A rising tide may lift all boats, but sometimes some boats are lifted higher than others. While personal loans to near prime and prime consumer borrowers have been rising across four categories of lender, fintech players have pulled ahead of more typical creditors, including banks, credit unions, and traditional finance companies.
New research by TransUnion found two trends occurring at the same time. First, post-recession consumers have been obtaining a growing amount of personal loans—unsecured closed-end credit. Second, in only five years fintech online consumer lenders have gone from a negligible factor to the leading originator in this market.
