Gabriella Kindert, head of Alternative Credit at NN Investment Partners, explores four key trends that are likely to impact the alternative lending landscape in 2018:
- Intensifying competition and open network collaboration — as banks are opening up their data to third-party developers, niche players will begin to be able to gain scale, leading to increased competition. This will drive concepts that lead to solutions such as more efficient payments and know-your-customer processes.
- Consolidation and new emerging players in the financial services sector — data-driven e-commerce companies such as Amazon are increasing their footprint in financial services. It is likely that this will continue and that they will look to buy out other platforms as they explore their potential in different spaces.
- Increased data transparency and harmonization requirements — although diverse financial services enhance the resilience of the credit markets, it brings risks related to players operating outside regulatory frameworks. Increased data transparency will likely be pushed as investors work to determine where to put their money.
- Growth and disruption in shorter-term financing solutions — disruption in credit cards and short-term loans to households is long overdue. Numerous emerging FinTech solutions are working to address this market opportunity. Expect this to further develop in 2018.