$90 Billion Fintech Innovation Market Serves Approximately 100 Million Non-Prime Americans
The Online Lenders Alliance (OLA) released its latest white paper, which highlights how innovation in the financial technology space is playing a role in driving credit inclusion for the approximately 100 million Americans who currently fall into the non-prime credit category. OLA is the center for lending, technology, and innovation representing the growing online lending industry, which serves consumers who, while creditworthy, lack access to credit options.
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The report details the vital role that online lending plays in the economy and in individual consumers’ lives, and is guided by the idea that increased innovation, access, and inclusion should be societal goals. When innovation and access are nurtured as key economic values, online lending flourishes. This, in turn, allows more people to be included in the economic activity of the United States and pursue the American Dream.
“This report shows that expansion in fintech also expands the reach to help underserved communities,” said Mary Jackson, CEO of the Online Lenders Alliance. “With 100 million Americans currently considered non-prime and nearly four out of every ten Americans unable to cover a $400 emergency expense out of pocket, credit options for these consumers are vitally important.”
“Advancements and innovations in financial technology over the past decade have made it possible to reach more of these consumers than ever with products that meet their unique financial needs,” Jackson continued. “This White Paper outlines where we are, why we’re here, and where we’re going.”
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Included in the report is an overview of common online loan products, recent fintech innovations, and general profiles of the typical online borrower. It also discusses the regulatory landscape for fintech businesses, including the 19 federal laws that online lenders must follow. Finally, it outlines OLA’s efforts to protect consumers and promote financial literacy, including through a robust industry policing effort which identifies bad or fraudulent actors, and then remediates or reports them to the Federal Trade Commission (FTC). Through this effort, more than 350,000 URLs have been flagged since 2016, with a 98 percent resolution rate.
