Small Business Lending Survey Report: The Federal Deposit Insurance Corporation (FDIC) released its 2024 Small Business Lending Survey Report (SBLS) in October 2024, providing valuable insights into how U.S. banks meet the credit needs of small. Conducted between June 2022 and January 2023, the survey received responses from approximately 1,300 banks, representing over 68% of the national banking sector.
Small Business Lending Survey Report:
Technology Integration: While nearly half of the banks surveyed are utilizing or considering financial technology (FinTech) in their lending processes, the core activities of loan underwriting and approval remain predominantly human-driven. Technology is primarily employed for regulatory compliance, data management, and post-approval servicing.
Relationship Lending: Despite technological advancements, relationship-oriented, staff-intensive lending practices persist. In-person interactions at local branch offices continue to play a crucial role in developing and maintaining small lending relationships.
Competitive Landscape: The survey highlights that banks are actively competing with credit unions and nonbank FinTechs for small business clients. Approximately 30% of banks have integrated FinTech solutions into their lending processes, with another 20% in development or discussion phases.
FDIC Chairman Martin J. Gruenberg emphasized that small lending remains one of the most traditional forms of lending, with decisions generally underwritten and approved by bank staff. This underscores the enduring importance of community banking relationships in serving small business clients.
For a comprehensive understanding of the survey’s findings, you can access the full report on the FDIC’s official website.
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