Alternative Credit Market Surging
(21 March 2024 – Global) Both businesses and banks are increasingly seeking out alternative lending sources as the growing proliferation of Bank-Fintech partnerships focus on linking credit appetite with capital.
PYMNTS reports that traditional vanilla bank lending is stalling in many markets globally, leading to an increase in tie-ups between Fintech alternative credit organisations and banks. For example, BNY Mellon inked a new partnership deal with CIFC, JPMorgan is seeking to link up with FS Investments and Octagon Credit Investors while Nova Credit has introduced its Nova Credit Platform.
BlackRock has appraised the size of the private credit market as US$1.3 trillion, with direct alternative lending the largest proportion.
“The tie-ups between the banks and the Fintechs and the alternative lending channels might bring all those options together to help boost revenues for the lenders and provide needed, ready capital to the SMBs” PYMNTS reports.
“Our clients continue to look for innovative investment solutions across both public and private markets, specifically U.S. private credit. This partnership gives our clients exposure to the benefits US private credit has to offer, whilst enabling CIFC to access our extensive, deep investor relationships across the regions, as well as some of the largest pools of capital available” stated BNY Mellon Investment Management Global Head of Distribution, Matt Oomen.
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