Small business lending has declined so much in recent years that Business Insider found traditional banks missed out on ninety-six point five billion dollars in the fourth quarter of 2015.
Alternative lending has gained momentum by filling this vacuum. Fintech innovation is allowing alternative lenders to use new scorecard and underwriting models to mitigate risk.
Moving forward, Forbes expects traditional financial services firms to partner with marketplace lenders to keep up with the changing industry.
Alternative lending has been one of the most prolific trends in the small business financial services space in recent years.
In response, many banks are beginning to integrate these models into their operations – either through partnerships or technology investments. GDS Link offers the analytics tools banks need to keep pace in this changing environment. Contact us if you want to learn more.
Alternative lending taking hold in small business sector [Video]
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