As banks and credit unions address high funding costs, they need to consider alternatives to funding from the balance sheet or traditional whole loan sales. A Funding-as-a-Service (FaaS) strategy allows consumer lenders to optimize their capital structures and execute asset and liability management operations more efficiently.
This report analyzes alternative funding strategies for consumer lending, specifically the FaaS model. It is based on market intelligence and insights developed by Datos Insights from interviews with seven executives from credit unions, community banks, loan brokers, and providers of single investor and loan-level fractional asset services, in addition to previous and ongoing research. It also leveraged existing research and expertise, as well as publicly available information from reliable sources.
Clients of Datos Insightsโ Retail Banking & Payments service can download this report.
This report mentions BHG Loan Hub, Funding Circle, LendingClub, Loan Street, Pagaya, Performance Trust, Prosper, Quillo, SoFi, The Baker Group, and Upstart.
About the Author
Stewart Watterson
Stewart Watterson is a Strategic Advisor in the Retail Banking & Payments practice at Datos Insights. He brings a broad range of experience from 30 years of consumer banking with Chase, NationalCity, and PNC, serving as SVP, Mobile Wallet & Emerging Payments. His focus includes consumer lending within all asset classes, small-and-midsize-business unsecured lending, digital banking, credit card, card and...