Online Lenders Learn from Early Mistakes
Online lending companies like LendingClub and OnDeck look a lot different now then when they went public in the winter of 2014; there have been significant lessons learned from the early years of online lending, in particular the fickle nature of investor money in the marketplace model; most lenders today sign big facilities with banks and institutions so they don’t need to rely on individual investors; “I still think we are a fintech but a ‘tech’ is a stretch,” says Noah Breslow, CEO of OnDeck, to the FT. “We acknowledge we have . . . credit risk and liquidity risk, which are hallmarks of financial companies,” he adds. “But at the same time I think we have a very differentiated . . . model at the core, which is powered by original technology and original analytics.” Source.