New Report Reveals SMB Lending Industry Lagging Behind in Adoption of Digital Technologies, Leaving Wide Gaps Between Innovators and Traditionalists
Originally published on Accesswire
A whitepaper from LendIt and ForwardAI emphasizes the opportunity of real-time and forward-looking data for improved efficiency and confidence in underwriting decisions
NEW YORK, NY (December 1, 2021) ForwardAI, a fintech providing aggregated access to accounting & business data and analysis, collaborated with LendIt Fintech, the largest media and events company dedicated to innovation in lending and digital banking, to produce a whitepaper on how direct data access improves small business lending.
The report highlights how lenders use business and financial data, apply technology to predict borrower outcomes, and drive credit decisions, outlining specific customer experience and process improvement opportunities.
Key highlights from the newly released report, which is free to download here, include:
● 40% of respondents agree that manual documentation and data gathering negatively affect loan processes
● 15% of lenders are already using direct data collecting to access borrower information, compared to 47% of lenders who still use manual processes such as emails, PDFs, and spreadsheets
● 33% of lenders are collecting financial data within three days of an application, while 40% of respondents take more than one week and an astonishing 19% take more than two weeks
● 26% of companies are using fraud detection software to identify altered, outdated, or fraudulent loan application data
● Nearly half of the surveyed companies spend between $0 to $100,000 on loan process software
● Direct data access, combined with forward-looking insights, allow lenders to more accurately predict a business’s ability to repay a loan
“Manual or even paper-based data collection is still widespread among business lenders, resulting in inaccurate, inconsistent and time-consuming underwriting decisions,” said Nick Chandi, CEO and co-founder of ForwardAI. “Open Finance-enabled access to banking and accounting data, integrated with predictive data points, not only improves underwriting confidence and efficiency, but has the potential to unlock additional service offerings such as customizable repayment plans and financial advice.”
“We would like to think, after all the advances made during the PPP program last year, that underwriting for business lending is now streamlined and automated,” said Peter Renton, Chairman and Co-Founder of LendIt Fintech. “Unfortunately, our research shows that is not yet the case. Too many lenders are still collecting data from small business owners manually via PDFs, email and spreadsheets. Efficient delivery of business data via API is sorely needed.”
The report provides actionable insights on how financial institutions and business lenders can take advantage of Open Finance-enabled technology, streamlining the client intake process and providing intelligent, need-based financial services. Findings are based on a survey conducted by LendIt among national and regional U.S. banks, credit unions, community institutions, and fintechs.
ForwardAI is improving access to aggregated accounting, financial, and business data for banks, lenders, and fintechs. With leading small business software integrations available, the intelligent PreciseMatch™ tech, deep client analysis, unparalleled forward-looking data insights, and complete suite of calculated KPIs and ratios, ForwardAI customers can turn client intake and assessment into only three quick steps. Solutions available include an API, a partner portal, and a client-facing cash flow forecasting and planning tool. To get started or learn more, visit ForwardAI.com
About LendIt Fintech
LendIt Fintech is the world’s largest Fintech media company. Every day we celebrate, educate and connect the people who power the Fintech industry. Our products include large scale industry events, executive roundtables, daily news emails, podcasts, whitepapers and webinars. Like much of the economy today, financial services are experiencing a rapid upheaval. We are seeing a multi-decade transformation where fintech will take center stage as everything becomes digital. LendIt Fintech is there for you, reporting the news on a daily basis, enabling real time discussion and insights with LendIt Fintech Digital and empowering our community with connections and in-depth learning at our physical events. To learn more, visit LendIt.com.
Originally published on Accesswire