Insight

Reimagining consumer lending business models for profitable growth

Consumer and small business lending requires a digital-first, customer-centric approach

Daryl R. Grant

Daryl R. Grant

Advisory Managing Director, Financial Services Solutions, KPMG US

+1 205-715-6319

John Berry

John Berry

Director, Financial Services Solutions, KPMG US

+1 704-370-4359

Consumer and small business lending market share is being won and lost in a fight to provide value and the best customer experience. New players are shaking up the lending market by offering dynamic, multi-channel ways to engage; fast-moving banks are modernizing platforms and service delivery to compete. The real winner is the customer—better connected, better informed, and expecting better service than ever. For everyone else, it’s a struggle to keep up.

For technology leaders, rising customer expectations present significant challenges.  Antiquated, mainframe-based infrastructure inhibits rapid delivery of new products and services, and is a barrier to delivering personalized digital client experiences.  Outdated loan origination systems (LOS) also tie banks to branch- and product-centric models that are misaligned with customers’ evolving, bank-anywhere expectations.