Discover why SME lenders - and the technology that empowers them - are driving innovation, closing the financing gap, and shaping the future of small business growth.
Traditional banks are often known for rigid credit requirements. Lengthy application processes and heavy documentation demands can act as roadblocks for smaller businesses. For instance, relying solely on collateral as a security measure can be limiting, not every SME has assets to pledge.
SME lenders take a more agile route. By partnering with fintechs and leveraging open APIs, they tap into alternative data sources to build smarter, more inclusive credit models. This opens the door to businesses with limited credit history or unconventional financial backgrounds. In short: their tech-driven approach makes financing more accessible and more aligned with the real-world needs of SMEs.
Digital transformation has reshaped retail banking, but SME lenders have raised the bar even further when it comes to understanding and serving their customers. An EY report calls on traditional institutions to rethink their credit models and catch up with this new standard.
Thanks to integrated data and intelligent automation, SME lenders can predict funding needs, assess risks faster, and offer tailored loan journeys. By analyzing inputs like cash flow trends, online activity, and transaction history, they deliver more accurate, timely, and personalized financing. The result? Faster loan approvals, more relevant offerings, and a smoother experience for the end user.