Alternative lenders and financial institutions are gravitating toward each other out of necessity. Fintech lenders have been nimbler in expansive underwriting but would still benefit from bank backed loans and customer relationships. Meanwhile, banks could use an infusion of tech innovation to make processes more efficient and to widen their portfolios.
Goals and Objectives
Financial institutions will both host and partake in open API lending marketplaces. In some instances, banks will invite third party lenders to participate in marketplaces, handling the marketing, decisioning, and onboarding of new customers while banks own the loan. In other cases, banks will participate as third party lenders in fintech marketplaces.
API framework, Big Data, Analytics, Cloud, Real-time payment rails
Use Case Summary
Banks will create collaborative lending marketplaces where their users have choice in lenders. In some cases, fintechs will be the front end of the service while the bank owns the loan. In other cases, banks will white label the entire fintech lending service.