Even Tech Giants are Moving in…. What next for existing lenders?

With the advent of the digital revolution, everything from shopping to banking is at one’s fingertips. Consumers today prefer real time solutions and ease of service, challenging the financial...

Cloud Lending Solutions 20th January 2016

With the advent of the digital revolution, everything from shopping to banking is at one’s fingertips. Consumers today prefer real time solutions and ease of service, challenging the financial industry to adopt a customer-centric approach. As technology grows, our patience wears thin.

With the rise of Financial Technology, aka Fintech, many startups are providing technology solutions to consumers to facilitate quick financial transactions and easy access to credit. Consumers, start-ups, small businesses and entrepreneurs alike are turning to alternative lenders for credit. They value convenience, mobile support and ease of use. Presently traditional financial institutions thrive on loyalty rather than up-to-date software. But then loyalty is a dying concept as well. According to the Millennial Disruption Index, 53 percent millennials think their bank offers nothing different than other banks and 1 in 3 are open to switching banks in 90 days.

This fading concept of cash and loyalty, and the rise of fintech is attracting an interesting mix of crossover plays. And guess who is watching this closely? Tech giants such as Apple, Google, Amazon and Facebook are trying to jump onto to the fintech bandwagon as well. With their enormous global following, flexibility and customer-centric strategy, these tech companies can provide quick and efficient payment services, money transfers and loans to consumers. They have access to consumers’ personal data that can be effectively used to make lending decisions. Moreover, these companies are household names and are accessed by millions of people daily through their computers or smartphones. The prospect of offering loans certainly looks attractive, doesn’t it?

Amazon has, in fact, already started offering loans to SMEs through the Amazon Marketplace. Payment companies such as Square and Paypal are also offering loans to businesses. Square Capital has already offered $1 billion in loans while Paypal Working Capital has provided over $200 million in loans. Apple and Google have ventured into payment through ApplePay and Google Wallet, respectively, and Facebook could well become a platform to auction loans to a pool of investors. In fact, Facebook has recently got an e-money license to offer financial services in Europe.

What Next for Incumbent Lenders?

The plot just thickened for incumbents. Given this disruptive revolution taking place around them, it’s time for banks and established lenders to really up their game. As alternative lending becomes mainstream, the competitive edge is with those who can enter the market quickly and capture market share.

What can existing lenders do? Shift from legacy technology to flexible and robust cloud technology.

The need of the hour is a robust technology platform that can help launch innovative lending products quickly. Click here to learn how banks and traditional lenders can quickly deploy an online business and rapidly bring versatile new lending products to market.

Cloud Lending Solutions is also hosting a webinar Jan 27, 2016 on how lenders can leverage cloud-based marketplace lending solutions to launch a platform in just 90 days! You can register here to learn more!




Cloud Lending Solutions Expands Leadership Team with New Executive Hires

Cloud Lending Solutions adds Chief Revenue Officer and Chief Financial Officer as the Company Focuses...

DigitalLEND Connects Borrowers and Lenders Through Rapid Deployment-Ready Customizable Solution

Cloud Lending Solutions, Crowdnetic and eOriginal Partner to Offer Turn-Key Solution to Solve Traditional Lending...


Regtech Meets Fintech – How It Improves Lending?

Lending as an industry is prone to risks and frauds. The added weight of growing ...

Opti-channel banking – way forward for better customer engagements

With an upsurge in technological innovation and the rise of digitally equipped millennials, banking and ...


DLAI FinTech Conference – 2018

India's Largest Fintech Conference Keynote Sessions 1. Consumer Lending - The Emerging Frontiers 2. SME ...

NEFA Finance Summit 2018 (Conference)

The National Equipment Finance Association (NEFA) is a national association serving small- to mid-size independent ...