Fintechs to rely heavily on ABS despite switch to banking

By Jennifer Kang
07 Jan 2021

Online lenders have sought ways to transform themselves into banks to gain regulatory clarity and forge long term customer relationships. Regardless of the status change, the securitization market will remain a vital funding source to the challenger banks, sources say.

Fintechs are increasingly taking after a "triangular" business model, which includes three pillars — lending, deposits and payments, said Brian Korn, partner at Manatt, Phelps & Phillips, who leads the firm’s fintech practice. In order to stay competitive, companies have been trying to expand in the areas ...

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