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Emerald Asset Management acquires P2P company

Emerald Asset Management acquires P2P company | Direct Lending | Scoop.it
Emerald Asset Management acquires direct-lending company
Central Penn Business Journal
Emerald described DLC as a pioneer in investing in loans generated in the new and quickly developing direct-lending (or peer-to-peer) business.

Via P2P Consultants
Howard Freedland's insight:

Emerald have been wonderful to work with and they are extremely committed to the direct lending space.  With the closing of the acquisition, I have become a Principal at Emerald Direct Lending Advisers and will remain actively involved in all aspects of this growing asset class.

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P2P Consultants's curator insight, July 19, 2013 6:40 AM

Interesting.

 

First acquistion of a p2p lender by strategic partner

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Loans Made in Blink as Investors Vie for LendingClub Clients

Loans Made in Blink as Investors Vie for LendingClub Clients | Direct Lending | Scoop.it
For most of its 107 years, Titan Bank has relied on loan officers to vet borrowers. These days, the Texas bank’s computers make some decisions as fast as employees blink.
Howard Freedland's insight:

Marketplace Lending continues to get great press.  I agree that this is just the beginning for consumer direct lending

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LendingClub's IPO Looms Over Alternative Lenders Seeking Funds

LendingClub's IPO Looms Over Alternative Lenders Seeking Funds | Direct Lending | Scoop.it
It’s not often one company can have as much impact on an entire industry as LendingClub Corp. will next month.
Howard Freedland's insight:

At this point we have to ask, is Lending Club going to IPO or are they going to merge with Alibaba or Paypal?

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LendingClub's IPO Looms Over Alternative Lenders Seeking Funds - Bloomberg

LendingClub's IPO Looms Over Alternative Lenders Seeking Funds - Bloomberg | Direct Lending | Scoop.it
LendingClub's IPO Looms Over Alternative Lenders Seeking Funds
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Funding Circle USA Acquires LeapPay to Speed Loan Approvals

Funding Circle USA Acquires LeapPay to Speed Loan Approvals | Direct Lending | Scoop.it
All online lending platforms have to balance two things: a thorough underwriting process from their end and a quick approval for the borrower. Some companies in the small business lending space ha
Howard Freedland's insight:

Direct Lending continues to become more sophisticated

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Fitch Weighs in on Peer-to-Peer Lending

Fitch Weighs in on Peer-to-Peer Lending | Direct Lending | Scoop.it
The nascent peer-to-peer lending space inched a bit further into the mainstream Thursday when Fitch Ratings became the first major ratings firm to weigh in on the industry.
Howard Freedland's insight:

A summary of the Fitch announcement earlier reviewed.  It is a major step forward that a rating agency is actively tracking the P2P space.  With additional time and a public offering by Lending Club, it would seem that Fitch is establishing the perimeters for a future investment-grade rating.

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Funding Circle Sheds Light on Defaults & Recovery

Funding Circle Sheds Light on Defaults & Recovery | Direct Lending | Scoop.it
Crowdfund Insider
Funding Circle Sheds Light on Defaults & Recovery
Crowdfund Insider
Just like any other investment, lending on a P2P platform entails risk. Investors mitigate risk by having a balanced portfolio.

Via P2P Consultants
Howard Freedland's insight:

Direct lending to small business continues to evolve.  Business practices such as collections will continue to improve as the scale of lending grows.  Small business lending may represent another large avenue of expansion for direct lending investors over time.

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Fair-Lending Ruling Means Pricier Loans for Consumers

Fair-Lending Ruling Means Pricier Loans for Consumers | Direct Lending | Scoop.it
A disparate-impact ruling against a small Texas bank was supposed to lower the cost of small-dollar loans for Hispanic borrowers, but it has instead had the opposite effect, writes Attorney Peter Weinstock.
Howard Freedland's insight:

Yet another reason why banks have a difficult time making small consumer loans profitable.

