For too long, lenders have based small-business lending decisions on outdated data points such as FICO scores or tax returns. Unfortunately, this data is often skewed and inconsistent with the health and viability of the business.
One of the most valuable assets for SMB lenders, however, is accurate, complete and current financial data. Without it, loan decisioning is at a serious disadvantage.
Below are four key areas that can be improved by utilizing robust financial data.
When a lender understands its clients and prospects better, it can tailor services to better suit their needs. This means offering appropriate products and providing proactive, relevant offers resulting in increased sales.
Utilizing robust financial data means cheaper and more efficient processes for lenders that result in improved customer service. The borrower benefits from a fast, simple and streamlined process, allowing them to focus on growing their business.
Understanding customers better through financial data means risk evaluation is significantly more precise, resulting in reduced losses.
With a better understanding of their customers, lenders gain the opportunity to provide value-added services, which gives them a competitive advantage. This results in more cross-sell opportunities.
In our latest whitepaper, we further explore these key areas and offer insights on how financial institutions can transform their SMB lending processes.