Politicspoliticsrcwrtneoconstrumprecession

Mon Apr 15, 2019, 12:44 PM

Worried a Recession Is Coming, U.S. Online Lenders Reduce Risk

Anna Irrera

NEW YORK (Reuters) - U.S. online lenders such as LendingClub Corp, Kabbage Inc and Avant LLC are scrutinizing loan quality, securing long-term financing and cutting costs, as executives prepare for what they fear could be the sector’s first economic downturn.

A recession could bring escalating credit losses, liquidity crunch and higher funding costs, testing business models in a relatively nascent industry.

Peer-to-peer and other digital lenders sprouted up largely after the Great Recession of 2008. Unlike banks, which tend to have lower-cost and more stable deposits, online lenders rely on market funding that can be harder to come by in times of stress.

Their underwriting methods also often include analysis of non-traditional data, such as education level of borrowers. While platforms see that as a strength, it has yet to be tested in times of crisis.

“This is very top of mind for us,” LendingClub Chief Executive Officer Scott Sanborn said in an interview, referring to the possibility of a recession. “It’s not a question of ‘if,’ it’s ‘when,’ and it’s not five years away.”

more...

https://www.reuters.com/article/us-usa-economy-online-lenders-focus/worried-a-recession-is-coming-u-s-online-lenders-reduce-risk-idUSKCN1RR0BB

11 replies, 88 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread

Response to RCW2014 (Original post)

Mon Apr 15, 2019, 12:56 PM

1. All these doomsday headlines

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bruiserboy (Reply #1)

Mon Apr 15, 2019, 01:01 PM

3. It is childs play to be able to find a counterpoint to nearly every OP posted. Of course Reuters

knows not a damn thing about economic news reporting but a blogger from breitbart does.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to RCW2014 (Reply #3)

Mon Apr 15, 2019, 01:02 PM

5. You should know RCW , but the problem with

Your headlines is they never come true.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bruiserboy (Reply #5)

Mon Apr 15, 2019, 01:03 PM

7. "never" is a very long time, indeed.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to RCW2014 (Reply #7)

Mon Apr 15, 2019, 01:06 PM

8. Since the elections RC all lefty headlines have been inaccurate

And complete lies. Russia, Russia, Russia

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bruiserboy (Reply #8)

Mon Apr 15, 2019, 01:10 PM

10. You really should get over this @righty / @lefty obsession.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to RCW2014 (Reply #10)

Mon Apr 15, 2019, 01:13 PM

11. Why should i RC

Lefty hasn't let up since Hillary blew the elections.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bruiserboy (Reply #1)


Response to RCW2014 (Original post)

Mon Apr 15, 2019, 12:57 PM

2. Yes, SOME in the lending industry like to parrot Chicken Little!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Dumper (Reply #2)

Mon Apr 15, 2019, 01:01 PM

4. Why would that be in their bests interests to do so? eom

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Dumper (Reply #2)

Politicspoliticsrcwrtneoconstrumprecession