For more than a century, banks controlled access to money. Whether someone wanted to buy a house, expand a business or finance a vehicle, the journey began at a bank. It assessed the borrower, set the terms and decided whether the transaction would proceed.

That relationship is changing. A car buyer may obtain financing through the manufacturer. An online merchant may receive working capital from the platform processing its sales. A retailer offers credit at checkout; a developer sells apartments on instalments. The customer may never meet a loan officer or know which institution supplied the capital.

This is more than another chapter in fintech. It is a shift in who controls the economics of lending. Banks may still provide the money, but increasingly, other businesses influence where it goes.

Banks retain powerful advantages in deposits, payments, regulation and risk management. But their historical control over the customer journey is no longer guaranteed.

Banks retain powerful advantages in deposits, payments, regulation and risk management. But their historical control over the customer journey is no longer guaranteed.

Consider Shopify. At the end of June 2026, its regulatory filings showed approximately $2.43 billion in gross loans and merchant cash advances receivable. Shopify’s advantage is information. It observes merchants’ sales and trading performance directly, while traditional lenders often reconstruct that picture from financial statements, collateral and credit histories.

Better information does not abolish credit risk. Shopify’s net credit charge-offs rose to $107 million during the first half of 2026, compared with $60 million a year earlier. Its allowance for credit losses reached $242 million. Data may improve lending decisions, but it cannot repeal the credit cycle.

Walmart illustrates another division of responsibilities. Through OnePay, customers can access instalment financing at checkout, with repayment terms ranging from three to 36 months. Klarna handles credit eligibility and servicing, while OnePay integrates financing into Walmart’s shopping experience.

The distinction matters because the most valuable moment in lending may not be when money is........

© Daily Times