WIB members include more than 160 independent and community banks in 13 western states in the US. The deal will give the member banks unprecedented access to affordable consumer loans through the Prosper platform.
“Independent banks are essential to the health of the American economy, but in order to compete and win customers, they need to be able to offer compelling products that are competitively priced and easy to understand. Prosper has facilitated billions of dollars in loans through its platform and continues to grow because our product is fast, convenient, and extremely consumer-friendly. We’re very excited to work with WIB and its members to expand awareness of a smarter, lower-cost alternative to borrowing money through traditional means.”
WIB is a leading resource for community banks, providing networking opportunities, educational programs, and access to innovative products and services that help achieve excellence.
Betty House, senior vice president of product development and chief technology officer at WIB, added:
"Our role at WIB is to provide our member banks with information about the latest trends in the industry, as well as access to quality products and services that enable them to deliver the highest level of service to their customers. We believe Prosper Marketplace has the scale and requisite infrastructure to provide WIB member banks with access to a compelling product for unsecured consumer loans. This partnership also gives our members the opportunity to invest in this asset class, which offers attractive returns.”
This news comes less than a month after Lending Club announced that it would be partnering with a consortium of 200 community banks, members of BancAlliance. Lending Club specified that each of the banks will commit to buying a certain amount of loans from the platform. Additionally the banks will refer any customers that they cannot service onto Lending Club. But it is unclear what sort of arrangements of this nature Prosper has made. The platform will benefit in terms of origination volumes and by the banks investing through the platform. The question remains as to how long it will be until a similar partnership is made between an American platform and one of the big banks.