Online Lenders Rumored to Make Further Job Cuts

A day after LendingClub made big news by laying off 471 people there are rumors circulating all around the industry of further cuts from online lenders; an industry insider tells Crowdfund Insider that they believe only 20 to 30 percent of fintech lenders will be able to survive; “Secondary market and debt funds have all stopped lending to these originators forcing everyone to go through large rounds of layoffs and furloughs. Those balance sheet lenders have stopped most of their marketing efforts to look after their current book of portfolios,” explained the insider; banks could end up the biggest winner of all since the government would end of backing banks if the time came, much like they did in the previous financial crisis. CrowdFund Insider

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