Digital lending for personal loans is replacing credit
cards and other borrowing means because of speed and simplicity, according
to analysis by Experien. As show
below, digital is driving personal loan growth at twice the rate of credit card loans,
and three times the rate of auto loans.
Credit cards are now a more cumbersome offering that a digitally-provided line of credit or installment loan attached to a checking account, where a debit card can access
line of credit funds. This is great news
for community and regional financial institutions that have little profit from
agency credit card programs and can be highly profitable with efficient digital lending
leveraging credit on bank books.
The personal loan market is now $300 billion, nearly as large as the HELOC loan market, and used by more households (11%), with an average balance of $16k and a profitable average rate of over 9%
MinuteLender® provides digital lending for community and
regional banks in minutes with a superior customer experience, competitive advantage and great efficiency, in branch or out. All is done with technology you own under
your brand, underwriting, control and compliance for loans on your books. For more information, visit www.rcgiltner.com.
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