Customer-first business lending journeys in 2022

"Cash flow, supply chain pressure, fluctuating demand and staffing levels are significant challenges that SMEs face in 2022, and must incorporate into their future plans so they can weather the storm."

Lucile Knight, Chief Strategic Development Officer at Bibby Financial Services

SMEs are looking for more personalised and digitally enabled services and experiences. "In 2022, personalised experiences for customers will show up in numerous ways: through more targeted and relevant messages, the launch of new propositions, and the creation of new channels to access our services," says Lucile.

A test of innovation will be how forward-looking lenders can be in their analysis. Previously, underwriters assessed past data to decide whether to lend, using the borrower’s history and information on hard assets. Now, lenders can leverage new data sources, including transaction data. They can take advantage of PSD2 and open banking, as well as automated real-time data collection.

Borrowers see the value of sharing their data

We expect to see more borrowers willing to exchange their data for faster, simpler application processes for loans of all sizes.

"In 12-18 months, we’ll see more openness to sharing data – and then a demand for it," says Alexis Kopylov, Co-founder and Chief Executive Officer at DBT, adding: "If borrowers are getting a better service and access to funding which enables them to grow, by sharing data, they’ll be keen to share their data even more."

Lucy Hasson, Co-founder and CEO of Esme Loans, wants to see customer journeys “that are accessible and easy to understand, to help people build sustainable careers, businesses and lives in advancement of better and more sustainable communities.”

Get more predictions for 2022

This article is based on Business Finance Predictions 2022, a Trade Ledger report, in which a range of industry experts share their insights into what lies ahead for 2022. In addition to digital transformation and tech partnerships, find out their views on:

• Customer-first lending journeys
• Better, more cost-effective credit decisions
• Forward-looking business models
• Building a sustainable future

Look out for more articles in this series, or download the report now.

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