Regulation and lawsuits will force marketplace lenders to change their origination models in the future, PwC Director Robert Shaw told attendees at Auto Finance Innovation 2016.
“I think you will see a lot more partnerships, and more transparency in the process to really let the consumer know who they are lending from, and the terms and conditions,” he said. “All the stuff that is bread and butter to traditional lenders is starting to catch up to marketplace lenders.”
However, the industry will likely see “less of a change and more of an evolution” into a traditional bank lending model marked by an enhanced customer experience and ease of use for which marketplace lending is known, Shaw said.
It’s a good thing that marketplace lenders are evolving, he added, because “it shows they are listening to the consumer; they are listening to the governing bodies out there from a federal and state perspective.”
Check out Shaw’s full response in the video below.
