Online personal loan market expansion ahead: EY

Péter Csonga

The company says that services that allow clients to request loans through smartphones and laptops even outside working hours could become widespread quickly, after the change in regulations comes into effect on March 31.

Due to the changes in the contracting process, clients may receive the requested loan in a short time after submitting a request. The process will be further hastened by the planned introduction of immediate transfers, which is expected to start this July.

"The way to the simplified market introduction of innovative products will be opened within weeks for the sectorʼs players," says EY advisor Péter Csonga.

"Institutions will have to create a service which is both client- and user-friendly, while providing the appropriate IT infrastructure in practice, risk-management systems, and data handling and security protocols in order to gain a competitive edge. For a fast, efficient, and integrated implementation, the internal resources of financial institutions are often not enough, hence it is worth involving an external expert in the process," he adds.

A further facilitation of the process is that laws do not always demand a real-time video connection during client identification since the beginning of 2019. This may result in an improvement in client experience and support the spread of services outside bank opening hours.