Wednesday, 11 July 2018 | By: Herbert Leonelli, Regional Business Development Director, Profile Software
As with every trend, Marketplace Lending has evolved into different shapes and sizes, ranging from P2P Lending platforms gaining banking licences to actually collaborating with established Banks to enhance the offering of both. The regulatory environment around this is also evolving to better protect customers, providing guarantees where needed to ensure longevity and good business procedure.
According to Altfi Data, in 2017 the EU volume of Marketplace Lending projects exceeded EUR 1.5bn; and the projection for 2018 looks like it will be in excess of EUR 2.8bn, with the strongest growth in property and consumer lending averaging 90% of the total deals.
Diversification of the banking industry, such as support for FinTech operations, coupled with evolving customer expectations for faster response and digital experience is creating opportunities to develop innovative solutions for credit services. As a result, financial firms are shifting from “FinTech disruption” to “FinTech transformation”, thus delivering a competitive offering by redesigning their processes through the whole chain, from loan origination to risk analysis, using technologies to automate their operations.
The technological advancements allow Marketplace Lending platforms to facilitate various forms of credit, including consumer and business lending, while improving business models and driving costs down.
*The article is published on bobsguide (25.07.2018). Trademarks are property of the respective owner.