Yorkshire-based loan software provider Nostrum have recorded a prominent increase in the number of online lending platforms, which could “ultimately lead to purely online self-managed processes for people borrowing money”. Norstrum also investigated the various types of borrowers they most commonly see, and all demonstrated some level of digital awareness of their finances.
Trust has previously been an issue for some, but the research found that 70% were “somewhat worried or very worried” about the security and protection of their online finances, which is a 7% decrease from 2013. The accessibility and democratisation of online finance, which allows people to take more control of the money they both borrow and invest is clearly proving more powerful. 65% reported their customer experience as positive, and the advent of ‘smartphone adoption’ has made the process even easier.
The Chief Executive of Nostrum, Richard Carter, commented on the findings: “Lenders have adapted and are now pre-empting consumers by providing the technology to manage the entire process in a way that meets their preferences.” The key to customer satisfaction appears to be control and freedom, we “crave immediacy and convenience” in Carter’s words, and online lending platforms are satisfying this need more and more.
Public awareness of Peer-to-Peer lending has also increased dramatically alongside this, increasing by a staggering 87% since 2013. Wellesley & Co.’s online application is a quick and easy three step process.
The initial approval takes a few minutes and the lender can choose any of the advertised terms and earn interest as soon as funds are committed. When using Wellesley & Co.’s platform, the lender manages their account online and can view up to date transactions and lent out monies instantly.
The success of various online lending platforms and the alternative finance sector can partly be attributed to good timing, development of the internet, competitive interest rates, but also its accessibility and its willingness to be attainable for all, as demonstrated by Nostrum’s findings.