Marketplace lending

OnDeck Capital has hired Gary Fearnall as its country manager for Canada.

The digital-age industry sells borrowers on its speed. But it remains captive to outdated technology that can delay the delivery of funds by several days.

After unveiling an online loan for subprime borrowers in July, ZestFinance announced Tuesday that it has raised $150 million in debt to finance the product’s growth.

Kabbage is one of many nonbank lenders looking to partner with traditional financial institutions. But the firm is facing a tough sell with bankers who worry about the risks associated with ceding control of the loan-underwriting process.

Consumer advocacy groups are urging regulators to take a closer look at how alternative lenders are using the stockpiles of personal information they collect.

While large banks are risk-averse, conformist and bureaucratic, marketplace lenders are inspiring the best and the brightest with their high-energy cultures.

Banks worldwide are in danger of losing significant profits in several lending areas to nonbank alternative lenders, according to a McKinsey study.

Avant, an online lending platform that focuses on borrowers with marred credit, announced an agreement Wednesday to raise $325 million in equity financing from blue-chip investors.

In comments to the Treasury Department, traditional financial institutions are calling for more oversight of an industry that is fast becoming a big competitive threat.

Former Citigroup Chief Executive Officer Vikram Pandit is part of a group of investors plowing $5.9 million in a new digital exchange aimed at making it easier for smaller investors to buy loans made to mid-sized companies.