Our interview with fintech leader and CEO of LendingPoint, Tom Burnside
Recently, we had the pleasure of interviewing our very own fintech thought leader and CEO, Tom Burnside. We discussed alternative lending trends of 2017, got Tom’s biggest financial takeaways from 2016 and received succinct financial advice.
What are your alternative finance/online lending industry predictions, thoughts for 2017?
Online lending is going to have to focus more on credit and quality over the next couple of years. There’s been a focus on acquisition but not a great focus on credit quality. We need the ability to make sure they’re performing well. In order for the investors who are participating in this online community to get their targeted returns, we need to be focused on credit quality and early payoffs.
What were your biggest surprises and/or takeaways in 2016?
I was surprised by how high the level of demand is. People are looking at alternative lending as a staple of their lives. Secondly, alternative lending is here to stay because customers have adopted this way of borrowing money. You can see that in the share of wallet. Consumers commonly have 1 or 2 loans from alternative lenders as well as their traditional credit cards. Lastly, banks are not building as many brick and mortar locations now. Their footprint is being replaced by alternative lending. Banks are still participating but they’re participating by buying assets from the alternative lenders.
What one piece of financial health/personal finance advice do you have for consumers?
“Don’t overindulge. You must pay it back.”