Smarter Loans Delivers Record 3rd Quarter in Loan Origination

TORONTO, Nov. 9, 2020 /CNW/ - Smarter Loans, Canada's loan and financial directory, delivered a record Q3 amid COVID-19 pandemic.

As more Canadian borrowers shifted online to apply for loan products, Smarter Loans continued to be their destination of choice, which contributed heavily to the strong Q3 performance.

Borrowers nationwide visit Smarter Loans to discover nearly 50 lending companies and their products, compare options and apply 100% online, from their phones.

There was an initial shock to the lending industry in March and April, both for lenders and borrowers. The global uncertainty caused lending companies to slow down or stop lending, while borrower demand dropped due to wide-spread government subsidies. However, beginning in May, this behaviour started to reverse.

Shortly after, it was clear that FinTech adoption was on the rise, and more people than ever were gravitating to the internet to apply for loans of all kinds.

In addition to the general rebound in economic activity as restrictions eased throughout the country, consumers were more willing than ever before to search and obtain financial products online.

The financing sub-industries that saw the biggest shifts online, and spikes in loan origination at Smarter Loans in 2020 vs 2019 are:

• Mortgages & Home Equity (74%)
• Debt Consolidation (96%)
• Equipment Financing (65%)
• Farming & Agriculture Equipment (31%)
• Aviation (52%)

Personal loans and business loans sectors saw declines in Q2 but rebounded strongly in Q3, pacing towards another record quarter in Q4. For the small business community in particular, lenders have now made more capital available to new, evolving business models, including e-commerce stores, home based businesses and freelance teams.

"It is clear that online, digital and mobile distribution of financial products is the direction for Canadian borrowers. Most financial companies, both lenders and others, have taken steps to improve their digital capabilities and enable online distribution channels, but there is still a long way to go." - Vlad Sherbatov, President, Smarter Loans

"Like other industries, the lending community had to withstand a big financial shock, and adapt in order to continue serving Canadians. We want to thank all of our partners for stepping up and helping Canadians get access to capital when they needed it most." - Rafael Rositsan, CEO, Smarter Loans.

SOURCE Smarter Loans

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