In a bid to attract small business, M&T Bank Corporation (MTB - Free Report) has plans to introduce several services such as online lending platform, a new credit cards program and a business cash management platform.
Eric Feldstein, Senior Vice President and head of Business Banking at M&T Bank, said, “In anticipation of our customers' evolving needs, we have been working hard, and investing substantially, to provide the solutions they need to run their businesses successfully."
One of the services that M&T Bank expects to start in mid-2018 is providing business loans online. It is expected to be a fully digital process where clients will be able to apply for loans and lines of credit up to $100,000 through a simple application procedure.
The applicants will be informed about the approval of application on the same day and the funds will be processed within three days. With this service, M&T Bank expects to make it easier for small business to make decisions that require investments.
The bank will also be launching new business credit cards to provide clients flexibility in accessing funds. Also, the cards will include a reward system under which points from every purchase will be added.
The two new cards are M&T Business Rewards Credit Card and M&T Business Credit Card. Both will be available with a 0% Annual Percentage Rate on purchases and balance transfers for 12 billing cycles. The M&T Business Rewards Credit Card would also offer 1.5% cashback on all purchases with no annual fee.
These cards can be linked with the M&T's online banking platform. Further, there is also a "design your card" feature and can be accessed online and through mobile phones. These cards have fraud protection and the ability to pay using Apple Pay, Google Pay and Samsung Pay.
"Making this move to offer our own credit cards to small businesses allows us to continue to build on direct service relationship," added Feldstein.
Lastly, M&T Bank is introducing a new automated clearing house and wire transfer service — M&T BizPay. This service would allow small business to make most payments to vendors on the same day and perform payroll services. This service too will be integrated with M&T Online Banking for Business.
In this regard, Feldstein said, "Today's business owners are busier than ever, and any opportunity to make the process around money transfer or cash flow management more convenient is incredibly important.”
The launch of these services is likely to be of great use for small and mid-sized companies and also boost M&T Bank’s performance. Also, the company, with its sturdy business model and strategic acquisitions, remains well poised for growth.
The stock has gained 1.2% over the past six months versus the industry’s decline of 3%.
M&T Bank currently carries a Zacks Rank #2 (Buy).
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