Online SMB Lenders Have Work to do on Customer Satisfaction

According to a new report by the Cleveland Fed online SMB lenders have a net satisfaction rate of 33 percent while banks come in at 76 percent; online lenders on the other hand approve loans at a significantly higher rate that their big and small bank counterparts; the satisfaction number comes after the loan is originated and borrowers get a better understanding of loan terms and costs while making payments; the other issue is borrowers tend to group all SMB online lenders together when many of the lenders operate differently and focus on specific segments; “Though some online lenders specialize in specific types of financial products, it is clear from Federal Reserve focus group studies that small business owners view these companies collectively as lenders, and their various products as loans,” the report wrote according to PYMNTS.com; there are some regulatory measures being pursued to try and help SMBs better understand these products but there is no silver bullet solution. pymnts