LearnBonds reported Wednesday that while traditional banks still hold the largest share for consumers and businesses, fintech lending is beginning to make its move in the market.
The report states that fintech lending will hit a $312.6 billion transaction value—growing 17% annually. The market is expected to reach $390.5 in value by 2023.
Global fintech lending was worth $181.2 billion in 2017, which jumped to $267.1 billion in 2019—an approximate 30% increase. The report states the overall market is forecast to grow by 7.7% over the next three years.
The U.S. is the second-largest fintech lending market in the world with $33.5 billion in market value. China has a fintech lending value of $265.7 billion transaction value and 90% of the market share.
“The technology solutions that are going to bring the best benefit to the businesses are going to be those that manufacture things more efficiently, cut timelines, and risk-insulate process flows to optimize outcomes. At the end of the day, it’ll actually save the companies a vast array of money and compliance issues.”
McGuinness added that the more the industry digitizes the mortgage experience, the more fraud insulation there will be. She suggested that these changes will bring better underwriter outcomes and shorter timelines for lenders, which will in turn bring more closed loans and more revenue—a benefit for both the borrower and investor.
Fintech was a topic of discussion at the 2019 Five Star Conference and Expo, with McGuinness saying “its purpose is to make our jobs easier."
"Technology will not fix a bad business practice," said Rick Sharga, President & CEO, CJ Patrick Company. "Technology will make good business practices better."
Panelists discussed new innovations such as blockchain and digital mortgages, and talked regulation and consumer expectations. How are these innovations being implemented to streamline processes, increase transparency, and reduce costs across the financial services sector.