They are the frenemies of the financial services world. Depending on whom you speak to, marketplace lenders are either driving innovation through technology to make the loan process faster and easier, and disrupting the cozy and profitable business of traditional banking, or they are the latest threat to the stability of the financial system.
In the past six months, a growing number of non-bank loan companies — sometimes called peer-to-peer lenders because they match people and companies seeking loans with investors prepared to make them — has sprung up in Canada. Some migrated from successful platforms in the United States, while others have been launched here based on the successes of similar ventures such as Lending Club in the United States, Europe and the United Kingdom.
Barbara Shecter – FINANCIAL POST – May 26, 2015.
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