The COVID-19 pandemic continues to be a trying time for all. Revenue streams for small and medium-sized businesses remain slow, and they continue to look for financial support. This requirement for cash is likely to continue in the near term. If there was ever a time for financial institutions (FIs) to build relationships with small businesses, it’s now. Digital innovation will significantly aid an FI’s effort to form stronger connections and longer-lasting relationships.
Q2 embraces Straight-Through Processing (STP), end-to-end digital automation of the lending application and onboarding process, without any human touchpoints. 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 traditional lending approaches. With this information, lenders can provide more personalized experiences and establish and enrich valuable long-term relationships.
Around 99% of businesses in industrialized countries are small businesses, and they provide about 60% of jobs. They need loans to operate, but nearly 53% of small businesses complain they struggle to access finance for growth.*
Put another way, the small business 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 helped lenders globally since the pandemic began, supporting those lenders looking to provide small businesses with government stimulus funding related to COVID-19. The approach used to automate applications and onboarding has been primarily 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 small businesses by putting technology to work. Learn how STP can help in Q2’s e-book, The high cost of lending uncovered. The second chapter features a new case study on a recent STP success.
*https://www.oxfordeconomics.com/recent-releases/the-big-business-of-small-business