Financing small and medium sized businesses (SMBs) has become a hotly contested market due to the opportunity presented by the well documented funding gap.
The challenges faced by lenders and their credit risk teams are many, and include regulatory pressures, legacy infrastructure, changing customer expectation and a new breed of digital competitors.
And yet, while the credit risk function is keen to adapt it is easier said than done. Nimbler, digital-first lenders are seeing rapid growth as they simplify the user journey, accelerate decision making and improve “time to cash”.
These digitally-native fintechs are using data to create advantage. Turning financial insights into business value. The credit risk function must adapt. Utilizing digital sources of financial data to ensure they have the necessary insights at their fingertips to make fast, accurate decisions.
In this paper we will focus on how automating the collection of accurate financial statements for small businesses can help improve the efficiency and security of credit risk processes and help the lender manage the overall risk of their portfolio.