Nonbank

Students with excess cash but no bank account have fallen victim to predatory financial vendors, but the government can take steps to bypass the middleman.

Prosper Marketplace's decision to eliminate 22% of its workforce is more evidence that the bloom is off the rose for a sector that had been enjoying astronomical growth.

The hits that alternative lenders like OnDeck Capital are taking shouldn't be a surprise for an industry built on unsustainable business models.

Some buyers are hanging in there, but as OnDeck Capital's disappointing first-quarter results show, investors who acquire and securitize marketplace loans are heading for hills. Among the reasons: fear of defaults, unfavorable pricing and shrinking loan yields.

OnDeck Capital reported a quarterly loss of $12.6 million as revenues fell short of expectations. At the same time, the New York firm sharply reduced its earnings projection for the rest of the year.

During a discussion Monday about the impact of technology on the financial sector, tech executives argued that banks are inefficient because they are paying six-figure salaries to employees whose jobs can be computerized.

Servicing rights are high-yielding assets, making them attractive investments for hedge funds, real estate investment trusts and banks.

With consumers generally averse to risk, financial institutions have an opportunity to rethink what it means to make bets in line with their customers' well-being.

With the purchase of Sweep, Max Levchin's firm is betting that daily engagement with consumers will pay long-term dividends.

CommonBond, an online lender that specializes in student loan refinancing, announced Monday that it has sold $150 million of bundled loans to investors.