FIS and Lendio Partnership | SMB Digital Lending Solution

FIS, a global leader in financial technology, has launched its new SMB Digital Lending solution in partnership with Lendio. The solution streamlines and automates lending processes for financial institutions, making it easier for small and medium-sized businesses (SMBs) to access funding.

With 99.9% of American businesses being small businesses, representing 43.5% of U.S. GDP and employing nearly half of the workforce, SMB loan underwriting has historically been a costly and time-consuming process. High interest rates and extensive documentation requirements have made SMB loans prohibitive for some borrowers, leading them to seek alternative lenders.

FIS' cloud-native and API-driven SaaS solution, SMB Digital Lending, combines large-scale data science and machine learning with market-leading loan underwriting expertise to provide fully automated decisioning and loan boarding. The solution generates a holistic view of borrower health, pre-qualifies SMB depositors, and targets them with marketing and sales outreach to help lenders generate additional revenue growth.

SMB Digital Lending is designed to complement any financial institution's current technology stack, making it easy to adopt and provide an industry-leading digital customer experience for small businesses.

Brock Blake, CEO and co-founder of Lendio, expressed enthusiasm for the partnership with FIS, stating that the solution enables banks to offer a fast, easy, and transparent loan process to their small business clients, creating a win-win situation for both banks and small businesses.

Our Opinion:

While the new SMB Digital Lending tool from FIS and Lendio could help more businesses get funding, it might hurt alternative lenders who often help riskier businesses. The tool uses AI to decide on loans, which could be faster but might not be fair to all applicants. As banks get better at small business lending, it could change how the whole lending market works. It's important to watch how this affects different lenders and borrowers. We need to keep a mix of lending options to help all types of small businesses get the money they need to grow.

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