Marketplace Lending

Marketplace Opens for New Student Financing Investments

April 5, 2019
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Edly, a new online marketplace that connects Income Share Agreement (ISA) investors, announced last week that a prestigious software engineering school in San Francisco listed $2 million in inaugural ISA trades via the Edly marketplace. The school is called Holberton and offers only two payment programs, an ISA or pay it all upfront. LinkedIn CEO […]

Ron Suber: ‘This Industry Will Look Very Different One Year From Now’

February 25, 2018
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Ron Suber wears many hats. His official LinkedIn profile lists him as President Emeritus and Senior Advisor at Prosper Marketplace. Now you can add a new title to his repertoire – the Magic Johnson on fintech. That’s because when it comes to Suber’s legacy, he’s all about the passing game. “I really enjoy the assist […]

Get Your Free Hard Copy of deBanked Magazine

October 2, 2017
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If you haven’t already signed up to receive our magazine in the past, you should register today to make sure you receive our September/October issue! Subscribing is FREE and this issue is packed with stories, stats, and industry data you can’t find anywhere else. We can also arrange for multiple copies to be shipped to […]

Reaction to Lending Club’s New Credit Model

September 13, 2017
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The few retail investors discussing the recent change Lending Club made to their credit model weren’t exactly optimistic, according to comments on the Lend Academy forum. Of particular concern is grade inflation wherein borrowers who previously scored a C or lower may now find themselves in the A or B category. “We expect loan volume […]

Lending Club Launches Its Most Advanced Credit Model Ever

September 11, 2017
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Lending Club Max Loan Size

Lending Club is feeling pretty good about its newest credit model, according to an email that circulated to retail investors this morning. A copy of it is below: We have launched the most advanced and predictive credit model ever used on the LendingClub platform. It’s the latest in LendingClub’s long history of innovation on behalf […]

Lending Club: Charge-offs will happen

August 16, 2017
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five things to know about lending club notes

A short guide that Lending Club circulated to retail investors yesterday offers them five key pieces of advice. 1. Focus on net returns 2. Charge-offs will happen 3. Diversification is key 4. Monthly payments include principal and interest 5. Reinvestment is critical for consistent returns Lending Club has gradually drawn more attention to the effect […]

Catching Up With Marketplace Lending – A Timeline

August 13, 2017
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5/17 – Funding Circle surpassed Zopa in cumulative lending to become the UK’s biggest marketplace lender 5/18 – Breakout Capital announced appointment of Douglas J. Lanzo as EVP and General Counsel 5/22 – The New York State legislature held a joint hearing on online lending 5/25 OnDeck had the maturity date of its $100M credit […]

Funding Circle Rebrands

August 10, 2017
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Funding Circle new vs old

Funding Circle is ditching their old circular logo with arrows in favor of a more modern purple logo. The website has also undergone a redesign as well. On the new website, the company states that they are “revolutionising a broken system” and emphasize that “we believe in those made to do more.” In a recent […]

Company Founded By LendIt’s Co-founders Has Acquired LendingRobot

August 10, 2017
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NSR Invest / LendingRobot

NSR Invest has acquired LendingRobot to become the largest robo-advisor in the alternative lending space, according to an announcement made by both companies. Of note is that three of NSR Invest’s co-founders, Peter Renton, Bo Brustkern, and Jason Jones, are also co-founders of the LendIt Conference. The acquisition is a reminder that the conference founders […]

On Bloomberg: Watch Lending Club CEO Scott Sanborn Talk Q2

August 9, 2017
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Sanborn Bloomberg

On Bloomberg, Lending Club CEO Scott Sanborn said that banks were a critical piece of their platform. In Q2, 44% of all originations were funded by banks. Watch below: Video not loading? Click here

Fintech Remains Loyal to Prosper & Suber

July 10, 2017
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Prosper Marketplace

When deBanked reached out to fintech market participants for comment on Ron Suber’s sudden departure as Prosper’s president, the responses were the same — ‘anything for Ron.’ Dubbed the Godfather of fintech, Suber might deserve superhero status given the recapitalization that he and the Vermuts led half a decade ago to save Prosper Marketplace. That […]

Catching Up With Marketplace Lending – A Timeline

June 13, 2017
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A timeline of alternative finance

This story appeared in deBanked’s May/June 2017 magazine issue. To receive copies in print, SUBSCRIBE FREE 4/11 Regions Bank recruited Kabbage’s chief technology officer, Amala Duggirala, to become its chief information officer 4/12 Federal Reserve Published their 2016 Small Business Credit Survey 4/13 Marathon Partners, a minority shareholder of OnDeck, publicly called on the company […]

Upstart’s Average Borrower

June 12, 2017
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upstart logo

Online lender Upstart considers more than 10,000 variables such as an applicant’s education, academic performance, and employment background, according to their website, a proprietary system they say is used to detect “future prime” borrowers. But according to a recent Kroll Rating Agency report, their borrower base looks prime even by traditional standards in that their […]

Marketplace Lending: The Next 10 Years

June 7, 2017
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Looking out at the future

The marketplace for consumer and small-business loans has come a long way over the last 10 years. Since the early days of peer-to-peer lending, there has been a great proliferation of new types of intermediaries creating new layers of distribution for the risk involved with the lending process. Now marketplace lending has reached an inflection […]

Sneak Peek of Our May/June 2017 Magazine Issue

June 5, 2017
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deBanked May/June 2017

Move over New York, California and Florida because Texas has become a strong incubator for alternative small business finance. In this newest deBanked magazine issue, we went to Dallas-Fort Worth, Austin and Corpus Christi to find out how and why non-bank financing products are flourishing. We were impressed by what we found and inspired just […]

Old Woes Continue to Hang Over Lending Club

May 26, 2017
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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 […]

Lending Club Raises Minimum Deposit Amount for New Investors

May 18, 2017
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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. […]

Prosper Loaned $585M in Q1, Losses Continued

May 16, 2017
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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 […]

System Error: Prosper Showed Incorrect Returns to Investors

May 3, 2017
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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 […]

Re-Banked

April 23, 2017
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reBanked

This story appeared in 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 […]