marketplace-lending

Even in a digital era, human connections still matter. That is one big disadvantage for fintech startups and increasingly for banks as customers stop making regular branch visits. So it is instructive to hear SoFi's thinking on how to overcome this challenge. It is trying some unorthodox tactics to better understand the people behind the data and to create meaningful connections with them.

Companies like Prosper have revolutionized the front end of the consumer lending experience, but they have not proven able to handle even minor financial bumps without running off the road.

Turmoil in marketplace lending has less to do with loan quality and more to do with how lenders price loans to meet supply and demand.

If alternative small business lenders don't get engaged in the regulatory dialogue, they risk letting a few bad apples determine their fate.

The hits that alternative lenders like OnDeck Capital are taking shouldn't be a surprise for an industry built on unsustainable business models.