March 5, 2016
For the past two to three years, the technology-based personal lending industry has been experiencing the launch of a wide range of promising ventures. With the high interest rates charged by the conventional financial institutions, the newly devised models launched by personal lending companies enable consumers to get access to quick and easy loans or refinance them at comparatively lower rates. We have seen a variety of lenders supporting millennials in their financial needs, hottest companies offering marketplace lending and much more. Realizing the power of alternative lending, banks started leveraging the opportunity to fund the debts of those lenders instead of missing on a value chain profitable link.
Let’s look at the set of companies powering direct lending for those who are not otherwise served by traditional institutions.
Kreditech applies big data to score the creditworthiness of customers to provide online financing services. As a consumer finance technology group, it uses big data and complex machine-learning algorithms to underwrite and create a "digital bank" for the unscored, worldwide.
Earnest is a merit-based lender with a different approach to personal lending and credit.
Borro is an online company providing loans secured with luxury assets such as fine art, antiques, jewelry, luxury watches and luxury handbags.
Wonga is an online payday lender that offers short-term personal cash loans to UK consumers. The company uses sophisticated risk and decision-making technology to make automated yet responsible lending decisions.
LendUp is an online direct lender of small-dollar-amount, short-term, unsecured loans designed for emergency cash or making ends meet.
MiMoni provides lines of credit for customers who are given the option to draw loans whenever they are needed.
Lenddo is an online platform helping members use their social connections to build creditworthiness and access local financial services.
Sindeo is transforming the mortgage experience to help consumers make smart, informed decisions and get a stress-free mortgage.
Avant is a B2C lender that leverages big data and machine-learning algorithms to offer a customized approach to streamlined credit options. It works under the name AvantCredit in the UK and Canada.
Credit Karma develops tools and maintains information resources that help users manage the credit aspect of their financial health. It helps 40+ million consumers track, maintain & improve credit health with valuable, free tools and info.
Progressa is a consumer finance company helping individuals to resolve overdue bills or other outstanding debt.
Backed is a lending platform to provide online loans to borrowers without taking credit scores into account.