The definition of a “law of nature” is “a regular occurring or apparently inevitable phenomenon observable in human society.” The sun rises in the east, sets in the west. Death and taxes are inevitable. In finance and business, capital needs to come before debt in the construction of a sustainable business balance sheet. Are we seeing a FinTech force that is trying to work against a law of nature? Is there a bait and switch tactic going on in the industry that is being masked by “digital experience” and technology?
I love the month of May! You get the outlandish hat designs of the Kentucky Derby, the speed of the Indianapolis 500, and that innovative design and speed all come together at FinovateSpring! Baker Hill was selected again to present at Spring 2018, where we demonstrated our new Online Loan Application and our Business Origination solutions (you can click here to see our FinovateSpring 2017 video).
They say numbers never lie. I am going to challenge that, at least in this blog. We ended 2017 with data that indicated a shift: smaller community banks (those under $10 billion) were outperformed by their larger competitors when it came to small business lending. Looking back, I think the biggest difference was the adoption of FinTech capabilities by those larger banks and with the openness of their channels to attract and grow their platforms. So how are the smaller banks responding? And most importantly how can we change that trend?