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Marketplace lending platforms like Lending Club still need banks to make the loans. Cross River Bank CEO Gilles Gade, who has deals with 14 platforms and has talked with dozens of others, explains the mechanics of these agreements in a Q&A.
February 24 -
As banks struggle to make sense of their wealth of customer information, the burgeoning industry of online marketplace lending is finding novel ways to glean insights from unconventional data points.
November 5 -
The new American Express film Spent offers an opportunity to consider some emerging strategies aimed at helping low-income and struggling middle-class Americans avoid or get out of debt.
June 20 -
Companies like OnDeck and Lending Club are under pressure to keep finding new borrowers, but there are signs that customer acquisition costs are rising amid heavier competition.
May 6
Pave, a marketplace lender, has partnered with Cross River Bank of Teaneck, N.J., to help it expand its online, short-term loan product nationwide.
The New York lender reached an agreement with the $344 million-asset Cross River to be its chartering bank, according to a spokeswoman. With the agreement, Pave has
Cross River has similar partnerships with several other marketplace lenders, including
Separately, Pave said it recently closed an investment round with RPM Ventures in Ann Arbor, Mich., and Maxfield Capital in New York. Terms of the investment were not disclosed.
Pave mines data to underwrite loans to millennials, a group whose members typically have not built lengthy credit histories. The company uses in-house metrics to determine an applicant's earning potential and employability through work history, education and telephone bills. Pave makes loans of up to $25,000 with rates of 6% or higher.
