There are several different trends you can apply which can change how you perceive and view personal lending and debt. Here are some of them listed and explained below.
1. Fintech fragmentation which starts by moving toward a winner who will remove uncertainty
When you look at the current world we live in, you notice that every person only gets paid to sweat and brave the details of uncertainty. And you find that anyone who can remove certainty always stands to make a lot of money. Look at the blockchain technology which can remove uncertainty on the value of an asset. It can help a lot when it comes to eliminating fraud by ensuring every individual is given a unique ID, explains Chad Otar, Excel Capital.
2. The market is evolving: the 2018 marketing efforts are bound to get cheaper with targeting getting easier
Many B2B businesses, Lendgreen lenders included, will eventually have to move into building long-term relationships instead of looking to acquire more leads. These businesses will also have to pay more attention to the churn rate to monitor all the long-term health of their brand or marketing.
Businesses will also get to be more personal and human when it comes to marketing as well with the inception and incredible growth of social media which still continues to blur the lines when it comes to telling the difference between professional and personal lives, states Mark Seigel, Veritas Financial.
3. It will be much easier to maintain a portfolio using technology and algorithms to spot any issues
Algorithms are currently taking over the transaction business in the B2B businesses. Businesses can now maintain their portfolio much easier with technology spotting any problems or issues that might arise in the business and showing you where you need to focus more of your attention. You will practically be more efficient.
Lenders are now incorporating more data into their sales, portfolio management, and underwriting processes as well as their decision making all to ensure they deliver easily accessible and convenient services, explains Linda McDonough, communications & marketing executive, LLC.
4. More power shifts to the client or consumer with the increased number of reviews and data which influences their decisions
Right now the reviews on TrustPilot basically acts more like the Yelp site for B2B businesses. And you will find that more clients are now depending on sites with unbiased reviews to make their decisions. These sites can be Facebook reviews, Google reviews, and any other trustworthy sites like TrustPilot.
5. Big players keep pushing into the lending business while some of the upstarts can still end up experiencing business model pivots
The population of contract workers, freelancers, and many small businesses is growing at a very fast rate and for the businesses that rely more on invoicing, it is inevitable that behemoths like PayPal and Amazon can end up exploring lending at much larger scale.
Other companies like OnDeck.Inc. may also have to rethink their overall lending models with the current age where high rates are no longer acceptable to investors.
6. More records are getting digitized
There is no other way to go about it. Even the businesses and industries that have widely resisted it need to have their records digitized. This will hopefully make your jobs much easier when it comes to factors like record-keeping and fuel distribution. It will also be a lot easier to spot problems find systemic issues which your business underwriters may have missed.
7. Personal contact with your clients and customers has now become a premium service with most services now going digital
Organizations and businesses will no longer have to work and interact with only half of their customers. Contextual engagement has now become a source of differentiation and with the current impact of automation and ability to integrate human and digital interaction, it now seems like customers and businesses are interacting at more personal levels than before.
Explains Vince Mancuso, NextEdge Capital