Lending, for both consumers and small business owners, is a necessary inconvenience. No one wants a loan. They want what the loan provides for them (i.e. a car, a house, another quarter of operating capital, etc.)
Because of this basic reality, embedded lending – the ability to approve and fund customers for loans within the context of the transaction they are attempting to complete – will always be the most convenient, and thus preferable, option for consumers and small business owners.
And as software continues to take over the world, it becomes increasingly easy to embed lending within all of the websites, apps, and SaaS products that consumers and small business owners use on a daily basis. The challenge for banks is that they do not control those distribution endpoints. And so, the growth of embedded lending poses an enormous competitive challenge for banks, a challenge that has become even more dire with the growth of fintech and non-bank lending.
Watch on-demand now, as, Alex Johnson (Founder, Fintech Takes) and Kathy Mitchell-Stares (EVP North America, Provenir) share insights on: