2. INTRODUCTION
The alternative lending industry has exploded
globally in the past ten years thanks to fintech. In
Australia, for example, it is growing at a fast pace,
primarily due to the increased preferences for
business owners to secure fast, convenient, and
affordable capital for their businesses. The
industry’s growth in the country has attracted
new alternative lending businesses and increased
the kinds of alternative financing products available.
An evaluation of the alternative lending industry in
the country reveals that there is a major awakening
observed with a particular emphasis on ensuring
faster, convenient, and reliable services for
customers. Here is an overview of what to expect of
the alternative lending sector in Australia.
3. INCREASED PREFERENCE
The otherwise referred to as alternative lending concept in the
country is expected to become not so alternative, even as the
industry achieves much preference among customers. According
to an evaluation by KPMG in 2018, Australia is only next to China
as the largest alternative finance market within the Asian-Pacific
region. The industry, valued at over $1 billion in 2017, has
achieved tremendous growth with an emphasis on absorbing
fintech technologies to make funding highly accessible and readily
available for customers.
4. REDUCED DEMAND FOR SECURITY
The drop in property prices in the country is pushing more small business
owners to find it difficult to use their homes as collateral for alternative
funding. The decline in property prices implies that business owners
cannot sufficiently use their homes as equity to obtain loans. This is
pushing business owners to consider pursuing other forms of unsecured
funding. It is also boosting alternative lenders’ willingness to offer
unsecured financial services.
5. INCREASED
DIVERSITY
The increased demand for alternative
lending services in the country has put
more enterprises into the business world.
The increased competition is pushing
more lenders to think of ways of
diversifying their financial services to
customers. Customers, on the other
hand, are also thinking of ways of using
the alternative lending industry to finance
their diverse ambitions. The industry is,
therefore, growing quickly as defined by
diversity in the kinds of products and
services offered as well as the drive for
demand.
6. INCREASED CALL FOR
TRANSPARENCY
From an ethical and regulatory point of view, transparency in the financial
sector is a major aspect. The alternative lending industry in Australia is
adapting by upholding disclosure standards on important aspects, such as
financial positions and financial transactions.
7. THANK YOU FOR YOUR TIME
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