22% YOY growth. $34B origination volume.Alternative financing hit an all new high in 2016 with $34 billion extended to new clients. The category growth rate has slowed, but it continues to maintain a healthy 22% year-over-year increase. Mainly due to the fact that traditional banks continue to decline well over half of all business loan applications. The new growth comes from the continuing strength of the peer-to-peer market along with a high level of demand from fintech startup teams.
Obstacles For Alternative Lenders
Technology requirements. Increasing regulatory scrutiny.Alternative funders must be technology-enabled in order to maintain profits as the industry becomes more and more competitive. This is a business that requires fast decisions with correct pricing even with new businesses that have no credit or poor credit. In addition regulatory compliance rules continue to change as the industry gains visibility.
Software Solution For Alternative Funders
Fintech award winning, alternative financing software system.Alternative financing has emerged as the “go to” funding option when loan applications get declined by big banks. And in today’s lending environment that’s the vast majority of all business loans. It can be challenging to approve the right accounts with the right pricing in real time. That’s why top funders use specialized asset based lending software, merchant cash advance software and/or invoice factoring software with unique features and functionality to meet the needs of their particular niche. The increasing demand for alternative funding has triggered tremendous competition, especially in the online space. It’s a category that’s still largely unregulated with wild marketing promises that range from “$500K in as little as 1 day” to “91% approval” to “lowest rates in the industry”. This is one of the reasons the CFPB (Consumer Financial Protection Bureau) is looking closely at all alternative financiers as part of their crack down on payday lending. Turnkey Lender solves a myriad of origination and account management challenges with our fintech award winning software system. Our platform provides automation and advanced credit scoring to minimize processing time without compromising risk tolerance, accuracy or security. Regardless of whether the system is reviewing a new application, managing payments, or using predictive bad debt triggers to monitor client credit scores. This cloud-based system is fully managed for you. It’s easy to deploy, easy to master, and the rules-based system is regulatory compliant out-of-the-box. Software upgrades are automatic at a platform level with no additional programming on your part, including compliance updates as soon as they are published. The proprietary scoring model uses machine learning and ongoing analysis to constantly fine tune the score card. And we provide alternative scoring models to evaluate prospects with little or no information reported at traditional credit agencies.
Turnkey Lender helped us with increasing efficiency of our scoring model in Jan-Feb 2016. They provided the highest level of consulting and technical support services. Jonathan Sarmina, Ceo Moneyveo, Mexico
Software Systems for Alternative Funders – Key Business BenefitsClick on Turnkey Lender Advanced Alternative Financing Software to learn more about our key business benefits.
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