Alternative lenders have acknowledged that collaboration will be crucial if the sector is to mature and continue to meet the changing needs of its SME customers.
The assessment was made by a group of alternative lenders on a panel session at RFi Group’s Australian Business Banking Summit last week. For the first part of our coverage, click here.
Panel members included (pictured L to R), John de Bree, managing director, Capify, Aris Allegos, CEO, Moula, Daniel Foggo, CEO, RateSetter and Deborah Holtham, consultant, DXC Technology.
In his presentation before the panel session, de Bree argued that new product rollouts by alternative lenders would be a key future trend if they are to remain relevant to their customers.
Beyond the headlines
Capify recently secured a partnership with listed financial services provider Thorn which will allow the business to roll out a number of products. Similarly, Allegos believes that collaboration with the customer will be important if marketplace lenders are to grow.
“We have to grow with our customers and that means going beyond just providing a lending capability. We are moving from just providing a vanilla term loan facility to providing funding on a more regulator basis such as a line of credit,” Allegos said.
External collaboration was also key for Moula – with the business already securing alliances with Xero and Liberty Financial. Allegos said businesses like his need to be prepared for the work involved that goes beyond the headlines.
“Any collaboration in the sector creates headlines in the first instance. But it takes two to three years before you can get any tangible benefits,” Allegos said.
RateSetter’s Foggo said partnerships were key to ensuring that the peer-to-peer lender remained relevant across the markets.