Weekly industry news roundup – August 14, 2017

News from around the world

Market Insider reported on the the second annual summit for Online Lending Policy Institute in Washington, DC. The author explains that the meeting is designed to be an “opportunity for industry participants to share insights, propose standards, and have an open dialogue with regulators and policymakers to build consensus viewpoints on the regulation of online lending.”

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Entrepreneur published an article exploring the four ways the online lenders are innovating with purchasing cards. For example, the use of a purchasing card allows the lending authority to measure if funds are being used for their intended purpose.

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The Financial Times discussed moves by some P2P lenders to safeguard borrowers by offering to “protect them from losses by paying out on a bad loan directly from its own coffers.” As more marketplace lenders enter the market competition is growing giving rise to more favorable terms to lenders.

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Forbes asked if “Technology firms are the next financial service providers.” The author explores the ways in which blockchain technology, necessary for most P2P firms, works “by reducing transaction costs and removing intermediaries, blockchain technology is poised to increase mass peer-to-peer collaboration, which could make existing financial organizations unnecessary. This ingenious tech is demystifying the existing layered financial systems and shifting the way financial institutions conduct transactions.”

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CNBC discussed how startups often source P2P firms as a way to access capital before reaching the stage of VC funding. The author explains that “small business loans and lines of credit are now available from many providers.”