Over the last few years, borrowers have begun to prefer online loan processes purely for the convenience. According to the 2019 Federal Reserve, Small Business Credit Survey online lenders experienced the most substantial growth when compared to physical banks and credit unions. Businesses applying for credit typically weren’t looking for enormous sums of money either. In fact, 57% of the financing sought was for amounts less than $100,000. Community lenders interested in funding small to medium-sized loans for small businesses have a big opportunity here to step in and provide assistance.
For the foreseeable future, online operations will be the sole resource for connecting lenders with small businesses in need. While members are not able to have a face-to-face conversation with your team, it’s more important than ever to examine your suite of electronic services and make sure you are able to continue meeting the needs of your members with agility. Ultimately, those efforts will contribute to the strength and financial recovery of our communities.
It’s not only crucial for your members to have remote access to financial assistance, but it’s equally as important that the processes and procedures that your team is using allows your institution to swiftly execute member requests. Identifying any potential service gaps and functional ways to overcome them should currently be a top priority.
One significant service gap present among many credit unions is the ability to book business loans entirely online. If your team is interested in providing CARES Act/Payroll Protection Program support to businesses in your area consider that borrowers need to be able to submit applications, transmit sensitive documents, and receive quick decisions all without leaving their home.
While the need to physically distance ourselves from one another will eventually ease, the expectations that we are developing for convenience and support will not. The efforts that credit unions make to provide uninterrupted service during this national emergency will lay a path for creating deeper relationships with your members and the communities you serve.
If your credit union would like to quickly set up a custom online business loan application portal with no hardware or software requirements contact Heather Bosenko at firstname.lastname@example.org, 850-701-4073, or fill out the interest form below: