The total amount of dollars borrowed via mobile applications has increased over 1,220 per cent over the past four years.
Fintech lending and software licencing business Kabbage is witnessing major growth in mobile applications. The platform, which specialises in small business lending, predicts that one in every five dollars borrowed by small businesses will be via mobile by year end.
It bases this prediction on an analysis of the behaviour of close to 150,000 SMEs. The data shows that the total number of loans accessed by these businesses through mobile increased more than 360 per cent between April 2014 and February 2018. Meanwhile, the total dollars accessed in the same period increased over 1,220 per cent.
Today, 17 per cent of all small business loans and nearly 15 per cent of total dollars accessed via Kabbage come via mobile device. The platform sees this as indicative of the fact that small business owners increasingly expect a simple and instantaneous loan application process.
“The growth of mobile lending is evidence of an enormous change occurring in this industry,” said Victoria Treyger, chief revenue officer at Kabbage. “Small business owners are increasingly digitally savvy and are adopting new technologies faster than ever before. Lending is no different. Kabbage is pioneering this shift in lending by making it a priority to meet small business owners where they are and integrate seamlessly into how they’re already running their businesses.”
The move towards mobile is even more pronounced in consumer lending. As far back as 2016, P2P consumer lenders Zopa and RateSetter were each fielding around 40 per cent of loan applications through mobile devices.
Kabbage operates Apple and Android apps which allow customers to access lines of credit up to $250k on the go. Business owners can expect to apply and be qualified in less than 10 minutes using the app.