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Alternative Lender Borro Names Nigel Morris Its Chairman


Borro, a company that makes short-term loans to wealthy Americans and Britons, on Thursday named Capital One Financial co-founder Nigel Morris as its chairman.

Morris co-founded Capital One (COF) in 1988 with its current chief executive, Richard Fairbank. Morris stepped aside as the McLean, Va.-based credit-card issuer's president in 2003 and is now the managing partner at QED Investors.

"Nigel Morris is a perfect choice," Paul Aitken, the CEO of borro, said in a news release. "He brings a wealth of experience from years at the helm of fast-growing online businesses in the financial services and online payments space."

Borro — which spells its name with a lower-case "b" — is at a critical stage as it accelerates its U.S. growth, Morris said in a news release. The company started in the United Kingdom five years ago and came to the United States last year.

Borro makes loans to high-net-worth individuals and small-business owners who are facing a liquidity crunch. The loans are collateralized by assets such as fine wine, art and luxury cars.

The venture capital-backed alternative lender raised $58 million in October 2012 to fund rapid growth on both sides of the Atlantic Ocean, according to the company.



10 Key Insights About the Unbanked
They are spending a lot, just not with you.

Revenue is growing significantly and steadily for products targeting people outside the financial mainstream.

Though they use banks very little or not at all, these consumers do use financial products and services. It is a market segment that generated an estimated $107 billion in fee and interest revenue during 2014, up 4.6% from the prior year, according to estimates from the Center for Financial Services Innovation.

Two recent studies offered some key insights about these so-called "underbanked" and "unbanked" consumers. Here is a quick overview, with charts to illustrate.

(Image: Bloomberg News)

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