to incorporate them into their own businesses. This way, incumbents can offer their SMB clients the latest technology-enabled services and tailored risk assessments without having to develop any processes in-house.
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- Referral model. Banks can also opt to refer SMB clients to third parties if they aren't able to serve them or a company falls outside of their scope. Fifty-seven percent of banks would consider exploring a referral model for SMB lending, likely because this approach requires very little effort from banks.
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- Funneling money into a marketplace lender. Incumbents can work with marketplace lenders to dip into...
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Other report highlights you don’t want to miss… |
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| This is just a preview of the information and insights you'll find in The SMB Lending Report by Business Insider Intelligence. Purchase the report today for $495 to access the full analysis. |
