Over the past few years, online lending has been consistently stealing market share from more traditional banks. As technology enables new efficiencies in lending and underwriting and borrowers become more trusting of internet based companies, online lenders are able to provide a better and more streamlined borrowing and servicing experience for the customers. New capital structures and flexible repayment options have also helped to propel them to the forefront, particularly for newer or smaller businesses that may not have a relationship with a traditional bank.
The success of online lending is probably not surprising to most people as a general shift is in line with a shift to online everything. What may be more surprising is that within online lending as a sector, there has been a shift to existing software platforms launching their own credit products and lending money directly to the businesses on their platforms.
The greatest success stories (not surprisingly) have come from payments platforms like Paypal and Square, but other ecommerce platforms like Shopify and Amazon and accounting platforms like Quickbooks have also seen large increases to their bottom line associated with massive origination volumes.
As Marc Andreessen famously said, "software is eating the world" and it is commonly accepted that all companies will become software companies in the future.
“In the not-too-distant future, I believe nearly every company will derive a significant portion of its revenue from financial services.” - Angela Strange
Angela Strange, a general partner at Andreessen Horowitz, doubled down on this in her article, “Every Company Will Be a Fintech Company”, and associated presentation which explores the complex network of services that provide the building blocks for software platforms to launch financial services.
One thing is certain and that is that software platforms will continue to launch their own financial services at an ever increasing rate. The success of the “big guys” has caught the attention of many smaller players that see the opportunity and want to provide a custom borrowing experience for their users.
Sar Haribhakti had a slightly different take on the matter, eluding to the role of Product Managers in making this happen
Lendflow's mission is simple: provide the technology and human support to enable any software company to launch a capital program!
Lendflow has pieced together the best API solutions into a “lending-in-a-box” solution that allows any software company to launch their own lending program in just a few days.
We handle the complex infrastructure to enable you to deploy a custom experience to your customers and quickly add value to your platform.
