Non Bank

Lending Products Offered Typically Include:

• Mortgages (new & refinance)
• Personal Loans
• Student Loans (new & refinance)

Benefits Compared to Traditional Banks

• Fewer regulation (compared to banks)
• Less legacy infrastructure/costs (physical branches, pensions, overhead, etc).
• Focus on technology & internet transactions

Negatives Compared to Traditional Banks

• At  the mercy of capital markets - must raise funds to lend out
• Vs banks who have access to cheaper funds (bank deposits & inter-bank borrowing)

Non-Bank History

• became popular after the 2008 financial crisis (lots of liquidty and cheap funds to lend)
• Did well refinancing mortgages as interest rates went down post 2008