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The U.S. Treasury Department today issued a white paper regarding its review of the online marketplace lending industry. The white paper titled, “Opportunities and Challenges in Online Marketplace Lending,” provides an overview of what the Treasury Department heard in response to its Request for Information, and it contains research on and recommendations for the industry.

Last month the US Department of Treasury, Division of Financial Crimes and Enforcement Network (FinCEN), announced a proposed rule change that will impact

While far from certain, this development shows that the Supreme Court is interested in the case and will likely give weight to the Solicitor…

The U.S. Supreme Court has asked the Obama administration to weigh in with its views on whether the Court should review a recent decision that has rocked the marketplace lending community.

The Asia-Pacific alternative finance market grew 323 per cent last year, to $102.8bn.

"The Asia-Pacific alternative finance market grew 323 per cent last year, to $102.8bn. China was responsible for 99 per cent of that, with four-fold growth to $101.7bn in 2015.ExcludingChina, volumes grew 313 per cent to $1.12bn in 2015.

After a decade of bold leaps, 2016 is the year that peer-to-peer (P2P) lending will finally come of age.

Disintermediation? Not so much.

Common wisdom is that Internet disrupts industries by removing intermediaries, and putting people in direct contact.

Nothing could be further away from truth. Internet does in fact increase the number of intermediaries and business involved. But each business is doing something specific, in a very cost-effective way, and the transactions between each parties cost virtually nothing.Marketplace lending is a perfect example. As one can see from the graphic below, it’s definitely not a simple ‘peer to peer’ mechanism.

Lending Robot Blog, September 10, 2015 by Emmanuel Marot

For years now, big bank lenders have warned the public about the dangers of dealing with “shadow” (i.e. non-bank) lending institutions. The term itself con

The fact that current P2P lending platforms and other fintech solutions are not regulated in the same manner that banks are does not necessarily make them something to be feared. In fact, all evidence points to the fact that borrowers and investors alike are flocking to these fintech platforms in droves due to their un-paralleled transparency and ease of use, among other things.

Are banks prepared to compete with the increasing threat from digital financial start-ups?

In 1997, Bill Gates predicted the eventual demise of banking when he said, “We need banking but we don’t need banks.” Are we reaching the point where Gates’ vision is realized? Could we see the end of banks as we know them in the next 20 years... or maybe the next five?

New research suggests there are times when appearing successful and attractive could be a disadvantage.

Men were less likely to offer loans to men who appeared to be financially and professionally successful and had great credit ratings – all qualities that logic says would make them good candidates for a loan. Female lenders, on the other hand, were less inclined to loan money to attractive women. When asked why they rejected certain applicants, study participants made comments like “doesn’t look like a responsibleman” and “a bit of a party guy.” The effect disappeared when men were loaning money to women and women were lending to men.

According to a survey by CreditCards.com, over one third of business owners use credit cards to finance business purchases. However, credit cards still get a bad rap for being debt traps. A lot of Peer2Peer and alternative lenders have capitalized on this reputation, providing short-term loans intended to replace credit card [...]

Comparison of Credit Card APR and Other Financing Products

Bank loans: 5-15% SBA loans: 6-9% Credit Cards: Around 16% Peer2Peer and Peer2Business Loans: 5-30% but typically around 15-30% for all but the most creditworthy borrowers. Non-Profit Lenders: 18-35% Invoice Factoring: 28-60% Alternative Online Lenders: 30-70% Merchant Cash Advances: 80-130%

Jeb Bush, former Florida governor and Republican presidential candidate, has invested in Lending Club loans with a declared value between $1,001 and $15,000 (Photo by Daniel Acker/Bloomberg) With alternative lending booming, at least one presidential candidate has joined the venture capital firms and hedge funds that are putting money into the [...]

The notes represent a minuscule piece of Bush’s financial portfolio. He’s pegged his own net worth between $19 million and $22 million, and even a one-off speech to Julius Baer Bank in Punte del Este, Uruguay, which paid $75,000, according to the filings, brought in more than the notes. Still, the fact that Bush is invested in Lending Club at all shows just how mainstream alternative lending has become.

Lender aims to be first peer-to-peer platform to launch its own fund and says investors will pay no management or performance fees.

Funding Circle, the peer-to-peer lender to small businesses, plans to shake up the rapidly growing market in direct lending investment funds with a fee-free investment trust after the summer.

The largest P2P marketplace on Earth - Lending Club - is currently worth $7 billion and has seen it loan volume grow 20 percent per month every quarter of 2015

“...If you look at different territories with no effective credit bureaus, the access to credit is quite low and the pricing is quite high. A lot of that high cost in efficiency, which we correct for as a digital platform. But the bigger issue is that there’s no standard way credit data is reported, collected or ranked – so lenders are often assigning a high price and hoping for the best.”

The U.S. Treasury Department on Thursday opened a study of the online marketplace lending industry, in one of the first federal forays into the fast-growing sector that is an evolving alternative to traditional banking.

Despite peer-to-peer lending’s fast growth, federal regulators have so far taken a benign approach to the industry.

BLender's hybrid model creates credit ratings based on financial, social, and demographic background to upend the banks' foothold on peer-to-peer lending - and empower emerging markets

“We saw that there is a very strong credit market where there is FICO scoring [like the U.S.]… but if you look at different territories with no effective credit bureaus, the access to credit is quite low and the pricing is quite high.” BLender noticed that the major banks and the credit card companies go unchallenged in these areas, because rating institutions do not exist to provide smaller lenders with accurate information concerning default risk.

The National Banking Commission of Mexico -CNBV (Comisión Nacional Bancaria y de Valores) has formally authorized kubo.financiero to become the first regulated p2p lending platform.

This further connects borrowers and investors, allowing borrowers to submit their online loan application, and enabling lenders to carefully select loan portfolios that will yield higher returns than traditional banking alternatives.

A new peer-to-peer lending platform is getting personal with its latest service by focusing on financing between family and friends.

"The problem with lending with friends is that you are concerned that either it's not going to come back or you are embarrassed to ask somebody," said Green. "The advantage of Flendr is Flendr, as the third party, does all the recording and it does all the chasing."

"Our platform is not about making money out of friends or trying to make money out of each other," Green explained. "There is an opportunity for them to have interest, so they can agree an interest rate among each other, but really unlike peer to peer lending where you are absolutely in it to make and take money off the other guy, in this case this is your friends and you are trying to help them out."

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