The fintech ecosystem is brimming with disruptive ideas and businesses, arguably none more so than those in the loan industry.

Fintech lending companies leverage technology such as artificial intelligence, big data, and blockchain to make life easier for both borrowers and lenders. They provide lenders with quick access to the data they need to approve loans and allow borrowers to receive funds faster than visiting a physical financial institution.

Fintech lending solutions also give borrowers tools to monitor their financial health, compare rates to find the best deal, and make on-time payments to create a good credit score. They also provide lending possibilities to traditionally underrepresented populations by broadening geographic access and allowing lenders to gather information from non-traditional sources to establish creditworthiness.

These technologies are transforming the financial services industry for both lenders and borrowers. We’ve identified fintech startups at the forefront of intelligent financing.

1. Upstart

Upstart, an AI loan platform, connects customers with more than 100 banks and credit unions. Borrowers can get access to a variety of credit products using artificial intelligence models and cloud applications, such as personal loans, vehicle retail and refinance loans, home equity lines of credit, and small-dollar relief loans. Upstart’s technology enables consumers to receive loan approvals faster and more efficiently. Upstart was founded in 2012 and is headquartered in San Mateo, California. It went public in 2020.

Upstart’s use of AI in lending seeks to deliver a more efficient and accurate system for both borrowers and lenders. Since its inception in 2012, the organization has helped over 2.9 million customers obtain loans totaling $36 billion. Upstart recently cooperated with Kia to develop a Reservation and Deposit System to launch the new Kia EV9 SUV in the United States, which exclusively used Upstart’s Auto Retail Build and Price Reservations functionality. Furthermore, Upstart has expanded AI-powered auto finance nationwide, improving consumers’ online shopping experiences and giving dealers with streamlined and unified digital desking and DMS interfaces.

2. LendingTree

LendingTree, based in Charlotte, North Carolina, is an online marketplace that allows individuals to shop for financial services by evaluating numerous offers from a nationwide network of over 500 partners before selecting the best option for their financial needs. Mortgage loans, mortgage refinances, vehicle loans, personal loans, business loans, student refinances, credit cards, and insurance are among the services offered.

LendingTree was formed in 1996 and launched nationwide operations in 1999. With over 500 staff in offices in Denver, Seattle, and Charlotte, it is expanding its financial solutions to clients across the nation. Consumers who use the LendingTree platform receive free credit scores, credit monitoring, and advice to help them improve their credit. LendingTree proactively analyzes users’ credit accounts to offers on their network and alerts them when they can save. In 2024, LendingTree received $175 million in investment from Apollo Fund.

3. CrossCountry Mortgage

CrossCountry Mortgage (CCM) is a retail mortgage lender, employing over 7,000 staff across 800 branches and servicing loans in all 50 states. Offering more than 120 mortgage, refinance, and home equity solutions, CCM caters to a wide range of needs, from conventional and jumbo mortgages to government-insured programs for veterans and rural homebuyers. The company is a direct lender and approved seller and servicer by Freddie Mac, Fannie Mae, and Ginnie Mae. CrossCountry Mortgage is headquartered in Cleveland, Ohio, and was founded in 2003. 

In a recent development, CrossCountry Mortgage partnered with the National Association of Real Estate Brokers. This alliance underscores CCM’s dedication to facilitating homeownership opportunities for families nationwide, from first-time homebuyers to government-insured programs for Veterans and rural homebuyers. Additionally, CCM’s acquisition of AmCap Home Loans, a privately held mortgage lender headquartered in Houston, Texas, aligns with its growth strategy to expand market share. This move reaffirms CCM’s vision to establish itself as a premier mortgage lender and earn the trust and referrals of communities nationwide.

4. Enova 

Enova is a financial services company specializing in online lending for small businesses and consumers underserved by traditional banks. Founded in 2003 and headquartered in Chicago, IL, Enova has provided over $53 billion in loans and financing to more than 9.5 million customers worldwide by leveraging advanced analytics and machine learning algorithms. The company employs over 1,500 people across offices in Chicago, Cincinnati, Denver, New York City, and São Paulo, Brazil.

