Fintechs are continuing to siphon away customers for unsecured personal loans from traditional lenders, according to a study released Wednesday by Experian.
The study found that digital lenders more than doubled their market share in the past four years, with consumers across the credit spectrum increasingly turning to fintechs like Lending Club and Social Finance.
Lending Club and Social Finance have more streamlined risk management. On line, they can reach farther to get a risk equalized groups or clients. They can pre-select by advertising in the right venues and are a click away.
The big investment banks are all offering bearer asset networks, attaching all their investment funds to a single, proofed network, typically using digital dollars.
If I were entering the market now I would be aggregating entry points and reselling the existing on line services. Each market comes with a risk equalized set of clients with know characteristics. So the aggregator can locate complimentary opportunities for the risk group and become a financial gateway.
The endless opportunity of the sandbox.
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