From Marketing Interactive:
“Throughout the history of banking, financial institutions have been the centre of all transactions for consumers and businesses. Large institutions held control of the industry.In the last ten years, the fundamental assumption that financial institutions are the only avenue to financial transactions is being called to question, especially by Millennials, who are by far the most entrepreneurial generation. This creates opportunities for peer to peer (P2P) lending marketplaces such as Prosper and Lending Club, platforms which create alternative ways to access cash loans while providing alternative yields on deposits. ”
Newly introduced peer-to-peer lending platforms are now an alternative source of yielding higher return with controlled risk compared with traditional banking. The banking system is now changed to a new ways where multiple players (e.g. Fintech) are filling gaps from traditional banking. In Singapore, the SME invoice financing sector is now moved to alternative lending side with big players such as Capital Match which provides professional services in credit assessment and factoring.