Banks believe that alternative lenders and digitally enabled supplier finance networks now pose a significant threat to every part of the commercial lending business, according to a survey by Misys.
According to the survey, 68% of banks cited small business lending as being under high threat, while 75% fear loss of market share to alternative lenders.
The research took answers from 114 respondents from 77 banks across the US, Europe, Middle East and Africa as well as the Asia Pacific region, who were asked to share their views on the threats and opportunities created by digital disruption in commercial lending, trade and supply-chain finance.
Despite these challenges, the Misys survey results show that 68% of banks also believe that strategic partnerships with non-bank players could be a strong driver for growing their trade finance business.
“Our survey respondents believe they can leverage emerging supplier networks and the financial technology vendors that can provide digital enablement and connectivity across trade and lending to grow and retain clients. We have seen an increasing focus on strategic technology partnership,” says David Hennah, head of trade finance at Misys, which is a financial software firm.
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