There are three types of alternative lenders----balance sheet, marketplace, and hybrid. Rob Frohwein, CEO at Kabbage, and Ron Suber, president at Prosper, discuss some of the trade-offs between the different types and their overall outlook for alt lending.
| less than a minute read
Two CEOs tell us where alternative lending is headed
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Here are some key takeaways from the report: Alternative lending platforms are in a position to capitalize on this underfunding and also take share from banks. These companies use machine learning and digital tools to extend credit to a wide array of small businesses quickly and efficiently. We estimate that alternative lending companies' share of the small business lending market in the US will reach 20.7% by 2020. Alternative lenders are now partnering with banks and this will propel growth going forward. New lenders are finding opportunities to offer white-label services to major banks. We expect banking partnerships, like the one between JPMorgan and OnDeck, to add 7.7 percentage points to the alternative lending industry's market share by 2020.
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