By Steve Conner, President, FinServe
The business finance industry is evolving faster than ever, driven by technology, changing market demands, and shifting borrower expectations. For lenders and funders, this creates both exciting opportunities and significant challenges. In particular, the demand for the “right” Independent Sales Organization (ISO) partners has never been higher. At FinServe, we’ve been analyzing data from over 3,200 ISOs who’ve funded deals through our FinServe MarketPlace recommended lenders, revealing critical trends that are reshaping how business finance operates.
The Power of Technology and Branding for Leading Tech ISOs
In today’s highly competitive market, the most successful Technology ISOs (Independent Sales Organizations) are embracing a strategic shift. Rather than relying solely on traditional sales tactics and direct interaction, top-performing ISOs are leveraging technology to streamline their operations, nurture relationships, and automate key processes. This tech-driven approach isn’t just about efficiency—it’s about building lasting relationships and ensuring sustainable growth.
Why is this shift so important?
- Automation is Key: The leading Tech ISOs are automating their marketing and communication efforts throughout the entire pipeline—from lead generation to funding and renewals. This allows them to reach potential borrowers at multiple touchpoints, delivering personalized messaging with consistent branding.
- Efficiency Gains: By automating key processes, Tech ISOs are seeing a significant boost in efficiency. Up to 25% of their deal flow is now being generated without the need for direct interaction from a sales rep. This automation not only allows them to scale their operations, but also increases conversion rates and speeds up the closing process.
At FinServe, we’ve partnered with some of the largest Tech ISOs in the industry to help them implement these game-changing solutions. By integrating automation into marketing and communication workflows, we’ve enabled them to generate more leads, close deals faster, and enhance their overall operational efficiency.
The Risks for Lenders Who Don’t Adapt
For lenders and funders in the business finance space, the message is clear: if you don’t adapt to the new, technology-driven environment, your business may be at risk. Lenders who don’t have the systems in place to seamlessly connect with tech-driven ISOs—through API integrations, automation, and data sharing—are missing out on high-quality deal flow.
Key Data Insights: The Shift in Deal Flow
The data from FinServe’s platform tells a compelling story of the current landscape:
- Declining Deal Flow: 55% of ISO/referral partners who were previously originating between $250K–$500K in monthly funding have seen their volumes drop below $250K. Some have even gone out of business. As the business finance landscape shifts, those who fail to adopt technology-driven solutions are seeing their business shrink.
- Minimal Growth: Only 1–2% of ISO/referral partners have shown significant growth in recent months. This highlights that the key to surviving and thriving in today’s market is the adoption of new business models, primarily through the integration of finance technology and automation.
This decline in deal flow underscores a critical issue: outbound call campaigns are no longer effective. In Q1 of 2024, phone contact rates plummeted—from 6-8% to under 2%. ISOs that once relied on bulk lead purchases and mass dialing campaigns now find it harder to connect with qualified borrowers.
How Lenders Can Take Action
So, what can lenders do to reverse this trend? The answer lies in technology. Lenders who partner with FinServe have the opportunity to implement the technology solutions necessary to capture deal flow from tech-driven ISOs. By integrating with cutting-edge finance technology and enhancing communication with tech ISOs, lenders can ensure they don’t miss out on high-quality submissions.
Why You Need to Act Now
The future of lending and business finance is being shaped by those who are embracing technology. At FinServe, we work closely with lenders to implement the right technology solutions that can help them stay competitive in this rapidly evolving market. From marketing automation to real-time communications, our solutions help lenders improve operational efficiency, streamline their workflows, and capture more deal flow from top-performing tech ISOs.
Key Takeaways:
- Declining Deal Flow: A significant percentage of ISOs are seeing drops in deal volume, with some going out of business. Lenders need to adapt or risk falling behind.
- Minimal Growth: Only a small percentage of ISOs are seeing growth, proving that automation and technology-driven solutions are essential for scaling operations.
- Changing Communication Channels: Traditional outbound calls are no longer enough. To stay competitive, automation and multi-channel communication strategies are critical.
At FinServe, we’ve helped over 3,200 ISOs find and partner with the right lenders and funders. Our mission is to ensure that lenders stay connected with top-performing tech ISOs and continue to thrive in the changing landscape of business finance.
Ready to Take the Next Step?
If your organization is ready to embrace technology and improve its submission flow, let’s schedule a call to discuss how FinServe can help. We specialize in helping lenders integrate the right technology to connect with the most effective ISOs and ensure you don’t miss out on the opportunities available in today’s competitive business finance market.
Contact us today to explore how FinServe can help you stay ahead of the curve and build a more scalable, resilient business.
About FinServe USA
FinServe is a leading market-place dedicated to helping lenders, tech ISOs, and funders connect and scale within the fast-evolving world of business finance. With a focus on finance technology, automation, and strategic partnerships, we empower organizations to thrive in an increasingly digital marketplace.