Niels Turfboer forecasts the continued growth of institutional investment in online loans.
While the 2018 forecasts continue to rain down upon us, fintech business lender Spotcap has offered up a shower of its own.
“Alternative finance is going mainstream. A recent report from the Cambridge Centre for Alternative Finance found that more and more UK businesses are keeping away from traditional financing and turn to alternative finance solutions instead. This is good news for the industry as a whole and we expect this trend to continue in 2018,” he said.
A larger class of institutional investor began to emerge within the online lending sector in 2017. The Aegon deal with Funding Circle is one such example. Turfboer sees this trend continuing.
“What we have seen so far – and will see more of in 2018 – is the growing involvement of institutional investors with online lending platforms,” he said. “This could be an asset manager investing into a peer-to-peer lender, or a high-street bank teaming up with a fintech lender to outsource certain loans or other banking services. With alternative finance going mainstream, this trend is only expected to gain further momentum.”
Finally, partnerships. The year just passed is one in which a large number of collaborations were formed between fintech firms – often as an exercise in furnishing the marketplaces of digital banks. Revolut has been especially prolific – teaming up with a peer-to-peer lender, an insurtech, and a robo-advisor, to mention only a few of its new friends.
“Fintechs that continue to collaborate, innovate and make experienced hires are those most likely to succeed,” said Turfboer. “Combined with a unique business idea and people who are eager to think outside of the box, they will be able to keep ahead of the curve – in 2018 and beyond!”