Competing with private credit: Winning strategies for banks
As alternative lending becomes more popular, banks may need to change their strategies to meet the needs of corporate borrowers.
Private credit firms can help banks maintain relationships with corporate clients. Banks can connect their clients with private credit firms, providing faster and more flexible lending options. This benefits both the corporate clients and the private credit firms. Working with private credit firms can help banks reduce credit risk. With stricter regulations, banks may struggle to lend to riskier clients. Private credit firms, being non-banks, face fewer regulations. This partnership allows banks to better serve their corporate borrowers.