Peer to peer lending sunsets as pandemic strains model

By Jennifer Kang
20 Oct 2020

The peer to peer lending model may be nearing the end of its lifecycle, signalled by LendingClub’s announcement that it would shutter its retail investor platform. With heightened regulatory risk and disappointing returns compared with securitization or whole loan sales, sources say the demise of peer to peer lending is becoming inevitable.

Peer to peer finance in its earliest days was an innovation that broadened access to debt investments and offered opportunities in alternative credit to individual investors. LendingClub’s retail platform, which dates back to 2005, matches borrowers with retail investors who can earn a return by funding the ...

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