Invesments in software can speed up decision-making and help traditional lenders better compete with fintechs for creditworthy customers who want their loans quickly.
The $380-billion asset company will soon join the parade of big banks and tech companies that are migrating online to meet the demands of business owners.
Rep. Emanuel Cleaver, D-Mo., released a survey of lending practices that he said point to practices such as forced arbitration clauses and extracting a customer’s credit score to determine creditworthiness.
The online small-business lender was aided by loan growth, wider margins and stable credit trends. Its shares surged by 25% after second-quarter earnings were announced.
First-of-its-kind legislation seeks to tame the largely unregulated world of online small-business lending. It has drawn bipartisan support from lawmakers, but so far has failed to satisfy either the industry or its critics.
