Innovations in financial technology (“fintech”) are transforming the provision of financial services to consumers and small businesses in ways that are at once profound and mundane. The nascent online lending – or “marketplace lending” – industry is a key beneficiary and driver of this innovation. Marketplace lenders marry third party capital providers with potential consumer and small business borrowers via data-driven online platforms. Most online platforms focus on one market segment, such as consumer loans, small business loans, student loans, real estate loans or microfinance.

Originally published in Global Legal Group: Marketplace Lending, Chapter 21 - April 2017.