As SMB lending strengthens and evolves, financial institutions must look for ways to improve their process to not only be more efficient but also foster better customer experiences.
The good news is that there are proven methods available to do so.
The daily decisions and transactions a small business makes can reveal a lot about their dependability, and there’s no better way to determine reliability or default probability than by analyzing complete and up-to-date data. The challenge is how to efficiently obtain that data.
By using technology that automates data gathering and standardization, lenders can quickly receive the borrower’s complete, up-to-date data and easily integrate it directly into their existing portfolio management systems. This method provides transparency and in-depth insights.
Additionally, with access to accurate, complete and current financial data, lenders are positioned in the seat of the borrower’s financial controller. They are empowered with data that provides a comprehensive view of the business’s financial health, and can, therefore, work with that borrower in a more personalized way by acting as a trusted source for financial decisions.
Having access to timely, quality data also helps lenders proactively manage their portfolios. For example, an SMB that is struggling may just be focused on keeping its head above water, and therefore, may not be submitting financials in a timely manner. The ability to pull financial data from the SMB’s accounting application gives the institution insight into problem areas and provides the opportunity for the lender to be a true service provider.
It boils down to this: sourcing borrower data from their accounting package enables lenders to make fast, confident decisions. This improves the borrower experience and allows SMBs to focus on growing their business.
In our latest whitepaper, we offer insights on how financial institutions can transform their SMB lending processes, explore how outdated SMB borrower data leads to inefficient processes and puts the lender at greater risk, and discuss ways to drive efficiency, minimize risk and gain a comprehensive understanding of your SMB clients.