Innovations in fintech have helped expand consumer access to credit, but the same hasn’t been true for the commercial banking industry. Lending time for middle market businesses can take up to 100 days. And that lag time to accessing capital can slow a business down incredibly.
Fintech has invested less in optimizing the lending market for commercial businesses and Allan Rayson, Chief Innovation Officer at Encore Bank, is determined to change that. Rayson spent the majority of his career in commercial banking and recognizes the need to streamline the process for extending commercial credit.
Inefficiencies in commercial banking
Spending the majority of his career in the commercial banking space, Rayson has worked on several hundred commercial or corporate loans. In that time, one of the biggest problems he’s seen is how long it takes for middle market companies to access capital.
For micro and small businesses, accessing capital takes a matter of hours or days. For the middle market, it can take months. With the goal of reducing the approximately 100 day process to only 10 days, Rayson breaks down the areas that need improving into 3 buckets:
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