Bank lending has been faced with a new wave of competition in the last decade as a surge of online lending companies and their new benefits have captured the attention of many prospective financial consumers. This has been particularly difficult for banks because of the convenience factor web companies. These companies offer expedient services and often require less paperwork. Banks, on the other hand, tend to be the most formal and often also the most stringent as far as lending procedures go.

There are many reasons that banks attract customers. Often, people already have a relationship with their bank based on their prior banking needs. They feel familiar and comfortable dealing with a name and people they are used to seeing. Banks are also the most traditional form of lending. The parents of today's generation often did not have many choices other than a bank. The internet did not exist, and smaller financial companies were rare. As a result, banks are often the first source that comes to mind with a person needs a loan. Banks often offer some of the lowest interest rates available.

There are many drawbacks to bank lending also, especially for the modern consumer. Where time is one of the most valuable commodities for today's business or individual, banks have the lengthiest lending procedures. They have extensive paperwork and documentation requirements. Additionally, due to the volume of bank lending loan requests they receive compared to relatively few associates, long waiting times are experienced by potential customers. Additionally, customers are limited to the bank's business hours, which can often create a schedule conflict. Web companies, by contrast, are available 24 hours a day.