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Four alternative lending And 2022 is poised to be a breakout year for this

revolutionary technology in a number of ways. Crypto-
trends to watch in based lending is one way the alternative lending world
will be transformed by blockchain tech. The security,
anonymity and effortless (not to mention almost instant)
2022 – and beyond nature of blockchain support currencies will re-mold
alternative lending.
3. Mobile payments are coming into their own

Mobile payment (and the contactless payment solutions
they enable) are another trend to watch in 2022. Mobile
wallet companies like PayPal, Apple Pay, Google Pay,
and Samsung Pay (not to mention Cash App, Venmo,
Zelle, etc.) have begun tinkering with extending lines
of credit to their customers. Most of these lines of credit
are comparatively low when compared to the traditional
lending offerings, but that could change quickly. These
companies are gaining popularity, responsible for moving
By Chad Otar more money than ever, and are cementing their position
Lending Valley Inc. in the new economy.

he alternative lending industry is growing by Gen Z is leaning heavily into mobile payment and mobile
leaps and bounds. The Great Recession from wallet services. Imagine how popular new banking and
late 2007 through 2009 accelerated expansion financing options from these payment solutions will be—
T of the alternative lending industry. For the especially for a generation that might lack experience with
first time, millions of people looked outside of main- traditional banks and lenders. As more companies adopt
stream lending opportunities to obtain the financing they mobile wallet tech, we could see a huge, game-changing
needed. That trend has increased over the last 10+ years. shift in 2022.
At the same time, the solutions provided by the alterna-
tive lending world have become more diversified as well. 4. Businesses will lean more
Alternative lenders are seeking more solutions to offer on non-traditional lending
their customers, innovating and iterating new options and
paving the way for brand-new services. According to the SME Finance Forum, in 2021 there's a gap
of $5 trillion between the money traditional lenders are
This article highlights four alternative lending trends to prepared to lend and the money small business owners
look for in 2022—and beyond. They have the potential to are hoping to cash in on. A $5 trillion gap. This incredible
transform the trajectory of the alternative lending world— demand may propel non-traditional and alternative
and alternative financing general—for the foreseeable lenders to jump headfirst into the business lending game.
future. Merchant cash advances, business lines of credit, invoice
factoring, and crowdfunding or peer-to-peer lending
1. The era of online-only banking is emerging solutions will all rush to fill that gap as best they can.

Digital banking is radically reshaping the fabric of the If small businesses can get the money they seek from
financial world, and it's moving at a pace that even banking alternative lenders, and the process is easier and more
insiders never anticipated. The movement toward digital- reliable than those of traditional financial institutions, it
only banking has accelerated so much that Mike Mayo, could transform the landscape of business lending in 2022
a Wells Fargo securities analyst, told American Banker in and beyond dramatically.
June 2021 that "we're seeing the greatest acceleration of
digital banking in history." The pace of adaptation over Note: I referred to the following in researching this article:
just a couple of months now equals the growth the digital
banking industry used to see over a span of years. More • https://nuvei.com/insights/articles/top-10-fintech-trends-
people are leaving traditional banks, choosing digital to-watch-for-in-2022/
operations for all of their banking—and lending—needs. • www.forbes.com/advisor/banking/digital-banking-as-
It might not be long before the majority of banking is done new-normal-2021-what-to-expect/
100 percent digitally.
• www.insiderintelligence.com/insights/digital-payment-
2. Blockchain is poised to services/
change (almost) everything
Chad Otar is CEO of Lending Valley Inc. For information about the
Blockchain may be taking longer than anticipated to take company, please visit www.lendingvalley.com. To reach Chad, send an
off, but the slow and steady approach banks and lenders
have been incorporating this technology is accelerating. email to chad@lendingvalley.com.
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