Leveraging digital channels & capabilities for revenue growth
A recent Sageworks whitepaper on loan growth addresses how banks and credit unions can leverage digital channels to grow the loan portfolio and remain competitive with the emerging trend of alt-lenders in the small business lending space.
The banking industry has historically been able to play defense against newcomers because of regulatory and legal barriers to market entry. However, in banking (as in other industries), five trends are pressuring banks and credit unions to digitally transform their businesses and are motivating alternative lenders to enter the traditional banking space:
- – Evolving consumer behaviors and expectation
- – Technological leaps that increase efficiency
- – The data explosion that informs real-time decision making
- – Legal and regulatory issues
- – Pricing pressure from startups favoring market share over initial profits