Marketplace Lending

Old Woes Continue to Hang Over Lending Club

May 26, 2017
Article by:

Renaud Laplanche at LendIt

Former Lending Club CEO Renaud Laplanche at LendIt in 2016 A class action lawsuit filed against Lending Club last year isn’t going away. On Thursday, United States District Judge William Alsup denied parts of Lending Club’s motion to dismiss, meaning that the securities fraud case will continue to move forward. The complaint touched on several […]

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Lending Club Raises Minimum Deposit Amount for New Investors

May 18, 2017
Article by:

Scott Sanborn - Lending Club

The micro retail investor can no longer experiment with peer-to-peer lending through just a handful of loans, according to a recent announcement made by Lending Club. Going forward, new users must deposit at least $1,000 to get started. Those investors can still allocate $25 per loan, however. The reason for the deposit increase? Forced diversification. […]

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Prosper Loaned $585M in Q1, Losses Continued

May 16, 2017
Article by:

Prosper Marketplace

Prosper had a net loss of $23.9 million in Q1 on only $30.8 million in revenue, according to the 10-Q they filed Monday. They originated $585.6 million in loans, 90% of which were funded through their Whole Loan Channel, the segment made up of accredited and institutional investors who buy entire loans. Prosper had 371 […]

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System Error: Prosper Showed Incorrect Returns to Investors

May 3, 2017
Article by:

Prosper Marketplace

Investor returns weren’t what they claimed for at least seven quarters, according to a notice Prosper issued on Wednesday. It recently came to our attention that the annualized net return numbers displayed on your account overview page were inaccurate due to a system error. This error affected the Annualized Net Return and Seasoned Net Annualized […]

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Re-Banked

April 23, 2017
Article by:

reBanked

This article is from deBanked’s Mar/Apr 2017 magazine issue. To receive copies in print, SUBSCRIBE FREE Just a few years ago, the financial services community was fixing for a battle of David and Goliath proportions—with scrappy, upstart online lenders threatening to rise up and vanquish the fearful and mighty brick and mortar banks. Instead, the […]

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Catching Up With Marketplace Lending – A Timeline

April 20, 2017
Article by:

A timeline of alternative finance

This article is from deBanked’s Mar/Apr 2017 magazine issue. To receive copies in print, SUBSCRIBE FREE 2/17 Prospa, an online small business lender based in Australia, was valued at $235M (AUD) in a $25M capital raise Square announced funding $248 million worth of business loans in Q4 2016 2/21 A Massachusetts state court vacated a […]

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Lending Club to Beta Hardship Plans for Borrowers (and Protect Returns for Investors)

April 5, 2017
Article by:

Scott Sanborn - Lending Club

Lending Club wants to make it easier to accommodate borrowers facing hardship and in the process potentially protect the investor from unnecessary losses. A full explanation of the program was sent out to Lending Club investors on Wednesday, the full text of which we’ve pasted below: At Lending Club, we are committed to improving experiences […]

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Prosper Lost A Whopping $119 Million in 2016

March 20, 2017
Article by:

Prosper Marketplace

Prosper might be the online lender for the who’s who of Wall Street these days, but the company still lost $119 million in 2016. To add perspective, Prosper only had $136 million in revenue for the year, meaning that for every dollar it earned it spent almost two. The loss was also more than 4x […]

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WebBank Releases Earnings, Market Valuation

March 20, 2017
Article by:

Utah flag on money

WebBank, a Salt Lake City-based bank commonly used by online lenders such as Avant, CAN Capital and Prosper to make loans nationwide, reported year-end figures last week through an SEC filing. The company is 91.2% owned by Steel Partners Holdings L.P (NYSE:SPLP). The bank reported net income of $29.2 million for 2016. “Despite significant declines […]

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Are Those Shopping for an Online Loan More Risky?

March 18, 2017
Article by:

potential stacking

ID Analytics is enabling online lenders to know a thing or two they might not be able to find out on their own. For example, did a loan applicant apply for other loans on the same day? There’s a good chance ID Analytics can tell you the answer since they claim their Online Lending Network […]

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