Millions of small businesses in China say they're in dire need of funding. So are private banks the way forward. What makes small commercial banks more adaptable than their state-owned peers?

Getting a loan used to take ages, especially for China's small and medium-sized businesses.

It is no secret that China's state-dominated banking sector has long favoured the country's big SOEs, sometimes leaving their private sector peers hanging out to dry.

But now with the establishment of privately-owned banks, things seem to be changing.

"There was no need for collateral. I got the loan on the second day. I've applied for loans before, it was literally like begging for money. The new Myshare bank in wenzhou treated me like a real client," said Huang Xianxiang, managing director of Hardware Company based in Wenzhou.

"We have a clear understanding of the local situation and also the local enterprises. So it's quicker for us to make decisions and the procedures can be shortened," said Hou Niandong, president of Myshare Bank of Wenzhou.

The Myshare bank is located right in the heart of Wenzhou's manufacturing hub. It services more than 150,000 small and micro-sized businesses.

For small pilot banks like MyShare, it's all about striking a balance between helping businesses grow, and balancing its own books.

The solution lies in innovation.

"We're not working with government agencies like the Pudong intellectual property bureau. We're hoping to explore collateral options such as intellectual property. There'll certainly be more innovative ideas coming along, further down the road," said Zhu Tao, president of Shanghai Huarui Bank.

"Our loans won't all be based on credit...we'll still have collateral based loans. But credit-based loans will definitely account for a bigger portion of our assets," Hou said.

Meanwhile, China's first internet lender has its focus elsewhere, tech-savvy consumers with money to spend.

"We help people who urgently need a small loan, for example when they're about to pay a dinner bill and find they don't have money left. You can borrow perhaps 1,000 yuan in just a few seconds and return the money plus a quarter of a yuan in interest the next day," said an employee of Webank.

It's early days for China's private banks. Whether they succeed in the long run is still too early to tell. But one thing's for sure -- they're a force of change in a sector that has seen to little change for too long.