Pub. 10 2020 Issue 3

20 www.azbankers.org FinTech Lending Q1 and Q2 2020 CHAPTER I. FINTECH FinTech lending originated and has become popular in the United States and around the world in the 12 years since the 2008 financial crisis. FinTech innovators saw a need when larger banks reduced consumer lending and filled the void to provide financing. One of the main reasons behind the success is the digital setup of the marketing, underwriting and funding processes. The critical point of the online lending concept is to attract as many con- sumers and small to medium-sized businesses as possible by campaigns over the internet, social media, and emails. Utilizing the main advantage of lending — a product everybody wants — money helped to attract demand combined with a technolo- gy-based, online culture. In many cases, the campaigns are not focused on the loan itself but rather focused on the new utility or product that is now closer to the borrower through the loan. Each and every campaign is measured by utilizing different funnels, matrixes. The analysis of the lending process is opti- mized over different channels add more and more visitors to the webpage. Fintech has always been prepared to pay for that Facebook click and credit reporting lead. Fintech’s initial focus is to attract as many visitors to the webpage as possible, having led 1000s of views and direct borrowers directly to the application. Potential and current borrowers are not shown a fancy company webpage or complex information. The objective is to make the click to an application as simple as possible.