Misys is providing bank customers with access to its P2P lending software, reports on Tuesday (Jan. 17) said.
The financial technology company announced that it will give banks access to its peer-to-peer lending technology to help banks compete with younger alternative lenders in the industry. Misys’ solution enables banks, individuals and small businesses to connect with online investors, and will be available to both private and corporate banks, the company said.
Reports cited rivals Lending Club, OnDeck Capital, and Prosper as online alternative lenders who could compete with banks to serve borrowers by delivering a seamless, digital experience.
“Banks are losing market share to P2P platform providers,” Misys’ senior product officer Jean-Cedric Jollant told Reuters. “By embedding crowdlending throughout the credit lifecycle, a bank can maintain and expand its customer base, recapture business from alternative financial markets, and fuel credit growth.”
Misys’ offering is a new way of seeing how traditional banks fit into the wider credit ecosystem. Since the emergence of alternative loans after the financial crisis of 2008, many FinTech players have been the first to measure themselves against the banks. Later, traditional financial institutions began working with these companies and integrating their digital credit and financial services technologies with their own systems.
Jollant told reporters that Misys is “in talks with a number of interested banks in the US, Europe and India” but declined to provide details.
Misys had a rough year last year when it suddenly decided to cancel its IPO in London’s largest tech float. Analysts predicted that Misys would have been worth nearly $ 7 billion after its debut on the London Stock Exchange, which was canceled last October. The company blamed market uncertainty for the move.
“Despite encouraging institutional support, Misys has … decided not to proceed with its potential IPO at this time due to market conditions,” the company said in a statement made at the time.
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