News More People Are Taking Out Personal Loans As Fintech...

More People Are Taking Out Personal Loans As Fintech Industry Grows

-

- Advertisment -

The personal loan market reached an all-time high last year, as the emerging financial technology (fintech) industry has made mobile financial services more convenient and available to consumers.

Last year, the personal loan market reached $138 billion, a surge of 17% year over year, according to TransUnion data, reported by CNBC. Fintech lending made up 38% of all personal loans, up from just 5% in 2013—and these companies are on the rise.

A July report published by the U.S. Department of Treasury says that more than 3,300 fintech companies started from 2010 to 2018, with investments in these startups growing rapidly. In 2017, global investments in fintech companies reached $22 billion. These companies are the main driver behind personal loan market growth.

“The rapid growth in consumer loans sits squarely on the shoulders of fintechs,” Jason Laky, the senior vice president and leader of TransUnion’s consumer lending told CNBC.

Americans are in a lot of debt, with more and more people unable to pay it off. In 2018, student loan debt reached a new high of $1.5 trillion, followed by auto loan debt at $1.1 trillion, and credit card debt at $977 billion. The average total amount of debt carried by American households is $133,568, according to Forbes.

For people borrowing subprime loans—either because of low-income or a poor credit history—the risks are the highest in the case of an economic recession or crisis. This tier of borrowers, who risk losing their jobs or work hours is also growing the fastest, at 4.3% year over year, according to TransUnion.

Source: Fortune

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

To Kill A Dragon – How To Build An Honest Alternative To Sharing Economy Industry

The sharing economy is big business. Platforms like AirBnB, Uber, WeWork, Upwork, and others in the industry...

3 Beginner Friendly Ways to Make Money with Cryptocurrency 2020

In this article, we will explain how to make money with cryptocurrency in 2020. These methods are...

Blockchain, Bitcoin, and Mashed Potatoes

According to studies, over the next 5 years, many of the major supermarkets are expected to...

Different Facets of Biometric Authentication and How They Are Making A Difference in The Financial Sector

When we think of authentication in the true sense, then we find ourselves amid the different proven...
- Advertisement -More People Are Taking Out Personal Loans As Fintech Industry Grows

UNICEF’s 125 ETH Investment Took Less Than 20 Minutes and Cost Less Than $20

"The digital world is coming to us faster than we could have imagined," said UNICEF chief Chris...

Analysis: Is Bitcoin (BTC) Still Viewed As A Dark Web Currency?

There is a long past of Bitcoin (BTC) – due to its anonymity – being used in...

Must read

- Advertisement -

You might also likeRELATED
Recommended to you