Fintech lenders have captured 12% of the SMB credit market, drawing businesses with superior borrower experiences and tech-enabled services. Online borrowers are more profitable, often using and spending more on noncredit services. Many are dissatisfied with their current lenders and open to switching, creating opportunities for traditional institutions. To compete, banks must offer modern digital tools, comprehensive financial services, and teams trained in cross-selling. SMBs borrowing from fintechs tend to be tech-savvy, younger-managed, and more open to online banking, making targeted strategies essential for recapturing this segment.

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