Pandemic Lending Pushes Community Banks Toward Fintech Fixes
Source: Bloomberg Law
A federal stimulus program to combat the recent economic downturn is pushing more community banks to embrace financial technology partnerships.
Some banks already issue Small Business Administration-backed loans, but the $669 billion Paycheck Protection Program, launched in early April, turned many other community banks into SBA lenders almost overnight.
Many banks rushed to onboard new fintech vendors that provide customer due diligence, loan underwriting, and other services needed to swiftly get funds to small businesses harmed by the coronavirus pandemic.