Unsecured lending is the theme of this week’s PYMNTS Provider Ranking of Personal Loan Apps, which looks at this fascinating space with fresh eyes to reveal the trends. Personal loans have a million uses, but they’ve long been popular for consolidating high-interest debt at lower rates. FinTechs have revitalized personal lending with creativity, usability and more access.
A number of app economy players are contending for a seat at this particular table, as the lucrative personal loan sector seeks its own level in the API-driven open banking world.
The Top 5
Roaring into the No. 1 spot on the debut edition of the PYMNTS Provider Ranking of Personal Loan Apps is MoneyLion, with its mix of affordable lending, spending and wealth management services. A decent head-start (and a strong concept) didn’t hurt.
Position No. 2 this month belongs to SoFi, whose student loan refinancing app made the name known before quickly branching into investments and money management. A bit of social media virality elevated SoFi early on, which may have helped it beat out venerable LendingTree which came in at No. 3 in the inaugural ranking of personal finance apps.
Personal finance app Avant stepped into the No. 4 position with its artificial intelligence (AI) approach to personal loans and a focus on “underbanked middle class.” Closing out the top five at No. 5 is P2P lender LendingClub, whose recent hire of Chief Risk Officer Annie Armstrong (formerly of Uber) might see this respected FinTech lender moving up a spot or two in the next ranking. Stay tuned …