J.D. Power's report said personal loans serve as a gateway to other financial products
Personal loan lending slowed significantly in the midst of the COVID-19 pandemic but has since regained its strength, according to a report from J.D. Power.
Competitive rates, easy access and a variety of options has led to an increase in demand for personal loans, especially among the financially vulnerable population, according to the J.D. Power 2022 U.S. Consumer Lending Satisfaction Study.
"Increasingly, personal loans are filling the void left by the end of pandemic-era relief efforts, which introduces some important new dynamics for the banks, credit card companies and fintechs at the center of this marketplace," Craig Martin, J.D. Power's managing director and global head of wealth and lending intelligence, said. "While customers are largely satisfied with these products and the market is continuing to grow, it is important for lenders to ensure the experiences they deliver are matching the promises they are making to support improved financial health."