Marketplace lending

The addition of Sean Glithero as CFO is one of several new hires by the online small-business lender.

The promise of fintech is that it might offer underbanked consumers access to financial products. But some are worried that relying on algorithms to make credit decisions could open up problems of its own.

Readers criticized a credit union securitization proposal, weighed in on scaling back the CFPB’s complaint database, debated the need for banks to examine gender-based salary comparisons, and more.

The move comes at a time when both Prosper and the broader industry it helped to pioneer are struggling.

The online small-business lender has also announced the hiring of a new U.S. head of capital markets.

The New York-based company saw its fortunes fade after riding an earlier wave of investor enthusiasm about marketplace lending.

LendUp is seeking to differentiate itself from competitors by making fast loan decisions and designing its customer experience around the mobile phone.

Sponsoring securitizations of the loans funded on its platform will give LendingClub more control over its reputation in the market and make it less beholden to direct loan buyers.

Operational changes may be enticing to investors, but they threaten the very foundation of marketplace lending, potentially shutting out those the burgeoning sector was meant to serve.

The online lender, which focuses on high-earning millennials, is offering assurances that it will also serve Americans who make less money. But the company has not convinced critics, who say the plans are inadequate.