Tax reform and the need for new, tech-savvy banks to compete with fintechs are high on a growing list of factors encouraging investors to gamble on banking startups.
The removal of costly appraisal requirements on tens of thousands of smaller commercial properties could help community banks better compete for loans they say they have been losing to nonbank lenders.
Preferred Bank's experience with an apartment developer is a reminder of how important strict underwriting terms will be as loan demand increases, rates rise and lenders try to outdo each other.
A bank that can deliver a loan decision a little faster, or ask a client to input information just once, could get a leg up on the competition. But some executives are skeptical of software sales pitches and fear overpaying.
Leader Bank says it can land property managers as commercial clients by helping them handle tenant deposits — and possibly create opportunities to boost CRE lending.
