Private credit is becoming increasingly important in the lending market, leading major banks to seek collaboration rather than competition.

In the past year, several prominent banks have partnered with private credit firms, indicating a shift in the traditional lending landscape. This collaboration raises questions about the competitive dynamics between banks and private credit firms, which typically target the same borrowers.

Experts, such as Huw van Steenis, vice-chair at Oliver Wyman and former bank analyst at Morgan Stanley, are analyzing the implications of this trend. The collaboration suggests that banks may see private credit as a complementary force in the lending ecosystem rather than a threat. As both entities navigate this evolving relationship, the future of lending could involve a combination of traditional banking and private credit strategies, reshaping the structure and delivery of loans.