Kristin Moyer

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Kristin R. Moyer
Research Director
11 years at Gartner
18 years IT industry

Kristin Moyer is a research director in Industry Advisory Services/Banking and Investment Services. She has more than 17 years of experience across the global high-technology industry in a variety of roles. Ms. Moyer's research coverage includes card… Read Full Bio

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Outsourcing Loan Origination to P2P Lending Retailers

by Kristin Moyer  |  December 17, 2009  |  3 Comments

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!

3 Comments »

Category: operations     Tags: ,

3 responses so far ↓

  • 1 Tweets that mention Outsourcing Loan Origination to P2P Lending Retailers -- Topsy.com   December 18, 2009 at 5:15 am

    [...] This post was mentioned on Twitter by JC Capelli and Frederic Baud, ekwiti. ekwiti said: #p2plending reach a new phase with @Gartner_inc recommending banks to look at p2p lending retailers as originators http://j.mp/5UZBSx [...]

  • 2 uberVU - social comments   December 18, 2009 at 5:24 am

    Social comments and analytics for this post…

    This post was mentioned on Twitter by FredericBaud: #p2plending reaching a new phase with @Gartner_inc recommending banks to look at p2p lending retailers as originators http://j.mp/5UZBSx...

  • 3 Colin Henderson   December 18, 2009 at 3:02 pm

    I believe this makes sense. The elements of managing distribution and manufacturing represent expensive propositions for banks based on their large branch networks (distribution) and siloed technology platforms (manufacturing) which certainly make automation of many process elements expensive, or in come cases impossible without a complete retrofit.

    As a peer-to-peer lending company (Canada) the advantage we have seen is to be able to pull all the required elements together into a new platform that is both efficient and specialised, yet can be extensible for integration with others through modern API’s. All this while retaining top level security that will grow the confidence required of a financial services company.