Letter From the Editor – May/June 2015

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This story appeared in deBanked’s May/June 2015 magazine issue. To receive copies in print, SUBSCRIBE FREE

Alternative lending is full of bubbles. I’m referring to the inefficient exchange of information, not runaway valuations, though that’s something to explore in a future issue.

New financial products can be just as intimidating to the professionals working within the wider industry as they are to the customers they’re being offered to. I’ve blogged often of my experience investing in Lending Club and Prosper notes, something I assumed everyone in the business finance world could relate to. Alas, I find that usually raises more questions with readers than it does answers.

Are you just nodding your head and smiling when your peers talk about their alternative lending portfolios? There’s no better way to understand today’s loan marketplaces than being an investor in them, even if it’s just a small amount. Whether it’s merchant cash advances, real estate loans, student loans, or credit card debt, there are plenty of opportunities and worlds to explore. You should conduct research, diversify, and be smart of course. You don’t want to be trapped in a bubble.

Outside the knowledge bubbles, we have regional enclaves. There are entire city neighborhoods being overrun by small business financing startups. In New York City, it had long been Midtown, but some shops started moving south and before anyone realized what was happening, Wall Street had been overrun by a new breed of broker. The culture in lower Manhattan is different than you might find in Midtown or in the next two largest industry hubs, Miami and San Francisco.

In this issue, we’ll begin to explore the industry’s bubbles, both geographically and structurally.

–Sean Murray

Last modified: August 13, 2018
Sean Murray

Category: Industry News

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