Three of the biggest names in the US marketplace lending industry have combined to create a trade association, forming a united front against ever-closer regulatory supervision. Alternative finance more and more organising itself!
On Thursday the chief executives of Funding Circle, Lending Club and Prosper said they had launched the Marketplace Lending Association, a non-profit body which would promote responsible business practices among the online operators, and “sound public policy”. The trio — which have originated about $20bn of loans between them — is at the forefront of an industry that has seen originations double every year since 2010, by connecting needy borrowers with investors keen for high-yielding assets. Total assets across the sector could rise to $122bn by 2020, according to Morgan Stanley, potentially depriving the brick-and-mortar banks of billions of dollars of income. “As an industry, there’s not one specific issue we’re particularly worried about — the space is already heavily regulated, with borrower protections on one side and securities rules on the other,” said Sam Hodges