Community banks have long focused their resources on commercial lending—and for good reason. But as the industry evolves, forward-looking banks are rethinking their approach. Leaders across community banking are discovering that consumer lending plays a powerful role in driving long-term commercial growth.
Consumer lending is often the first step in a long-term financial relationship. If we ignore that entry point, we miss the opportunity to serve tomorrow’s business owners today.
This white paper explores how consumer loans can be a gateway to profitable commercial relationships, especially as Millennials and Gen Z lead a new wave of entrepreneurship—and as Baby Boomers prepare to hand over the reins to the next generation of business owners.
While consumer lending can be more operationally intensive and less profitable upfront, the right technology makes it manageable, efficient, and scalable. Tools designed for community banks can:
- Streamline origination with automation
- Ensure consistent policy adherence
- Enhance compliance and fraud detection
- Improve speed and borrower experience
- Empower and support lenders—not replace them
The consumer lending journey is full of opportunity. It’s also a powerful retention tool—data shows that banks with strong consumer lending programs retain 80–90% of their top commercial clients who started as consumer customers.