Digital Personal Loans Grow While Bank HELOC Balances Fall

TransUnion has just released a study showing FinTech online lenders lead over banks and credit unions in personal loan balances, as shown by the table below. 

At the same time, LendTrade research shows HELOC balances, the favored consumer loan option for financial institutions, are falling.  Clearly, consumers often prefer the speed and simplicity of fully automated digital loans in minutes to the more cumbersome HELOC process.  After all, the market for personal credit is four times the size of HELOC balances.

That is why more FIs are following SunTrust’s lead and offering consumers a choice for the large home improvement market – HELOC loans at a lower rate but more time consuming, or their Lightstream loan in minutes at a higher rate.

With MinuteLender,® you can offer customers a choice for home improvement loans, your current HELOC or a personal loan in minutes on a computer or smart device.  All is delivered under your control, with your underwriting for loans on your balance with your compliance.  FIs can win with technology over Fintechs because they have the lowest cost of funds, existing customer relationships, proven underwriting and documented compliance.  You just need the technology like MinuteLender.®