A recent survey carried out by Target Group has returned some rather unexpected results.
The survey targeted 100 senior professionals from the UK’s finance sectors, such as building societies, credit unions, banks and peer to peer lending platforms. It was found that 90% of respondents agreed that the country is undergoing a price war, thanks to a rising number of players on the field. To scaremonger further, falling lending rates have been attributed to an influx of new market participants by 84% of banks.
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Target Group’s survey also discussed finance in terms of technology. The resulting report suggested that bigger banks tend to rely heavier on technology when it comes to powering credit decisions, with 95% of bank respondents regarding big data as a major factor in underwriting lending decisions. To further highlight this point, only 74% of building societies and P2P lenders said the same. The report also concluded that 65% of bankers see technology as an important means of customer engagement, whereas only 4% of peer to peer lenders think the same.
So, what does all of this mean to the peer to peer lending industry? One thing that’s clear is that more traditional forms of banking/more traditional lenders may be leaning towards becoming more ‘platform-like’. It’s also a clear indication that technology is becoming more and more involved in the world of finance, and vice versa. With the number of peer to peer lending platforms constantly rising, and different technologies being developed daily, who knows what could be next?