Digital lending choices for both consumers and small businesses have grown rapidly, and the online lending sector is now entering a phase of maturity. There is increasing competition; regulators are paying more much attention to the sector; and technology continues to evolve. The speed of technological development and the range of offerings in the market mean that, in order to succeed, institutions must continue innovating and be smarter. Over the coming years, we will see a focus on three core areas:
- Advances in data analysis — data is important to the industry. Machine learning and artificial intelligence solutions are likely to mature and push further innovation. We will also see an improved ability to apply data to different segments.
- More intelligent use of technology — technology has always been at the center of successful digital lending, and a lot of experimentation is taking place into how it can be improved.
- An explosion of strategic partnerships — online lenders are likely to be more successful if they experiment in collaborating with other firms. These partnerships will lead to the creation of new and innovative products and services.