Small business lending is still largely driven by in-person relationships

The news: In its 2024 Small Business Lending Survey Report, the Federal Deposit Insurance Corporation (FDIC) found that small business lending remains relationship-based, with in-person interactions central to the loan approval process. 

Even with the increased use of technology, banks have not fully transitioned to tech-driven lending models.

Key findings: The survey results showed that small business lending remains heavily reliant on human interactions.