Kabbage, Inc., a global financial services, tech and data platform serving small businesses, analyzed the lending behavior of nearly 150,000 small businesses — sourcing its own customers — noting a steadily increasing growth in mobile lending. The total number of loans accessed through mobile increased by more than 360 percent between April 2014 and February 2018. In the same period, the total dollars accessed through mobile increased over 1,220 percent.
“The growth of mobile lending is evidence of an enormous change occurring in this industry,” explained Kabbage Chief Revenue Officer Victoria Treyger. “Small business owners are increasingly digitally savvy and are adopting new technologies faster than ever before. Lending is no different. Kabbage is pioneering this shift in lending by making it a priority to meet small business owners where they are and integrate seamlessly into how they’re already running their businesses.”
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The growth demonstrates a new trend that small business owners expect a simple, no-wait process to apply for and access working capital. Crowdfund Insider reached out to Treyger for further details regarding the Kabbage’s research:
“This analysis is about the increasing trend that small business owners are changing their behaviors and expectations about how they access working capital. Similarly, as many other financial activities have shifted to mobile — from payments, investing and banking — lending, too, is seeing a greater adoption on mobile,” shared Treyger via email. “Kabbage is uniquely positioned to show this trend, as it’s the only lending company with a mobile lending platform that allows companies to apply, be approved, and take funds all from the mobile app.”
Today, 17 percent of all small business loans and nearly 15 percent of total dollars accessed via Kabbage are through mobile. At this rate, Kabbage predicts one of every five dollars funded to small businesses will be through a mobile device by the end of 2018.
“Mobile lending showed the most accelerated growth beginning in January 2016. The graph was set as such,” noted Treyger. “Our mobile app was introduced in late 2013, and we began tracking the overall trend in early 2014.”
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When asked how will Kabbage increase these numbers, Treyger explained,
“The ability for our customers to access lending via their mobile device is for their benefit, and an added value from Kabbage to fit the way they prefer to work and conduct business. We want to help remove the friction that business owners face every day, which includes saving them time from visiting a bank, filling out paperwork and waiting for an approval. The ability to access working capital through their mobile device is a significant help to save the business owner time that can be used to instead pursue their passion and build their business.”
When asked what caused the January 2018 dip, Treyger reposonded,
“The dip you see is for the total number of loans accessed via mobile, but please note the total dollars remained relatively consistent. That shows that small business owners in January requested fewer loans but at higher amounts on mobile devices.”
Kabbage offers the ability for small businesses to apply, qualify and withdraw funds from a mobile app which provides customers on-the-go access to lines of credit up to $250,000. There are no up-front costs to apply, no annual fees to hold the line of credit, and customers may withdraw funds at any time, said the platform.