Money Buzz! Europa

Tag: loan

  • OTP Bank launches the 100% online Personal Loan in lei

    OTP Bank launches the 100% online Personal Loan in lei

    OTP Bank launches a new lending instrument, the 100% online Personal Loan in lei, with a duration of of only 30 minutes for the approval and making the amount available for the customer.

    The online Personal Loan is available for new customers paired with the ”LeZero” current account package.

    This includes Current Account, Debit Card, Internet & Mobile Banking, thus being obtained through a 100% online route, without visiting the bank.

    For the launch of the online Personal Loan in lei, OTP Bank collaborated with the local start-up FintechOS and the consulting partner Deloitte.

    FintechOS technology is used for the digital onboarding procedure and allows automatic data recognition (OCR), automatic data processing in the system and facial recognition, as well as an automatic analysis and decision module.

    The analysis and verification of the customer, the declared income and the credit history take place automatically and, in case of a positive answer, the contract is generated on the spot and is signed electronically.

    Approval and delivering the funds are done in about 30 minutes and do not involve fees for application  analysis, loan administration or opening a current account.

    In addition, if the customer collects the salary in an account opened with OTP Bank, he benefits from a 1 percentage point discount on interest.

    What is ”LeZero” account package

    The ”LeZero” current account package, offered to new customers applying for the online Personal Loan, includes a current account in lei, , a Mastercard debit card in lei and free access to Internet Banking applications (OTPdirekt).

    The ”LeZero” package has a standard administration fee of 12 lei/month.

    If the user collects the amount of at least 1,200 lei/month in the account opened with OTP Bank, and makes at least one payment per month, administration fee is 0.

  • PayPal is the largest non-bank lender with over $54B in total assets

    PayPal is the largest non-bank lender with over $54B in total assets

    Non-bank lenders have become a popular alternative to traditional banks when it comes to acquiring loans. According to data presented by TradingPlatforms.com, PayPal is the largest non-bank lender in the world with $54.27B in total assets.

    As of May 2020, PayPal was ranked as the 54th largest company based on market capitalization with a market cap of $144.3B.

    PayPal’s total assets alone make up almost 60% of the top ten non-bank lenders’ total assets combined.

    COVID-19 pandemic causes sharp increase in monthly active users for PayPal in UK 

    Monthly Active Users (MUA) for PayPal had actually been in the decline in the UK since February 2017.

    This decline was halted through a surge in PayPal’s popularity due to the COVID-19 pandemic and the lockdowns that it imposed on many developed markets. 

    In the UK, PayPal grew by about a million MUA since April 2020 from 2.05M MUA to 2.95M in January 2021.

    As of Q4 of 2020, PayPal reported 377M active registered accounts globally, a 24% YoY increase from Q4 2019 (305M).

    2020 was a record year for PayPal worldwide

    The company also experienced a record year in 2020 as digital payment options became a popular alternative to traditional, physical banks during the pandemic.

    PayPal’s annual revenue for 2020 increased by over 20% YoY to $21.45B. In the final quarter of 2020 alone PayPal handled $277B in total payment volume taking their total payment volume for 2020 to  $936B – a growth of nearly a third YoY.

    PayPal also transacted more payments than ever before growing 25% YoY to 15.4M transactions in 2020.

    Largest non-banking institutions have overtaken ”Big Six” banks in America

    Non-banking institutions such as PayPal have become an integral part of the economy in the most developed markets.

    In the US the market cap of four large fintech companies; Visa, Mastercard, PayPal and Square combined for over 1 trillion dollars.

    This eclipsed the combined $880B market cap of the traditional “Big Six” banks in America; JPMorgan, Bank of America, Citigroup, Morgan Stanley, and Goldman Sachs.

  • US commercial and industrial loans at an all-time high since 1973

    US commercial and industrial loans at an all-time high since 1973

    Data gathered by Learnbonds.com indicates that the United States commercial and Industrial loans hit $3.04 trillion in the third week of May.

    According to the data, this is the highest amount since January 1973 when the figure was $134.04 billion.

    A notable spike in the loans by all the commercial loans was recorded in the second week of March 2020 when the amount stood at $2.38 trillion. Eight weeks from this period, the loans grew by 27.86% to the May figure.

    Between the first week of this year and May, the loan amount has grown by 29.6% after standing at $2.35 trillion in January. The lowest amount in commercial loans was in the first week of 1973 at $134.04 billion. The loan amount first hit the one trillion mark in the last week of September 2005 when the figure stood at $1.001 trillion.

    Before the current high of $3.04 trillion, the last time commercial loans were notably high was in the fourth week of November 2008 when the number stood at $1.57 trillion. Another high was in the third week of January 2001 at $1.09 trillion.

    Based on the data, it clear that spike was recorded when the Coronavirus pandemic began impacting the economy. According to our research report:

    Based on the monthly percentage change in commercial loans, March and April this record the highest rate at 169.3%. Before the 2020 spike, the last highest rate was between December 1951 and January 1952 at 68.3%. Another notable high was in February 1973, April 1974, October 2008 at 47.5%, 43.7%, and 41.8% respectively.

    On the other hand, the lowest percentage difference was recorded between June and July 2009 at 33.7%. Another notable low was in November and December 1953 at 34.3%.

  • Google searches for business loan up by 317% amid coronavirus pandemic

    Google searches for business loan up by 317% amid coronavirus pandemic

    Data gathered by Learnbonds.com indicates that global interest in business loans has risen on the search engine Google. According to the data, between the first week of April last year and a similar period in 2020, the queries have gone up by 317%.

    Coronavirus impact on businesses

    According to the data, most months saw interest in the subject remain largely constant with an average popularity score of 25. However, a notable spike was witnessed from the second week of March 2020 when the score reached 30. During this period, the Coronavirus pandemic had begun taking a toll on many businesses across the globe.

    In the third week of March, the popularity score significantly rose by 90% to 57. During the last week of March, the score was 89. By the first week of April 2020, the searches had achieved the peak popularity of 100 representing a 317% growth from a year ago. During a similar period last year, the score was 24.

    With the current pandemic, most businesses are looking for a bailout to remain in operation for the next few months. According to the report:

    Jamaicans are the most interested in a business loan

    From a geographical point of view, Jamaicans are the most interested in a business loan with a Google search popularity score of 100. South Africa comes second with a score of 59 followed by Nigeria with a score of 56. Other countries with more interest in business loans include Australia (54), Singapore (49), India (47 ), New Zealand (43), UK (42) Pakistan (42) and the United States (40).

    Business loans are specifically intended for business purposes and they are available in bank loans, mezzanine financing, asset-based financing, invoice financing, microloans, business cash advances, and cash flow loans.