Fintechs fill the void left by commission
Fintechs are filling the gap in SME lending as the big four banks concentrate on the fallout from the royal commission, according to one online lender.
The fintech commercial lending space opened up in around 2013 and since then has reported an annual growth rate of around 79%.
According to chief commercial officer at Moula, Matt Leeburn, part of this growth has been down to fintechs focusing on lending to SMEs, which make up more than 97% of all Australian businesses.
He said that while the space is still “a while off” being a significant threat to the banks, there is a huge opportunity to help the “underserved” SME market.
According to Leeburn, fintechs are best placed to help small businesses due to their quick funding time. He said, “From our perspective, I think it’s our ability to go fast. The platform we’ve built can assess and process a loan within about 13 minutes and the average time is around 24 hours, and that’s including being funded.
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