Commercial lending

At this year's EMERGE Forum in Austin, Texas, the Financial Solutions Lab — a $30 million, five-year initiative managed by the Center for Financial Services innovation with founding partner JPMorgan Chase — revealed the winners of a recent competition for apps that tackle consumers' cash flow challenges. The nine winning organizations, chosen from 298 applicants and 14 finalists, received a combined $3 million, along with mentorship, networking, peer learning and national partnership opportunities. The following is a look at their solutions to the problems of the working poor and others ill-served by traditional financial products.

PayPal, Amazon, Square and American Express have all built new businesses by extending credit to merchants that already rely on their payment networks. Their client relationships give them certain advantages over banks, marketplace lenders and others.

After it all but stopped making real estate and development loans following the housing crash, Farmers & Merchants Bank has increased its real estate loans by more than 61% over the last two years. It's a figure that's likely to keep rising as California's real estate market heats up and the $5.6 billion-asset bank continues to add commercial real estate, construction and mortgage lending specialists to keep pace.

As investment dollars flood into the alternative lending sector, fueling the rapid growth of early entrants such as Lending Club, lots of smaller online loan platforms are also popping up. Many of these new firms are specializing in narrow lending niches, touting their expertise in underwriting particular forms of credit. Here's a rundown of some of these specialties.

CircleBack Lending, an online marketplace that offers installment loans to consumers, has completed its first securitization deal, the Boca Raton, Fla., firm said Friday.

The U.S. Department of Agriculture's Rural Housing Service is raising the cost of its home-loan guarantees that enable borrowers to purchase homes in certain areas without down payments.

After scaling back its U.S. operations, Popular Inc. plans to focus on niche commercial lending markets, including financing for elder care and assisted living facilities.

Ex-banker Sandy Kemper, the chief executive of an online marketplace that allows companies to negotiate over discounted, speedier payments, discusses the future of commercial finance.

RiverNorth Capital Management is seeking to establish a closed-end fund that would serve as a source of permanent capital for so-called peer-to-peer lenders.

Credit Karma in San Francisco has raised $175 million in venture capital to expand its product offerings for consumers' personal finances.

As financial technology transforms the banking industry, experts are placing bets on the banks and startups most likely to thrive in the digital future. Here are seven top contenders, according to insiders from both sides of the divide at last week's Next Bank USA conference in New York.

Moody's managing director Will Black argues that it’s hard to predict the performance of P-to-P loans because of a lack of historical data.

Live Oak Bancshares in Wilmington, N.C., has filed registration documents for an initial public offering, with plans to raise up to $86.3 million.

The regulatory path may also be bumpier for P-to-P lenders that focus on subprime borrowers, predicts Raj Date, a former second-in-command at the Consumer Financial Protection Bureau.

Two community banks that focus on underbanked and low-income populations, City First Bank of D.C. and Southern Bancorp in Arkadelphia, Ark., have joined an international group that promotes socially and environmentally responsible development.

Silicon Valley firms like Apple and Lending Club are happy to partner with banks — so long as they get to be the face of customer interactions. But banks may not easily give up that ground.

Austin Capital Bank, a $71.4 million-asset institution based in Texas, will originate loans for a new online consumer lending platform called Self Lender, the two companies announced.

Kabbage, the online small business lender, has announced a partnership to make loans to customers of United Parcel Service, the global delivery firm.

A Seattle-based company is trying to make it easier for individual investors in peer-to-peer loans to cash out early.

Whether you're in the mood to read about the checkered history of the Vatican Bank or how Bitcoin's colorful cast of characters endeavor to shape the future of money, there's a book to suit every taste in this year's recommended reading list. Here's what American Banker's readers, staff and BankThink contributors are taking to the beach this summer.