Is Online Lending the Next Credit Crisis?
CIT CEO John Thain went on Bloomberg earlier to say that “some of the most leveraged lending is being pushed out of the bank space.” The comment was used to challenge Lending Club CEO Renaud Laplanche about whether or not online lending would be the next credit crisis. Laplanche answered that marketplace lending is the least levered model.”It’s a profit match between assets and liabilities, one to one,” he said.
Laplanche also said that life as a public company has been good because it’s made customers more likely to trust them and large companies more likely to partner with them.
You can listen to what he had to say in the video below:
Lending Club is one of six members that recently founded the Responsible Business Lending Coalition, which made headlines yesterday when it announced a borrowers bill of rights.Last modified: August 7, 2015