It’s good to be a business lender with a long contact list. Loan growth is weak and the talent pool has been shrinking, so banks big and small are paying top dollar to get an edge.
Amid the rise of online lending earlier this decade, banks were derided as being too slow to adapt. But over time it's become clear that banks hold key advantages over lending startups.
Home equity lines could double over the next six years. Some banks are actively pursuing the consumer credit opportunity, whereas many still feel stung by the housing crisis, unimpressed by home equity’s comeback so far or fearful of nonbank competition and fraud.
Auto risks mounting. Mortgage market tightening. Are there any good risks these days in consumer lending? Regional bank executives insist partnerships with online lenders, unsecured personal loans and other niche efforts can work if done properly.
The Rhode Island bank plans to build out its fee income capabilities, expand C&I lending in the Southeast, renegotiate vendor contracts and take other steps to produce expense cuts and revenue enhancements of at least $90 million.
Michael Cleary, Santander's head of consumer and business banking, and Robert Rubino, a former executive vice president at Citizens Financial Group, will share duties while overseeing their own business units.
The good news: SBA lending is going gangbusters and business owners are optimistic about growth prospects and their ability to access credit. The not-so-good news: Many firms are still not particularly interested in borrowing and startups are not the engines of job creation they once were.
