These nontraditional lenders originated loans totaling $10.14 billion during the first three quarters of 2015 – a whopping 122% increase over the same time period in 2014.
The study, released Tuesday by the company, showed credit unions made $7.28 billion in loans to prime and near prime borrowers during the first three quarters of 2015, while banks made $7.24 billion and other traditional finance companies made $5.5 billion. That represented an increase among all types of lenders.
In 2015, more than half of all personal loans were made to near prime and prime borrowers, according to TransUnion. In 2015, 15.6 million consumers had an open personal loan, an increase of 1.58 million over 2014 and 3.12 million over 2013.
“Fintech lenders have emerged in recent years to serve an important consumer segment,” Steve Chaouki, executive vice president and head of TransUnion’s financial services business unit, said.
John Wirth, TransUnion’s vice president of consumer lending and fintech, added, “Personal loans remain an attractive option for borrowers in all risk tiers, and fintechs have seized an opportunity to develop a niche within the nearly 92 million consumers in the near prime and prime risk tiers. These well-funded, nimble fintechs have grown their market share at a rapid pace and are increasingly appealing to consumers in these risk tiers.”