Post Tagged with: "Alternative Lending"

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 1 comment

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

Alt. Lender SoFi Takes On Investor Shortage with Hedge Fund Launch

Alt. Lender SoFi Takes On Investor Shortage with Hedge Fund Launch

by March 9, 2016 at 4:22 pm 1 comment

Social Finance CEO Mike Cagney always does things a bit differently. The alternative lender, commonly known as SoFi, began in student loan refinancing but quickly expanded to other arenas, such as mortgages and personal loans, It announced yesterday it was launching a hedge fund to invest in its own loans. SoFi typically does notRead More

Moven Partners with Loan Refinancers Payoff and CommonBond

Moven Partners with Loan Refinancers Payoff and CommonBond

by January 27, 2016 at 9:30 am 3 comments

Moven has signed a deal to partner with Payoff and CommonBond, two companies helping borrowers refinance debt, the mobile banking service announced today. Moven is, well, movin’ these days. It’s one new initiative after another, and those in favor of financial innovation should give the Brett King-led startup a tipRead More