A survey of the lending industry by the UK business process outsourcing services firm Nostrum finds that 84% of respondents expect the lending industry to be stable over the next two years, with 57% anticipating growth.
Of those surveyed, 59% believe that alternative financing, such as peer to peer (P2P) lending, guarantor loans and logbooks, will drive forward growth in the next two years. In total, 72% of service providers cited P2P lending as a growth opportunity, compared to 62% of brokers and 58% of lenders.
Recognising the changing ways in which customers are accessing services, 49% of lending professionals believe that it is important for borrowers to have 24/7 access to accounts, while 46% claimed it is helpful but not necessarily important. However, despite the explosion in smartphone and mobile devices, 45% said that they have no plans to develop specific mobile technology for the business in the next 12 months.
“The lending industry is currently in a state of flux,” said Richard Carter, chief executive officer (CEO) of Nostrum. “While problems with lending, a potential eurozone collapse and regulatory change are seen as the most disruptive factors that could affect the lending industry over the next five years, businesses also have to contend with the rise of constantly-connected customers that demand access to customer support at all at times.
“However, despite these changes, the industry shows signs of optimism, anticipating growth over the next two years as alternative solutions, such as P2P lending, come to the fore and offer a viable alternative to traditional sources of credit.”
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