U.S. banks have long used automation to preapprove consumers for their credit cards. Now JPMorgan Chase is taking the same concept and applying it to online small-business loans of up to $200,000.

The idea of computerizing small-business lending decisions is not new, of course; digital lenders like Kabbage and OnDeck Capital have been in that business for roughly a decade. Nor are customized preapprovals a breakthrough; PayPal and Square make similar loan offers to their small-business customers.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.