Even Staff

2016-05-26

P2P Lending: The Uber of the Financial Industry

The rise of the “on-demand economy” has ushered in a new breed of businesses that operate based on the idea that customers can play a larger role in their experiences. Companies such as Airbnb, Snapgoods and RelayRides have all burst on to the scene as a result of the push toward putting more control in the hands of the modern customer. Perhaps no company exemplifies the disruptive potential of the on-demand economy more than ride-sharing company Uber. While Uber is already making waves in the transportation industry and turning the traditional taxi business upside down, peer-to-peer (P2P) lending companies pose a similar threat to traditional banks.

 

Uber’s Big Splash

 

Most of these new on-demand economy businesses come about when a traditional, established business leaves open a window of opportunity due to inconvenience, inefficiency or high costs. In the case of Uber, the traditional taxi business in major U.S. cities has historically included a bit of all three of these characteristics. Uber founders recognized that the idea of standing on a street corner and helplessly flailing a hand in the air or calling a dispatch operator and hoping that a cab will show up within the next several hours is not the optimal way to get from place to place in a modern city. In a matter of years, Uber has gone from an unknown startup to a $41 billion company with 160,000 active drivers that have generated more than half a billion dollars in fares.

 

Take Control Of Lending Banking customers have the same helpless feeling of someone standing on a busy street corner hailing and whistling for a lone passing taxi. To borrow money, you must meet the bank’s qualifications, the bank’s credit score, pay the bank’s interest rates and bend over backwards for the bank. On the other hand, if you want to get paid interest on your capital, you must agree to whatever interest rates and terms the banks set on CDs or other financial products. When it comes to traditional lending and borrowing, there is little to no negotiation and little choice in the matter. Sure, one bank’s terms might be slightly better than another, but there is generally very little difference between competitors’ lending and borrowing standards.

 

The Freedom of the Marketplace Marketplace lending companies have recognized that both lenders and borrowers want more freedom when it comes to loan creation. Instead of a complicated, time-consuming process, borrowers can go online, enter a few critical pieces of information and be matched with a lender within a matter of hours. Instead of being turned down because a particular loan does not meet the standards of a bank’s core lending business, these online platforms allow both borrowers and lenders to create loans that are outside the box of traditional bank lending.

 

 

Disruptive Power Traditional banks likely looked at marketplace lending the same way that the taxi business looked at Uber when it first launched. However, like Uber, marketplace lending’s true potential is beginning to turn heads.   According to a PricewaterhouseCoopers (PwC) report, P2P platforms accounted for about $5.5 billion in loans in 2014. While this number is only a drop in the massive present-day banking ocean, PwC analysts project the market could balloon to $150 billion over the next decade.

 

Wake-Up Call The on-demand economy is still in its infancy, and certain segments, such as ride-sharing, have gotten off to a strong head start. However, more people are beginning to recognize the true potential of putting the power in the hands of the customer. As the movement toward alternative finance continues to grow, traditional banks could be in for a major wake-up call. 

Disclaimer: The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the suitability of any Even Financial product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional. Any information or statistical data sourced by Even Financial through hyperlinks, from third-party websites, are provided for informational purposes only. While Even Financial finds these sources to be accurate, it does not endorse or guarantee any third-party content

Proven Scale & Trust

$400B+

in consumer applications for financial services

75M+

consumer profiles generated

3 Million+

applicants routed monthly

WHAT OUR PARTNERS ARE SAYING

Building meaningful, long-lasting relationships

"... generating some of the highest approval rates and conversion rates among our online acquisition partners. The transparency and focus on data have allowed us to drive consistent growth and success each month. "

"... a streamlined consumer experience, helping millennials with no collateral, budget, or saved money. Even’s impressive matching algorithms simplify the process of finding the best personal loans to meet your needs."

"... a truly modern and easy to use platform for the financial services marketing world. They make it easy to develop consumer friendly, innovative products in a space dominated by legacy platforms."

"... Their wide-reaching network and tech integrations bring in qualified, high-converting leads, and their team has been a pleasure to work with."

"... generating some of the highest approval rates and conversion rates among our online acquisition partners. The transparency and focus on data have allowed us to drive consistent growth and success each month. "

"... a streamlined consumer experience, helping millennials with no collateral, budget, or saved money. Even’s impressive matching algorithms simplify the process of finding the best personal loans to meet your needs."

"... a truly modern and easy to use platform for the financial services marketing world. They make it easy to develop consumer friendly, innovative products in a space dominated by legacy platforms."

"... Their wide-reaching network and tech integrations bring in qualified, high-converting leads, and their team has been a pleasure to work with."

Kyle Taylor
CEO

Awards

Press

Even Ranked Top 50 in the Deloitte Technology Fast 500
DELOITTE
Even Ranked Top 50 in the Deloitte Technology Fast 500
Even is ranked within the Top 50 on the Deloitte Technology Fast 500, a prestigious list that ranks the fastest-growing technology and life sciences companies in North America. To see the full list of winners click the button below. 
A Fintech Conversation With Even Financial and TransUnion
BENZINGA
A Fintech Conversation With Even Financial and TransUnion
Even CEO/Founder Phill Rosen recently sat down for a conversation with our enterprise partner TransUnion’s SVP, Chief Product Officer Hilary Chidi and Benzinga Staff Writer Spencer Israel to discuss the current state of fintech, the impact of COVID, and more...  You can watch the video here: Click Here Click below to read an article about the learnings from the conversation. 
Even has won the Data Innovation Award from the 2020 TearSheet Data Awards
TEARSHEET
Even has won the Data Innovation Award from the 2020 TearSheet Data Awards
On June 8th, 2020, TearSheet announced the winners of the 2020 TearSheet Data Awards, and Even won the Data Innovation Award. They said: “Even is moving the financial services industry from an era of customer acquisition based on mismatched static ads, to one where more personalized offers are matched to consumers in real time.”