The fintech ecosystem is loaded with disruptive ideas and companies, though perhaps none more so than those in the lending sector.
Fintech lending companies use technology like artificial intelligence, big data and even blockchain to make life a lot easier for both borrowers and lenders alike. They give lenders fast access to the data they need to approve loans, and help borrowers get their money faster than walking into a brick-and-mortar financial institution.
Fintech lending solutions also provide borrowers with tools to monitor their financial health, compare rates to ensure they get the best deal and keep up with payments to build toward a healthy credit score. And they bring financing options to traditionally underserved populations by expanding geographic access and letting lenders collect information from non-traditional sources to determine creditworthiness.
What Is Fintech Lending?
Fintech lending relies on technology and digital solutions to facilitate the process of seeking out, applying for and repaying loans. These web- and app-based services help students, homeowners, businesses and underserved communities access financing options quickly and efficiently.
These innovations are changing the financial services landscape for both lenders and borrowers. We’ve rounded up fintech companies that are at the forefront of intelligent lending.
Fintech Lending Companies to Know
Location: Chicago, Illinois
Alliant Credit Union is a nonprofit organization that provides a full suite of consumer and business financial services, including checking and savings accounts, loans and line of credit, in a cooperative model that gives every member an ownership stake. The credit union is notable for being fully digital, with a hybrid workforce that manages nearly $20 billion in assets.
Location: Roseville, California
GoodLeap is a fintech lending platform for sustainable home upgrades. It helps homeowners secure funding and loans for solar panels, battery storage and energy efficient windows. According to the company, it has provided more than $63 billion in financing for sustainable upgrades since 2018, helping more than one million homeowners.
Location: Fully Remote
Affirm offers installment loans to consumers at the point of sale. Sometimes you really want something but don’t have the cash to pay upfront. Affirm has partnered with hundreds of retailers to offer payment plans that help customers plan out their spending over time.
The Affirm installment loan platform has been used by global companies like Expedia, Wayfair and Peloton to give customers more financial flexibility.
Location: San Francisco, California
Through Empower’s mobile app, users can access cash advances of up to $300 without having to worry about interest or credit checks. Empower customers who need to build their credit history can use the company’s Thrive solution to apply for a line of credit ranging from $200 to $400, and they can choose a repayment plan that suits their individual circumstances.
Location: Chicago, Illinois
Beyond Finance specializes in developing tailored solutions to alleviate and manage various forms of debt, including personal loans, medical bills, credit cards and private student loans. Through a consultation process, clients collaborate with Beyond Finance experts to select the most suitable debt resolution option, with progress tracking facilitated by the company’s mobile app. Beyond Finance uses proprietary technology to assess debt situations and devise strategies like consolidation or settlement to help consumers become debt free.
Location: Boston, Massachusetts
Hometap facilitates a loan alternative for homeowners looking to be paid for equity today. The company provides homeowners with cash and in exchange, Hometap receives a share in the future value of the home. Once the home is sold or the owners settle their investments, the company is paid out for the share.
Location: Chicago, Illinois
Supernova Technology serves banks, insurance companies and online brokerages with automated digital solutions for securities-based lending. The company says its software covers everything from simplifying application and payment processes to allowing clients 24/7 access to a dashboard with details on their loan status.
Location: New York, New York
Brigit’s Instant Cash product gives users access to a cash advance of up to $250 without the burden of interest or fees. The company also offers its Credit Builder product that helps users apply for a loan and support them in setting aside money for monthly payments to improve their credit history.
Location: San Francisco, California
SoFi’s mobile app can be used for banking, investments and loans. The company’s loan products include student loan refinancing, private student loans and personal loans for things like home improvement projects and weddings. Whenever they make “smart money moves,” SoFi also awards users with points they can redeem for cash, loan payments and more.
Location: New York, New York
Gynger is an alternative financing fintech platform that offers up-front funding to companies to finance their software expenditures. The onboarding expenses for a “tech stack,” meaning all the software and software-as-a-service that a company needs to start operations, can be significant. Gynger works with companies to cover those expenses in the short term by underwriting lines of credit and debt financing.
Location: Pittsburgh, Pennsylvania
Kiavi is a lending platform that helps real estate investors buy, renovate and manage properties. Through its tech-enabled platform, individuals can find and apply for loans and, within minutes, be approved for personalized funding options. According to the company, it has originated over $27 billion in loans.
