For the second year in a row, we left LEND360, a major fintech conference held by the Online Lenders Alliance, with more draft notes than business cards. Conversations this year—both on stage and in the hallways—circulated around a familiar theme: technology is rewriting how small business finance products are delivered, but no one agrees on what “digitization” should actually look like.
Husch Blackwell partner Christopher Friedman moderated a panel, “Digitizing Lending to Drive Small Business Loan Access,” where lenders, data providers, and tech platforms compared experiences modernizing SMB credit programs. What follows is not a transcript, but rather a collection of things—heard, said, or implied—that stuck with him.
Small business finance still feels harder than it should
Panelists were unanimous: the fundamental challenges for small businesses have not changed. Loan applications still take too long. Requirements differ by lender or finance company. Documentation is fragmented. And for entrepreneurs who are not digitally fluent—or who operate in communities with weaker banking access—the process can feel impenetrable.
One comment summed it up: “In many cases the business owner knows their numbers, but not how to translate them into what a lender needs to see.”
Digitization is helping, but the starting point remains uneven.
Speed is table stakes
A theme that surfaced throughout the discussion: speed is no longer a “nice to have.” Digitization enables faster decisions because real-time data shortens the distance between application and underwriting.
The shift is not theoretical. SMB finance companies are pulling cash-flow data directly from accounting platforms. Bank-transaction categorization is happening automatically. Several panelists noted that reducing back-and-forth requests for documents has become one of the most tangible improvements for borrowers.
“Fewer emails” may not sound like innovation, but it moves approvals forward.
Data can reduce human bias—if used responsibly
The panel spent meaningful time discussing fairness. Digital underwriting can remove some subjectivity from credit decisions, but only if finance companies design their models thoughtfully and monitor for drift.
Two practices came up repeatedly:
- Audit the model, not just the output.
- Test alternative outcomes to confirm the model is not replicating legacy bias.
One panelist put it plainly: “Reaching underserved groups is not only good policy; it’s a competitive opportunity. Digitization helps you find the customers the traditional system overlooked.”
Product innovation is happening around the edges
Rather than new loan structures, much of the innovation is happening around intake, data access, and repayment.
The panel discussed small-dollar working capital products supported by automated cash-flow monitoring, as well as embedded credit offered at the point of sale, especially for merchants who need short-term liquidity but lack traditional financial statements.
The through line: products built around how small businesses actually operate, not how lenders traditionally underwrote.
Relationship banking is not going away
The panel was asked: Does the relationship lender still matter if everything is digital?
The consensus was yes, but differently. Many SMBs still want to speak with someone when stakes are high, but they want the interaction after convenience has been delivered—not instead of it.
One panelist described the modern approach as “relationship on demand,” mixing automation, human callback options, and proactive communication once data signals a change in the borrower’s condition.
Cash flow is the new center of gravity
Traditional underwriting has always included cash flow, but digitization has widened the aperture. Instead of relying solely on PDFs and borrower-provided statements, finance companies now absorb multiple streams of real-time data:
- accounting platform integrations
- bank-transaction tagging
- receivables and payables patterns
- payroll cadence
- merchant processor data
This shift gives finance companies more accuracy and gives businesses more capital opportunities, especially those without robust collateral or long operating histories.
Roadblocks are more operational than technological
Despite progress, finance companies still face internal barriers when adopting new technology. Several challenges surfaced:
- legacy systems that do not communicate with new tools
- staff training gaps
- compliance hesitation around unfamiliar data sources
- borrower skepticism about sharing digital access
Importantly, these challenges were not viewed as permanent. The more alternative commercial finance companies invest in user education—both internally and externally—the faster adoption follows.
The future points to personalization, embedded services, and better data controls
When asked about the future of SMB finance, panelists highlighted a few trends:
- underwriting that adapts dynamically to the borrower’s cash flow
- embedded lending at moments where financing needs naturally arise
- increased use of alternative data, paired with more formal governance
- automation that handles routine decisions so humans can focus on complex cases
One panelist closed with advice that applies broadly: “Modernization works best when it starts small, solves something real, and scales only after the process proves itself.”
Final thought
Fintech conferences often showcase the latest tools, but what stood out this year was simpler: digitization is helping alternative commercial finance companies meet small businesses where they are. The work ahead is not about adopting technology for its own sake—it is about designing systems that let small businesses access capital without friction, confusion, or delay.
If that remains the industry’s focus, the conversations at next year’s conference may finally feel less like problem-spotting and more like problem-solving.
Contact us
If you have questions about the alternative consumer finance industry, please contact Christopher Friedman, Alex McFall, Shelby Lomax, Grant Tucek, Jakob Seidler, Luis Hidalgo, or your Husch Blackwell attorney.
This update is for educational and informational purposes only and does not constitute legal advice. For guidance tailored to your specific situation, you should consult an attorney.
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