Significant competition in the growing business
Banks do not see any significant competition in the growing business of lending on the internet. For example, describes platforms such as banksamat as a “niche provider”.
It is true that self-employed persons and small business owners would find it easier to get start-up or bridging finance for the platforms. From his point of view, the loan volumes offered exclude medium-sized companies as potential customers: “20,000 to 30,000 usd as a limit for the platforms is not sufficient credit size”.
The company banksamat is according to own data market leader in the mediation of credits. 10,000 investors are currently financing loans from 4,000 borrowers. Other platforms are also successful. banksamat rival Auxmoney points to 2,900 loans financed.
Borrowers should, in the opinion of the consumer bankers, be aware of the platform’s fees and how they are composed when selecting a platform. Advantageous are providers in which only one fee applies, even if a transaction actually comes about.
Investors who see a loan investment
Investors who see a loan investment in the financing of loan projects should be careful to spread the default risk. It should not be borne by the investor alone. Many platforms distribute the default risks to risk classes and thus absorb individual risks. In addition, it should be noted that the funds invested are not subject to deposit insurance.
The fact that banks currently do not see any competition in the offerings of banksamat and Co. is certainly due to the marginal existence that the platforms still have in terms of financing volume. Even years of dedicated growth will not change that.
In the long term, however, the M2M model could certainly have an impact on the business of the banks. After all, banksamat and Co. offer a solution to the problem of “credit requirements” and are in no way inferior to a classic bank loan, even with regard to the speed of settlement.
Then the prognosis of Microsoft founder Bill Gates could prove true. Before the turn of the millennium, he had predicted that there would be money even in decades still -Banke but not necessarily.