Community bank and credit union groups have recently been focused on using their lobbying power in Washington to limit the advancement and aspirations of innovative fintech companies. How are you planning the growth of your business? Do you need a reliable and low cost small business loan? Just read this blog post and you’ll learn more about the topic. Also, you’ll discover an exceptional business funding provider.
Smaller Institutions & FinTechs
This is an era of the physical giving way to the digital. Data is becoming the next gold and oil. Increasingly, consumers both more and less loyal ones, are demanding a larger variety of mobile banking solutions.
Today’s consumer protection laws and regulation concerning bank or credit union loans also apply to fintech loans. Financial institutions are involved with fintech startups either acting as investors or as strategic partners.
There’re groups that’re currently lobbying against the competition in the fintech field. Their actual member banks and credit unions are showing more and more interest in partnerships with fintech lenders. They’re working on serving the needs of actual customers in a better way.
What’s more, fintech lenders are offering small businesses loans that banks and credit unions didn’t consider economical to offer via physical branch locations. Both regional and community banks have the most to create a partnership with and support the growth of fintech lenders.
Small Business Loan
Americans are increasingly going online. This is true of both those who need credit options and those who’re interested in education to become financially healthier. What about you? Are you already accepting payments online or do you need access to additional working capital? If yes, just consider turning to a reputable alternative online lender like First American Merchant.
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So, fintech lenders act as natural partners to banks and credit unions that’re looking for ways to navigate the new reality and provide the best for their communities. In fact, the banking system in America can get better thanks to partnerships and more forward-looking tactics. The current growth of fintech is forcing all financial institutions to focus on innovation. Otherwise, they’re risking to lose customers.
Let’s take another look at credit unions and fintech firms. The former ones are concentrated on the larger landscape of financial services, while the latter ones are more focused on a single aspect of the business and are focused on it all day long. This is what Sean Rathjen, president and CEO of Consumers Credit Union of Illinois, says.
It’s also important to note that payment card networks can work with contactless payment companies to attract more merchants, smaller ones, to the digital payments ecosystem. This is a move that can also pay dividends for cardholders.
To sum up, fintechs are currently making significant investments in technology to make the performance better, fight competitive threats, as well as enjoy investment and partnership opportunities.