In the US, a major portion of it is that banks are limited in the data they use. For example, certain lenders highly restricted in how they can use zip code in

In the US, a major portion of it is that banks are limited in the data they use. For example, certain lenders highly restricted in how they can use zip code in any automatic algorithm. So they stick to manual processes (which are only profitable on large loan sizes) or very simple automated algorithms. Non-bank smaller lenders often have many fewer regulations, allowing them to make more targeted automated algorithms, which means they can serve people banks can't.