By: Clarity Services Inc. A part of Experian
Experian’s Clarity Services, which specializes in alternative financial services (AFS) data and solutions, has released its 2020 Alternative Financial Services Lending Trends Report. Among the report’s key findings are that the online small-dollar installment market has continued to grow, with larger loan amounts driving an increase in funded dollar volume. In 2019, the industry continued to trend toward longer repayment terms and larger online installment loan amounts.
In addition, a higher percentage of online installment credit applications from the AFS market came from consumers with higher traditional credit scores. Though online installment loan performance declined in 2018, it returned to normal last year.
Next year’s report will contain important information and unique insights given the COVID-19 pandemic. Using this year’s report as a baseline, we’ll get to look back and see how this disruption has impacted the AFS industry and the consumers who access its services.