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Chinese consumers switch gears from cash to credit for car buys

Chinese consumers switch gears from cash to credit for car buys | Direct Lending | Scoop.it
SHANGHAI/HONG KONG (Reuters) - In a country where owning a car has long been a symbol of luxury and success, around 85 percent of Chinese car buyers still buy cars with cash. These young people are willing to buy big-ticket items like a car on credit - a behavior unheard of some 15 years ago in China - and have led carmakers to boost their financing units in the mainland. The push by automakers to steer more people to buy on credit comes as part of their broader efforts to make up for sliding margins on new-car sales in China where more companies are cutting prices to entice buyers. Mi, a 27-year-old accountant in Beijing, did not have enough cash on hand to outright buy her dream car, a Nissan Sylphy, with a price tag of about 150,000 yuan ($24,200).
Howard Freedland's insight:

Chinese consumers are beginning to utilize credit with the blessing of the government.  As car buyers start to utilize credit, they will build positive credit profiles which will make it easier for all forms of consumer direct lending.  Yet another trend to watch develop in the global market for consumer credit.

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Santander in peer-to-peer pact as alternative finance makes gains - FT.com

Santander in peer-to-peer pact as alternative finance makes gains - FT.com | Direct Lending | Scoop.it
Santander is to become the first high-street bank to refer its customers to an online peer-to-peer lender, in a sign that alternative finance providers are achieving mainstream acceptance. Its partnership with Funding Circle, a peer-to-peer lending
Howard Freedland's insight:

One more example of how P2P Lending (Direct Lending) is becoming a mainstream asset class

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Accenture Newsroom: Younger Generations Far More Open to Branchless and Alternative Banks, Accenture Survey Finds

Younger bank customers are nearly twice as likely as older customers to consider switching to a branchless bank and to consider banking with major technology players if those companies offered banking services
Howard Freedland's insight:

The data in this report confirms a key point I made at the Emerald Economic Summit last week.  Millennials are not connected to the banking system and are interested in alternative banking services from traditional technology providers like Google and Apple.

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Risk & Reward with Deirdre Bolton

Risk & Reward with Deirdre Bolton | Direct Lending | Scoop.it
Risk & Reward on Fox Business Network - follow Deirdre Bolton weekdays from 1- 2 PM ET.
Howard Freedland's insight:

Great soundbites from Ron Suber of Prosper on direct lending

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Scott Sanborn: Creating a new asset class of personal loans — with Lending Club’s Scott Sanborn | Tradestreaming

Scott Sanborn: Creating a new asset class of personal loans — with Lending Club’s Scott Sanborn | Tradestreaming | Direct Lending | Scoop.it
Chief Marketing Officer, Scott Sanborn joins me, Zack Miller, on the Tradestreaming Podcast to discuss why investors are flocking to Lending Club and where his business will go in the near future. Scott is the Chief Marketing Officer and Chief Operating Officer of Lending Club...
Howard Freedland's insight:

P2P has become "marketplace lending".  We still prefer to think of it as "direct lending" but as Scott Sanborn points out, the industry is gaining greater sophistication with a broader group of investors.

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Eaglewood Capital Management Upsizes Securitization

NEW YORK, NEW YORK (PRWEB) May 13, 2014 -- Eaglewood closed an increase to its securitization of peer-to-peer loans on Thursday, May 8, 2014.

Via P2P Consultants
Howard Freedland's insight:

The first, but certainly not the last, securitization in the direct lending space.

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Are Peer Lending Risks the Old West of Online Loans? Yes! - Peer Loans Online

Are Peer Lending Risks the Old West of Online Loans? Yes! - Peer Loans Online | Direct Lending | Scoop.it
Comparing the peer lending risks with the old west may seem another example of an overused analogy, until you think about it!
Howard Freedland's insight:

Nice overview of the opportunity for direct consumer lending

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PayPal co-founder aims to reinvent banking

PayPal co-founder aims to reinvent banking | Direct Lending | Scoop.it
Max Levchin wants to attract millennials with a bank they can love rather than loathe.
Howard Freedland's insight:
Direct lending is quickly moving toward instant lending
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Lending Club Can Be a Better Bank Than the Banks

Lending Club Can Be a Better Bank Than the Banks | Direct Lending | Scoop.it
If Lending Club were a bank, it would look like a risky bank. Fortunately it's not a bank.
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Peer-to-peer lenders step into vacuum left by banks

