Nonbank

OnDeck Capital, Lending Club, Funding Circle and Kabbage in the last week have all announced moves designed to boost their loan volumes.

Springleaf's proposed acquisition of Citi's OneMain Holdings is being delayed by the Justice Department, which appears focused on preserving competition at the local level — even as a raft of new subprime installment lenders are popping up on the Web.

The bureau's proposed standards would drive lenders out of short-term, small-dollar lending, just as the OCC's 2013 rules did. This time, however, there will be few, if any, regulated institutions left to fill the void.

The pioneering online lender Kabbage has raised $135 million in new equity financing, with three large multinational banks among the lead investors, the company announced Wednesday.

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 But it remains captive to outdated technology that can delay the delivery of funds by several days.

Traditional banks avoid the short-term-credit market because its customers demand a level of customer service that is inconsistent with current models of retail banking, the head of a payday lending group writes.

A California company called NEFT wants to provide the online meeting place where debt-laden borrowers get together with lenders and credit bureaus to negotiate repayment plans. Backed by some prominent investors, NEFT says it offers carrots to get all the parties to participate.

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.

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.

Bankers need to show they are in control of relationships with outside vendors, must be ready to respond to M&A-related protests and should be as concerned about economic growth as interest rates, according to the St. Louis Fed's supervisory chief.

Credible, a comparison shopping site for private student loans, announced that it has raised $10 million from a group of investors that includes some big names in marketplace lending.

Cloud Lending Solutions, a technology provider to marketplace lenders and other finance companies, announced that it has raised $8 million in venture funding.

CircleBack Lending, a Boca Raton, Fla., marketplace lender, has completed a $17.4 million round of equity financing.

A small Internet-focused bank plans to offer Prosper Marketplace's personal loans directly to its own customers through the bank's website. Prosper could use it as a template for deals with other banks.

The rising costs to service mortgages reflects a market where there are not only downsides to being too small, but hurdles to being too large — raising the question of whether there's a middle ground where servicers are not too big, not too small, but just right.

The marketplace lender CommonBond announced that it has raised $35 million, which it plans to use to expand its operations across the country.

Prestige Financial Services, which focuses on car buyers who are in the bankruptcy process, is trying to keep pace in a fast-growing market.

The San Francisco company hopes to lower its costs by driving out human intervention as much as possible. To get there, it has made the counterintuitive decision to locate its operations staff in one of the country’s most expensive cities.