Given the number of players in the alternative lending space and the speed with which they can move, Forbes questions whether traditional banks can innovate fast enough to and compete. It suggests outsourcing smaller to a non-deposit lender, with the technology to grant loans within 72 hours. This would enable banks to retain relationships and re-engage once businesses grow. The report also recommends that regulators should consider allowing lenders to issue bonds backed by their own equity.
Given the number of players in the alternative lending space and the speed with which they can move, Forbes questions whether traditional banks can innovate fast enough to and compete. It suggests outsourcing smaller to a non-deposit lender, with the technology to grant loans within 72 hours. This would enable banks to retain relationships and re-engage once businesses grow. Along side this strategy they could then focus efforts on innovation within the larger loan category for small businesses, a market is too big for banks to walk away from.