$525B+
in consumer applications for financial services
Even Staff
2016-04-21
Why You Should Care About Marketplace Lending
“Technology allows David to compete with Goliath on a far more even footing.” - Jens Munch
This past December, American Banker named Marketplace Lending their innovation of the year. While the number of companies entering this market certainly influenced their decision, the real catalyst for their choice is the massive disruption that marketplace lending is creating throughout the financial sector. In the past, companies wishing to enter into, and compete in, the personal loan industry faced numerous barriers: large capital requirements, regulation, and security concerns, among others. Technology is changing all of that. As recently as the 1990’s, your local bank was the only outlet available for all of your personal finance needs. Times have certainly changed. In today’s world, I can open a bank account on Simple, do my taxes on Turbotax, manage my credit card rewards through Wallaby, create budgets and track my spending on Mint, invest my hard-earned cash through Betterment, and receive personal financial advice through LearnVest. Finally, the same seamless experience and ease-of-use provided by these technologies has arrived in the world of personal loans. Traditionally, if you were in need of a loan to pay for a big expense (wedding, adoption, pre-school, moving costs…), you had two options: go to your local bank or get a cash advance on your credit card. The first is too formidable and exhausting -- nobody wants to squirm in a chair across the desk from a loan manager as he dissects the minutia of your financial history; and the second is so prohibitively expensive that it might as well not even be an option. Going to your local bank isn't just a matter of time and effort. Banks fail to provide their customers with advanced account-management products, remain opaque in regard to prices and fees, and choose not to serve the full credit spectrum. On top of that, they reject entire contingents of people, and aren't transparent about their reasoning for doing so. On the other hand, credit card companies charge exorbitant rates on cash advances, which average around 15%, but can go as high as 35%. This is where marketplace lending comes in. By addressing these issues and creating a more efficient and consumer-friendly process, the lender and borrower can interact through a simple, easy-to-use online channel, which results in much lower interest rates for borrowers. Marketplace lending platforms take a few key pieces of information - like credit history and behavioral tendencies - and analyze them utilizing machine learning algorithms to expedite the process and minimize costs by removing the middlemen. This is why you should care about the disruption that’s occurring. Marketplace lending will serve many of those who were previously unable to secure a loan, while providing an experience that is simpler, clearer, and cheaper for all. Best of all: it can all be accomplished from the comfort of your home. Welcome to the 21st Century!
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
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100M+
consumer profiles generated
6.5 Million+
applicants routed monthly
What our partners are saying
"... 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. "
"Even enabled MoneyLion to... streamline our user experience, serve a broader set of our customers, and improve key monetization metrics... driving 4x+ growth since launch."
"... 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."
"... 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. "
"Even enabled MoneyLion to... streamline our user experience, serve a broader set of our customers, and improve key monetization metrics... driving 4x+ growth since launch."
"... 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."
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