Weekly industry news roundup – May 8, 2017

News from around the world

American Banker examined the trend of small banks seeking P2P solutions for their SBA expansion. The Small Business Administration helps companies secure financing for working capital, equipment, real estate and inventory purchases. Smaller, local banks act as intermediaries in these transactions. By partnering with marketplace lenders they can amplify their business offering.

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Tech Crunch reported on a $3 million startup which uses the basic marketplace lending approach to help homebuyers get a mortgage. Users can shop for the best loan using the new interface which now has 10 different lenders. As the business grows the intention is to grow the lender base and promote competition to help the borrower.

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Business Insider published an article exploring the state of marketplace lending today. The author suggests that to move forward P2P firms must “adopt effective risk control infrastructure for investors to bring certainty to this asset class and therefore attract new capital.” Many believe that with increased transparency comes legitimacy.

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The Economist looked at the development of fintech (financial technology) and its evolution. The author explains how much of the development today is becoming one of cooperation. That is, traditional banks and P2P lenders are finding value in teaming up rather than competing.

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Crowdfund Insider discussed the idea that marketplace lending might actually mature in 2017. A CEO of a UK-based P2P firm explained his belief that “2017 will be the year that the P2P lending sector finally matures and grasps the opportunity to take on more traditional lenders.” Credit checks and individual due diligence are all aspects that will help marketplace firms propel this maturity.

Bondora mentions

Peer2Peer Finance News cited Bondora as one of the top P2P platforms offering “detailed aggregated statistics.” and transparency.