Credit decision based on AI algorithms

For any business, taking advantage of new opportunities is key to long term growth. Finding new opportunities can be a challenge though, and finding new opportunities with long-term stability and a huge potential market is more difficult still. Yet today there is an opportunity out there that offers all that and more, and it is one that you may not even have noticed. Lending as a service through an alternative lending platform.

The changing world of borrowing

Since the financial crash of 2008, new lending criteria have been adopted by traditional financial institutions, making it significantly more difficult to obtain finance than it used to be. This was a necessity, driven by the too lax lending processes that ultimately led to that global crash.

However, over time lending did return back to a relatively normal level, until the pandemic. Today, as the economic outlook is increasingly uncertain, traditional financial institutions are once again tightening lending criteria, which is pushing many customers to the alternative finance sector by default.

With transactions exceeding $7 Billion in 2021 and set to continue record growth, alternative financing is not just an opportunity, but a chance to stake a claim in one of the most in-demand markets on the planet. But what is alternative financing?

Financing outside the box

Alternative finance is an all-encompassing label that covers a variety of lending protocols, all of which lie outside the traditional finance companies and their offerings. Here, unconventional lending processes offer products that are accessible for small businesses that are otherwise locked out of access to finance, and as a result are often left unable to grow, and instead stagnate at best, lacking the resources needed to access the infrastructure, materials or equipment that can help them reach a new level.

There are a number of thriving markets in this new financial space, including invoice lending and other options that leverage the collateral that businesses own, however it is in another area that the mast rapid growth is seen.

Lending as a Service

Providing a comprehensive online lending service for a variety of business situations, lending as a service is a relatively new approach that emerged around the same time as P2P lending appeared for individuals. It is without doubt a significant opportunity, offering a white label lending platform that can branded as your own.

In 2017, as an alternative lending platform, this lending process saw transactions totaling, $2.6 Billion, and is predicted to hit $5.5 Billion by 2024. So, with an impressive opportunity on offer for your business, you need to know what it is, what it can do for you, and how you can get involved.

An Integrated Lending Solution under your own branding

Lending as a Service leverages new technology to allow banks to offer their lending solutions outside of their usual customer channels. Sometimes referred to as marketplace lending, it is part of the Banking as a Service initiative, and is particularly useful for entrepreneurs looking for new revenue streams.

By creating loan service software and using cloud-based processing solutions, banks can vastly increase their reach, while businesses can offer a new, highly desirable service for their customers. With many fintech businesses already building online lending platforms to power lending process services in this way, it will change the face of finance for small businesses and entrepreneurs.

A white label lending platform

Key to the entire thing is the loan service software. When delivered as a flexible, white label lending platform, it allows financial institutions to create branded solutions that provide consumers with a seamless experience while minimizing both time to market and costs of operating this kind of online lending platform.

Now businesses can enjoy the benefits of a proven alternative lending platform, knowing that it delivers the performance and effective customer experience that delivers successful outcomes, but have a completely integrated online platform that reflects their own brand identity and customer expectations.

Through this platform, businesses can then offer lending as a service solutions, whether that be an integrated software platform that offers analysis of credit scores, business loans and allowing customers to compare different loan options from others, or directly provide a loan process including applications and so on.

Why Lending as a Service matters for your Business

Software as a Service began as a niche approach to product delivery around a decade ago. Today, it is at the heart of all products offered by some of the biggest brands in the world. Adobe dominate the photographic and creative industries with products such as Photoshop, yet all are only on offer through a SaaS solution.

Financial services experts believe that Lending as a Service will follow the same path to ubiquitous adoption and will dominate the financial world too. There is no question that an online lending service is an essential part of every financial business moving forward. People simply prefer the convenience of online applications, so this was always going to be the future. However, the pandemic accelerated the expectations of alternatives, making it even more important that your business offers the kind of service consumers are actively looking for.

But to set up a custom finance portal and online application and lending process services is not only complex, but requires significant investment. With Lending as a Service, a white label lending platform solves these issues for considerably lower costs, and ensures your business can be at the create of this wave of change in lending without the need for that huge investment.

Because it is a service we know customers are actively looking for, it is also a boost to business and provides interest for a new market, growing audience and building brand awareness to aid future growth.


Technology is changing almost every facet of life, from the way we work to the way we interact with others. It has already impacted the financial services industry, and shows no signs of stopping. Lending as a service means a goodbye to issues such as documentation errors, fraud, credit scoring issues and more.

It streamlines and automates the lending process ensuring the very best customer experience possible and allows you to integrate lending solutions into your existing systems seamlessly. Relevant software are experts in Lending as a Service and other cutting edge financial technology and can help you ensure you are well placed to take advantage of the new opportunities it will bring.

Talk to our Compassway team today to discuss your custom online lending platform and how you can integrate lending as a service into your product stack.