Back in early 2005 , the concept of online lending was an anathema . If you needed a loan , you made an appointment to see a personal banker , donned a suit and then prayed that your finances and business idea were enough in line with the bank ’ s borrowing requirements to get the loan approved .

But later on that year , a disruptive UK fintech company called Zopa threw a spanner in the works and became the very first online P2P lender in the marketplace . Incumbent suspicions were raised . Zopa was viewed as niche and even shady by the establishment . “ It ’ ll never catch on ,” they said .

Fast-forward 15 years and online lending has taken the marketplace by storm . Indeed , these days , the incumbents are the ones lining up to form collaborations with their shiny fintech counterparts .

The game has well and truly changed as billions of dollars in lending transactions occur daily across the globe .

Lending frenzy ? Although there are obvious benefits to more accessible loans , which have helped numerous businesses develop and grow , not everyone is happy about this financial revolution . Indeed , some experts are concerned that such easily accessed loans on a consumer level could potentially be damaging . fintechmagazine . com 71

FinTech Magazine - June 2021 | Page 71

Borrowing from a digital lender has never been so quick or simple . But is the new lending and BNPL revolution without consequence ?

Back in early 2005 , the concept of online lending was an anathema . If you needed a loan , you made an appointment to see a personal banker , donned a suit and then prayed that your finances and business idea were enough in line with the bank ’ s borrowing requirements to get the loan approved .