Online presence remains the alternative lender’s best tool

Online presence remains the alternative lender’s best tool

Online presence remains the alternative lender’s best tool

Emphasizing the importance of leveraging tools such as apps and platforms, online accessibility remains a vital ingredient for alternative lenders looking to grow their business, according to an analysis by loan directory Smarter Loans.

This has become especially important in a policy environment characterized by prohibitive stress tests that have pushed a significant proportion of consumers out of the market.

“The appetite for alternative lending products has led Canadians on a search for information about the options that are available to them,” Smart Loans stated in its report.

In 2018, approximately 62% of would-be borrowers used search engines rather than referrals to find their alternative lender of choice, and 60% ended up checking the lender’s website prior to applying.

Furthermore, around 46% conducted research on three to five providers before applying, and 25% entertained six or more choices. Approximately 44% relied upon online reviews to make their final decisions.

By and large, these searches have yielded great fruit, with 75% of those that applied online getting the funding they needed, and 85% indicating satisfaction with the service they received.

A defining feature of many lenders’ offerings is the promise of same-day or quick approval. Nearly 43% of respondents said that they received their loans during the same day that they applied, and 82% said that they received funds within three days. Fully 68% indicated that they “agreed” or “strongly agreed” that the application process was speedy and hassle-free.