Cultivating a Digital Lending Ecosystem Strategy

Excessive consumer deposits and a low-interest rate environment are squeezing the profitability of mid-sized banks in the United States. A short-term fix for this would be to cut costs and improve efficiency. But in the longer term, a more viable option would be to find new opportunities to generate revenue. This is compelling them to drive new loan growth by heavily investing in digitizing their existing products and distribution channels. By doing this, they hope to compete with the larger banks and better-funded fintech companies that have come to dominate the market. Mid-size banks that cling to these hopes do so in vain.

This report proposes a solution — embedding banks’ lending products within the existing and emerging digital ecosystems that their customers are already using — and outlines concrete steps mid-size banks can take to cultivate, participate in, and build on top of such ecosystems and position their organizations to win in an increasingly crowded market.

Read this research report authored by Alex Johnson, Director-Fintech Research at Cornerstone Advisors, to get detailed insights into-

• The ongoing revenue recession in the United States
• How banks can compress their loan acquisition funnel
• The digital lending ecosystem and its evolving landscape
• How banks can seize this lending ecosystem opportunity to get back on the growth track