The total value of business loans provided by alt-fi platforms in the United Kingdom projects to reach L10 Billion ($15 Billion) by 2020, according to a report commissioned by global fin-tech provider Fiserv.
Even though they are responsible for 43 percent of all U.K. private sector turnover, SMEs still encounter a challenging credit market.
Travers Clarke-Walker[/caption]
“Our research suggests that improved and user-friendly technology is impelling the growth of alternative finance in the U.K.,” International Group CMO Travers Clarke-Walker offered. “We have seen the P2B and crowd-funding sectors engaging in a concerted marketing push, which is likely to raise awareness significantly.”
The report also suggested demand will continue to increase beyond 2020 as the economy strengthens.
Do not be surprised if the banks adjust, Mr. Clarke-Walker added.
“As SMEs and consumers demand new products and services, there is a significant opportunity for banks to innovate with their own new products or to coexist through partnership with start-ups and alternative lenders. By embracing technological advances, financial institutions can also contribute to serving SMEs with this growth in new forms of lending and expanded credit.”
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