Marketplace lending

WASHINGTON — Several Democratic senators are calling for the Government Accountability Office to investigate whether financial technology companies are properly regulated.

A partnership with a firm that makes consumer loans through Home Depot stores is exceeding all expectations at Regions Financial. The company is counting on arrangements with two other alternative lenders to further drive loan growth.

Regions Financial in Birmingham, Ala., posted a double-digit gain in its first-quarter profit as strong revenue growth more than offset continued deterioration in its energy-loan portfolio.

Suddenly, online lenders are struggling, or paying higher prices, to attract the institutional money that has fueled their rapid rise.

Affirm, a three-year-old online lender that finances consumer purchases at the point of sale, has raised a $100 million in equity funding to help it boost distribution and develop new products and services.

The partnership with OnDeck will allow the megabank to approve and fund loans in as little as a day, according to CEO Jamie Dimon. Meanwhile, OnDeck is eyeing similar partnerships with other banks.

Citigroup is no longer buying loans off the Prosper Marketplace platform and repackaging them into securities, a person familiar with the matter said.

The New York company makes two- to three-year term loans of between $3,000 and $25,000. It is seeking to distinguish itself from other digital lenders by targeting young adults who have limited credit histories.

Federal rules for technology-based firms providing the fast-moving sector certainty and consistency would be a benefit, even if rules are suboptimal.

The findings from the California Department of Business Oversight, which also included data on interest rates and delinquencies, could be a precursor to new state regulations.