Video
Businesses using fintech are 270% more credit-active, but face higher risks
Published October 29, 2024
Commercial Credit & Economic Trends Credit Decisioning Economic & Market InsightsAs published on the Business Information blog in a post titled Fintechs Transforming Financing and Growth - the fintech industry has grown by 140% since 2018, with North America leading at 34% of global market share. This video recaps some of our research including:
- North American Dominance: North America accounts for over 34% of the global fintech market, making it a key player in the industry’s expansion.
- Innovative Solutions: Fintech companies have transformed traditional financial services with digital solutions in areas like payments, lending, personal finance, and investment management—led by apps like Venmo, Cash App, and Apple Pay.
- Increased Credit Activity: Businesses using fintech financing are 270% more credit-active than those relying on traditional financing, with higher inquiries, trades, credit lines, and balances.
- Higher Risk: Despite increased access to capital, fintech-financed businesses exhibit higher delinquency rates and lower credit scores, presenting added risks for lenders.
Check out the full report to see how these trends could impact your strategy!
Watch
Watch Video
Report
Small Business Resilience Amid Economic Divergence
The latest Experian Commercial Pulse Report reveals a complex but fascinating picture of the U.S. economy and the small business landscape. According to Javier Rodriquez-Paiva’s research, while headline indicators suggest moderation, like slowing inflation and a steady unemployment rate, beneath the surface, disparities in recovery and credit performance continue to deepen.
Check out the full report to see how these trends could impact your strategy!
eBook
Proactive Credit Limit Management: Winning Strategies for Financial Institutions
Managing credit limits effectively can help financial institutions maintain a healthy, profitable credit card portfolio. Proactively increasing credit limits can enhance your ability to provide excellent customer satisfaction and drive higher revenue.
Lenders can strategically implement proactive credit limit increases to:
- Increase interchange income
- Generate additional interest income
- Enhance wallet share
- Reduce customer attrition
- Improve customer experience
Proactive credit limit increases give customers access to more credit, which can positively impact their financial health and help you drive business growth.
Report
Recessions and Lending
If we go into a recession, what does it mean for lending activity? What does it mean for delinquency? As banks, credit unions and fintechs grapple with these questions, sometimes it helps to look to the past for guidance.
In this latest Macro Moment, take a quick look back at prior recessions and their impact on unemployment, delinquency, and loan growth. Key insights include:
- In the last five downturns, unemployment peaked an average of three quarters after the recession ended.
- In the last four recessions, 30+ DPD delinquency on all loans increased by an average 1.6 percentage points.
- In the prior five recessions, quarterly credit growth slowed from 1.9% in the two years in the lead up to recession to -0.1% in the year following a recession.
Report
Generation Next: Key Generational Insights
Download our report for insights into the major financial milestones your consumers are facing including:
- Gen Z’s journey to independently acquire their first credit products
- Millennials’ quest to become first-time homebuyers
- Baby Boomers and older Gen X reaching retirement