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With their goal of providing efficient credit solutions, Enova’s Focused Growth strategy has facilitated rapid expansion, delivering world-class products and services. The company’s online-only business model minimizes environmental impact by reducing paper consumption and offsetting emissions through donations to global pollution reduction projects, such as wind power generation in India and Amazon rainforest protection in Brazil.

Committed to sustainability, Enova selects eco-conscious corporate headquarters and satellite locations. It also promotes the use of public transit through commuter benefits, exemplifying its dedication to responsible business practices.  

5. LendingClub

LendingClub Corporation is the parent company of LendingClub Bank, National Association, and Member FDIC. The company provides personal loans, business loans, auto refinancing, and banking services for over 4.8 million members, with a workforce of over 1000 employees. The company was started in 2007, and is headquartered in San Francisco.

Through a technology-driven platform, members can access a wide variety of financial products and services tailored to facilitate better borrowing and saving opportunities. These include a cash-back Rewards Checking account and High-Yield Savings and CD accounts with no monthly maintenance fees. LendingClub also offers flexible and industry-leading Small Business Loans as a nationwide SBA Preferred Lender. The company has an impressive track record, encompassing more than $75 billion in loans and leveraging advanced credit decisioning and machine-learning models, LendingClub ensures its members can access credit while also providing risk-adjusted returns for loan investors. 

6. Upgrade

Upgrade has facilitated over $25 billion in consumer credit, benefitting millions of families nationwide through credit lines, personal loans, and banking services since its founding in 2017. It is headquartered in San Francisco, California, with operational hubs in Phoenix, Arizona, Montreal, Canada, and regional offices in Atlanta, Georgia, and Irvine, California. Upgrade partners with banks like Cross River Bank and Blue Ridge Bank to offer responsible credit solutions. Additionally, Sutton Bank issues Upgrade Card and Upgrade OneCard under a Visa U.S.A. Inc. license. Upgrade Card and Upgrade OneCard offer cash-back rewards with no annual or late fees. 

Upgrade prioritizes affordability and responsibility in its credit, mobile banking, and payment products. The company focuses on helping its customers make sound financial decisions, for a variety of purchases, without banking fees. In a recent development, Upgrade acquired Uplift for $100 million in cash and stock to enhance travel accessibility and affordability for countless consumers. 

7. Avant

Avant offers innovative financial solutions, such as personal loans and credit cards tailored to individual needs. Since its inception in 2012, Avant has helped nearly 3 million customers access $8 billion in loans and 1 million credit cards. Avant is a byproduct of the Y Combinator startup accelerator program. After just three years, Avant reached a valuation of $1 billion and is considered a unicorn startup. The company has secured over $600 million in equity capital. Avant is headquartered in Chicago, IL, and employs over 400 people. 

From home improvement loans to debt consolidation loans and credit cards, Avant provides individuals with tools to realize their financial goals. In 2022, Avant and Major League Soccer announced a multi-year partnership, with Avant being named the league’s official credit card partner. In January 2022, the number of Avant credit card holders surpassed 1 million and continues to grow as more customers seek out its credit solutions. 

8. Abrigo

Abrigo, headquartered in Austin, Texas, is a provider of risk management, financial crime prevention, and lending software and services for over 2,400 financial institutions. It was founded in 2019 following the integration of Banker’s Toolbox, MainStreet Technologies (MST), and Sagework. Abrigo has since expanded its portfolio with acquisitions such as Farin Financial Risk Management in 2019, Valuant, BankLabs’ solutions in 2022, and DiCOM Software in 2023. Abrigo also recently acquired TPG Software, strengthening its suite of solutions for financial institutions. 

Abrigo provides intuitive banking software to enable customer success. The company notably introduced an advanced Fraud Detection platform that uses AI to combat fraud more efficiently. Strategic partnerships with Mitek and Prelim further enhanced fraud detection and streamlined deposit account opening processes, solidifying Abrigo’s position as a trusted ally for financial institutions globally. Abrigo also offers advisory services for customers who need help managing their portfolios, evaluating risk, and more. Its advisory team includes former C-suite credit and risk executives, bank examiners, and BSA officers. In total, Abrigo has over 500 employees.

