AltFi.com uses cookies on this website. They help us to know a little bit about how you use our website, which improves the browsing experience and marketing - both for you and for others. They are stored locally on your device. By continuing to use this site you accept this use of cookies. Go to the Privacy and Cookies page for more information. You'll see this message only once.
Not signed in. Log in here.

Your daily download of all things alternative finance and fintech, from us at AltFi


 

Q4 slump caps off tough 2016 for US fintech lenders




By Ryan Weeks on 4th April 2017

Source: https://goo.gl/UUJ9kN

S&P data shows slowed origination in latter stages of 2016, consumer lenders worst hit.

 

S&P Global Market Intelligence, a research arm of major ratings agency S&P, has released 2016 origination numbers for 13 major online lenders. The data is headlined by a 14.5 per cent year over year fall in originations for the entire group in the fourth quarter.

 

2016 will go down as a turbulent one for the online/marketplace lending sector. Investor confidence nosedived when former Lending Club CEO Renaud Laplanche’s was fired in May due to his involvement in the mis-selling of loans to an institutional investor.

 

Despite the difficult Q4, S&P estimates that the 13 lenders in question grew full-year originations in 2016 by 15 per cent. The student and SME focused lenders exhibited especially strong full-year origination growth, with 62.3 per cent and 43.0 per cent respectively.

 

These showings helped to offset a 9.2 per cent decline in full-year originations among the consumer lenders. Prosper and Avant’s full year originations fell by 39 and 12 per cent respectively, while Lending Club posted 4 per cent growth for the year.

 

Analysis from AltFi Data shows that originations in the UK’s marketplace lending sector grew 49 per cent in Q4 2016 on a year on year basis. This lends credence to the idea that the UK industry was fairly well insulated from the events of 2016, and indeed from any Brexit-related fallout.

 

SoFi was the largest online lender by volume in the US during Q4 2016, with roughly $2.5bn lent. But Lending Club just about remained the largest player by yearly origination volume with a little over $8.5bn lent, besting SoFi by around $600m.

 

Lending Club is fast approaching the $25bn mark in cumulative loan originations, and remains by some distance the largest online lender in the US by this measure. 

 

Source: S&P Global Market Intelligence (https://goo.gl/9qgJBW)

 

Comments


Enter your name:

Enter a comment in the box below: