eNewsletter Summer 2018
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.
Examining how this has grown over time helps identify similar patterns in other industries. The Marketplace Lending trends according to Capgemini show that:
- Lending firms are consolidating platforms to offer better customer analytics for improved service. Technology is easier to utilise enabling focus on the development of new services
- Firms deploy technology to optimise credit risk analytics for advanced customer segmentation, personalised profiles and real-time updates
- Operational enhancements with the use of modern technology (Risk analytics, RPA, AI, APIs, etc.) support automation across entire process, while providing intelligent reporting
- Lending as a Service model emerges to enrich direct lending business
- Banks are partnering with FinTech firms to deliver innovation and meet evolving customer expectations at better cost rates
- Increased regulatory inspections are leading FinTech firms to deploy more robust banking-like systems to ensure compliance suitable to customers’ best interests
- Unquestionably, millennials drive the transformation for a more digital, tech-oriented service approach. Firms responding to this try to deliver data-driven lending to enhance their business as well as customer experience with advanced front-end solutions
- The hype of digitisation is also increasing the need for cyber security platforms to protect businesses with authentication methods to combat fraud
- Leveraging new technologies streamlines and automates operations (IoT, Blockchain, AI, etc.), while addressing new markets
- Open marketplaces gain traction as they offer transparency, faster service and competitive rates, using technology-driven market dynamics...