The State of Lending in 2022

Millennial Magazine - lending

Borrowing money can be a complicated process. This is because there are many different types of loans and repayment options. Lending industry has been around for centuries, and it has always been a profitable industry.

However, like most businesses these days (Due to the pandemic), the industry itself was pretty badly affected. This includes the credit card lending sector too. Since most people started having financial issues, less people were eligible to borrow funds.

In some cities or countries (Canada for example), the effect was the opposite. Needless to say, it was a bumpy road for all, and things now seem to be tapering out. Mainly, thanks to the recent innovations that have occurred. Not just in the lending industry, but in the world of finance as well.

Even with these circumstances, lending is still a profitable business because there are always people who need money, and are willing to pay interest rates in order to get it. However, things have really gone into the lender’s, and borrower’s favor in late 2021, and now 2022. All thanks to Fintech. An emerging and new financial technology.

Due to the pandemic, most of us were forced to go indoors. This gave birth to much faster and cheaper technology which is giving banks a run for their money. Since Fintech is digital, the cost of transferring money has reduced dramatically. This has affected other areas in the financial world as well. Including the lending businesses.

Fintech lending has taken things to the next level. It has not only allowed the consumer to get an online payday loan, but get it much faster and cheaper. It’s a form of lending that uses technology to make the whole process more efficient and less time-consuming. The process is very simple.

A customer applies for a loan online, and in a few minutes they receive an answer. If they are approved, the money will be deposited into their account within 24 hours. No need to walk into a place physically as everything is taken care of online. Perfect for the current pandemic situation.

Fintech lending can be beneficial because it’s quick and easy to apply for loans. It also has lower interest rates than traditional banking and loan agency methods. As Fintech doesn’t have all the overhead costs of brick-and-mortar loan agencies, etc. Some of the more popular Fintech companies are Stripe, The Dave App and yes, even Paypal.


Stripe is a company that provides a payment processing service, as well as tools to accept payments online. It was founded in 2010 by brothers Patrick and John Collison.

The company’s software lets businesses accept various forms of payments from customers, such as credit cards, debit cards, Apple Pay and other transactions. The company offers a free API for developers to use its service in other applications.

In 2011, Stripe received $2 million in seed funding from Sequoia Capital, Andreessen Horowitz, and Y Combinator.

In 2012, Stripe received a $20M Series A round of funding from Sequoia Capital and Peter Thiel.

In 2013, Stripe raised a $70M Series B round of funding from Sequoia Capital and Peter Thiel.

In 2014, Stripe raised another $245M Series C round of funding from Sequoia Capital and Silicon Valley Bank.

In 2016, Stripe raised another $150 million.

Today it’s a multi billion dollar firm.

Dave App

Already used by millions, this app allows the many people out there to borrow money without getting wrecked on the fees. It also offers a whole bunch of other services for people the bank doesn’t like to help.

Dave is a personal finance app that helps you save for the future. It’s a simple way to set goals and track your progress. You can also use Dave to check your credit score, pay your bills, and more.

The app is free to download and use. But if you want to get started saving right away, you can also sign up for Dave Plus for $3.99/month or $34.99/year (which works out at about $1 per month).

Dave’s goal is to help people achieve their financial goals by making it easy for them to save money in the long run. The app also has a few other features that make it easier for people who are just starting out with their finances, or who are looking to take control of their money.

This is a classic fintech technology and it is now being geared towards the lending industry.

We are definitely excited to see where this goes.


Known as the grandfather of Fintech, Paypal hasn’t stopped innovating either.

PayPal is a platform for making payments and money transfers. It is the most widely used online payment system in the world, with over 100 million active accounts. PayPal allows people to send or receive money by credit card, bank account, or other online payment methods.

The company was founded in 1998 by two friends, Peter Thiel and Max Levchin. The idea came from an earlier project that they had created together called Confinity which was a company that allowed people to make payments over the internet without using a credit card.

In 2002 PayPal became a publicly traded company on the NASDAQ stock exchange under the ticker symbol PYPL. Rest as they say is history. Paypal does offer business capital and may branch out further into payday loans.

The State of Lending in the Near Future

Although things look great overall, the banks are not so happy. As their outdated technology is forcing customers to look towards Fintech.

With millions of migrations already, let’s see how this turns out. Our advice to banks, if you can’t beat them, join them. Hopefully things will turn out for the best.

What do you think?

Written by JD Hysen

JD Hysen is a fin-tech writer and music critic for Millennial Magazine. As host of The TrueMan Show, he covers all things related to stocks, tech and culture. He's a market analyst by day and a music scout by night, combing venues in search of fresh acts and noteworthy performances.

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