According to The Wall Street Journal, Fintechs are increasingly stepping into the subprime lending arena, a sector that had a significant causal relationship with the last great recession.

The Journal’s article states: Financial-technology startups are stepping into a void increasingly left by credit-card-issuing banks: lending to customers with poor credit histories.

LendUp Global Inc. and Fair Square Financial LLC, which focus more heavily on riskier borrowers, mailed out roughly 35 million credit-card offers during the first half of the year, according to market-research firm Competiscan, up from 7 million during the same period last year.