Marketplace lending

Personal financial management tools have long relied on financial data aggregation. Now, aggregators are hoping traditional lenders will take a cue from alternative lenders and use the technology to quicken their underwriting decisions.

Much like how Amazon went from selling books to selling cloud services, the online lenders that succeed well into the future will change how they do business, Scott Sanborn said.

Credit unions are working with crowdfunding platforms to help businesses find additional capital.

The San Carlos, Calif., firm is following a similar blueprint as other online lenders — launching with a particular loan product, refining its algorithms, and then seeking to expand into other corners of consumer finance.

The longtime bank analyst is one of many who lost their jobs when CLSA shut its U.S. equity research unit; marketplace lender forms group to buy $5 billion of loans

Prosper Marketplace will receive as much as $5 billion in loan funding under a deal that will provide investors an equity stake in the San Francisco company

It’s unclear whether connecting lenders and borrowers over the internet offers any advantages over traditional lending, according to panelists at the Structured Finance Industry Group conference in Vegas.

After recording a $35.9 million quarterly loss, the online small-business lender said that it plans to reduce its annual expenses by $20 million, cut 11% of its staff and more than double its loan-loss provision from a year earlier.

The New York State Department of Financial Services is hoping to expand its authority to marketplace lenders, brokers, merchant cash advance companies and others that previously could operate in the state without a license.

Marketplace lenders have set themselves apart from banks by moving faster, but lending fraud might force them to revamp their authentication processes.