Marketplace lending

Cornerstone Community Credit Union in Des Moines, Iowa, has partnered with the online marketplace lender LendingPoint to provide loan products for its members that struggle to qualify for traditional financing.

It is time for institutions to act independently of the Federal Reserve and raise their loan interest rates to improve returns.

OnDeck Capital in New York reported a $5.1 million loss in the fourth quarter as revenue failed to keep pace with rising expenses.

The terms "peer-to-peer" and "marketplace" lending are often used interchangeably to define all manner of loans made through the Internet. The reality, though, is that aside from lacking storefronts, the many firms now operating in this arena have little in common with one another. Here's a guide to help tell them apart.

About 10% of midsize businesses say they want to develop a relationship with nonbank providers, such as marketplace lenders or business development companies, and even more are said to be considering switching banks.

The burgeoning industry has been hoping the Supreme Court would overturn a problematic lower-court ruling, but the unexpected passing of a conservative stalwart makes that outcome less likely.

Inspired by marketplace lenders, Live Oak Bancshares created a largely digital product that can make a credit decision on a small-business loan within 48 hours. The product, which combines human decision-making and automated credit scoring, could go national as early as next year.

Disruption in credit scoring is healthy, but the new models touted by marketplace and other alternative lenders are still untested, especially about how loans will perform in a downturn.

Lending Club reported record earnings in the fourth quarter thanks to soaring loan demand.

The White House and other Democrats have long pushed for banks to offer affordable small-dollar loans as an alternative to payday loans and other costlier credit, but banks have struggled to make them profitable and safe for consumers.

LendingClub won over debt investors with algorithms that quickly assess borrowers' creditworthiness, making it easy for banks, hedge funds and others to snap up billions of dollars of consumer loans arranged through its online platform. Those algorithms still have some kinks.

Despite their recent growth, too few marketplace lenders are reporting data to the consumer reporting agencies, which could negative repercussions on the financial system.

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SunTrust Banks in Atlanta has committed $50 million to a credit facility for the online small-business lender Credibly.

WASHINGTON — The current financial regulatory structure is ill-suited for innovation, but a legislative effort to fix that may still be a long way off, according to top House Republican lawmakers.

WASHINGTON — The Federal Deposit Insurance Corp. is urging banks to perform due diligence and identify potential risks before conducting business with marketplace lenders.

OnDeck Capital, an online small-business lender in New York, has added a former E-Trade Financial executive to its board, as another director plans to leave.

College Ave Student Loans, an online lender in Wilmington, Del., announced Thursday that it has raised $20 million in equity financing.

A new class of fintech startups is using loan applicants' social networks to determine creditworthiness as the banking industry debates the merits of alternate underwriting methods.

Opus Bank in Irvine, Calif., is the latest bank to partner with an online lender, announcing an agreement Thursday to refer certain small-business customers to OnDeck Capital.