- November 20, 2018
- Posted by: Mark Ruckman
- Category: Banks, Capital Markets
Competing with Banks?
My banker friends like to ask, are you trying to put me out of business?
The answer is no
In our materials we draw comparisons between to Halagard’s solution and loans. The reason we made this comparison is that today a loan is the only capital solution for an SMB. Capital is like a bowl of Apples & Oranges, both fruits can exist side-by-side and fulfill the needs of a hungry person. Just as Loans and Capital Markets can work side-by-side and serve the needs of SMBs.
A few ways we see ways we see Banks and Halagard working together:
1) Some percentage of companies that apply to join the Halagard Marketplace are not going to be a good fit. We will send their package electronically to Banks. Thus, saving the SMB paperwork time and reducing customer acquisition cost for the Bank.
2) 50% of requested loans each year are either denied or underfunded. If the Bank has a stable company, they can refer them to Halagard. If a Bank is providing an SMB with multiple services a referral can help with customer retention.
3) Today, decent data on SMBs is missing in the marketplace. As our data set on SMBs evolves, Banks can leverage our data to lower loan risk and expand markets.
4) Additionally, our Bank API, will allow Banks who join our network to increase the number of depositors with a net worth of $1M+.
Bottom Line, Banks are still making loans to large corporations even though these corporations have access to multiple capital options. There is enough need for capital by SMBs that Banks and Capital Markets for SMBs such as Halagard can coexist.