News from around the world
Forbes had a creative take on marketplace lending suggesting that it could be used to handle high interest debt. The author suggests that the “soft pull” on one’s credit report is less burdensome to a credit score. In many cases the interest rate will be less and therefore more amenable to those with heavy debts.
Financial Express offered an overview of the basics behind P2P lending. Transparency, speed and paperless transactions were all cited as benefits to this new form of lending. Meanwhile lenders “in the past few years have seen an average return between 12% and 18% annually.”
Small Business Trends examined “7 Things Things to Ask About an Online Funding Marketplace Before Taking Out an Application Online.” The author explains that those in need of capital can benefit most from the combination of reasonable interest rates and faster processing than what’s seen with traditional lending.
Banking Exchange offered a detailed look at the consumer credit market. Their research tapped into data concerning millennials and how they’ve adapted technology to manage their finances. “fintechs show some of the best risk-based pricing that we’ve seen,” remarked the senior vice president at TransUnion.
ETRetail looked at ways marketplace lenders are strategizing their expansion. Many marketplace lenders are finding growth among smaller borrowers. Major banks have traditionally eschewed this group due to shorter credit histories or smaller borrowing requests that prohibit large fees or heavy interest expense.