Nonbank

We should all understand now that pure gain-on-sale marketplace lending businesses, like LendingClub, are inherently unstable.

The abrupt resignation of the firm's founder and CEO, under a cloud, seems likely to fan investors' growing fears about the marketplace lending sector. It could also hasten regulatory scrutiny.

Banking is often seen as a quintessentially modern institution. But financial practices are deeply rooted in the medieval period.

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.

The prepaid card industry is ramping up its advocacy efforts on Capitol Hill as the Consumer Financial Protection Bureau readies a final rule targeting such products.

Illinois, California and New York are all taking initial steps to try to crack down on borrower abuses in the fast-growing digital lending marketplace. The states are facing pressure to intervene because federal agencies have yet to take decisive action.

Traditional banks are not likely to match the nimbleness of a fintech startup for a whole variety of reasons. But that doesn't mean all is lost.

An online student loan refinancing business that was recently spun off from a Virginia bank has been rebranded as Purefy Inc.

To tackle alternatives to payday lending, regulators and the industry should consider these three ideas for pilot programs instead of the Consumer Financial Protection Bureau trying to fix what it cannot.

Community banks are at a crossroads as they face a threat from alternative lenders and the need to stay true to the traditional bank model. What they should do?

WASHINGTON — Several Democratic senators are calling for the Government Accountability Office to investigate whether financial technology companies are properly regulated.