The New Era Of Online Loans Has Begun

Today 80% of the e-commerce market is about 10 product categories. Traditionally, digital and household appliances (28.2%), clothing and footwear (21%), tools and gardening equipment (10.2%), furniture and household goods (9.6%) are leading among them. In 2021, these were added to purchases of sporting goods, medical supplies, and payments for education.

The hartloan.com noted that in this and next years the focus of POS lending will be directed to new segments such as clothing and footwear, sports goods, medicine, and education. An additional impetus is the development of POS lending in Internet hypermarkets and marketplaces. Hartloan is confident that these very segments will become the main drivers of the online issuance of commodity loans in the next two to three years.

We are actively developing cooperation in this direction. We are currently negotiating with a number of large retailers in the e-commerce segment and in the near future we will start issuing POS loans on leading marketplaces, noted the expert. In addition, Hartloan was the first to develop a lending program for prefabricated houses – this is another promising niche for online POS lending, according to the lending institution.

According to experts, targeted loans for the purchase of prefabricated houses quickly became popular amid the pandemic, and now the share of such loans is growing. Compared to a mortgage, the rates of such loans are higher, but on the other hand, a POS loan for buying a house is issued more quickly, with a minimum of documents, and does not require collateral.

New year boom

This fall, experts recorded a slight decrease in the volume of bad credit personal loans guaranteed approval $5,000 issued in connection with the temporary lockdown in USA and a number of other regions.
The regulator’s tightening of measures against unsecured lending also has an effect.
According to Frank RG, in October American banks issued 1.8 million cash loans to the population for 564.4 billion dollars.
Compared to September, the number of new loans decreased by 8.7%, and the volume – by 10.6%. The volume of new POS loans fell not so significantly – by 3.3%, to 30.7 billion dollars.

Now bankers expect a return to the growth rate of the POS business, including in the online channel. Many of them predict a peak in demand for commodity loans in November and December: buying activity in retail on the eve of New Year’s holidays, as well as the excitement associated with sales on Black Friday, will affect.

Experts also believe that as the coronavirus restrictions are lifted and until the Bank of USA is endowed with new restrictive powers to curb the growth of the credit market, the demand for payday loans online will remain high. Until the end of the year, banks will try to maintain the current level of loans, including by offering various promotions and offers, the director of NRA bank ratings, told RBC.

In general, it is expected that banks will continue to issue more and more online loans for the purchase of goods, including through cooperation with new online stores. For this, some banks are actively increasing their expansion into the regions. Post Bank organized targeted work with regional online stores. As a result, the bank is now leading both in the number of partners and in the number of applications for web-credits, the bank told Investopedia. According to experts, other players in this segment of the consumer lending market will follow his example, which means that the coverage of the population with POS loans will grow.