Last year New York Governor Andrew Cuomo signed a bill that required the State’s Department of Financial Services (DFS) to analyze online lending. Last week the NYDFS released their Online Lending Report as a result of this legislation. There was also an accompanying press release that summarized the report’s findings.
The New York DFS sent out surveys to 48 companies in the online lending space, both consumer and small business lenders. They received responses back from 35 companies. There is some interesting data from these 35 companies particularly when it comes to loan volumes. The table below shows the loan growth from 2015-17 for consumer and small business loans in New York.
Keep in mind that this data is only for online lenders who operate in New York AND who responded to the survey. This is by no means an accurate assessment of total lending activity but it is in interesting nonetheless.
As to the findings of the report here is a comment from DFS Superintendent Maria T. Vullo that summarizes their position, taken from the press release:
DFS supports the promise that new technologies are able to reach more consumers, but innovation must also be responsible, and all associated risks must be appropriately managed, including by strong underwriting standards, compliance with usury laws, and capital requirements. All lenders must operate on a level playing field and address market risk.