Building Trust In A Digital Lending Landscape
In today's world, trust must be earned through speed, clarity, and respect for a business owner's time.
Automated lending supports these elements of this relationship between SMB and financial institution, but some argue it is an impersonal process that reduces an SMB to just a number.
The idea that automation makes lending less human misses the point. If you use it right, technology helps lenders show up for small business owners in the moments that matter most, with faster, clearer, and more consistent outcomes.
What SMBs want.
Today, most small business owners face one of two extremes:
Neither experience puts the borrower first.
According to the Q1 2025 Lendio SMB Lending Index, 62% of small business owners prefer that some or all of their loan application process be online. Just 2% want the process to be entirely in person. And most expect each stage, from application to funding, to take one business day or less.
That's not impatience, it's just business. Delays can mean missed opportunities: a seasonal spike, a vendor discount, or even making payroll.
That's where tech can help—not by replacing the human side of lending, but by giving business owners more clarity, faster answers, and fairer outcomes.
For example, instead of generic adverse action notice, AI can deliver personalized feedback. By pulling directly from the application, it can explain why a loan wasn't approved, how to improve the next request, and when to try again. That's not just better communication, it's a sign of respect.
The best lenders don't leave SMBs guessing. They offer a path forward. And when that care is supported by smart automation, it builds something even more valuable than speed: trust.
What banks must do.
Lending relationships work best when both sides bring something to the table. Borrowers want capital, clarity, and speed. Lenders want creditworthy customers. The institutions that align those goals—with the right tech and the right partners—are the ones building real loyalty.
According to Lendio's State of Small Business Lending survey, 67% of small business owners have no preference for where they get their loan. That's not just a data point, it's a wake-up call.
SMBs are choosing speed, transparency, and support over brand names and branch locations. The institutions that deliver on those expectations are the ones earning their business.
For banks and credit unions, that means two things:
It's not about chasing the latest AI trends. It's about building lending experiences around the people you want to serve, and doing it better than the competition.
When you know who your borrower is, and you've built a process that's fast, clear, and fair, you don't just win deals—you build trust. And you stay top of mind when that borrower needs funding again.
In defense of a hybrid experience
At the end of the day, people still want to do business with people. Technology should make that easier—not stand in the way.
When lenders use automation to remove friction, streamline decisioning, and deliver clear next steps, they free up time to focus on building relationships with SMBs. Those relationships go beyond a single transaction, and build trust over time.
Imagine a small business owner who needs capital to grow, but also needs guidance on how to get there. A smart digital experience can deliver speed and transparency. A human lender can deliver insight, empathy, and confidence.
The balance of speed and human connection is not a trade-off. It's the future of lending.
Technology should empower lenders to show up for SMBs in more meaningful ways. When financial institutions invest in tools that support fast decisions and deeper relationships, they don't just improve efficiency—they strengthen the kind of trust that keeps business owners coming back.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Digital Trends
7 minutes ago
- Digital Trends
Blindsided by brutal AI chess bots? This one thinks like a human
For years, the game of chess has been seen as a litmus test for how far AI can go against the human intellect. When IBM's Deep Blue supercomputer beat reigning Chess world champion Garry Kasparov in 1997, it was deemed a pivotal moment. The Wall Street Journal called it 'one giant leap backward for mankind.' It hasn't been a total route for humanity, however. Just a month ago, Norwegian chess grandmaster Magnus Carlsen beat ChatGPT in a chess game without losing a single piece. Interestingly, the AI bots are fighting, too. Earlier this month, ChatGPT (backed by OpenAI's GPT-o3 reasoning model) beat Grok, an AI chatbot developed by Elon Musk-led xAI, in a chess tournament. Recommended Videos But how does an average chess-loving person fare against AI bots at chess? Well, it's frustrating. One of the most recurring themes you will see on chess forums is that bots play 'differently from humans.' Of course, when you're playing against a chess computing bot like Stockfish 16 that can assess over ten million positions per second, not many players stand a chance. On the other hand, some seasoned players say beating chess bots is easier because they follow a pattern, and that one must know how to survive the initial assault to beat them. But at the end of the day, AI bots don't play by conventions. A researcher at Carnegie Mellon University has now come up with a less alien solution – an AI chess bot that plays like a human. Say hello to Allie The bot named Allie is the brainchild of Yiming Zhang, a PhD candidate at the Language Technologies Institute (LTI) in CMU's School of Computer Science. Interestingly, Zhang found himself eager to play chess after watching Netflix's popular series, 'The Queen's Gambit.' But soon after dipping into the world of online chess, he found himself frustrated by chess bots. After playing against them, he realized that these bots play unnaturally. Moreover, the underlying tactics behind a chess engine often make it nearly impossible to beat them, thanks to their training, which involves winning at all costs by doing increasingly complex calculations. That's where Allie differs from your average chess-acing bot. It has been trained on 91 million transcripts of chess games played between humans. As a result, the way it contemplates moves, makes attacking advances, and defends positions feels like an average human player. 'Allie is trained on log sequences of real chess games to model the behaviors of human chess players across the skill spectrum, including non-move behaviors such as pondering times and resignations,' says the research paper. During evaluations, researchers found that Allie actually 'ponders' at critical situations in the game. Go ahead and test your mettle The fact that Allie has been trained to think like a human doesn't mean it's a weak player. Far from it, actually. It can hold its fort against everyone from amateurs to grandmasters. 'Against grandmaster-level (2500 Elo) opponents, Allie with adaptive search exhibits the strength of a fellow grandmaster, all while learning exclusively from humans.' Since being deployed publicly, it has amassed more than 11,500 online chess games on the online platform Lichess, where you can also try your skills against it. So far, it has over 6,500 victories against human players, lost just over 4,000 games, and more than 500 battles have ended in a draw. 'For beginners, it's not interesting or instructive to play against chess bots because the moves they make are often bizarre and incomprehensible to humans,' Zhang explains. Interestingly, Allie is completely free and open-source, which means other researchers can build atop it. Do keep in mind it's only accepting invites for Blitz games. Moreover, if you want to learn how the human-like AI chess bot makes its moves before going against Allie, you can watch it in action versus other human players at Lichess. And if you want to take a peek at the code, head over to the GitHub repository.
