In recent years, the financial landscape has significantly transformed, with non-bank lenders emerging as formidable competitors to traditional banks . The median quarterly loan inflow gap between banks and non-banks has narrowed considerably over the past three quarters, signaling a shift in how businesses and individuals access credit. This trend, supported by cash flow data and corroborated by the Federal Reserve's Senior Loan Officer Opinion Survey (SLOOS), highlights a contraction in bank lending. At the same time, non-bank lenders maintain a steadier inflow. This article explores the factors driving this convergence, the implications for borrowers, and the future of both bank and non-bank lending. Understanding the Loan Landscape Banks have long been the cornerstone of lending, offering many loan products, from small business loans to mortgages. Their established infrastructure, regulatory oversight, and access to deposit-based funding have historically given them an edge i...