Post Tagged with: "Lending Marketplaces"

4 Scenarios for Lending Club – the proxy for Fintech disruption or hype $LC

4 Scenarios for Lending Club – the proxy for Fintech disruption or hype $LC

by July 22, 2016 at 1:00 am 1 comment

When Lending Club did its IPO in December 2014 I declared it as the Netscape moment for Fintech (when it became conventional wisdom that this was going to change the world). I could be accused of contributing to the Fintech hype, which became intense in 2015 with investors flooding intoRead More

The Emerging Value Chain Ecosystem in Marketplace Lending

The Emerging Value Chain Ecosystem in Marketplace Lending

by June 17, 2016 at 1:00 am 2 comments

In ye olden days it was called P2P Lending. You can still see the vestiges of that model in services such as Lending Club and Prosper. Everything happened on one service. However as these marketplaces grew, a networked ecosystem has started to emerge. We are 100% confident that this networkedRead More

Blockchain technology could revolutionize small business finance

Blockchain technology could revolutionize small business finance

by June 14, 2016 at 1:00 am 2 comments

Small business finance is a window of opportunity big enough to drive a truck through. Yet despite years of effort by many smart ventures, there has not yet been a breakthrough to mass scale. Many digital loan processing ventures, such as Ondeck and Kabbage have reached significant scale. Yet weRead More

Marketplace Lending Depends on Savers Moving on From Bank Deposits

Marketplace Lending Depends on Savers Moving on From Bank Deposits

by June 3, 2016 at 3:03 am 2 comments

The Fintech is dead meme is now in full flood. Authoritative sources such as this Deloitte report (with sensationalist headline from Business Insider) add credibility to this meme.  This feels like the Internet is dead consensus in 2002. At the time I vividly recall the relief with which media companiesRead More

The Three Channels on the Lending Club Platform

The Three Channels on the Lending Club Platform

by May 19, 2016 at 2:00 am 0 comments

Lending Club is a public company and therefore, discloses more detailed information than the private lending marketplaces like Prosper. Looking into their annual reports, the three distinct channels of their matchmaking business (Borrowers matched with Lenders) and their growth can be found. To put things in perspective: Lending Club hasRead More

Lending Club Skiing Accident: 20th Century Disclosure Ghosts

Lending Club Skiing Accident: 20th Century Disclosure Ghosts

by May 17, 2016 at 2:07 am 0 comments

They were going fast, they were adapting new technologies, high growth rates, they were the first to go public. Of course, they weren’t wearing a helmet (not fashionable) and the crash happened on the lower slopes. In January we wrote in “Lending marketplaces grow up and get boring”: “Lending marketplaces haveRead More

Structured Products & Securitization Move Online

Structured Products & Securitization Move Online

by January 26, 2016 at 2:54 am 0 comments

“Structured finance isn’t dinner table conversation for most people — and the terminology, market dynamics and ecosystem can be imposing” -Hyung Kim, Co-Founder of Ldger Structured products are one of the tools used in financial markets to re-allocate risk and create customized payoffs that are suitable for each investor class.Read More

Who Is Afraid of P2P Securitization?

Who Is Afraid of P2P Securitization?

by January 25, 2016 at 3:10 am 0 comments

In my last research note I discussed the role of WebBank in the triangle of Lending marketplaces in the US. The function of this regulated entity is clear and brings to the forefront the roles and responsibilities left to the unregulated Lending platforms. Lending marketplaces are predominately accessing the creditworthinessRead More

Tiny bank, huge ROE: WebBank’s Fintech hidden recipe

Tiny bank, huge ROE: WebBank’s Fintech hidden recipe

by January 18, 2016 at 2:22 am 1 comment

“A US FDIC-insured industrial bank with a 59% ROE and a very low risk classification”  (Source of ROE & Financial health measure) Banking ROE averages are around 8% (BOfA around 7% and Wells Fargo 14%). Just this past week reported in “Return in Techquity” “JPMorgan and its competitors seem destined toRead More

Lending Marketplaces Grow Up (and Get Boring)

Lending Marketplaces Grow Up (and Get Boring)

by January 4, 2016 at 3:43 am 0 comments

Lending marketplaces are about to get boring. From Birth of P2P loans to Maturity via securitization, the recipes and cookware are looking more and more like old-fashioned financial engineering. “For the kind of people who think technology is all about innovation and cool new things, then, fintech is about toRead More