Alternative Lending: Why Integration is Crucial

By Ross Garrett in Finance, Enterprise Integration Posted May 24, 2018

The alternative lending market has exploded in the past 10 years, and that growth is only going to continue, specifically in the small business marketplace. Analysts from Business Insider estimate that alternative lending’s share of the small business (SMB) market will reach 20.7% by 2020, originating loans worth $52 billion.

And just like any other high-growth market, new entrants and competition have been rapidly entering the scene. Alternative lending deals were up a solid 15% by the third quarter of 2017 alone compared to the previous year. So how do successful alternative lenders set themselves apart and prepare for the future?

The answer for market leaders lies in integrations – specifically, ones that allow lenders to realize an increased approval turnaround, accelerate the credit-decisioning process, and leverage powerful partnership opportunities.

API Integration - Alt Lending


Integrations into accounting and financial systems help increase both the quantity and quality of information used to determine creditworthiness. Quick access to high quality data helps to emphasize the agility of alternative lenders that sets them apart from traditional financial institutions, and results in an even quicker time-to-customer.


Although legacy financial institutions have been slow to take on a digital presence, new regulations such as the PSD2 in Europe are starting to open up opportunities between Fintech and traditional financial institutions. Traditional financial institutions not only have greater access to capital and a larger customer base, they also provide stability, trust and have significant experience implementing regulations and compliance requirements. As these new regulations start to open up the traditional banking world, potential integrations and partnerships will see new innovations and a better customer experience in the future.


Integration will continue to be a powerful force in the growing world of alternative lending. A greater, holistic approach to integration platforms will be crucial to scaling for the future and taking advantage of opportunities in the marketplace.

APIs are Critical to Business

Today’s integrations need to go beyond the legacy model of costly one-by-one integrations and management. Fintech providers need agile, flexible and scalable platform to enable business users to get the results needed for success.