9. Biz2Credit

Biz2Credit is a small business funding solution that leverages technology and data analytics to simplify the funding process for business owners worldwide. The company has a team of over 550 global professionals, including engineers, marketers, and data scientists. It has a track record of over $8 billion in small business loans and financing. Biz2Credit was founded in 2007 and is headquartered in New York City. 

Backed by top investors and over 200,000 small business customers, Biz2Credit provides entrepreneurs with technology-driven tailored funding options. Its proprietary technology matches small businesses to funding that meets their needs based on the company’s unique features and profile. In 2019, Biz2Credit achieved a $52 million Series B funding milestone. Notably, Biz2Credit’s influence extends beyond direct lending, as demonstrated by its flagship platform, Biz2X. It has been incorporated by industry leaders like HSBC and TATA Capital for their online lending initiatives. 

10. Nexo

Nexo, a digital finance lending institution, has been providing financial services since 2018. Combining extensive FinTech experience with blockchain technology, Nexo has processed over $130 billion for 6 million users in 200 jurisdictions, enabling them to leverage the value of their crypto assets for a more inclusive financial system. Nexo offers a comprehensive suite of products, including advanced trading solutions for retail and institutional clients, liquidity aggregation, and asset-backed credit lines.

The Nexo platform allows users to buy, sell, and exchange more than 70 supported cryptocurrencies. Nexo prioritizes safety by incorporating Cryptocurrency Security Standard Level 3, which requires advanced authentication mechanisms. Nexo is also ISO/IEC 27001 certified, reflecting their rigorous safety policies and security. 

In 2022, Nexo launched Nexo Ventures, its investment arm, which supports a portfolio of over 60 companies. Recently, it partnered with Sift to enhance digital risk protection and streamline user experiences. Nexo also recently became a member of the International Association for Trusted Blockchain Applications (INATBA). This collaboration will enable Nexo to actively engage and contribute to critical areas such as regulatory compliance and education.

What is an Example of a Consumer Loan?

Below we highlight some common consumer loans:

Personal Loans

Personal loans provide borrowers with a lump sum of money and a payment schedule for repaying the loan. They can be secured with collateral or unsecured, and borrowers can spend the funds on almost any personal expense, including home improvement projects, such as remodeling a bedroom. There are certain benefits and disadvantages of a personal loan. These consumer lending products can help you build credit, but personal loans in some cases may also carry annual interest rates up to 35.99%. Borrowers are expected to make regular payments on the loan.

Student Loans

Student loans are unsecured closed-end credit products that can help finance a consumer’s postsecondary education. These loans may only be used to cover a college student’s tuition and other school-related expenses. The U.S. Department of Education offers federal student loans through its Direct Loans program, while banks and other lenders may offer private student loans. Federal Direct Loans have fixed interest rates, while private student loans can have variable or fixed interest rates.

Line of Credit

A line of credit is an open-ended credit account that allows consumers to withdraw funds from the account for personal spending. You can get a line of credit from a financial institution, such as credit unions or Black-owned banks, and withdraw funds up to the account’s credit limit. Consumers can get unsecured personal lines of credit or secured personal lines of credit. Homeowners with sufficient equity in their homes may qualify for home equity lines of credit or HELOCs.

Mortgages

Mortgages are a lending product that may provide consumers with financing to buy a home. Consumer mortgages are closed-end consumer loans that promote homeownership, while commercial mortgages for business purposes fall outside the scope of consumer loans. Home mortgages are secured by the financed home. Lenders may offer mortgage loans with 15-year terms or 30-year terms. Some mortgage lenders may offer 10-year terms and 40-year terms.

Car Loan

A car loan is a lending product that may provide consumers with financing to buy a new or used vehicle. Lenders may offer secured and unsecured auto loans. A secured car loan uses the financed vehicle as collateral, whereas unsecured car loans have no collateral requirement. Lenders can offer car loans with terms ranging from one year to more than 85 months. In addition to in-house financing from a car dealer, consumers can get auto loans from banks, credit unions, savings and loan associations, and nonbank financial institutions.

Consumer lending solutions can help borrowers obtain financing for personal, family, or home needs. However, certain consumer loans may have exorbitant interest rates or stringent restrictions on how the cash can be used.