Innovation in Small Business Lending
Thursday, October 16, 2014
Innovation in Small Business Lending
Moderated by:
Bob Coleman, Editor, Coleman Report
Featured Panelists:
Mark Cerminaro, Rapid Advance
Tim Craczewski, Creditera
Jared Weitz, United Capital Source
Innovation in Small Business Lending
Takeaways
1) Innovation is increasing speed to market
2) Innovation is making the product a viable option for
Main Street
3) Data analysis is making us better lenders
4) This is no longer a niche product
Innovation in Small Business Lending
Small Business Lending
• Definition of small business lending (e.g. contrast with
consumer)
• Who uses the product today?
• How has the customer changed?
• How has the product changed? (Be specific -- interest rates,
repayment, structure, delivery to Main Street)
Innovation in Small Business Lending
Technology
• Software is internally developed. How has this changed over the past
5 years
• What outputs does your software/technology provide today?
• Using technology to tracking loan performance
• Automation is a buzz word. Are we there yet?
• “Deskill” credit underwriting
Innovation in Small Business Lending
Data Driven Decisions
• The focus is what we are doing today. A little history lesson
is appropriate.
• We are becoming experts at mining data
• Historically, 75% restaurant and retail Main Street. Today?
• What type of data points are we using today? Data
Algorithms?
Innovation in Small Business Lending
Filling the Void by traditional small business
lenders
• What are you doing to get the word to Main
Street about your product?
• Shift in customer demographics
• Increase in loan sizes
Innovation in Small Business Lending
Questions?