Installment loans: Fintechs are gaining ground on loan forecasts of $212 billion

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DUBLIN, March 21, 2022–(BUSINESS WIRE)–Installment Loans: Fintechs Gain Ground on Loan Forecasts of $212 Billion report added ResearchAndMarkets.com Offer.

The report explains the state of consumer mortgage lending in the United States and how fintechs and finance companies are outperforming banks and credit unions in consumer finance. In addition, the study examines how companies are offering embedded financial products such as CCaaS to enable customers to offer their own credit card product. Using four evaluation criteria, general guidance is provided for those seeking a relationship with a fintech provider.

“Banks used to dominate consumer lending, with installment products being much cheaper than credit cards, but that’s no longer the case,” comments Brian Riley, author of the research report. “Buy Now, Pay Later (BNPL) was a wake-up call for credit card issuers. BNPL was a rewrite of a merchant finance model used long ago by companies like GECC (now Synchrony) and Household Finance Corporation (acquired by Capital One). … Now, fintechs are moving in the same direction with installment loans,” says Riley.

Highlights of the research note include:

  • US consumer debt trends

  • Trends in fintech and financial companies versus financial institutions

  • Why banks and credit unions should define the consumer credit space and not follow fintech trends

  • Strengths, weaknesses, opportunities and threats for established banks and fintechs

  • Comparison of revolving and installment loan products

  • Consumer survey data on installment loan users and large fintech lenders

Main topics covered:

  • Summary

  • Household debt in the United States

  • Unsecured Installment Loans: Defining the Space

  • Reasons why consumers choose non-traditional lenders

  • Installment credit: Risks and opportunities for financial institutions and fintechs

  • What Financial Institutions Should Do

  • What fintechs and traders should do

Figures & Tables

  • Figure 1: Consumer debt in the United States totals $15.6 trillion across all collateral classes

  • Figure 2: US unsecured personal loans to grow to $212 billion by 2025

  • Figure 3: Between 2016 and 2021, fintechs and finance companies overtook banks and credit unions in market share

  • Figure 4: Consumer credit products range from unsecured revolving loans and installment loans to secured loans

  • Figure 5: Almost a quarter of cardholders surveyed said they used an online lender

  • Figure 6: Top 7 Consumer Credit Card Installment Loan Drivers

companies mentioned

  • Acima credit

  • To confirm

  • American Express

  • avant

  • bank rate

  • mixing laboratories

  • bread

  • capital one

  • city

  • Discover

  • Equifax

  • experiential

  • FIS Global

  • FICO

  • fisherv

  • GECC

  • HFC

  • JPMorgan Chase

  • jack henry

  • Klara

  • loan club

  • Luminous flux

  • MasterCard

  • nerd wallet

  • opportunity

  • Thrive

  • regions bank

  • rocket companies

  • SoFi

  • synchronization

  • TSYS

  • shop steward

  • TransUnion

  • Update

  • upstart

  • Visas

  • Wells Fargo

  • world money

  • Zopa

For more information about this report, visit https://www.researchandmarkets.com/r/7dw9e

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View source version on businesswire.com: https://www.businesswire.com/news/home/20220321005628/en/

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