Marketplace Lending Industry Sees Efficiency, Cost, Authentication and...
The increasing convergence of traditional and marketplace lenders was a sentiment echoed by Prosper President and eOriginal Advisory Board Member Ron Suber in his keynote at the conference. According to survey respondents, the anticipated growth in partnership was despite the ongoing obstacles for collaboration, including technology integration (38 percent) and conflicting goals (27 percent).
Survey takers were also asked to highlight challenges to growth within marketplace lending. The top answers included regulations (47 percent) and access to capital (25 percent). When asked to focus specifically on the adoption of end-to-end digital transaction management solution, participants cited the challenges to be full adoption by partners (31 percent), lack of infrastructure (29 percent), security and privacy concerns (22 percent) and cost (17 percent).
In response to these findings, eOriginals President and CEO Stephen Bisbee stated, Digital transaction management removes the ambiguity from the alternative lending industry, which is comprised of various disruptive, technology savvy game-changers. From an investor perspective, this provides structure post-signature to create a secure, consistent and scalable process that will alleviate risk and remove uncertainty.
Bisbee noted that it is critical to enhance and extend digital transaction capabilities to more securely manage and transfer loan agreements as financial assets once completed and signed. To support industry-wide adoption, processes must support best practices, promote transparency for funders, investors, custodians, rating agencies, customers and growing needs. As loan volumes increase and new channels of funding are established, digital transaction management, which includes post-signature asset management, is essential.