Banks Biggest Opportunity with Digital Mobile Lending

Non-bank digital lenders like Lending Club and now recently Goldman Sachs focus heavily on consumer loans under $30,000, often unsecured.  It is useful for regional and community banks to see this is their biggest opportunity as well in implementing digital and mobile technology.

First, as the American Household Survey of Consumer Debt shows, the largest segment of consumer debt behind mortgage is personal loans often unsecured.  Further, the May, 2016, FRBNY Quarterly Report on Household Debt and Credit shows by far the largest loan accounts held by households are credit card accounts.

In addition to significant size opportunity, personal loans also represent the type of loans where consumers most want simplicity and speed on a smart device.  More complex loans require more time and thought by consumers.  Further, personal loans are the largest unserved loan customer base for community and regional banks as they have given up this market in the last 30 years to credit cards and others.  Yet, they bank these customers with checking accounts who are holding these personal loans elsewhere.  Digital, mobile lending technology provides an efficient and profitable delivery system, previously unavailable to community banks, that they can now leverage.

To see more about this big opportunity for your financial institution, join us for the webinar on November 15^th at 2:00 pm EST.