Traditional banks today are facing heavy competition from online lenders, peer-to-peer lenders and marketplace lenders. While marketplace lending represents only 1 percent of unsecured consumer and SME lending in the U.S., Morgan Stanley believes it can reach 10 percent by 2020. It is expected that China, the UK, and Australia will follow, helping the online lending industry to grow between $150 billion and $490 billion by 2020.This growth is fueled by tech-savvy millennials who have little loyalty to banks and are beginning to control progressively larger shares of world’s financial assets. In response, banks need to develop integrated partnerships with alternative lenders to develop and share new capabilities. The good news is, with their longstanding customer relationships, banks still own 99 percent of the lending market. Also, they are better equipped to weather tumultuous credit cycles and market meltdowns. Forward looking banking institutions don’t see AltFi players as threats, but rather as opportunities to collaborate, and create new products and possibilities for their customers.Banks can seek partnership with existing marketplace lending platforms, which we see happening with ING bank and Kabbage, or Santander in the UK with Funding Circle. Alternately, they can start their own marketplace lending platform and combine this with regular forms of lending to create a hybrid lending platform.Cloud Lending Solutions proposes four strategies banks can adopt to grow in the light of the rising success of marketplace lending. Download our whitepaper, 2016 - How will Banks Survive the Lending Revolution, to learn more about these strategies and learn how nimble cloud-based solutions can help banks leverage innovative lending models to achieve growth and success.It is also featured in the upcoming Lendit Conference where Cloud Lending Solutions is a proud bronze sponsor. To learn more, download our whitepaper or read our Lendit blog on the topic. To meet us at the Lendit Conference on April 11-12, you can schedule a meeting with us here.