NEW YORK, Dec. 5, 2017 /PRNewswire/ -- S&P Global
Market Intelligence recently published its second annual set of
flagship whitepapers on U.S. Digital Lending and U.S. Mobile
Banking, both building on S&P's deep and expanding financial
technology (fintech) coverage.
The 2017 U.S. Digital Lending Landscape white paper projected
that digital lending growth will slow down over the next several
years, contrary to similar industry reports, as lenders look to
build sustainable and profitable businesses focused on quality
borrowers. The report forecasts that digital lenders will originate
$62.84 billion in new loans in 2021,
up from $29.31 billion in 2016,
representing a compound annual growth rate (CAGR) of 16.5% through
2021. This compares to a CAGR of 129.4% for the five-year period
ended Dec. 31, 2016.
The 2017 U.S. Mobile Banking Landscape, based on a survey
conducted by S&P Global Market Intelligence of 4,000
respondents and research into more than 70 bank apps, found that
banks across the U.S. are adopting a mobile-first strategy for
their digital offerings. The survey also found that meeting
customers' increasingly sophisticated expectations for mobile apps
often means that banks have to invest in services such as P2P
payments that do not directly add revenue.
"The growth of fintech has transformed the way consumers and
businesses gain access to financial services, which drives
innovation across the board," said Eric
Turner, Fintech Analyst at S&P Global Market
Intelligence. "Fintech has grown to a point where both Congress
and regulators have started to take a closer look at how to create
regulation that protects consumers without stifling innovation.
Over the past year, we have researched and analyzed key drivers
within the fintech space such as mobile banking, digital lending,
blockchain, cryptocurrency and more. A common theme across some of
these segments is lack of consistent regulation, but also continued
desire to innovate on the part of small startups and large
institutions alike. Going forward, we will see widespread
innovation thanks to partnerships between incumbent institutions
and startups."
Additional takeaways from 2017 U.S. Digital Lending
Landscape white paper:
- 15 of the most prominent U.S. digital lenders grew originations
at a compound annual growth rate of 129.4% during the five-year
period ended Dec. 31, 2016, but it is
projected that growth will slow for the industry as lenders focus
on building sustainable businesses with higher quality
borrowers.
- Personal-focused lending is projected to grow at a CAGR of
12.4% to $24.31 billion by 2021. The
small and medium enterprise and student-focused lending segments
are projected to grow faster, with respective CAGRs of 21.5% and
18.4%.
Additional takeaways from 2017 U.S. Mobile Banking
Landscape white paper include:
- U.S. consumers value their mobile bank apps more than ever, and
satisfied mobile banking users could prove to be stickier deposit
customers even as interest rates continue to rise and other banks
tempt them with promotional offerings.
- A robust mobile channel along with a strong local brand could
prove to be a powerful combination for smaller institutions seeking
to compete with big banks and fintech challengers, especially as
tech-savvy millennial customers build wealth and act on the "shop
local" cultural trend.
The two whitepapers add to S&P Global Market Intelligence's
suite of fintech research and analysis, which has expanded since
formally launching in late 2016. The scope of research has
cultivated the launch of S&P Global's first fintech conference
titled Fintech Intel: Technology For Tomorrow's Financial
Institutions. The day-long conference will be held on
December 13 in New York City and is open to the press.
Additional fintech research published through 2017 include:
- Initial Coin Offerings: A new capital market takes wing, but
not without controversy
- Venmo Popularity Enhances PayPal's In-Store Payment Push
- A Firsthand Look At The Future Of Fintech Regulation
- Zelle Launch To Accelerate Growth In Crowded P2P Payment
Space
To learn more about S&P Global Market Intelligence's fintech
research, please click here.
About S&P Global Market Intelligence
At S&P Global Market Intelligence, we know that not all
information is important—some of it is vital. Accurate, deep and
insightful. We integrate financial and industry data, research and
news into tools that help track performance, generate alpha,
identify investment ideas, understand competitive and industry
dynamics, perform valuations and assess credit risk. Investment
professionals, government agencies, corporations and universities
globally can gain the intelligence essential to making business and
financial decisions with conviction.
S&P Global Market Intelligence a division of S&P Global
(NYSE: SPGI), provides essential intelligence for individuals,
companies and governments to make decisions with confidence. For
more information, visit www.spglobal.com/marketintelligence.
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SOURCE S&P Global Market Intelligence