The COVID-19 pandemic continues to be a trying time for all. Revenue streams for small and medium-sized enterprises (SMEs) remain slow, and they continue to look for financial support. This requirement for cash is likely to continue in the near term. If ever there was a time for financial institutions (FIs) to build relationships with SMEs, it’s now. Digital innovation will aid an FI’s effort to form better connections and relationships.
Q2 Lending embraces Straight-Through Processing (STP), end-to-end digital automation of the lending application and onboarding process, without any human touch points. STP is proving to be a vital resource for FIs that want their loan information processing to provide faster, error-free approvals during this uncertain time.
Many FIs are unaware of STP and its capabilities. Simply put, it’s automation, along with API integration, easy configurability, and other newer technology – and it’s ideal for online and mobile banking needs. When it comes to lending, STP removes paperwork from enrollment and approval, producing a frictionless experience for borrowers and lenders. It’s built around infrastructure that collects, stores, and uses so much more information about customers than other lending approaches. With this information, lenders can provide more personalised experiences and establish and enrich valuable long-term relationships.
Around 99% of businesses in industrialised countries are SMEs, and they provide about 60% of jobs. They need loans to operate, but nearly 53% of SMEs complain they struggle to access finance for growth.*
Put another way, the SME lending market is ripe with opportunity. Any lender willing to overcome their fear of embracing innovative solutions like STP will get ahead of the lending pack.
Q2 has supported lenders globally since the pandemic began, supporting those lenders looking to provide SMEs with government stimulus funding related to COVID-19. The approach used to automate applications and onboarding has been largely STP led – with this ability to deliver needed funds fast. FIs in these areas are establishing customer relationships that should carry forward from the current hard times into a brighter economic future.
Build better relationships with SMEs by putting technology to work. Learn how STP can help in a new Q2 e-book, The high cost of lending uncovered. The second chapter also features a new case study on a recent STP success.
*https://www.oxfordeconomics.com/recent-releases/the-big-business-of-small-business