US Online Lending

May 6, 2002

Abstract

Boston, MA, USA May 6, 2002

In a new report, Celent examines the market and predicts 35% of new loans will be generated online by 2005.

Despite a decline in the number of banks in the last five years, the market continues to be attractive for online lending systems. The market has shown growth in new loan sales in 2001, with a potential for Internet loan origination to increase.

The loan origination market is quite mature and saturated, while the Internet lending system market is still in the early stages of development. However, the increasing need for better management of customer relationships will drive fuller automation of this technology.

According to Isabella Fonseca, author of the report, "We foresee an increase in IT spending on loan origination systems by banks in the next three years, especially as the need to provide fully integrated Internet lending capability becomes more prominent. Although financial institutions are moving towards sophisticated Internet lending technology, human interaction remains an important part of the process. We expect call center and online customer service technologies to leverage and complement Internet lending processes."

This report will recommend which paths banks and technology vendors ought to follow in order to be successful in the Internet lending market.

A Table of Contents is available online.

of Celent Communications' Retail Banking and Life/Health Insurance research services can download the report electronically by clicking on the icon to the left.

        

Send mail to info@celent.com with questions or comments about this Web site.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

Milan, Italy May 6, 2002

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 4
BENEFITS AND CHALLENGES 6
DEFINING THE LENDING PROCESS 8
  Internet Lending 8
  Loan Origination Systems 10
MARKET OVERVIEW 12
  Market Penetration 13
POTENTIAL FOR ONLINE LENDING 17
  Channel Comparison 17
  Projected Growth in Technology Adoption 19
  Insurance Integration 21
  Credit Unions 22
MARKET PARTICIPANTS 23
FUTURE OUTLOOK 27

Sign in to download reports and access personalized information