Peer-to-peer lenders step into vacuum left by banks | Direct Lending | Scoop.it
The medical bills from Gary Mousourakis' cancer treatment had grown beyond his ability to pay. Medicare and supplemental insurance covered most of the $250,000 tab, ...
Howard Freedland's insight:

yet another positive article on P2P lending

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Fitch: P2P Lending's Success Dependent On Borrower Credit

Fitch: P2P Lending's Success Dependent On Borrower Credit | Direct Lending | Scoop.it
Fitch: P2P Lending's Success Dependent On Borrower Credit Business Wire (press release) NEW YORK--(BUSINESS WIRE)--The long-term success of the rapidly growing peer-to-peer (P2P) industry will depend on the relative credit performance of P2P loans...

Via P2P Consultants
Howard Freedland's insight:

P2P (Direct Lending) has made it to the radar screen of rating agency Fitch.  Their conclusion seems to be that while the P2P companies are too new to afford an investment grade or better rating, the underlying loans perform similarly to other unsecured consumer portfolios which have been rated.  As the industry matures and the amount of dollars lent grows, it seems inevitable that pools of P2P loans will eventually be rated by the rating agencies.

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Prosper's Suber on Creating a P2P Investor Base from Scratch

Prosper's Suber on Creating a P2P Investor Base from Scratch | Direct Lending | Scoop.it
In our exclusive interview, Prosper president Ron Suber describes finding the institutional base his company needed to be a success.
Howard Freedland's insight:

Ron Suber and the Vermuts have done a great job turning Prosper into a major consumer loan originator.  This story does a good job telling the tale.

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Banks and Alternative Lenders as Partners, Rivals

Banks and Alternative Lenders as Partners, Rivals | Direct Lending | Scoop.it
Highlights from the New York Fed s small-business Credit Innovation forum.
Howard Freedland's insight:

Thoughts from a recent conference on alternative lending hosted by American Banker

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Is Silicon Valley the Future of Finance?

Is Silicon Valley the Future of Finance? | Direct Lending | Scoop.it
Banking is a prime candidate for disruption because it tends to run on bloated, creaky technology.
Howard Freedland's insight:

Do we need banks to have a viable banking system? The question is being asked in many ways and in many forums.  It may be too soon to label them as buggy whip manufacturers, but the market for financial services such as holding deposits, managing financial transactions, and lending money is transforming rapidly and banks seem hard pressed to remain relevant.

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7 Reasons Why You Should Consider Investing In Strangers Online

7 Reasons Why You Should Consider Investing In Strangers Online | Direct Lending | Scoop.it
Here's why peer-to-peer lending is experiencing a surge in popularity.
Howard Freedland's insight:

Good summary on Marketplace Lending (P2P)

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Lending Club's Startup Vibe Creates Multi-Billion Giant - Crowdfund Insider

Lending Club's Startup Vibe Creates Multi-Billion Giant - Crowdfund Insider | Direct Lending | Scoop.it
Groucho Marx said he refused to be a member of any club that would accept him, but he never heard of Lending Club. When walking through their offices in do
Howard Freedland's insight:

Good overview of Lending Club and the direct lending industry

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P2P Lending: A Pool Of Cash So Large They Don't Know What To Do

P2P Lending: A Pool Of Cash So Large They Don't Know What To Do | Direct Lending | Scoop.it
Looking to finance your business expansion? Denied by the bank or need to make a move quick? A good option could be to look at peer-to-peer (P2P) crowd-funding loans. With the sector growing and more money expected to roll in, P2P loan sites are constantly on the lookout for credit-worthy businesses worth putting money into.
Howard Freedland's insight:

IN, England it is still P2P as they formalize regulations concerning direct lending (marketplace lending)..  Regardless, as the article points out, there are a growing number of lending and credit models and a continuing demand from small businesses and consumers.  New UK regulation may make it even easier for investors to take advantage of theses attractive investor returns.

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Marshall Wace P2P trust to target 6-8% yield

Marshall Wace P2P trust to target 6-8% yield | Direct Lending | Scoop.it
The trust is offering to distribute more than 85% of its profits as dividends and is targeting yearly net asset returns of 5-15%
Howard Freedland's insight:

A major step forward for institutions looking to invest in direct loans

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