Marketplace lending

CEOS of midsize banks traveled to Washington recently to seek relief from some of the more onerous regulations that they say are making it harder for them to compete with both big banks and largely unregulated marketplace lenders that are aggressively going after their customers.

Marketplace lenders are still so new that their business model is untested and unproven, raising fears both for consumers and the industry at large, Federal Deposit Insurance Corp. officials and several bankers said Thursday.

Raj Date, the consumer bureau's former deputy director, said Thursday regulators need to be flexible, responsive and use discretion when it comes to dealing with financial technology startups.

The relevant question is no longer whether new regulations will come for the fast-growing industry, but what form they should take.

Revenue growth outpaced rising expenses at OnDeck Capital during the third quarter, allowing the fast-growing small-business lender to turn a profit.

Los Angeles-based marketplace lender AssetAvenue has named a new chief executive.

Now the question is: will online portals become a significant source of financing for U.S. small businesses, or will red tape get in the way?

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Lending Club rebounded to profitability in the third quarter as revenue growth at the nation's largest marketplace lender outpaced an increase in operating expenses.

Antonio Weiss, a counselor to Treasury Secretary Jack Lew, called Thursday for greater transparency in the pricing of online small-business loans.