Banks and credit unions lose credit as fintechs grow | Messages

BOSTON, March 15, 2022 /PRNewswire-PRWeb/ — The Mercator Advisory Group released a report on consumer lending trends entitled “Installment Lending: Fintechs on the Rise in Credit Forecasting” at $212 billion. The study explains the status of installment lending to consumers The United States and how fintechs and financial firms are now outperforming banks and credit unions on installment loans. In addition, this study examines how companies offer embedded financial products such as CCaaS to enable customers to offer their own credit card product. Using four evaluation criteria, general guidance is provided for those seeking a relationship with a fintech provider.

“Banks used to dominate consumer lending, with installment products being much cheaper than credit cards, but that’s no longer the case,” he comments Brian Riley, head of the credit practice of the Mercator Advisory Group and author of the research report. “Buy Now, Pay Later (BNPL) was a wake-up call for credit card issuers. BNPL was a rewrite of a merchant finance model used long ago by companies like GECC (now Synchrony) and Household Finance Corporation (acquired by Capital One). … Now, fintechs are moving in the same direction with installment loans,” says Riley.

Highlights of the research note include:

  • US consumer debt trends
  • Trends in fintech and finance companies versus financial institutions
  • Why banks and credit unions should define the consumer credit space and not follow fintech trends
  • Strengths, weaknesses, opportunities and threats for established banks and fintechs
  • Comparison of revolving and installment loan products
  • Consumer survey data on installment loan users and large fintech lenders

This document contains 28 pages and 9 exhibits.

Companies mentioned in this research note include: Acima Credit, Affirm, American Express, Avant, Bankrate, Blend Labs, Bread, Capital One, Citi, Discover, Equifax, Experian, FIS Global, FICO, Fiserv, GECC, HFC, JPMorgan chase, jack henryKlarna, Lending Club, LightStream, Mastercard, NerdWallet, Opportun, Prosper, Regions Bank, Rocket Companies, SoFi, Synchrony, TSYS, Truist, TransUnion, Upgrade, Upstart, Visa, Wells Fargo, Worldpay, Zopa

Members of the Mercator Advisory Group Credit Advisory Service have access to this report, as well as upcoming year’s research, presentations, access to analysts and other membership benefits.

For additional information and media inquiries, please call the Mercator Advisory Group mainline at (781) 419-1700 or email [email protected]

For free industry news, opinion, research, company information and more, visit us at http://www.PaymentsJournal.com.

Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

About the Mercator Advisory Group

Mercator Advisory Group is the leading independent research and advisory firm focused solely on the payments and banking industry. We deliver pragmatic and timely research and advice aimed at helping our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our customers range from the world’s largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

media contact

Karen YetterMercator Advisory Group, 781-419-1700, [email protected]

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