May 29, 2017
Alternative lending is one of the fastest-growing areas of FinTech, but its potential remains largely untapped by traditional industry players. For mainstream lenders and investors looking to take part, they will need to identify potential products to offer (personal lending, small business lending, auto loans, student loans or mortgage) and build strategic partnerships with alternative lenders that stand out from the pack.
With an estimated $29.1 billion (1) in online loans originated in the US market by alternative lenders in 2015 alone, marketplace lending has emerged as one of the fastest-growing areas of the credit universe. Online lenders understand that an increasing number of consumers are underserved by traditional lending channels. By using that insight, they have been able to grow marketplace lending each year for the past five years. To do this, alternative lenders reached out to four key groups: