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The Ten Biggest News Stories of the Decade in Marketplace Lending

We take a look back at the news stories that shaped marketplace lending in the 2010s

December 30, 2019 By Peter Renton 1 Comment

Views: 633

I started writing about marketplace lending back in 2010, so I have spent almost the entire decade immersed in this space. While we have expanded our coverage on Lend Academy today beyond marketplace lending this remains a major focus.

We have certainly come a long way in the past ten years and the industry is almost unrecognizable from where it was in 2010. Back then there were just two notable companies in the space, LendingClub and Prosper, originating just a few million dollars a month in loans. No one could have predicted that by the end of the decade marketplace lending would have led to a resurgence in personal loans and changed expectations for customer experience across all lending verticals.

As I look back at the past decade here are, in my opinion, the top ten most important news stories in chronological order.

Prosper Recapitalizes and Brings in a New Management Team
(January 2013)

At the time this was a huge story. The number two marketplace lender had been struggling for some time and was in serious danger of running out of money. This new funding round was small by today’s standards at $20 million but it ensured that Prosper would remain a going concern. The deal was architected by, the now fintech legend, Ron Suber as he brought in a new management team and a new board to guide Prosper on to their future growth path. It helped set the industry up for success over the next several years.

LendingClub Becomes First Marketplace Lender to go Public
(December 2014)

This was a momentous day for marketplace lending as market leader LendingClub became the industry’s first company to go public. The IPO was a huge success by any measure. By the end of the first day of trading LendingClub was valued at $8.46 billion and they had raised $870 million in cash. Of course, at the time we had no idea what would happen to the stock but there was a sense a real optimism that this company was going to change the world.

Second Circuit Rules on The Madden Decision
(August 2015)

The biggest legal issue the industry dealt with this decade was the ramifications of the Madden v Midland decision. We have been following this case since the Second Circuit ruling in 2015 and it has had far reaching consequences for the industry. It has led to a reduction in lending activity in Second Circuit states (NY, CT and VT) but the bigger concern was that this kind of ruling would spread nationally. That has not happened and there have been multiple regulatory fixes proposed plus the OCC and FDIC have weighed in as well. But as of this writing nothing concrete has changed since the 2015 decision.

SoFi Raises $1 Billion Led by SoftBank
(September 2015) [Read more…]

Filed Under: Peer to Peer Lending Tagged With: Amazon, Funding Circle, Goldman Sachs, JPMorgan Chase, Lending Club, Madden v Midland, Marcus, news, OCC Fintech Charter, OnDeck, PayPal, Prosper, SoFi, Square

Views: 633

The Biggest Marketplace Lending News Stories of 2014

December 31, 2014 By Peter Renton 2 Comments

Views: 7

Sunset

As the sun sets on another year I like to look back and think about the biggest news stories of this year. And what a year it was. There were so many firsts it was hard to cull the list of stories down to just five.

But here are my top five news stories of 2014 in chronological order.

1. Lending Club Makes its First Acquisition (coverage in Lend Academy, Techcrunch)

When I received a call from Lending Club back in April announcing some big news I was expecting it would be IPO related but I was completely wrong. Lending Club made their first acquisition, a traditional lender called Springstone Financial, that specializes in loans for dental patients as well as private school education. This was a milestone for Lending Club and our industry in general as it was the first significant acquisition by any platform. To pay for this acquisition Lending Club raised $65 million in equity that valued the company at $3.76 billion.

2. Funding Circle Raises $65 Million (coverage in Lend Academy, Businessweek)

The global leader in online small business lending raised this major funding round over the summer, more than doubling how much they had raised to date. This round put Funding Circle in a very strong position in the two markets it operates in: the USA and UK. It dominates online small business term lending in the UK where it does more loans than the rest of the industry put together.

3. CircleBack Lending Gets $500 Million Commitment from Jefferies (coverage in Lend Academy, Financial Times)

[Read more…]

Filed Under: Peer to Peer Lending Tagged With: CircleBack Lending, Funding Circle, Lending Club, news, Prosper

Views: 7

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ABOUT LENDIT FINTECH NEWS

LendIt Fintech News, Powered by Lend Academy, has been bringing you all the news and information about fintech and online lending since 2010 when it was founded by Peter Renton. We not only have the industry’s most active news site, but also the largest investor forum and the first and most popular podcast.

We are a team of fintech enthusiasts who have been covering the industry for many years. With a deep knowledge of online lending, digital banking, blockchain, artificial intelligence and more our team covers the daily news and writes in-depth editorials.

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