PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Alternative Lenders Leverage Technology to Refine Risk Assessment Capabilities For Small Business

By Patricia McGinnis
October 31, 2012
in Mercator Insights
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Most banking commercial lenders are stillbeing very wary about increasing the level of lending activity tosmall businesses. At Money2020 last week, Jim Bruene of Netbankerhappened upon a panel discussion featuring three innovators insmall business commercial lending. Glen Goldman, CEO of CapitalAccess Network; Kathryn Petralia, Co-founder & COO, Kabbage;and Noah Breslow, CEO of On Deck Capital all agreed theirbusinesses are booming.

According to Bruene:

“Like most disrupters, the three are gainingtraction in a narrow niche that legacy players have largelyavoided, sub-$250k non-asset-backed commercial lending. In total,the three are on track to do roughly $2 billion in total lendingnext year. While impressive, that’s not the big story. Thedisruptive piece is the technology the three use to underwrite theloans.”
Each is using one or more streams of daily data, which might begenerated by a merchant-accepting application or an online bankingapplication, to monitor borrower cash flows daily, and thus adjustlending levels (and take partial loan repayments) more frequentlythan the usual monthly schedule. In some instances, theirdata-driven view of a business enables them to provide support toonline businesses and e-commerce ventures which have little in theway of physical assets, but are successfully leveraging digitalassets.

Let’s face it: monthly loan repayment schedules are a vestigialtrait of the pre-automation commercial loan products that featuredmanual monthly calculation of interest due and manual posting ofinterest and payments. Bankers take heed: these firms (and otherslike them) are making money from credits which have, in most cases,already been declined by commercial banks. They will change thegame in small business lending.

Click here to read more fromNetBanker.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Banking ChannelsCompliance and RegulationCreditDebitEMVFraud Risk and AnalyticsMerchant AcquiringMobile PaymentsPoint of SalePrepaidSelf Service and ConvenienceSocial Media

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    samsung p2p

    Making Zelle Work Better for Users—and Banks

    April 10, 2026
    fraud escalate

    As Fraud Escalates, Taking a Beat Becomes a Critical Defense

    April 9, 2026
    privacy open banking

    As Open Banking Fuels Interconnectivity, Privacy Matters More

    April 8, 2026

    ACH Is Thriving, and Banks Are Struggling to Keep Pace

    April 7, 2026
    stablecoins, Klarna

    How Stablecoins Emerged as a Key Element of Cross-Border Payments

    April 6, 2026
    Cross-Border Payments

    How the U.S. Built Its Faster Payments Ecosystem

    April 3, 2026
    Young Latin woman applying powder on her face for beauty blog. Smiling woman sitting at table in cosy room holding powder box and brush looking at phone camera recording video. Make up and cosmetics blogging concept

    TikTok Aspires to Fintech Status with Payments, Credit Bids in Brazil

    April 2, 2026
    small business credit card

    What Banks Get Wrong About Small Business Credit Cards

    April 1, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result