STATE OF FINTECH LENDING IN CANADA 2020 STUDY - …

STATE OF FINTECH LENDING IN CANADA

2020 STUDY

Fintech adoption on the rise as more consumers shift online for financial products

The fintech lending industry in Canada continued to evolve this year in a number of significant ways. While many of these changes were initiated by the pandemic, others continue along trends that have been developing over a number of years.

According to Smarter Loans' State of Fintech Lending in Canada 2020 Study, which gathered the feedback of 2,597 Canadian fintech lending customers, there is a fast-growing demand for digital accessibility of financial products in Canada.

As Canadians stayed home longer, adoption of fintech products has accelerated dramatically. 71% of respondents indicated that they now manage more of their finances online than 12 months ago.

While fintech adoption in some industries is further along than others, there is a general growing willingness in the market for digital financial products, including:

? loans and credit ? everyday banking ? insurance

? investing ? money transfers ? & more

This year, 89% of customers were satisfied or very satisfied with their providers. Customers were slightly less satisfied with the industry as a whole, giving it a 3.3 out of 5 when considering factors such as ease of getting a loan, access to information, quality of products and services, responsible lending practices and customer service--down from 3.4 the previous year.

QUESTION

How would you rate Online Lending Industry in Canada today?

Consider factors such as ease of getting a loan, access to information, quality of products and services, responsible

lending practices and customer service.

02

Annual comparison, at a glance

Did you seek a loan with a traditional financial institution, such as a bank?

2018

72% NO

28% YES

2019

No Yes

30% YES

70% NO

2020

No Yes

No Yes

25% YES

75% NO

How many lenders did you research before applying for a loan?

1-2

27% 29% 35% 2018 2019 2020

3-5

46% 48% 46% 2018 2019 2020

6-9

14% 12% 11% 2018 2019 2020

10

or more

13% 11% 9% 2018 2019 2020

How did you discover the company or companies that you ultimately applied for a loan with? (check all that apply)

Recommended by a friend

2018: 10%

2019: 11%

2020: 13%

Social Media

2018: 12% 2019: 11% 2020: 12%

Before you applied for a loan, what additional research did you do, if any: (check all that apply)

61%

Looked through their website

60%

58%

Read reviews

44% 44.5% 41%

Called them to ask questions

20% 20% 16.5%

Read online articles & reports

23% 26% 24%

11%

Asked a friend or family member 11%

11%

None

13% 14% 16%

2018 2019 2020

Online Search

2018: 63% 2019: 63% 2020: 58%

Other

2018: 15% 2019: 15% 2020: 17%

Are you managing your finances online more now that you did 12 months ago?

Yes: 71%

No: 29%

How would you rate Online Lending Industry in Canada today? (out of 5)

2018: 3.2

2019: 3.4

2020: 3.3

Before you applied with a company, did you feel like you had enough information about their products,

services, interest rates and reputation?

71%

YES

29% NO

03

How easy was it to get approved for your loan?

Fast and easy

2018

Not easy Very di cult

14%

Did not get approved

27%

33%

26%

Fast and easy

2019

Not easy Very di cult 11%

Did not get approved

26% 23%

39%

Fast and easy

2020

Not easy Very di cult 11%

Did not get approved

24% 23%

42%

Using financial services digitally and online. Which of the following have you done online before or would be open to doing online in the future.

Done it Before

Buy Insurance

20% 37%

43%

Transfer money Internationally

25% 36%

38%

Financial Management

18% 37%

45%

Open to it

Invest

19% 35%

46%

Everyday Banking

8% 14%

78%

Shop for A mortgage

17% 31%

52%

Wouldn't be comfortable

Purchase or Lease a vehicle

33% 25% 42%

Loans and Financing

9%

23%

68%

Apply for a credit card

7%

16%

77%

How long did you spend researching lenders before applying?

2018

2019

2020

Less than 1 hour

29.5% 24.5%

31%

1-2 hours

34.5% 34% 35%

3-5 hours

20% 20% 18%

5%

6-9 hours 5.5%

5%

10 or more hours

11% 16%

10%

How satisfied were you with the loan application process?

66%

68%

61%

32% 6%

2018

29% 5%

2019

28% 5%

2020

Did you apply with multiple companies?

YES 49% 2020:

56% 2018:

53% 2019:

NO 51% 2020:

44% 47% 2018:

2019:

Overall, how satisfied are you with your loan provider?

Very Satisfied 2018: 36% 2019: 40% 2020: 40%

Satisfied 2018: 50% 2019: 50% 2020: 49%

Not Satisfied 2018: 14% 2019: 10% 2020: 11%

In total, how long did it take to receive your loan once you applied?

2018 Same Day

2-3 Days

1 Week

8% 6% 5%

2019

43% 48% 51%

39% 38% 36%

2020

3%

1-2 Weeks 3%

3%

3%

2-4 Weeks 1%

2%

Over a month

4% 3% 4%

04

Message from the Canadian Lenders Association

The CLA promotes transparency and fosters responsible and ethical lending practices. The association supports innovative lending nationally including the technology & business processes that are transforming the Canadian financing industry.

"By providing capital to traditionally underserved people and businesses, fintech lenders have never been more important to the Canadian economy as they are now during COVID."

Gary Schwartz, President, Canadian Lenders Association

05

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download