Bank of America Brings Business Loans to the Mobile

by Brian Riley 0

 Business loans on your mobile device. Is it progress or a solution looking for a problem to resolve?

No one can argue with the importance of mobile banking, mobile bill pay, or P2P payments on a mobile device, but will business loans on mobile gain traction. Bank of America thinks so, it will be interesting to watch.


• “Our new small business mobile lending experience delivers a convenient, on-the-go solution to meet the needs of today’s busy entrepreneurs,” said Sharon Miller, head of Small Business Banking at Bank of America. “Our high-tech, high-touch approach provides our 3 million small business clients the capability to bank how, where and when they want – including applying for financing anywhere, at any time. This is another way we are providing a competitive advantage for our clients.”


Will the market rush towards borrowing on their mobile devices? There are plenty of mobile use cases across the banking spectrum.
• In 2016, mobile banking customers logged into their accounts nearly 3.8 billion times. 


• During that same period, customers made more than 25 million P2P transfers and 105 million mobile bill payments, a growth of 64 percent and 28 percent, respectively, over 2015.

• Customers also used their mobile devices to deposit more than 103 million checks, receive nearly 1.1 billion text and push alerts, and access their free FICO scores 15.6 million times.

• More customers are opening new accounts through mobile, with sales increasing by 38 percent over the past year.

But, as Groucho Marx once asked: “Will it play in Peoria?” as a measure of acceptance in middle America. Taking a loan, personal or business, requires thought, planning and market knowledge. Bank of America may have a winning product for businesses that require convenient borrowing. The app will certainly be easier than a branch visit, though we will have to see if it outpaces the standard desktop pc.

Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group

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