Location: Chicago, Illinois
With its lending products and digital banking feature, NinjaHoldings challenges how Americans think about their finances. The company offers three products: CreditNinja, NinjaCard and EDGE. CreditNinja allows underserved demographics to receive personal loans; the product requires a minimum credit score of 500, making it easier for borrowers with low scores to receive cash. The NinjaCard is a full suite of online banking services while EDGE is for business, and the product offers payment processing, customer service and business analytics.
Location: San Francisco, California
Chime specializes in online banking and money management solutions. Its offerings include checking accounts, Visa cards specifically designed to support credit building and high-yield savings accounts. The company’s SpotMe feature covers members on overdrafts of up to $200 without subjecting them to any fees. Chime automatically puts members’ next direct deposit toward paying off the negative balance.
Location: San Francisco, California
LendingClub provides personal loans of up to $40,000 as well as business lending options. For personal loans, the company says the online application takes minutes and approvals often happen within 24 hours. LendingClub can deposit money into a bank account for those who are approved or pay creditors directly.
Location: Boston, Massachusetts
Forward Financing is a provider of digital loans for small businesses. Sole proprietors and smaller businesses often lack available capital to support growth, carry the business through delayed payments and face other eventualities. Standard business loans are of limited value in these circumstances because the process to receive them takes too long. Through a fully online process, Forward Financing clients can access fast funds, available with a range of flexible terms.
Location: Chicago, Illinois
Avant uses fintech to simplify the loan application process. By providing some background information, selecting a loan option (debt consolidation, home improvement, emergencies, etc.) and signing a digital contract, loan seekers can expect to see $2,000 to $35,000 deposited into their bank account in as little as one day.
Avant also offers a credit card to help users access lines of credit for smaller purchases or larger payments for a new car or home repair.
Location: San Mateo, California
Upstart offers loan solutions for personal needs, car refinancing, debt consolidation and short-term financial relief through its network of more than 100 banks and credit unions. The company says its personal loan options range from $1,000 to $50,000 and most of its borrowers get instant approval.
Location: Chicago, Illinois
OppFi operates a fintech lending platform called OppLoans that helps people from a multitude of backgrounds acquire the funding they need to pay off debts, open businesses and get ahead in life. OppLoans features easy access to online personal loans, bad credit loans, loans without credit checks, installment loans and resources on rates and terms, allowing people to choose the loan and rates that work best with their lifestyle.
Location: New York, New York
January is a fintech company aiming to change the way debts are collected. It works with lenders and debt buyers, providing them access to a tech platform for engaging borrowers who are behind on payments and giving them options for getting back on track. The company says its “humanized debt collection” process boasts better debt recovery rates than traditional collection methods and incorporates compliance automations to ensure applicable regulations are followed.
Location: New York, New York
Better is a home-financing platform. The company uses online tools and AI to simplify mortgage applications and home-equity lending. By simplifying the process, it can provide mortgage quotes in a matter of seconds and originate loans without physical paperwork or in-person meetings. Besides traditional and first time home buyer mortgages, Better can also approve home buyers for home equity lines of credit, jumbo mortgages and other financial products.
Location: Fully Remote
Scratch Financial specializes in medical financing solutions. Borrowers can use their phone or a desktop computer to apply for and select a payment plan that suits their budget and doesn’t include prepayment penalties or deferred interest. The company says its technology saves medical practices time and money and improves the patient experience.
Location: Arlington, MA
Leader Bank is client centered and eager to embrace new applications of technology, like video banking, where live agents troubleshoot issues with clients via video and screen sharing. Offering all standard banking services like personal checking and savings, business banking, insurance and loans, the company has positioned itself as an alternative to traditional financial institutions that also offers more safety and services than a neobank.
Location: Detroit, Michigan
Founded in 1985, Rocket Mortgage was one of the first fintech lending companies, offering a digital application process beginning in 2015. Its platform uses automation to help homebuyers apply for a mortgage or refinance their existing one. Beyond traditional mortgages, Rocket Mortgage can also help with adjustable-rate mortgages, bridge loans and VA loans.
Frequently Asked Questions
What is fintech lending?
Fintech lending uses technology and digital platforms to help people and businesses seek, apply for and repay loans quickly through web- and app-based tools.
How does fintech lending make borrowing faster?
Fintech lending platforms use automation and artificial intelligence to speed approvals, eliminate paperwork and give lenders fast access to the information they need to evaluate applications.
What kinds of loans can borrowers get through fintech platforms?
Loan options on fintech platforms include mortgages, home equity loans, personal loans, credit-building loans, cash advances, installment loans, small-business financing, real estate investment loans and medical financing.