TechCrunch
7 minutes ago
- TechCrunch
Judge says FTC investigation into Media Matters ‘should alarm all Americans'
A federal judge has granted a preliminary injunction blocking the Federal Trade Commission's investigation into left-leaning advocacy group Media Matters. Back in 2023, Media Matters published research showing ads from major companies had appeared alongside antisemitic and other offensive content on Elon Musk-owned X. When major advertisers subsequently pulled back from the platform, X sued Media Matters. It also sued advertisers and advertiser groups over what it claimed was a 'systematic illegal boycott.' After Musk's then-ally Donald Trump took office again in January, the FTC also began an investigation into whether Media Matters had illegally colluded with advertisers. On Friday, however, Judge Sparkle L. Sooknanan sided with Media Matters and blocked the FTC's investigation. In her decision, Sooknanan (a district court judge for the District of Columbia appointed by Joe Biden) wrote that the Media Matters article represented 'quintessential First Amendment activity' and the FTC's 'expansive' investigative demands appeared to be 'a retaliatory act.' 'It should alarm all Americans when the Government retaliates against individuals or organizations for engaging in constitutionally protected public debate,' she wrote. 'And that alarm should ring even louder when the Government retaliates against those engaged in newsgathering and reporting.' Sooknanan noted that before his appointment as the current FTC chair, Andrew Ferguson had appeared on Steve Bannon's podcast and called for the FTC to investigate progressive groups criticizing online disinformation, and that he subsequently 'brought on several senior staffers at the FTC who previously made public comments about Media Matters.' The FTC did not immediately respond to a TechCrunch email asking whether it intends to appeal. Techcrunch event Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital, Elad Gil — just a few of the heavy hitters joining the Disrupt 2025 agenda. They're here to deliver the insights that fuel startup growth and sharpen your edge. Don't miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $600+ before prices rise. Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital — just a few of the heavy hitters joining the Disrupt 2025 agenda. They're here to deliver the insights that fuel startup growth and sharpen your edge. Don't miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $675 before prices rise. San Francisco | REGISTER NOW Regardless of the legal outcome, X's lawsuits have already had a significant effect on the targeted organizations, with Media Matters cutting staff (one of the laid off researchers is now running for Congress), while the World Federation of Advertisers shut down its brand safety program and reportedly complained of drained finances. Sooknanan said the FTC investigation has also had its 'intended effect,' prompting Media Matters to decide 'against pursuing certain stories about the FTC, Chairman Ferguson, and Mr. Musk.'
Yahoo
13 minutes ago
- Yahoo
Arizona Diamondbacks Expected to Slash Payroll in 2026, Examining Impact on Offseason
The Arizona Diamondbacks entered the regular season with aspirations of being one of the best teams in the National League, led by a deep roster that featured the likes of Eugenio Suarez, Josh Naylor, and Merrill Kelly. Instead, all three players were dealt at the MLB trade deadline, and even more changes are coming. Diamondbacks CEO Derrick Hall told Nick Piecoro of the Arizona Republic that the club would likely need to slash payroll from what it was coming into the season. Related: 'Do I think we need to have the payroll number where it was this year? Probably not. But I think we can have just as good a team as we constructed by reinvesting the money that we have (saved) and then some.' Derrick Hall on the Arizona Diamondbacks payroll in 2026 Arizona came into the season with its payroll at approximately $187 million. While the club lost first baseman Christian Walker (three years, $60 million) to the Houston Astros, it added perennial All-Star pitcher Corbin Burnes on a six-year, $210 million contract. Unfortunately for Arizona, its historic splurge in MLB free agency backfired quickly. Burnes underwent Tommy John surgery in June, a procedure that is expected to sideline him for a majority of the 2026 MLB season. To make matters worse, for a team that fell out of contention during the summer, many of its top players (Naylor, Suarez, Kelly, and Zac Gallen) were all on expiring contracts. Read More: In total, about $17 million was taken off the Diamondbacks' payroll at the MLB trade deadline this year. Hall noted that the money will be 'reinvested' in the club, but it was also made clear that Arizona won't approach the $180-plus million payroll it had coming into the year. According to Spotrac, the projected Diamondbacks payroll in 2026 is $112.508 million. However, that doesn't include raises in arbitration for players like Ryne Nelson, Gabriel Moreno, Alek Thomas, Jake McCarthy, Pavin Smith, and pre-arbitration raises for younger players. So, while some of the money might be invested into next season's roster, it is unlikely that Gallen is re-signed or that either Suarez or Naylor returns to the club via free agency. With last winter's big free-agent addition also expected to miss most of next season, ownership will likely be even more cautious with spending on top free agents this winter. Related Headlines Latest Patriots 53-Man Roster Projection Is Bad News For Two Wide Receivers Promising Patriots Rookie Placed On Injured Reserve Following Preseason Opener Patriots' rookie continues to stand above the rest after impressive preseason debut NFL Teams Prepping for Tyreek Hill Trade in Near Future
