Stef’s banking and lending trends to watch in 2024

High inflation, high interest rates and the collapse of three major regional banks in the US made 2023 a very challenging year for banks and lenders but there is cause to be optimistic.  Stef provides some of the trends to watch over the next 12 months.

1. Enhanced digital customer experience – better experiences are essential to deposit growth and customer loyalty. It’s no surprise that there is a huge shift towards the digital customer experience.  In fact, a recent survey shows this is now the third highest investment priority for banks and lenders this year.
2. Increased competition – financial consumers have more options for accessing banking and lending services. Evolve Business Finance has onboarded many new lenders this year, and with more new entrants to the market, competition for new customers will be fierce. It therefore pays to shop around in the marketplace and use a good broker!
3. Unsecured lending comeback – unsecured lending is becoming more popular, with several new products available that do not require personal guarantees. Get in touch with Stef or Nilima if you’d like more information.
4. Rise of asset-based lending – with the withdrawal of overdrafts and a sluggish term loan market, we have seen a 30% increase in the use of asset-based lending facilities. Our clients are increasingly using ABL to fund acquisitions, growth, MBI, MBO, refinance and restructure.
5. Diversification of supply chains – businesses are diversifying their supply chains and looking beyond traditional markets, creating more demand for import and export facilities. However, there is a need for more lenders who offer trade and supply chain finance!