5 Lending FinTech companies to watch out for in 2022

By Joy Dumasia

Digital Lending is a trending practice where consumers can seamlessly secure a loan online with minimum paperwork required. The process of submitting documents, authentications, and disbursement of the loan through channels available to end users/consumers, such as mobile or internet banking platforms. Digital Lending can offer a plethora of market opportunities to various traditional lenders (banks), NBFCs, and innovative start-ups.

Traditional banks are usually less reluctant to disburse loans to individuals who do not have a good credit score and individual small businesses that do not have proper collateral; this is a scenario in which digital lenders come to the rescue. The new-age digital lending players have showcased an ability to expand their customer base by capitalizing on the needs of the under-banked population and solving the challenges retail customers and MSMEs face in accessing formal credit.

Digital lenders can play a critical role in the post-COVID era due to their capabilities to facilitate seamless, remote onboarding and digital document verification. Companies must sharpen their product portfolio hinged on a robust digital framework.

The following are 5 Lending FinTech companies to watch out for in 2022:

• Cassiopae

Cassiopae, a Sopra Banking Software product, is the leading global finance and asset management software. Highly configurable, Cassiopae supports leases, commercial loans, business loans, construction loans, equipment finance, vehicle finance, vendor finance, and real estate and fleet management. Cassiopae software is helping manage a wide range of basic to complex, performing and non-performing loans, leases, and assets at over 500 client sites in 40 countries.

• iwoca

Since 2012, iwoca has made funding available to over 50,000 businesses, from cafés to car dealers, salons to solicitors. iwoca’s partner integrations and the lending API means they can provide access to finance where and when small businesses need it. The credit risk engine helps make faster, more accurate credit decisions built around the performance of the business.

Recently, IBS Intelligence reported that iwoca, one of Europe’s largest small business lenders, has announced the expansion of its merchant cash advance product to all small businesses accepting card payments in the UK. The merchant cash advance will enable small businesses to repay their loan based on their sales and stay in control by choosing what percentage of their revenue to pay.

• Kreditech

Kreditech Group’s mission is to build better access to credit through technology. Combining non-traditional data sources and machine learning, the company aims to provide better credit and a higher convenience for digital banking services. The product offerings include consumer loans, a digital wallet and a personal finance manager designed to help customers manage their credit score and plan their spending.

Kreditech also offers a “credit as a service” model, allowing partners to integrate credit products as payment methods or funding sources. Founded in 2012 and headquartered in Hamburg, Germany, Kreditech has processed four million loan applications through its subsidiaries.

• LendInvest

LendInvest is the UK’s leading platform for property finance. Since starting in 2008, LendInvest has lent more than £3 billion of mortgages and has helped put thousands of new or improved homes into the UK housing market.

IBS Intelligence reported that LendInvest and Credit Kudos have teamed up to offer brokers and customers a secure device and enable the former to make informed leading decisions with Open banking insights. The company has selected Credit Kudos to speed up its time-to-decision with a smoother customer journey and enhance affordability and credit risk assessments using Open Banking-enabled risk insights.

• Zopa

Our diverse team is united in their mission of creating simple, fair and honest financial products that have the customer’s needs at their heart. We’ve lent out over £6 billion and are proud to have made money work better for over half a million people across the UK, whether they were looking to borrow, save or invest.

Recently, IBS Intelligence reported that Tesco Bank is partnering with digital bank Zopa to offer online car financing to millions of UK drivers. The two banks have come together to offer Hire Purchase car finance online, helping customers find excellent value car finance in as little as three minutes. The partnership takes the guesswork out of buying a car by combining Tesco Bank’s brand strength and focus on helping customers manage their money with Zopa’s capabilities in building innovative digital finance products.

ALSO READ: Lending Systems and Suppliers Report 2021