Presentation: Intersection of Lending Innovation and Regulation
Intersection of Lending Innovation and Regulation presentation by Raj Date, Managing Partner at Fenway Summer. Date outlined three current trends in marketplace lending. Firstly, there are still many untapped opportunities despite the fast growing competition. For example, payday lending is a $40B market and default rates are still incredibly high. Secondly, a risk asymmetry dynamic exists today, since people at traditional banks are not willing to take on regulatory risk in the same way that a startup lender may be able to. Thirdly, currently it is a great time to start a consumer finance company due to the low interest rate environment, room for technology innovation, and opportunity for startup lenders to establish trust with borrowers.