Mobile devices have changed consumer expectations. People now expect that you can have access to anything you might need right from your mobile device. While this has historically been the case for consumer financial apps, Kabbage released data today on small businesses which shows they too are leveraging mobile to better manage their business.
They analyzed behavior of almost 150,000 small business and found that between April 2014 and February 2018 loans accessed through mobile increased by more than 360 percent. Dollars accessed through mobile increased over 1,220 percent. According to the press release:
Today, 17 percent of all small business loans and nearly 15 percent of total dollars accessed via Kabbage are through mobile. At this rate, Kabbage predicts one of every five dollars funded to small businesses will be through a mobile device by the end of 2018.
Kabbage has always been a forward thinking small business lender so it isn’t surprising to see them interested in researching mobile usage so heavily for their small business borrowers. They currently allow small businesses to apply, qualify and withdraw funds from their app which is available in the App Store and through Google Play.
Chief Revenue Officer, Victoria Treyger stated in the press release:
The growth of mobile lending is evidence of an enormous change occurring in this industry. Small business owners are increasingly digitally savvy and are adopting new technologies faster than ever before. Lending is no different. Kabbage is pioneering this shift in lending by making it a priority to meet small business owners where they are and integrate seamlessly into how they’re already running their businesses.
While some people may not be surprised that a fintech company offers a mobile app it’s important to realize that Kabbage is not your typical small business lender. Try applying for a small business loan from any traditional bank through an app on your mobile device. We’ve also seen significant investments in mobile on the consumer side. Companies like MoneyLion are taking more of a mobile first approach to lending. I think this strategy is going to serve these companies well over the long term as mobile adoption for loans eventually overtakes the desktop experience.