The State of Online Lending

state of online lending

Date: Wednesday, May 15, 2019 Time: 6 p.m. to 8 p.m. Location: Pepper Hamilton LP 620 8th Ave. New York, New York 37th Floor, New York Times building Title: The State of the Online Lending Space Topics include: Where are the sources of capital in today’s online lending market? What is working as customer acquisition? […]

The post The State of Online Lending appeared first on Lending Times.

state of online lending

Date: Wednesday, May 15, 2019
Time: 6 p.m. to 8 p.m.
Location: Pepper Hamilton LP
620 8th Ave.
New York, New York
37th Floor, New York Times building

Title: The State of the Online Lending Space

Topics include:

  • Where are the sources of capital in today’s online lending market?
  • What is working as customer acquisition?
  • How is regulations evolving based on the OCC’s latest policies?
  • What is the data available from the public companies teaching us?

This event is hosted by George Popescu and Greg Nowak from P2P and Marketplace Lending Operators, a public Meetup group.

RSVP here.

The post The State of Online Lending appeared first on Lending Times.

The Keys to Building Investor Confidence: 4 Takeaways from Lending Times’ Online Lending Panel

online lending

As many have reported, online lending is headed into the next phase of its evolution. As with any industry moving from its nascent stage to its adolescent years, we expect consolidation as the strongest players grow their stature, and opportunities to learn what works and what does not. We also expect a focus on powering […]

online lending

As many have reported, online lending is headed into the next phase of its evolution. As with any industry moving from its nascent stage to its adolescent years, we expect consolidation as the strongest players grow their stature, and opportunities to learn what works and what does not. We also expect a focus on powering continued growth in the sector fueled by increasing capital investment.

With this in mind, we wanted to provide our readers with a firsthand account from the leading forces for investment in the online lending space about the trends they’re seeing, the challenges they’re facing, and what they have up their sleeves for the industry’s next stage of development.

On July 21, 2017, we hosted an online lending Meetup event, “Risks and Emerging Solutions for Investor Confidence in Online Lending,” at Global Debt Registry’s New York City headquarters. We were hoping for a meeting of the best and the brightest — and that is exactly what we got with panelists from Citi Bank, Global Debt Registry, and PricewaterhouseCoopers among others.

The conversation largely focused on the online lending industry’s need to take a closer look at infrastructural elements in order to substantially grow and attract more mature capital into the space. Under that umbrella, there were four key takeaways from the evening’s conversations that we found particularly noteworthy:

1. The future lies in scalable investor infrastructure

For online lending to continue along its current growth trajectory, industry leaders are taking a close look at the sector’s infrastructure – in particular the reliability and scalability of that infrastructure. As the space seeks to attract continued capital investment to support a growing network of participants, the right risk infrastructure is key to achieving that goal. An optimum risk infrastructure is one that involves fewer manual processes to reduce errors and improve efficiency, provides the highest degrees of certainty around loan data to diminish opportunities for fraud, and offers robust reporting tools and sets industry-wide standards. A structure that delivers on each of these points and can scale on demand will help spur investor confidence that in turn supports broad industry expansion.

2. Investing in online lending is broadening oversight professionals’ scope of work

As online lending increases in popularity as an asset class, auditors and trustees are increasingly being asked to handle a greater breadth of tasks. Exposure to a wider range of investors and an increased level of complexity in the types of players involved in lending activities has caused due diligence to become the tip of the iceberg for compliance professionals. This trend is likely to continue upward as the online lending industry matures.

3. Bolstering the back end can’t take a backseat

The initial focus of the online lending industry was on innovation in the borrower experience — bringing the dream of virtual lending into reality and exploring newly available data sets to support underwriting (e.g. social data and spearheading the total disruption of the preexisting lending paradigm). The less exciting requirement of readying the back end, investor management systems was pushed to the back burner. But if the online lending industry is to continue its growth trajectory, the nitty-gritty details of building out a back end to allow for scalability must become a priority.

4. Blockchain could be big — but it’s too early to predict its full impact.

While blockchain has great potential to become a safe and secure way to keep track of loan ownership and asset integrity, using a single consistent source of core loan data to create an immutable audit trail, it’s still in the nascent stages of development. As such, there is still much debate on which technology platforms will win out. There will also likely be some industry stumbles early on, as there often are when new technology is first adopted. However, the significant need for distributed trust, a single version of the truth, and immutable record keeping make for a compelling blockchain use case across the online lending ecosystem.

“The value of open dialogue among major players in the online lending space is immeasurable,” said Charlie Moore, president of Global Debt Registry. “The entire industry benefits when leaders in the space come together to share and develop industry solutions. Conversations like this help us determine the most effective ways to open more loans, attract more capital, and secure the emerging risk infrastructure requirements — and that’s a very positive thing.”

The event provided a rare and valuable inside look at what online lending industry leaders are really thinking about the state of the rapidly evolving industry.

Meetup: Risks and emerging solutions for investor confidence in online lending

Meetup: Risks and emerging solutions for investor confidence in online lending

Where? Global Debt Registry 335 Madison Avenue, 16th floor, New York, NY When? Tuesday, June 20, 2017 6:00 PM to 8:00 PM RSVP here. Details? Risks and emerging solutions for investor confidence in online lending ·  The Panel will look at operational risks and emerging solutions for investor confidence and capital growth in online lending. How […]

Meetup: Risks and emerging solutions for investor confidence in online lending

Where?

Global Debt Registry
335 Madison Avenue, 16th floor, New York, NY

When?

Tuesday, June 20, 2017
to

RSVP here.

Details?

Risks and emerging solutions for investor confidence in online lending

·  The Panel will look at operational risks and emerging solutions for investor confidence and capital growth in online lending. How do we improve asset certainty to enable the industry to scale with the flow of mature permanent capital? What risk infrastructure is required for the capital markets to develop new financial products & enable a liquid secondary market?

·  Specifically the panel will look at loan and borrower data integrity issues for investors & senior lenders, as well as legal rights to assets. How is investor due diligence evolving to support digital lending? Why is it so different from traditional lending? How is securitization due diligence different from whole loan purchases?  What role can the Blockchain play?

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Agenda

• 6pm – 6:30pm networking, light cocktail

• 6:30pm – 7:30pm panel and Q&A

• 7:30pm – 8pm networking, light cocktail

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Panelists:

Charles Moore, President, Global Debt Registry

Chris Gigliotti Managing Director. PWC : Valuation, Securitization, Due Diligence, Structured Products, Cash Flowing Modeling, Corporate Debt.

Paul Burke, MD Citi Agency & Trust Services

Further panelists to be announced. Please contact us if you are interested in being on the panel.

 

Moderator:

George Popescu, Editor In Chief and Founder, Lending Times

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RSVP here.