As traditional banks tighten lending, nimble fintech companies are stepping in to fill the void across consumer finance, business loans, mortgages and more. Explore the top innovators shaping the future of lending.
Fintech Lenders Forge Ahead As Banks Pull Back
The rapid rise in interest rates over the past year has significantly shifted the lending landscape. As inflation concerns mounted in 2022, the Federal Reserve hiked the federal funds rate from near zero to over 4% within months. This has increased the cost of capital and tightened credit availability, especially from traditional banks.
Many large banks have become more risk-averse, reducing new loan origination volumes in areas like mortgages, credit cards and small business lending. For example, Bank of America's total loans dropped 4% year-over-year in Q3 2022. Meanwhile, Citi's North American branded cards loan balances declined by 12%.
While this pullback has cooled economic activity as intended, it has also created an opportunity for more nimble fintech lenders to accelerate their share of wallets. Unencumbered by legacy systems and buoyed by adaptive technology, data analytics and streamlined processes, fintechs have leaned in to fill the void left by cautious banks.
Below we explore the leading fintech innovators shaping the future of lending across key segments:
Embedded Lending
Lendflow: Enables companies to build and embed compliant lending products via its credit platform.
Jaris: Provides full-stack, embedded lending-as-a-service spanning legal, underwriting, risk and more.
Vaya: Embedded credit API allowing companies to offer highly configurable, contextualized financing.
Banxware: White-label embedded lending technology for marketplaces and payment platforms.
Kanmon: Practice management financing platform to offer loans and credit lines to clients.
Parafin: Embedded financing infrastructure to manage merchant financing programs.
YouLend: Partners with platforms to embed customized merchant/supplier financing.
Mambu: Cloud banking platform supports lending and loan servicing for any customer segment.
R2: Enables tech platforms to offer financing to SMB buyers/sellers in Latin America.
Sivo: Credit-as-a-service platform providing up to $20M in capital.
Defacto: Embedded credit infrastructure to help companies offer financing to their customers.
Lentra: Embedded lending-as-a-service for banks to provide financing to their customers.
Working Capital
Resolve: Enables B2B deferred payment options for wholesalers, distributors and manufacturers.
Balance: One-click B2B checkout software with credit management and net terms.
Slope: Provides SMBs with consumer-like payments experience and credit solutions.
Settle: Working capital and revenue-based financing for CPG companies.
Capchase: Revenue-based financing for SaaS companies to fund growth.
CreditKey: BNPL for B2B enabling installment plans at checkout.
Wisetack: Financing platform tailored to in-person services SMBs.
OatFi: Embedded working capital and revenue management solutions.
Fundbox: Credit lines, loans and payment flexibility tailored to SMB revenue streams.
Hokodo: B2B buy now pay later platform supporting installment plans.
Billie: B2B marketplace financing and insurance offerings.
Two: Enables B2B BNPL credit at checkout with flexible installment plans.
Kontempo: White-label BNPL payment option for B2B companies to offer customers.
Mondu: BNPL and net term solutions for B2B merchants and marketplaces.
Rupifi: B2B credit and working capital financing for marketplaces and sellers.
Origination & Servicing
DigiFi: End-to-end loan origination system (LOS) that streamlines lending consumer journey.
Vesta: Flexible loan origination system enabling lenders to customize workflows.
Scratch: Loan servicing platform supporting borrower management and lender operations.
Canopy: API-based loan servicing handling payments, statements, disputes and more.
Peach: API-first loan servicing platform optimizing origination through servicing.
Method: Loan management app for debt repayment, underwriting, money transfers and more.
Spinwheel: Enables companies to embed consumer debt payoff solutions.
Blend: White-label home lending platform managing origination through close.
Valon: Cloud-based mortgage loan servicing platform empowering borrowers.
Vontive: Mortgage lending platform for real estate investment firms.
Manning + Company: Access Top Fintech Lending Talent
As fintech cements itself as a dominant force in lending, sourcing the talent to build and scale these disruptors becomes crucial. Manning + Company has deep expertise connecting enterprises across fintech with specialized experts including:
Full Stack Engineers: Build and optimize the systems supporting high-volume lending platforms, integrations and embedded experiences.
Data Scientists: Develop proprietary risk models and machine learning algorithms to enhance underwriting and decisioning.
Product Managers: Design seamless borrower journeys bridging the gap between finance and consumer experience.
Credit Analysts: Leverage data to evaluate risk across borrower segments from subprime consumers to small businesses.
Compliance Officers: Ensure adherence to rapidly evolving regulatory expectations through technology and process excellence.
Our global fintech practice sources talent that combines lending and credit expertise with cutting-edge technology capabilities. And our on-demand talent solutions provide seasoned professionals for short or long-term projects.
As banks tighten the reins, contact Manning + Company to access the top minds growing the future of lending. Our experts and network will empower your fintech to capitalize on new opportunities.