The U.S. Online, Non-Bank Finance Landscape
Advances in computing power and the shift toward a digital economy within the last two decades have changed how consumers and businesses transact, interact, and access financial services. More recently, as traditional financial institutions became hesitant to lend to small business and some consumer categories, online, non-bank finance platforms are picking up the slack in those markets. But who are the non-bank lenders? How do these firms operate? What sort of products do they offer? And, most importantly, how did they grow to become such a recognizable resource for credit? In the supplemental landscape to this paper, more than 70 U.S.-based online, non-bank financing platforms are profiled. Given the variety of business models, products, and practices associated with the non-bank financing space, it is incumbent upon regulators and policymakers to understand these distinctions in developing oversight frameworks that support innovation while ensuring sufficient protections for borrowers and investors.