Existing customer base (from Payments), Alternate Data (for UW and pricing), High engagement (more facetime for X-sell) all helps Payment FinTechs do Lending.
Some challenges (from personal experience):
1. Ensure the experience is truly digital and instant (not just pass on to traditional lenders);
2. Have patience and respect for Credit Risk (difficult for aggressive Product + Marketing + Tech startups to gulp)
As you mentioned,
Existing customer base (from Payments), Alternate Data (for UW and pricing), High engagement (more facetime for X-sell) all helps Payment FinTechs do Lending.
Some challenges (from personal experience):
1. Ensure the experience is truly digital and instant (not just pass on to traditional lenders);
2. Have patience and respect for Credit Risk (difficult for aggressive Product + Marketing + Tech startups to gulp)