Despite predictions that loan origination volumes could drop 40%-60% in 2010 in segments like the US mortgage market (source: “Mortgage Workers: Keep, Cut, Transfer,” American Banker, 4 November 2009), Gartner client interactions reveal that banks are actively working to improve their loan origination processes, data and applications. For banks that seek to improve loan origination, an easier alternative may prove more valuable than investing millions in their operations: outsourcing loan origination to P2P lending retailers.
Outsourcing loan origination to P2P lending retailers enables banks to improve the online experience of their customers. It also enables banks to focus on funding (which emphasizes decisioning) rather than manufacturing and distribution (which are costly and challenging to execute). It will also smooth out the challenges of resource management as markets fluctuate from high demand to low demand.
More on this in 2010!