Marketplace lending

The Wall Street titan, having borne the costs of being a regulated bank for a number of years, is now looking to reap some of the benefits that come with a banking license.

American Banker readers share their views on the most pressing banking topics of the week. Comments are excerpted from reader response sections of AmericanBanker.com articles and from our social media platforms.

Banks, marketplace lenders and other nonbank lenders were dealt a setback when a federal appeals court declined to reconsider a ruling that has set off alarm bells across the consumer finance industry.

C2FO, the operator of an online marketplace for small-business financing, announced a $40 million equity funding round led by a Singapore investment firm.

The Office of the Comptroller of the Currency is trying to "supercharge" its process for reviewing financial innovations in an effort to keep pace with a glut of new products inside and outside the banking system.

Rejiggering the credit-scoring system won’t do much to expand credit access. Instead, banks and financial services companies should start thinking about new ways to evaluate the situational factors that influence borrowers’ reliability.

Lending Club and Funding Circle are among the firms pledging to adhere to a range of self-imposed standards in small-business lending.

The next financial crisis will probably originate from online lenders, hedge funds or other unregulated entities that are taking on some of the greatest credit risks, CIT Group Inc. Chief Executive Officer John Thain said.

In the worst-case scenario, they'll get state licenses and reprice a portion of their loans, but executives of the highflying industry say they doubt such steps will be necessary.

Lending Club reported a small quarterly loss on Tuesday as the marketplace lender stuck with its strategy of pursuing growth rather than near-term profitability.

Heavier second-quarter marketing expenses at OnDeck Capital highlight a concern throughout the marketplace lending industry: the high cost of customer acquisition as competition from banks and nonbank startups heats up.

Many online small-business lenders worry that future regulations could stymie innovation in this fast-growing industry. But well-designed requirements would simply ensure that online lenders can offer adequate borrower protections without giving up market share.

The small-business lender's shift 18 months ago to a marketplace player that sells loans to investors paid off handsomely in the second quarter.

An estimated 12 million Americans buy used cars through informal channels each year. Those consumers are underserved by traditional auto lenders, says Lending Club Chief Executive Renaud Laplanche.

Marlin Business Bank has launched a new site to compete with alternative lenders such as OnDeck and Kabbage, which specialize in providing quick and convenient access to small-business credit.

AssetAvenue, a marketplace lender that specializes in commercial real estate finance, announced that it has hired Peter Coleman as its chief financial officer.

American Banker readers share their views on the most pressing banking topics of the week. Comments are excerpted from reader response sections of AmericanBanker.com articles and from our social media platforms.

Student lending startup CommonBond has hired Morgan Edwards, a longtime Wall Street leveraged debt specialist, as its chief financial officer.

There is no reason a bank should be able to issue a loan and enjoy one set of rules while a marketplace lender, essentially issuing the same loan, must deal with a morass of conflicting state standards.

Bank groups hope rapid congressional action highlights the small-business lending program's political appeal, while nonbank lenders sense an opportunity.