Citigroup has quietly launched a website to make small business loans of up to $1 million, the latest effort by a big bank to make the process of smaller loans more technology-friendly.
Citigroup's online toe in the water comes after similar moves by several other banks. For example, JPMorgan Chase & Co announced a partnership with online lender On Deck Capital Inc in December 2015 and Wells Fargo & Co launched a fast-decision online small business loan product some eight months ago.
Banks have been cautious about entering the online lending space despite the proliferation of online non-bank lenders such as On Deck, LendingClub Corp Prosper Marketplace and other startups. Early optimism about prospects for such companies soured after LendingClub's CEO resigned over a loan-selling scandal.
