Tag: Online Lending

Marketplace Lenders and the Strategic Challenge for Community Banks

Setting Your Online Lending Strategy

Many banks are now investing in loans originated by online lenders such as Lending Club, Prosper and OnDeck. Whether this is a good move or not, comes down to the accuracy of each originator's credit model and the strategic position of the purchasing banks. For some banks, purchasing loans from these lenders is absolutely the right move as it leverages capital, increases diversification and puts underperforming equity to work. However, for other banks, who just dabble in these investments, partnering with online lenders is a valuable learning experience.

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