As SME lending strengthens and evolves, two categories of lenders have emerged: product oriented and relationship oriented.
Product-oriented lenders offer SMEs a more transactional service. They are on-boarded efficiently and there can be very little personal contact between the SME and lender. The focus is on clarity of offer, value for money, efficiency, ease of use and speed.
Relationship-oriented lenders offer a more personal service where they deal directly with clients either digitally or face to face. They are also prepared to offer other providers’ products to their customers. They tend to have a deeper relationship (and can have higher valuations when it comes to FinTechs), but they can also be less profitable.
To successfully service the SME market, lenders need to choose where they want to be on the product-oriented to relationship-oriented continuum.
Where are you? Once you’ve landed on your strategic positioning, success is driven by what comes next: harnessing data.
To learn more about the types of data available and those used for SME lending, the value that digitization brings to SME lenders and their customers, and the key challenges lenders face on their digitization journey, download our latest whitepaper.