Small Business Credit: Models and Players Taking Flight

In reviewing the flock of small business credit players, we found that fourteen stand out as best practice in specific parts of the value chain or across the entire chain.

• Incumbents and their tech providers: Wells Fargo, Numerated, and SmartBiz

• Digital giants: Amazon, Paypal, and Square

• Fintech lenders: FundBox, Kabbage, Novicap, OnDeck (and its partner JPMorgan Chase), and Taulia

• Fintech marketplaces: Fundera, Lendio, and NAV

These exemplars provide key lessons learned for banks which aspire to take flight in small business credit:

• Establish cross-functional teams

• Develop regulatory compliance and protocol playbooks early

• Ensure that the new product and/or process is complementary or better than what exists

• Designate credible champions in key areas to galvanize support.

• Educate and train all employees touched by change

• Implement effective win-win sales incentives across channels

• Roll-out in controlled but steady manner with clear 12 month goals

For a detailed discussion of the exemplars, see Small Business Credit: Exemplars of Innovation. In addition, a companion report, Small Business Credit Cycle: From Spring to Winter (September 2017), examines the spring and summer season and discusses how stakeholders can prepare for fall and eventual winter.