New Cornerstone Advisors Research Highlights $106 Billion Consumer Lending Opportunity for Community Banks
A new report by Cornerstone Advisors reveals that community banks are missing out on a significant consumer lending opportunity, potentially losing up to $106 billion in loan demand over the next two years. The study emphasizes that consumer loans should be viewed as tools to strengthen business-owner relationships and protect deposits rather than just profit centers. It highlights how many small-business owners turn elsewhere for personal loans due to better rates or faster approval times at larger banks, credit unions, or fintechs. The research is based on a survey of 1,249 small-business owners and interviews with community bank executives. Nearly 60% of business owners currently use one of the five largest U.S. banks for their financial needs, where consumer lending makes up a significant portion of total loan portfolios. The report also shows that only about half of those who obtained personal loans used their primary business bank. Cornerstone Advisors and Teslar Software argue that modernizing origination processes can make consumer lending more efficient and profitable for community banks while supporting long-term growth.
Topics: banking_strategy community_banks consumer_loans small_business_owners