Alternative lending companies offer digital lending solutions, from point-of-sale financing to alternative credit scoring to payday loan alternatives.
Alternative lending has gone mainstream.
After the 2008 financial crisis, players like Zopa, Lending Club, and Prosper pioneered the space to provide borrowers with transparency, efficiency, and lower costs. Today, the market is estimated to be worth $1T, according to the CB Insights Market Sizing tool.
Fintech startups issued 38% of all US personal loans in 2018, while banks provided 28% and credit unions accounted for 21%, according to TransUnion. This is a significant change from 2013, when fintech startups issued only 5% of US personal loans, banks issued 40%, and credits unions 31%.
Using CB Insights data, we identified 140+ private companies operating in the digital lending value chain.
We define alternative lending companies as those streamlining applications, building underwriting algorithms, providing capital, servicing debt, or developing the underlying infrastructure.
We selected these companies based on reputation, total funding, and Mosaic score, CB Insights’ algorithm that uses financial and non-financial signals to predict private company health.