Banks are losing SME lending businesses to challenger and specialist banks.
In the UK, challengers reported a new high of £35.5 billion in lending to smaller businesses in 20221, siphoning crucial lending business away from the traditional banking sector.
According to EY, global banking revenues are expected to rise by 9% annually through 2025, presenting an important opportunity for banks. Winners in the SME lending space generate 32% higher returns per customer than average, as cited by McKinsey.2
Historically, traditional banks have struggled to provide funding as quickly as SME clients require. But now, more efficient SME and bilateral loan servicing is possible through technology.
Find out how Loan IQ can enhance your lending business through:
15% revenue boost due to higher conversion rates
30% operational efficiency gains driven by digitizing the customer journey and reducing touch-time
25% risk reduction of non-performing loans through enhanced risk models and consistent decision-making3
Explore simplified servicing today
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References:
- British Business Bank
- EY
- McKinsey