News from around the world

Banking Exchange published a piece asking if marketplace lending nearing maturity. Keith Noreika, acting Comptroller of the Currency in the U.S., stated “Startup funding fades and shareholders begin to demand performance, or at least progress toward profitability.” However, it’s worth noting that Noreika was previously a lawyer working to protect banks and now “many of his former clients are regulated by the Office of the Comptroller of the Currency,” according to the NYT.

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American Banker discussed the growing debate concerning the appropriate level of regulation required for P2P businesses. Arthur Levitt, the former Securities Exchange Commision Chairman, remarked that “Fintechs tend to march to their own rules.” However, those opposing Levitt have cited that even established, traditional institutions have experienced plenty of scandals.

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Forbes looked at ways in which consumers can use P2P loans to pay off high interest debt. One of the major benefits discussed is the fact that P2P loans are unsecured, meaning the borrower is not obligated to tie the amount back to an asset. Additionally, many people who rely on P2P funding can repay their loan at a lower interest rate than what they experience with regular card payments.

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The Economic Times looked at ways people can supplement their retirement income with P2P lending. The author looks at the rising cost of living and how many retirees are faced with a shortfall in savings. The cited benefits to investing in P2P lending are, diversification, returns uncorrelated to the stock market, and compounding. While the author discuss these benefits in the context of India, the concepts apply to all nationalities.

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The Sydney Morning Herald reported on how “yield-hungry investors switch their cash to peer-to-peer lenders.” Much of this comes from historically low interest rates that make savings accounts less desirable. Moreover, P2P investing still provides a level of liquidity that’s agreeable to younger investors that want to maintain access to their cash.

Bondora mentions

Lending Times and Crowdfund Insider made note of our recent accomplishment, sharing that 28,639 users have invested 102 million through our platform.