Small businesses face a significant challenge when it comes to accessing capital, presenting a substantial opportunity for lenders who can effectively address this need. Traditional financial institutions, often constrained by outdated systems, have struggled to deliver the seamless, efficient experience that business owners now expect.
Adam Hughes, CEO of Amount, emphasized to PYMNTS’ Karen Webster that the majority of small business owners consider world-class digital capabilities as crucial and expected from their banks. When seeking lending solutions, digital offerings are now considered essential.
This demand for digital solutions extends beyond mere convenience and quick access to credit; it also encompasses the need for additional financial tools, including deposit services. However, the current small business banking landscape remains fragmented, with many financial institutions failing to meet these expectations.
Hughes pointed out that even some of the largest banks in the country take weeks to fund small business clients, largely due to manual, paper-intensive processes. While businesses require rapid solutions, legacy banks tend to move at a slower pace. As competitive pressures from agile FinTech companies intensify, this slow approach may no longer be sustainable.
To retain and grow their small business customer base, banks and credit unions must now prioritize delivering an integrated and frictionless credit and deposit experience. The small business banking sector is not only fragmented but also highly competitive, with FinTech companies offering digital solutions that rival traditional banks.
Amount’s Small Business Suite aims to address these challenges by providing a solution that enables banks to deliver fast, reliable, and profitable services. The platform combines lending and deposit capabilities, allowing for a quick assessment of a small business owner’s creditworthiness and the provision of appropriate financial products at the right time.
Historically, credit and deposit origination have been treated as separate processes, leading to disjointed customer experiences and inefficiencies. However, advancements in digital technologies, including artificial intelligence, automation, open banking APIs, and cloud-based platforms, are transforming the landscape.
Hughes highlighted that offering both lending and deposit capabilities on a unified platform allows banks to streamline their operations, enhance customer satisfaction, and unlock cross-sell opportunities between small and medium-sized businesses and consumers.
Data plays a crucial role in these relationships and products. Amount’s platform integrates with over 50 different vendors, constantly testing and refining these data sources to help banks assess small businesses’ creditworthiness more accurately. This enables banks to lend to a broader pool of applicants by automating processes and reducing loan approval and funding times.
With the rise of AI-powered fraud, data-driven solutions have become essential. Amount’s Small Business Suite leverages machine learning and predictive analytics to streamline lending and anticipate small business clients’ financial needs. Hughes believes that the platform’s potential to offer more tailored products and services based on data analytics is just beginning to be explored.
As small businesses increasingly demand digital-first solutions, providing enterprise-grade tools has become crucial for financial institutions. Despite their size, small businesses require
sophisticated tools to manage cash flow, make decisions about working capital, and access credit. Hughes views technology as a great equalizer in this space, helping to level the playing field between large and small institutions.
The ultimate goal, according to Hughes, is to redefine the
relationship between lenders and small and medium-sized businesses, fostering long-term partnerships and growth. This can be achieved through a more personalized lending experience, leveraging technology to better understand and meet the unique needs of each small business client.