Lumos Business Report: Automated Intelligence for Small Business Lending
Small business lending is critical to the financial industry, vibrant communities, and the American economy. However, lending institutions face challenges in increasing small business lending while managing credit risk and allocating resources. To address these challenges, it is essential to streamline lending processes, improve operational efficiency, manage risk effectively, and boost profitability. The Lumos Business […]
It Really Shouldn’t Be This Difficult: Small Dollar Small Business Lending
Somehow, even with more than 33 million small businesses in the United States, making small dollar small business loans lacks the process efficiencies to make it worthwhile for banks. It’s not for lack of desire — it’s no fun, as a banker, to try and dodge your friend (a small business owner who came to […]
Unlock Your Lending Potential: How Lumos Prime+ Score Helps Overcome Small Business Credit Risk
Ask a lender to choose between 2 options: originate ONE $3 million small business loan or originate TEN $300 thousand small business loans, which do you think the lender would choose? Although the total originated amount is the same, the lender would select the $3 million option. Why is that? One main reason for this […]
It’s a Big, Big Deal: The Giant Opportunity for Smaller Dollar Small Business Lending
Small dollar loans to small businesses are a trending topic. With more than 33 million small businesses in the United States, it is easy to why. But, this trending topic struggles to make it beyond an idea stage. As the needs of businesses vary depending on size and maturity, larger dollar loans often take priority […]
The Secret Every Small Business Lender Knows: The Market Opportunity for Small Dollar Loans is Vast
It’s not a secret that financial institutions have historically struggled to provide small dollar financing to small businesses. This type of lending comes with inherently higher risks and returns that hardly justify the operational costs. An institution that overcomes these hurdles has taken the first steps toward a tremendous market opportunity – 33 million small […]
Is SBA Loan Performance a Proxy for the Broader Economy?
Many academic papers have been written about SBA guaranteed lending programs. They explore everything from loan failure rates to the impact on the availability of finances in a lower-income area. But when we take a step back, it’s possible to examine this topic from an even wider perspective and ask the question: Is SBA loan […]
4 Ways Unemployment Affects Financial Institutions
It’s never easy when unemployment rates are high and job creation is at a standstill. While these situations produce high-stress levels for individuals directly impacted by them, financial institutions undergo their own challenges in these circumstances, as many of them may experience a dip in the performance of their customer base. Financial institutions, such as […]
How Banks Navigate Rising Inflation
Do banks win or lose in a high inflation scenario? The answer is more complex than you might think. As inflation reaches a decades-long peak, consumers’ money is quickly losing its buying power, and they have less ability to buy goods or invest as before. This negatively impacts consumer spending and saving habits, directly affecting […]
The SBA Loan Landscape Has Been Reshaped Post Covid-19
For better or worse, the SBA loan landscape was transformed with the onset of the COVID-19 pandemic. Relief programs offered forgivable and low-interest loans to keep small businesses afloat. But there were challenges and even recipients who misused or abused the system. As a result, things may look different going forward. Here’s how COVID-19 reshaped […]