Online banking has been an establishment for several years, but online loans have been slower to impress. Fortunately, there are now plenty of good online lenders to choose from. You’re not just filling out the same old forms for your bank (which will be reviewed by a bank loan officer) – true online lenders are changing the way you borrow.
Certainly a development of the post-war period and its generations. Waiver is uncomfortable. Everything must always be available anywhere, and thanks to digitization, it must be possible for all sections of the population.
Everything – always and at any time
An online loan is thus a kind of symbiosis between digital (= always and at any time) and money, which can be used for benefit purposes. A kind of double enrichment for the consumer.
From the point of view of a conservative investor, however, this is not a nice thing, because at the moment when the investor renounces benefits and makes his money available to a third party, a pricing dilemma arises. Currently – in a phase of negative interest rates – you get almost nothing for your money and so the incentive to do without something today is small.
Incentive for investors and consolidation of the market
In this phase it is of course important that the lender sees a sense in his actions, since the interest alone (almost) does not provide any impulse. Thanks to an online loan, a very high level of transparency can be created and the low production costs of an online loan reduce the yield less than, for example, at traditional banks.
In this respect, it is understandable that the digital credit market in Switzerland is growing more and more and more and more players are pushing into this area.
A certain number of providers is certainly advantageous for the competition, but there is a limit at which segmenting the segments no longer makes sense, even with the advantages of digitization. A consolidation of the market in terms of the number of providers will therefore certainly take place if the hype flattens and the model of digital credit types as a normal business concept also has to pay off financially.
The sky is no limit
Irrespective of consolidation, the credit market in Switzerland, which is very large compared to other countries, is being pushed further into digitization. The growth will be big and steep and will also help direct lending providers like 4YourCredit to more markets.