Loans

Born To Borrow

August 26, 2019
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This story appeared in deBanked’s Jul/Aug 2019 magazine issue. To receive copies in print, SUBSCRIBE FREE Consumer debt has surpassed $4 trillion for the first time, and it’s continuing its ascent into the stratosphere. It’s getting big enough to trigger the next recession, and financial education isn’t changing the underlying consumer behavior. Personal loan balances […]

Fox Corp / Credible Deal – What’s Online Lending Got To Do With TV Broadcasting?

August 5, 2019
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On Sunday Fox Corp announced it had agreed a deal to buy a majority share of 67% in Credible, a San Francisco-based online lending platform that is publicly traded in Australia. Credible, which was valued at $397 million by Fox, provides credit checks for mortgages, personal loans, and student loans; gathers the information yielded; and […]

Senator Elizabeth Warren Questions Federal Agencies About Discrimination in Fintech Lending

June 12, 2019
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Senator Elizabeth Warren and colleague Senator Doug Jones (D-AL) addressed a letter to multiple federal agencies this week to inquire about their individual roles in overseeing fintech, particularly as it pertains to potential discriminatory underwriting. The senators cited a UC Berkeley study that examined discrimination in the era of algorithmic underwriting. “With algorithmic credit scoring,” […]

Credit Invisibles Recap – Presented by Canadian Lenders Association in Toronto

June 9, 2019
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The Canadian Lenders Association’s (CLA) workshop on credit invisibles and credit deserts was held at the Toronto law offices of Blake, Cassels & Graydon on June 5th. Situated in the financial district with views of the CN Tower, Michael Turner of Policy and Economic Research Council (PERC) kicked off the morning with a presentation on […]

Affirm Partners with Walmart for Payments

February 28, 2019
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Walmart

Walmart customers can now pay for items using credit from Affirm, the online consumer lender announced yesterday. Walmart customers can find out how much they qualify for online and then make online or in-store purchases with in three, six or twelve monthly installments. A credit decision is made in real time and does not affect […]

Elevate Reflects on Success of Fintech in Personal Loans

February 21, 2019
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Jason Harvison - Elevate COO

The unsecured personal loan market hit an all-time high in 2018, jumping 17 percent year-over-year to $138 billion, according to data from TransUnion released today and featured in a CNBC story. “The rapid growth in consumer loans sits squarely on the shoulders of fintechs,” said Jason Laky, senior vice president and leader of TransUnion’s consumer […]

New York Legislators Introduce Small Business Usury Bill

February 20, 2019
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brainstorming

Two members of the New York State legislature have introduced a bill to apply consumer usury protections to small businesses. Bill A03638, introduced by New York Assemblymembers Yuh-Line Niou and Crystal Peoples-Stokes define a small business as “one which is resident in this state, independently owned and operated, not dominant in its field and employs […]

Commonbond Receives Financing From Major Banks

February 14, 2019
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David Klein

Commonbond announced today that it has signed $750 million in lending capacity from Goldman Sachs, Citibank, Barclays, BMO, and ING. “From the start, we have set out to build the highest levels of trust with our customers and our capital partners,” said CommonBond CEO and co-founder David Klein. “Access to this level of capital, and […]

How Much Elevate Spends to Acquire Customers

February 11, 2019
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Elevate Cost of Acquisition

How much does a non-prime consumer lender spend to acquire a borrower? According to Elevate’s Q4 earnings report, the company spent less than $150 per borrower to originate $31 million in loans towards their partnership with FinWise Bank. Overall, however, their cost of acquisition has hovered below $245. From Elevate’s Q4 Earnings Slides Elevate’s direct […]

Home Improvement Loans on the Rise

February 6, 2019
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home improvement

A story this week in American Banker suggested that popular home improvement TV shows like HGTV’s “Fixer Upper,” “Love It or List It” and “Property Brothers” are creating a growing demand for home renovation, and hence, home renovation loans.     Nielsen rating data shows that the combined viewership of the three aforementioned shows on the […]

