Investing in Digital: Emerging Opportunities for Community Banks

2:25 p.m. - 2:50 p.m.
Digital lenders have long sought to tap into community bank capital—small and mid-size banks control over $5 Tn in assets and deposits, understand consumer/small business lending, and can hold whole loans. Conversely, banks see digital lenders and the loans they originate as conduits to deploy capital, diversify geographic concentrations, offer new products, and ultimately garner higher returns.

Yet this natural market opportunity remains largely untapped today due to the high costs small banks face before purchasing third-party loans, including third-party risk reviews, model validation, KYC/AML compliance checks, and ongoing loan portfolio diligence and monitoring, to name just a few.

This session will dive into the benefits that digital loan purchases can yield for community banks, explore the access challenges, and survey new initiatives—that harness existing diligence efforts, regulatory know-how, and improved data and loan monitoring tools—to finally unlock the potential of digital lender/community bank partnerships.