Over the past 10 years, the number of standard consumer finance loans issued has steadily decreased, while notes issued through peer to peer lending platforms have been on the rise. Using data from the top 5 leading online platforms for US consumer lending, more than 8 billion dollars in unsecured consumer credit has been fulfilled.
Popular online lending companies (otherwise known as alternative finance providers) have impressive numbers - doubling their market share about every 9 months. For some small business owners and individuals, this new sector is a more favorable financing option than secured loans from traditional banks. Recent data shows there's a growing trend toward applicants applying for motorcycle loans, military loans, debt consolidation, and cash advances. Since online investors aren't held back by oversight boards or complex company structures, they are able to offer reduced rates, loans to finance any purchase or investment, and more flexible terms than their outdated, traditional counterparts.
Although older, more established financial services still remain a consumer favorite for the time being, the online lending industry is catching up.