Marketplace lending news roundup 06/03/17

By Daniel Lanyon on Monday 6 March 2017

Alternative Lending

The most important stories and data from the world of marketplace lending and alternative finance.

The money keeps flowing for platforms with the news one of the largest UK players Funding Circle has secured another $100m of new investment from the US based investment firm CIM. While, you know I am sure, Funding Circle is London based, the new cash will be used in its US operation for lending to smaller American firms.

Competition among online lenders is heating up, with – er…the internet…- a key battleground for marketing according to new data from AdGooroo. Paid-for advertising on personal loan keywords increased by 101 per cent between 2014 and 2016, despite the fact that the number of advertisers nearly halved during that same period.

Back in the UK, the disruption of lending by banks seems to have reached fever pitch. New data suggest small business lending by the big banks fell off a cliff from December to January. Good news for the likes of Funding Circle.

UK regulators have also sent letters to the CEOs of several P2P lending companies, warning them that lending to other lending firms – known as wholesale lending - would not be tolerated in the future leaving some firms confused as they had not ever engaged in the practice. AltFi Data’s numbers, included in the article, show the full extent of wholesale lending.

Down under, the scene of the latest Altfi Summit, a founder and former CEO of Eaglewood Capital Jon Barlow revealed why he thinks the Australian online lending industry is reminiscent of the U.S. market 4-5 years ago.

“I think the primary difference [between] Australia [and the] U.S. 4-5 years ago is that the incumbent banks at least seem aware of the fintech industry and appear to be thinking about how to handle it,” he said.

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