Most of us feel that online lending platforms are really the best and easier for getting loans if you are turned down by financial institutions that a
Most of us feel that online lending platforms are really the best and easier for getting loans if you are turned down by financial institutions that are there available traditionally for providing loans. The truth is that these online lending platforms too work abiding the rules that the mainstream banks or financial institutions follow.
The online platforms like SoFi comes with the slogan Don’t Bank, SoFi but the fact is that there are some of these mainstream financial institutions which are working behind these online lending platforms too. These platforms however have the ability for securing broad funding sources for the mortgages. SoFi is one among those platforms that are staying ahead with the curve in this aspect.
There are so many news recently on the lending club and also OnDeck which has made media question whether the marketplace lending has come to an end. This kind of comments from the media on such a niche that has kept on doubling since 2010 is not worthy to consider and also the economists does feel that it is going to grow to $1 trillion when it is 2025.
The online lenders need to cross so many hurdles for attracting the mainstream lenders. If they could then it is going to lead to a new era where there can be a great participation from mainstream lenders on online lending market space. This can bring a huge turnover to this market space.
The major challenge faced by the origination platforms is not about originating loans. There are stricter capital requirements as well as scrutiny required for functioning on this area of very higher risk of lending for the banks that are going to continue for shifting from organization activities that are available from the banks to the non banks.