Marketplace Lenders: An Opponent or an Opportunity for Banks and Credit Unions?
Read More about Lending's Biggest Disruptor and Its Impact in GDS Link's "Inflection Point: How Banks and Credit Unions Can Stay Relevant, Survive, and Even Thrive in a Changing Lending Landscape"
Decades ago, bankers had a very personal relationship with their customers, especially when it came to something as complex as applying for and underwriting a consumer loan. But the digital age has changed all that, replacing that personal relationship with a digital divide. Lenders that can bridge the divide by providing what today’s digital-savvy borrowers want and expect—a simple, seamless, end-to-end online lending experience—will score a larger share of new consumer loans.
And that’s just what marketplace lenders (MPLs) are doing. The market share of loans sourced by these lenders has surged from 5 percent to 38 percent over just five years.
Our latest whitepaper explores how this lending phenomenon occurred, why banks’ and credit unions’ digital transformation efforts have been ineffective against it, and what they can do to turn things around.