360° Coverage : Did I Just Say 'Banking' And 'Innovation' In...

2 Updates

Did I Just Say 'Banking' And 'Innovation' In The Same Sentence?

Apr 22 2014, 6:52pm CDT | by

Bankers take a lot of abuse for not being the most innovative characters, but that doesn’t mean there aren’t innovative bankers. There have been a lot of predictions regarding technology...

Filed under: news

 
 
 

25 weeks ago

Did I Just Say 'Banking' And 'Innovation' In The Same Sentence?

Apr 22 2014, 6:52pm CDT | by

Bankers take a lot of abuse for not being the most innovative characters, but that doesn’t mean there aren’t innovative bankers. There have been a lot of predictions regarding technology implementation within banks in 2014, which I think are going to happen (or at least they should), but that isn’t the only way innovation takes place within the marbled sanctuaries where Mr. Banks, of Mary Poppins fame, spent his days counting tuppence.

Here are a few small business lending innovations I think bankers should pay attention to:

Alternative Lenders Within the Bank?

Not too long ago I spoke with a former alternative lender who is now doing small business equipment loans out of a traditional bank in California. He runs his national business loan department as a stand-alone business unit, the same way he did before he became part of a traditional bank.

Over the last few years, specialty loan products like equipment loans, among others, have been much easier for small business owners to acquire than traditional, long-term, fixed-interest loans from the bank. What’s more, as online alternative lenders continue to increase their share of the market, I hear of forward-thinking bankers looking at what online lenders are doing and incorporating them into the mix of small business loan products they offer.

Introducing the paradigm shift of treating equipment loans like an alternative lender rather than a traditional banker might be a shock to some in the bank, but a lower cost of capital along with a national footprint is a great combination for many small business owners using this service.

Banker Needs a New Pair of Shoes

Another group of bankers set time aside every week to visit current and potential customers on their turf. Of course this isn’t that unusual, the best community bankers have been doing this for years. What makes these visits different? It’s who makes them—the bank president and the rest of his executive team.

It’s far too easy for all of us to let the day-to-day stuff get in the way of what we would otherwise consider important work. These bank executives schedule a certain amount of time each month to visit small business owners they would like to see become bank customers as well as some of their current customers. They claim it’s amazing what they discover by taking the bank’s executives on the road.

Innovation doesn’t always require a new idea. Sometimes it’s as simple as revisiting old ideas with a fresh perspective and interpretation.

It’s A Lot Like Batman and Robin, or Maybe Hot Fudge and Ice Cream

I like the idea of incorporating the lessons we’ve learned online within the small business loan process. Another bank in California, has partnered with an online service provider to streamline the small business loan process. For SBA (Small Business Administration) guaranteed loans of under $150,000 or less, this banking/technology partnership has reduced the time it takes to get an SBA loan approved to as little as five days. By leveraging an online application, which is substantially less cumbersome than a traditional application, small business owners who might not otherwise be able to get a low-interest SBA loan are finding success because the partnership substantially lowers the cost of servicing these smaller loan amounts.

Aesop may have coined the phrase, “Necessity is the mother of invention,” but this partnership leverages innovation to benefit small business owners all across the country.

Yes, bankers can be innovative and there are many who are thinking outside the box to make their products and services more accessible to their customers. Mobile banking and other technology tools are a big part of that, but that’s not the only place bankers can innovate. Are you an innovative banker? Share with us what you’re doing to put old paradigms out to pasture.

 
Update
2

7 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashin ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

7 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

China stocks open higher
Beijing, Oct 20 (IANS) Chinese stocks opened higher Monday with the benchmark Shanghai Composite Index opening at 2,346.05 points, up 4.87 points, or 0.21 percent.
 
 
US defence department to create medical team for Ebola
Washington, Oct 20 (IANS) The US Department of Defense said Sunday the military is creating a 30-member team which will be tasked with providing emergency assistance in case of Ebola virus infection in the country.
 
 
Israel's Tamar gas field to sell gas to Egypt
Jerusalem, Oct 20 (IANS) Israel's Tamar gas field announced Sunday they have signed a bid to sell at least five billion cubic meters of natural gas over three years to private consumers in Egypt.
 
 
Liberian president calls for global support to fight Ebola
Monrovia, Oct 20 (IANS) Liberian President Ellen Johnson Sirleaf Sunday called on the international communities to join the country to fight the Ebola virus disease.
 
 
 

Latest from the Network

Bush shoe-tossing painting hits record at Doha auction
Doha, Oct 15 (IANS/EFE) A controversial painting by Iranian artist Mahmud Obaidi, depicting an Iraqi journalist throwing shoe in 2008 at then US president George W. Bush, was sold for $62,500 at a Sotheby's auction in...
Read more on Celebrity Balla
 
US offers $45 mn bounty for eight terror leaders
Washington, Oct 15 (IANS) The US said Tuesday it is offering rewards totalling up to 45 million dollars for information on eight key leaders of the Al Qaeda in the Arabian Peninsula (AQAP) terrorist organisation. The...
Read more on Politics Balla
 
UNSC extends peacekeeping mission's term in Abyei
United Nations, Oct 15 (IANS) The UN Security Council (UNSC) has renewed the mandate of the UN peacekeeping mission in the Abyei border region between Sudan and South Sudan. In an unanimously adopted resolution, the...
Read more on Politics Balla
 
Ebola cases in West Africa could reach 10,000 per week: WHO
Geneva, Oct 15 (IANS) The World Health Organisation (WHO) has warned that the Ebola epidemic in West Africa could reach 5,000 to 10,000 cases per week by the first week of December. "Quite frankly, ladies and...
Read more on Business Balla
 
Turkey, Singapore sign strategic partnership agreement
Ankara, Oct 15 (IANS) Turkey and Singapore have signed a strategic partnership agreement to boost economic, political and cultural cooperation, as well as security collaboration, during the official visit of...
Read more on Politics Balla
 
Christina Aguilera is returning to 'The Voice' USA
Christina Aguilera will return to 'The Voice' USA next year. The 'Your Body' hitmaker, who previously shared a rotating spot on the judging panel with Shakira, has been replaced by Gwen Stefani this season as she is...
Read more on Celebrity Balla
 
Kesha's music producer hits back
Kesha is being countersued by her record company boss, Dr. Luke. The 41-year-old music producer, who runs Kemosabe Records, claims the 27-year-old 'Tik Tok' singer is a liar and is trying to extort him after she accused...
Read more on Celebrity Balla
 
Jason Derulo won't get back together with Jordin Sparks
Jason Derulo insists his split from Jordin Sparks is permanent. The 'Talk Dirty' hitmaker, who recently ended his relationship with the 'No Air' singer after three years of dating, has ruled out getting back together...
Read more on Celebrity Balla
 
Josh Groban feels 'very lucky' to be dating Kat Dennings
Josh Groban feels ''very lucky'' to be dating Kat Dennings. The 'Brave' hitmaker was very nervous before singing in front of the '2 Broke Girls' actress for the first time at the Carousel of Hope Ball in Beverly Hills,...
Read more on Celebrity Balla
 
Australian Richard Flanagan wins 2014 Man Booker prize
London, Oct 15 (IANS) The first Man Booker prize to allow American nominees was Tuesday night won by an Australian, with Richard Flanagan triumphing for a novel of love and war that tells the harrowing stories of...
Read more on Celebrity Balla