Post Tagged with: "Alternative Lending"

Borrowers Love Nonbank Lenders — But Still Want Banks in Their Lives

Borrowers Love Nonbank Lenders — But Still Want Banks in Their Lives

by October 27, 2016 at 12:50 pm 1 comment

Americans are quite happy to look at nonbank lenders for their borrowing needs, but that doesn’t necessarily mean they distrust banks. A recent J.D. Power survey of small business owners released some startling figures — startling to banks, that is. Most borrowers, specifically small-business borrowers, consider nonbank lending options for their financingRead More

Plousio, Bond Street and the Future of SMB Lending

Plousio, Bond Street and the Future of SMB Lending

by October 10, 2016 at 10:31 am 0 comments

Lending, especially for small businesses, is an area that has been technologically stagnant for years—which is probably why at the moment it feels like it’s saturated with fintechs. But just because it’s fintech doesn’t mean it’s good, as Simple CEO Josh Reich noted recently. The burning desire to see real disruptionRead More

Alternative Lending Is in Trouble? No One Told Elevate

Alternative Lending Is in Trouble? No One Told Elevate

by September 27, 2016 at 2:09 pm 0 comments

It’s been a brutal year for the alternative lending industry. Scandals, staff cuts, rate hikes, and recently a Lending Club investment posted its first negative return in five years this August. (LendUp also got hit with a $6.3 million fine by the CFPB shortly after this article went to press.) ButRead More

Lending Club Mulls Committing Capital to Venture Fund After Brutal 2Q

Lending Club Mulls Committing Capital to Venture Fund After Brutal 2Q

by August 9, 2016 at 11:29 am 2 comments

Lending Club survived a brutal second quarter (barely) and is considering some fundamental changes to thrive going forward. Specifically, the beleaguered marketplace lender will consider committing investor capital to a venture fund. The company’s president and acting CEO, Scott Sanborn, began yesterday’s earnings call by noting that the good news aboutRead More

Lending Club Underwriting Questioned As Chargeoffs Climb

Lending Club Underwriting Questioned As Chargeoffs Climb

by July 12, 2016 at 12:11 pm 3 comments

Scandals aside, Lending Club has been doing well in the area that mattered — borrowers were paying back their loans. But a new report from the Wall Street Journal indicates that chargeoff rates at Lending Club are up 38% since 2013. This is troubling because credit card default rates decreased over theRead More

Grip of Liquidity Crisis Tightens on Lending Club, Prosper

Grip of Liquidity Crisis Tightens on Lending Club, Prosper

by May 27, 2016 at 11:57 am 2 comments

Alternative lenders are looking for, well, alternatives to survive tough times. Matt Harris of Bain Capital Ventures commented to Bank Innovation last Friday that alternative lenders might need to give up equity or make other concessions in order to secure funding. He was proven correct just days later when ProsperRead More

Despite Subpoena, OCC Taps Lending Club for ‘Responsible Innovation’ Guidance

Despite Subpoena, OCC Taps Lending Club for ‘Responsible Innovation’ Guidance

by May 17, 2016 at 11:29 am 0 comments

The Office of the Comptroller of the Currency announced yesterday that it was turning to — brace yourself — Lending Club for guidance on “responsible innovation.” Lending Club disclosed yesterday that it was subpoenaed by the Department of Justice. On June 23, the OCC will hold a forum entitled, “Supporting ResponsibleRead More

Half of Investors Allocate Capital to Marketplace Lending, Survey Shows

Half of Investors Allocate Capital to Marketplace Lending, Survey Shows

by April 11, 2016 at 6:14 pm 1 comment

Investors see a sunny future for marketplace lending, according to a survey released today by Richards Kibbe & Orbe LLP (RKO) and Wharton Fintech. The results of the survey, titled 2016 Survey of U.S. Marketplace Lending, show that half of investors surveyed have capital allocated for marketplace lending. The year prior, just 29% had investments in the space. TheRead More

Self-Regulation Said to Be a Goal for New Marketplace Group

Self-Regulation Said to Be a Goal for New Marketplace Group

by April 8, 2016 at 10:28 am 2 comments

Marketplace lenders are getting together — well, three of them, anyway. Marketplace lenders Funding Circle, Lending Club and Prosper announced Wednesday the formation of the Marketplace Lending Association, a nonprofit organization that will “promote responsible business practices and sound public policy to benefit borrowers and investors.” It’s a move likely influenced by theRead More

Kabbage Scores Another European Bank with Santander UK Deal

Kabbage Scores Another European Bank with Santander UK Deal

by April 5, 2016 at 12:19 pm 2 comments

Atlanta-based small business lender Kabbage is snapping up bank deals in Europe. Yesterday, the company announced it had reached an agreement with Santander UK to serve the bank’s SME customers. This follows a similar deal with ING in Spain last October. “Kabbage’s business growth throughout Europe, the Middle East and Africa has been exponentialRead More