FINANCIAL SERVICES
“ AS CASH AND DISPOSABLE INCOME BECOME TIGHTER , WE WILL SEE INCREASINGLY MORE PEOPLE TURN TO NON-BANK LOANS AS A MEANS OF ALTERNATIVE FINANCE , WITH BNPL MODELS EXPECTED TO FEATURE PROMINENTLY ”
MELBA MONTAGUE SENIOR VP , BANKING AND CAPITAL MARKETS , GENPACT
Other lending services will see an uptick in demand , too .
Mortgages are a prime example because alternative mortgage lenders have different lending criteria than big banks , and could therefore provide a way to approve loans when customers don ' t meet the requirements for a conventional mortgage . Examples of these lenders include private mortgage lenders , credit unions , monoline and ' B ' lenders , and smaller banks .
New alternative finance trends for 2023 and beyond As the popularity of fintechs like Liberis suggests , alternative finance – and lending especially – is a developing space . It ’ s a thriving industry that has become an essential part of financing SMEs , particularly in the wake of digital transformation and on the back of the pandemic .
Peer-to-peer lending is also skyrocketing as it extends its services to encompass lending opportunities for businesses as well as consumer loans . This is set to increase .
further due to better regulations building more trust in the sector .
New technologies such as AI and ML are also driving success . They allow for automation and have improved risk analysis significantly , enabling them to confidently stride forward and scale .
Alternative lending packages will be ‘ a thing ’ Market indications also suggest that the alternative financing space is growing so rapidly , that very soon – possibly even in 2023 – a new , secondary market will emerge in terms of alternative lending packages . In short , this will consist of small ticket loans that will be sold in packages with other services and purchased by large-scale lenders as a means to reduce risk .
Investors interested in alternative finance While the investment market continues to be flat – and much tougher than in recent months – one area analysts believe will thrive is the alternative finance space . This is because cash flow is essential in keeping the lights on across global commerce , and providers that can facilitate such services with speed , efficiency and lower costs will continue to thrive – and , therefore , garner interest in the investment space .
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