How To Meet The Lending Needs Of Small To Medium-sized Enterprises (SMEs)

by | Jun 30, 2022

Discover how your bank or credit union can expand its business lending portfolio

Discover how your bank or credit union can expand its business lending portfolio

As the post-pandemic recovery creeps forward and the economy enters a new phase, banks and credit unions are seeking ways to grow their businesses, while supporting their communities. One way to achieve both goals is to meet the lending needs of small and medium-size enterprises (SMEs).

Perhaps the most important and financially rewarding banking service required by SMEs is access to credit. In today’s uncertain financial climate, banks are trying to balance risk mitigation with customer experience, and make sure the right funds get into the right hands, quickly. Carefully selected tools, and a deep understanding of SME needs, can help your bank or credit union capture this growing market.

Let’s discuss how we can help your bank or credit union expand its business lending portfolio and capture the growing SME market.

Efficient evaluation of SME lending needs

Evaluating business loans is a much more complex process than evaluating other loans. This is because SMEs are not all created equal, which makes every loan you extend unique. That being said, there are baseline expectations for every loan, like ownership structure maintenance, company financial tracking, product information, and security details. Handling these core lending services as efficiently as possible is an essential step towards providing a great business lending experience.

Behind-the-scenes technologies like AI based compliance risk management, multiple business product support, ease of document management, real time funding capabilities, configurable product recommendations, and snapshot views of personal and business banking, can simplify the lending process, enabling true dynamic data driven onboarding.

Additionally, your bank needs to consider how to support vertical or regional differences through the use of specialized utilities. Some examples of such tools might include a farm valuation utility, or a real estate calculator. For maximum efficiency, these should be embedded right in your loan origination system, and the system should be dynamic enough to pick the utilities that are right for each application.

A customer perspective on successful business lending

From a SME customer perspective, the lending experience needs to include four characteristics to be successful.

Your business customers need their lending experience to be:

  1. Accessible – entrepreneurs and other business leaders are busy during standard working hours and may not have the luxury of coming into the branch repeatedly during the application process.Any part of the loan application process that can be handled remotely, through secure technologies like e-signature, will be a boon to these customers. This goes double for business customers in rural or remote regions, whose local branch may be a good distance away.
  2. Easy to use – Your business customers expect a convenient and personalized experience when applying for a loan.To maximize CX and share of wallet, make it simple to consume products by selecting a digital origination solution that offers a marketplace design, with an Amazon style shopping experience and multi-product support.
  3. Efficient – many businesses applying for loans have a fairly urgent need for credit. Business loan adjudication takes time, so some lag is unavoidable. But your bank or credit union should work hard to avoid delays due to internal issues like manual review cycles or files lost in email inboxes.
  4. Traceable – today’s customers are more impatient than ever, and they expect 24/7 information about the progress of their loan application or other paperwork.

Using a digital origination system, you can keep tabs on an application as it moves through the lending process. That way, when a business owner or leader calls in to enquire about their loan, they can be updated immediately.

Read how Doxim is helping Mainstreet Credit Union increase adoption of its digital solutions with Doxim Self-Service Account & Loan Origination.

How Doxim helps banks and credit unions meet the needs of small and medium-sized enterprises

banks and credit unions meet the needs of small and medium-sized enterprises

The Doxim enterprise origination solution and self-service tools act as a central hub for commercial lending processes within financial institutions:

  • Capturing commercial entity, ownership, financial performance, cash flow, balance sheet and organizational data.
  • Commercial Security/Facility management.
  • KYB and KYC functionality in tandem for end-to-end digital authentication for business and users.
  • Commercial Networth Analysis
  • Real-time commercial credit scoring
  • Streamlined document management
  • Document extraction and management
  • Commercial decisioning through technology to enable rapid fulfillment.

Doxim Digital Origination is a powerful, integrated solution designed to meet all your origination needs through the whole customer journey. It offers a host of features designed to help banks and credit unions expand their business lending portfolios, including:

  • Centralized Core Lending Services – Create a cost efficient and scalable base for growth, by having core lending services that are centralized and shareable.
  • Standardized Processes – Centrally manage all origination using consistent business rules regardless of channels/input sources.
  • Origination API smooths the integration of data from submission to Doxim solution, creating efficiency, speed, and transparency.
  • Aggregated Lending Support creates room for growth for bundled digital experiences.
  • Shared Integrations – Leverage pre-built integrations to enterprise applications including CRM, ECM, and Core Banking.
  • 360 View of the Consumer -Access all holdings, loan information, and associated documents in one place for a true 360° view of the business.
  • Channel Continuity – Origination requests can continue across channels seamlessly, creating one single source of truth.
  • Better Lending Decisions – Readily available customer, business, and third-party data plus robust decision engine to enable better lending decisions.
  • Increased Loan Processing Capacity – Lower application processing time, which enables you to process a larger number of applications from the same headcount.
With the spring release of Doxim CEM, Doxim is continuing its journey to help banks and credit unions digitize and create the on-demand products and services that their customers value. While previous releases of Doxim CEM have included tools for digitizing all facets of retail banking, the Spring 2022 release brings that same focus to business banking.

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Sean Kennelly
Sean Kennelly, Former Vice President, Product Management, CEM
With close to 15 years of industry experience, Sean Kennelly brings a wealth of technical know-how to Doxim. During his career, he has led both Operation and Managed/Professional Services teams, and been involved in Project and Product Management; he has also held multiple sales leadership roles. For the last decade, Sean has been heavily involved in the support, implementation, design, and planning of Doxim's products and services. This experience, as well as his engagement with North-American regulated industries entities; informs his vision around customer experience, communications and payments.

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