SPONSORED CONTENT PRESENTED BY GDS LINK
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.
Having focused their digital transformations on providing online banking and mobile apps to service their existing deposit-based customers, most local, regional and state banks find themselves at an inflection point. They can view the growth of marketplace lenders as a threat or as a wake-up call. MPLs are just giving modern borrowers what they want, which means banks must act swiftly if they are to hold onto their slipping market share, much less gaining it back.
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.