Business loans on your mobile device. Is it progress or a solution looking for a problem to resolve?
If you’re like most people these days, you probably do a lot of business on your mobile device. Whether you’re using it to check email, conduct research, or stay in touch with clients and customers, chances are good that you’re spending more time on your mobile device than you are on your desktop computer.
No one can argue with the importance of mobile banking, mobile bill pay, or P2P payments on a mobile device, but will business loans on mobile gain traction? Bank of America thinks so, it will be interesting to watch.
• “Our new small business mobile lending experience delivers a convenient, on-the-go solution to meet the needs of today’s busy entrepreneurs,” said Sharon Miller, head of Small Business Banking at Bank of America. “Our high-tech, high-touch approach provides our 3 million small business clients the capability to bank how, where and when they want – including applying for financing anywhere, at any time. This is another way we are providing a competitive advantage for our clients.”
Will the market rush towards borrowing on their mobile devices? There are plenty of mobile use cases across the banking spectrum.• In 2016, mobile banking customers logged into their accounts nearly 3.8 billion times.
• During that same period, customers made more than 25 million P2P transfers and 105 million mobile bill payments, a growth of 64 percent and 28 percent, respectively, over 2015.
• Customers also used their mobile devices to deposit more than 103 million checks, receive nearly 1.1 billion text and push alerts, and access their free FICO scores 15.6 million times.
• More customers are opening new accounts through mobile, with sales increasing by 38 percent over the past year.
But, as Groucho Marx once asked: “Will it play in Peoria?” as a measure of acceptance in middle America. Taking a loan, personal or business, requires thought, planning and market knowledge. Bank of America may have a winning product for businesses that require convenient borrowing. The app will certainly be easier than a branch visit, though we will have to see if it outpaces the standard desktop pc.
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group
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