Alternative lending

LendingClub founder's new firm launches card-loan hybrid product


Renaud Laplanche, one of the first fintech disruptors, is launching an unusual type of credit product at Upgrade, his new company, that is a cross between a credit card and an unsecured loan.


Can Freddie Mac's embrace of AI pull the industry along?


Freddie Mac's test of artificial intelligence to make lending decisions could be a significant turning point in broadening the use of the technology.


Nonbank lender’s results bolster case for alternative data, CFPB says


The Upstart Network, the first and only startup to participate in the bureau’s program for promising digital platforms, claims that using nontraditional credit data items has helped loan volume and affordability.


Online lenders make case for cash-flow data while acknowledging pitfalls


Though the use of alternative data in lending is seen by some as untested, several fintechs say they couldn't function without it.


'Another day, another hack': Comments of the week


Readers react to Capital One's massive data breach, raise alarm to The Bancorp's expansion in CRE securitizations, defend fintechs offering retirement plans and more.


House revives effort to allow nontraditional data in credit scores


The bill, similar to legislation that passed the chamber last year, would permit the inclusion of items such as rent and telecom payments to help consumers build their credit profiles.


Cash-flow data can predict creditworthiness, new study shows


A study by FinRegLab of six nonbank lenders' use of cash-flow data in underwriting decisions finds this type of "alternative data" helps predict loan performance.


Crypto lenders push no-tax perk of leveraging bitcoin for cash


Since last fall, when the value of digital money plummeted, lenders have been pushing people who have paper profits to leverage them into cash by borrowing against their cryptocurrencies. And the fact that there's no tax bill on the transactions is a big selling point.


Lenders without border walls


Some fintechs have figured out how to provide international students and immigrants with credit cards and loans. Machine learning makes the underwriting possible.


Ripple's bank creep, LendUp's new CEO, regulatory competition: Top stories of the week


One bank's push to use Ripple's XRP in cross-border payments; LendUp spins off credit card business, names new CEO; a worrisome resurgence of rivalry among the banking agencies; and more from this week's most-read stories.