Data-based technological innovations are creating more opportunities for lenders to assess the risks posed by consumers who have traditionally been denied access to credit. While the conversation on exploring alternative data has been ongoing for the past few years, the industry now appears to be taking steps toward making this a reality.
Nonbank online lenders, especially smaller ones, are concerned about the high cost of originating a loan. In a new study published by the Deloitte Center for Financial Services and Lendit Fintech, 77 percent of the nonbank respondents said the cost of funding is among their top three concerns. Thirty-eight percent listed it as their first concern. Deloitte noted the nonbank fintech market landscape is made up of a few large players and many small ones. In fact, the majority of survey participants ...
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