Key vendors to offer innovative and customized loan offerings to clients for future growth prospects
Technavio, a company that develops over 2000 pieces of research every year and covers more than 500 technologies across 80 countries, has announced the top five leading vendors for the global online financing platform for SMBs market in their latest research report. This report also lists 5 other prominent vendors who are expected to contribute to this market’s growth between 2016-2020.
To identify the top vendors, Technavio’s market research analysts have considered the revenue generated from the online financing platform for SMBs in the Americas, APAC, and EMEA.
This Technavio report is based on the synthesis, analysis, and interpretation of information about the global online financing platform for SMBs market collected from specialized sources. The analysts have derived insights using a mix of primary and secondary research with an aim to provide a holistic picture of the market.
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Competitive vendor landscape
The online lending market is well-established and a growing number of financial businesses are trying to investigate the various implications of machine learning and artificial intelligence for their businesses.
“There has been continuous innovation in the online financing platform for the SMBs market. Many technological innovators are opting for the online platforms, like Transfer Wise, as it gives them an edge over their competitors. The use of online technological platforms in the company will help businesses enhance the customer experience and maximize returns,” says Amit Sharma, a lead analyst at Technavio.
Digitization develops new categories for investors, for instance, online financing platform is the latest form of a mortgage for small business. The SMBs segment needs to be competent and informed of the newest area of developments and help themselves to acquire skills necessary to keep pace with the global developments. Technavio observes that SMBs have greater opportunities for expansion and diversification across different sectors. In the online small business lending market, the newly created Consumer Financial Protection Bureau (CFPB) has authority to oversee payday lenders that loan to consumers and is bringing greater transparency for borrowers to credit card and mortgage markets.
Top five vendors in the global online financing platform for SMBs market space
CircleBack Lending
CircleBack Lending owns and functions an Internet-based consumer lending platform that is used to purchase fixed income assets backed by consumer credit products. The company focuses on offering an efficient and quick way of borrowing money at attractive interest rates to prime and super-prime consumers in the US. It also allows high-net-worth individuals and institutional/ individual investors to invest in consumer loans. For future growth, the company is looking for strategic initiatives such as offering innovative and customized loan offerings to its clients, and investing in companies to expand its capabilities.
Key products: Debt consolidation, credit card refinancing, short-term loan, small business loan, and military loan.
Kabbage
Kabbage is an online financial technology company, which started its operation with online retailers but have now expanded to restaurants, dry cleaners, professional firms, etc. Kabbage’s principal offering is an unsecured business line of credit and provides funds without any intermediary to SMBs through automated lending platform. Kabbage takes into consideration many other factors such as social media prompts, which is fully automated and the borrower receives an immediate response, this online financial eco-system enables it to connect with the customers.
Some Key products: Kabbage small business loans, Instant, automated decisioning, Karrot consumer loans, etc.
Lending Club
Lending Club is an online marketplace connecting investors and borrowers in the US and focuses on providing several types of loan products for consumers and small businesses. The company also offers investors with a chance to invest in various loans based on term and credit characteristics. It is known for serving investors such as retail investors, pension plans, insurance companies, high-net-worth individuals and family offices, banks and finance companies, hedge funds, foundations, and university endowments. For future growth, the company is pursuing a diverse investor base to support market growth, and is making strategic acquisitions for strengthening its loan offerings to the borrowers.
Key products: Personal loans, education and patient finance loans, and small business loans and lines of credit.
Ondeck
Ondeck is a technology-enabled financial platform firm that offers loan financing for SMBs. It uses software to aggregate data about a business’ operations and runs an algorithm to determine loan eligibility, and uses proprietary credit models to evaluate the financial health of SMBs. Ondeck software analyses thousands of variables such as cash flow metrics and clues from social media and provides a cumulative score called as OnDeck Score.
Key products: Business Loans.
Peerform
Peerform functions as a lending platform for connecting the investors with the borrowers. This company focuses on enabling borrowers in finding and getting loans, and provides loans for business, medical expenses, wedding expenses, debt consolidation, home improvement, major purchase, credit card refinancing, moving and relocation, car financing, vacation, and home buying, as well as green loans. For future growth, the company is not only providing innovative loans to suit the customer’s needs but also extending loans towards people with a bad credit score.
Key products: Debt consolidation, installment loan, wedding loan, home improvement, and medical expenses.
Other prominent vendors in this market include Borrowers First, Daric, Funding Circle, Pave, and SoFi.
A more detailed analysis is available in the Technavio report, ‘Global Online Financing Platform for SMBS Market 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.
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- Global Consumer Credit Market 2016-2020
- Global Retail Banking Market 2016-2020
- Global Structured Finance Market 2016-2020
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