Small business lending. Name a desire shared by most credit unions and those three words capture it. Most definitely want to do more small business lending but most also are falling short of their own expectations.
On the show today is Sherif Hassan, an expert in how to better use data to make more and more profitable loans.
Sherif is a veteran on this show. He appeared on episode 113, almost four years ago, and his topic then was “The Opportunity in Small Business Lending.”
It’s not coincidence that this episode wears the same title – but this is a very different, very upbeat show. Sherif is convinced credit unions are well positioned to score very big in this market. He tells why and how.
Along the way Sherif tells about Benford’s Law, a mathematical formula that automates fraud detection in loan apps. There’s a link in the show notes to a paper he wrote about it.
There’s also a link to a paper he wrote on highly cost effective data procurement. In one case a small business lender saved $325.000 a year simply by buying data to use in reviewing loan apps more effectively. Many, many other lenders could do likewise, says Sherif.
If you want an upbeat, optimistic show about doing better at small business lending, this is the episode for you.
