Banking and Finance Industry Research

Decline of Small Business Lending

A new study from Raddon and PayNet suggests that lending practice reforms will connect small businesses with credit and boost economic performance.

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Rise of Fintech

A decline in credit access in large banks has led to the rise of the fintechs in the lending space. The percentage of small businesses borrowing online has gone from 14% in 2014 to 24% in 2018--a dramatic jump whose implications should concern financial institutions.

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The Broken Credit System

The hypothesis: big bank lending was down and it was impacting local economies. Drawing on the large pool of PayNet data, Harvard laid out a study to see if this was true--and if so, the reasoning behind it.

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PayNet Strategic Insights March 2019

Business investment picked up in the fourth quarter after a deceleration in Q3, but overall economic growth cooled and is expected to weaken further in 2019. Small business sentiment has also softened thus far in 2019, in part because of the January government shutdown.

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Credit Outlook for Main Street

Booming had been the story about Main Street America with the releases of data for most of 2018. Booming is proving to be short-lived as we see in this latest report.

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REVIVING MAIN STREET AMERICA

While the country enjoys unprecedented levels of small business optimism, access to credit will either boost or curtail economic growth within this high-impact sector, according to a new study.

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New Study Demonstrates High Lift from Commercial Scores Even in Cases Where Credit Files Are "Thin"

A PayNet client asked how predictive PayNet’s scores were when the borrower’s credit file was thin, with few prior contracts. To evaluate this, PayNet conducted two analyses using PayNet MasterScore® v2 at time of origination for transactions originated from 2005 to 2012...

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What is the Impact of Repossessions on a Borrower's Credit Score?

A PayNet client operating in the US and Canada asked about the impact of repossessions of a single or several trucks on a large borrower’s credit profile.

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What is the Credit Quality of Marketplace (Alternative) Lenders?

Marketplace refers to a broad category of companies providing capital to businesses and consumers at a lower cost than traditional channels using a combination of technology, data, analytics, and traditional credit systems. The Marketplace lending model is generally high risk with high return.

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Case Study: Business Banking Loan Portfolio Growth

This case study describes a regional bank's experience using PayNet AbsolutePD and PayNet's Small Business Indices to organically grow its portfolio.

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FILLING THE LENDING VOID

As small businesses struggle amidst the shutdown-induced SBA program closure, they may have other options.

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