Personal loans are a growth area with cross-sell opportunities
Even with rates rising, unsecured personal loans are the solution of choice for many Americans looking to consolidate credit card debt or cover emergency expenses. But the nature of the competition with fintechs is changing as they seek to broaden their offerings to personal loan borrowers. A J.D. Power analyst explores what can make bank and credit union personal loan programs more competitive in the face of evolving rivals. Also see the latest customer satisfaction rankings for personal lenders and find out who's at the top now that the 2022 leader has exited the business.
The unsecured personal loan business continues to boom at the same time that the competitive lineup is shifting.
The impact of inflation is not only prompting consumers to seek out unsecured personal loans more frequently but is influencing their perspective on the lenders themselves. This is leading to an overall rise in satisfaction ratings among both traditional and fintech personal lenders.
Banks and credit unions active in this space could find this an opportune time to explore cross-selling possibilities.
Plenty of fintech competitors are doing just that. They are continuing to become more bank-like, expanding the range of financial services they offer and turning the personal loan relationship into a fulcrum for cross-selling.
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