Should Alternative Lenders Expect a Regulatory Tide?

The success of alternative lenders

Alternative lending has been bothering bankers and regulators for a while now as the most successful representatives of the segment hold a rather significant share of loans. In fact, five largest alternative lenders have more than $28 billion worth of loans distributed among them. Lending Club leads the group having disbursed more than $13 billion of loans followed by SoFi which has helped its customers by disbursing loans worth $6 billion followed by Prosper, Avant and LendKey with $5 billion, $2 billion and $1.8 billion of loans respectively. Moreover, Lending Club, one of the largest alternative lenders in the market, shared an expectation of 70% YoY growth in FY 2016 last year.

Alternative lending has proved to be extremely successful with customers and there are

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