Marketplace 2.0

Marketplace LendingOnline marketplace lending platforms are offering compelling new ways for consumers and businesses to obtain loans. Driven by innovations in financial technology (FinTech) that have created dramatic efficiencies, these platforms have changed the face of financial services. According to a KPMG report, the U.S. online alternative finance industry originated $36.4 billion in loans in 2015, up from $11.6 billion in 2014. This segment of the finance industry has obviously been expanding rapidly and we anticipate this expansion will continue.

Just as FinTech has created new online lending models, crowdfunding has created new models for equity investing, donations, and rewards. A 2015 Goldman Sachs report noted that crowdfunding, sourcing funds across a network of supporters, is potentially the most disruptive of all new models in finance.

This blog serves to provide news and commentary on legal and regulatory developments affecting online marketplace funding and crowdsourcing. Particularly as much of the law is evolving rapidly in these emerging areas, and regulators are just now confronting what kind of framework should be put in place, we seek to keep abreast of ongoing developments and let you know about them here and offer practical observations.

Jay Spruill

About: Jay Spruill

Jay leads the Marketplace Funding Industry Team and is a member of the Banking Industry Team. Jay has extensive experience advising financial institutions in the development of products and services, including online loan products, and on regulatory matters affecting financial institution business models. View all posts by Jay Spruill
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