Big Business in Small-Dollars

Posted by Mark Messick

Jul 11, 2018 11:00:00 AM


Perhaps you saw the bulletin issued recently by the OCC encouraging financial institutions to make small-dollar, short-term, consumer loans.  I did and for me it points to a big hole in the traditional lending net that needs to be mended (and not by credit card offers).  While our topic today doesn’t deal with consumer lending outright, the bulletin reminded me of three great reasons why today’s financial institutions should consider offering small-dollar loans to businesses.

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Topics: small business, Small Business Market, loans, consumer, financial institution, banking, Credit Unions, Loan Pricing, Financial Services Industry, Commercial Lending

Taming the Monster on Your Desk

Posted by Patrick True

Feb 9, 2018 1:30:00 PM

According to a recent study by the RadiCadi Group, the average person receives 121 emails a day while sending 40 emails in the same time span. There is no doubt that more people are competing for our time each year. This can often lead to a sense of overwhelming stress in our workplace when we cannot seem to keep pace with the glut of information we face every day. 

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Topics: Lending, Small Business Market, Commercial Lending, fintech, Data, Information Technology

Pay No Attention to That Credit Officer Behind the Curtain

Posted by Patrick True

Jan 26, 2018 1:40:00 PM

As a risk manager for a company that licenses financial technology, you might assume that I would be a huge advocate for the latest and greatest algorithmic tools to automate small business lending decisions. Without a doubt, technology exists today to access enough information to make an informed decision regarding almost any form of commercial credit. That said, I am extremely cautious about such thinking. I believe strongly in the use of technology to enhance the credit decision process and create efficiencies. But I also believe there is a marked difference between automated credit decisions and credit decision automation. The first produces a credit decision based solely on data. The second uses data and enhanced workflows to facilitate credit decisions in an efficient manner, thus saving cost and increasing profitability. You must ask yourself a simple question. What is the smart credit decision? Simply put, it is the decision that is right for your institution.

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Topics: Lending, Small Business Market, Commercial Lending

Candidate for the Endangered Species List ? The Loyal Business Customer

Posted by Barbara Vega

Aug 31, 2015 1:56:48 PM


I am awaiting The World Wildlife Fund to be on red alert for the recovery of the Loyal Business Customer. The population of the Loyal Business Customer that once banked with the local institution because of personal relationships and formed trust is diminishing in population at an accelerated rate. According to this Aite report, among businesses with more than $1 million in annual revenue, about 1/3 are using non-financial institution providers.  More than a third of small businesses state they would change institutions for the right package of services. This attributes to lost potential revenue for financial institutions (FIs).  About 2/3 of businesses generating less than $20 million in annual revenue see FI services as a commodity with little differentiation.

If FIs don’t want the Loyal Business Customer to disappear forever, they need to develop a strategy to attract and retain them. 

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Topics: Customer Experience, Small Business Market

Mobile Banking - Big Business in Your Small Business

Posted by Danny Payne

Aug 31, 2015 1:54:03 PM

Last week my exterminator came by the house to do the monthly bug spray routine.  We always talk sports, kids, and whatever pest I should expect to see more of this time of year.  I’ve used the same local company for seven years and the same guy for the past two years.  There are no real surprises, he sprays and comes into my office with a bill and then he goes.  But this past week, there was a surprise.  All of the sudden, my bug guy was high tech!  He whipped out an iPad and asked me if wanted my bill electronic.  Did I fail to mention I live in Elizabethtown, KY?  While it is the home of iPay Solutions, and only miles away from the National Gold Repository, we are still considered “small town USA”.  Needless to say, I was impressed and excited to get my bill electronically.  He also offered me the ability to write my check while he was there and he would snap a picture of my payment or take my credit card payment in person.  I wasn’t prepared, so I said I would just pay the bill when I got it.  Within seconds I got my email bill with a link to pay online with my credit card.  No more writing and mailing checks and I get my points.  I work in the industry and this was still very cool.  In a short 15 minute encounter, I realized everything we are doing at ProfitStars is reaching past the bank/credit union consumer and being implemented at the small business.  Is small business the next big business?  I can see the large pizza chains allowing me to sign an electronic receipt of my credit card without paper, or allowing me to scan in my paper check, but the idea of my bug guy running his small business from his phone is amazing to me. 

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Topics: Mobile Banking, Small Business Market

What Are Your Keys To Successful Business Development in 2014?

Posted by Patrick True

Aug 31, 2015 1:48:53 PM

The world of financial services has changed in countless ways during the past twenty years.  As much as things have changed though, the true benefit of community based financial institutions is still their ability to connect to their local market.  While technology can help, the key to winning new business still lies with your most valuable asset – your employees.  You can have the best client management systems in the world and the best systems for serving those clients; but if your people are not skilled in uncovering new business opportunity, your organization will not sustain growth.

There are two ways to grow a business other than through acquisition; 1) Sell more services to existing clients, and 2) Develop new clients.  While your organization can grow with either of these, the best solution is to do accomplish both.  So how will you do it?

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Topics: Small Business Market, Lending

Four Small Business Lending Trends to Watch

Posted by Terry Renoux

Aug 28, 2015 4:28:36 PM

Terry Renoux Author: Terry Renoux, TRenoux@jackhenry.com

Lending activity across the U.S. is improving. Slowly … but improving nonetheless. Visits to partner banks in the western U.S. over the past couple of weeks indicate that businesses are becoming more optimistic about their ability to grow.

According to bank partners, the specific segments that are seeing growth are small manufacturers, transportation, and businesses with ties to the energy sector. The agriculture industry was also noted as a stronger segment right now due to the current condition of this year’s crop forecast. National surveys show that only 20 percent of bankers believe small business lending will stay the same in 2013 as compared to the last two years. An overwhelming majority, more than 60 percent, say they believe lending will improve; one-third of those lenders believe it will increase dramatically. Results from this same survey suggest that three out of four U.S. bankers are planning to aggressively pursue small business lending in the coming year.

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Topics: Small Business Market, Lending

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