Online Lending Developments

By David E. Franasiak, Joel G. Oswald, and Hanna Laver

On July 20, the U.S. Treasury Department published a Request for Information (RFI) in the Federal Register soliciting industry feedback regarding the rapidly growing online lending marketplace. The Department defines online marketplace lending as “the segment of the financial services industry that uses investment capital and data-driven online platforms to lend to small businesses and consumers.” Specifically, Treasury is seeking public comment on: (i) the various business models of, and products offered by, online marketplace lenders to small businesses and consumers; (ii) the potential for online marketplace lending to expand access to credit to historically underserved market segments; and (iii) how the financial regulatory framework should evolve to support the safe growth of this industry.


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