As it becomes harder to borrow from traditional sources like banks and credit unions, more and more Aussies are considering alternatives like peer-to-peer lending.
Canvas8 asked the experts to find our how fintech firms in this space are challenging established institutions, and why some people still wary of this form of finance?
Our co-founder and co-CEO founder, Michael Phillipou, was asked to contribute to the discussion. As Lodex is an avowedly agnostic exchange enabling financial services providers to bid for consumers loans and deposits in a competitive Lodex Marketplace. Michael is also chief editor and co-founder of cryptocurrency news channel CryptoTechNews and also formerly worked for Westpac and Bendigo so has a lot of knowledge and experience in the space.
Although P2P firms presently comprise a relatively small part of the country’s personal lending market, their rapid rise is giving banks pause for thought. Michael points our that brands such as Now Finance, RateSetter, Wisr, SocietyOne, and Harmoney are ones to watch.
“Any of these players are in a space where they can compete head- on with larger institutions and mainstream banks – but at lower rates than major players. Therefore, young Australians who are looking for the best offer, best long-term scenario and best user experience, and who are not as loyal as previous generations of banking customers, are prime customers for this new competitive market.”
“The opportunity is ripe for players who can lower rates, still make a profit and serve customers better”.
Have you given Lodex.co a go? See what lenders are willing to offer you for your loan or deposit.
For the full report go to https://www.canvas8.com/au/