PayPal Credit Commits $25 Million to Help Unpaid Government Workers

January 21, 2019
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paypal

PayPal announced Friday that it was devoting $25 million to a program that offers interest-free cash advances of up to $500 to federal workers who have been impacted by the record long partial government shutdown. “No matter where you stand on the issues, the fact is that 800,000 of our fellow Americans suddenly find themselves […]

LendUp Gets a Shake-up

January 11, 2019
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Anu Shultes

Anu Shultes, LendUp’s new CEO Among other company news, LendUp announced yesterday that it has formed a separate company called Mission Lane that will be devoted to scaling its credit card business. LendUp will continue to operate under its name and will focus on personal loans, education and savings opportunities, according to the announcement. Along […]

Selling a Home, Selling Commercial Financing – What’s the Difference?

November 16, 2018
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Realtor Showing New House To Loving Couple

Alternative funding brokers come from all different backgrounds, but for many them, being a broker is not their first job in sales. Some sold equipment, some sold cars and others sold homes. They were realtors. deBanked found two alternative funding brokers with a background in residential real estate and we asked them to compare the […]

SoFi Has Another Loss in Q3

November 12, 2018
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SoFi sign

According to the WSJ, SoFi experienced a $12 million EBITDA loss in the 3rd quarter. That follows a $150 million loss in Q2. “We optimized for investing over profitability this quarter, and expect this to continue given the opportunity in front of us,” SoFi CEO Anthony Noto wrote in a letter to shareholders obtained by […]

LendingClub Hits Another Record for Originations

November 7, 2018
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Lending Club CEO Scott Sanborn Presents at Money2020

LendingClub’s Q3 earnings report yesterday revealed a record high in loan originations of $2.9 billion, up 18% compared to originations of $2.4 billion last year at the same time. Consequently, revenues increased, also to a record high of $184.6 million, up 20% year over year. “The strength of our marketplace is enabling us to responsibly grow […]

SoFi CEO Ponders Opening Physical Locations

November 5, 2018
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loanstorefront

At Money 20/20 a few weeks ago, SoFi CEO Anthony Noto said that eventually the online lender will need to open some physical locations, not unlike ATM machines, for people who get paid in cash. The notion of an online lender opening up physical locations sounds ironic. But it would not be the first time […]

Elevate Tests ‘Geofencing’ to Lure Customers Away from Competition

November 1, 2018
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geofencing

During a session at Money 20/20 last week, Elevate CEO Ken Rees mentioned a fairly new marketing technique they have been testing called geofencing. According to a story in CIO, a trade publication for Chief Information / Chief Technology Officers, geofencing is “a service [using GPS technology] that triggers an action when a device enters a […]

Prime and Non-prime Lenders Exchange Notes

October 25, 2018
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KenRees Kimball

Ken Rees, CEO, Elevate At Money 20/20 Ken Rees, CEO of Elevate, a non-prime consumer lender, sat down with David Kimball, CEO of Prosper, a prime consumer lender. As they discussed a number of topics, listeners got insight into how these lenders think, and how they think differently based on the customers they serve. On […]

Square Expands into Consumer Lending, Keeps Banking Hopes Alive

October 16, 2018
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Outside the Square Headquarters in San Francisco

Square is no stranger to payments and is looking more and more like a bank every day. Square Capital already facilitates loans to small businesses, and now they’re expanding into consumer loans. Meanwhile, it’s been several months since Jack Dorsey’s fintech startup withdrew its application to become an Industrial Loan Company (ILC), but Square’s banking […]

Digital Mortgage Lender “Better” Goes Where No Fintechs Have Gone

October 8, 2018
Article by:

Eric Wilson

Eric Wilson, co-founder, Better Mortgage One product noticeably absent from fintechs expanding into lending or banking is mortgage loans, but now a fintech startup is looking to disrupt the $13 trillion mortgage industry. Eric Wilson is co-founder and head of operations at Better Mortgage, a New York-based digital mortgage lender. Wilson explained to deBanked: “Our […]