Peer-to-peer lending, or P2P as it’s known, is a juggernaut financial-services Disruptor.
But thanks to its supercharged growth, P2P lending has attracted the attention of regulators and other financial-market overseers. They’re scrutinizing this new form of lending from multiple angles – fearing it may be too disruptive for its own good.
The U.S. Treasury Department, the Consumer Financial Protection Bureau, financial services regulators, bank and finance company lobbyists and, most recently, the U.S. Court of Appeals for the Second Circuit are weighing in on P2P lending.
There’s a lot at stake here…
- For borrowers in love with lending platforms that give them access to money that would otherwise be hard – even impossible – to get.
- For private lenders who loan money to borrowers at above-average rates.
- And for the owners of sites that match lenders and borrowers for a fee, including investors in publicly traded ventures like LendingClub Corp. (NYSE: LC).
There’s even more at stake for the stock market and the economic health of the country.
The issues aren’t complicated, but tackling them will be.
As we’ve said before, P2P lending is one of the biggest new developments in the world of finance.
But you don’t want to take a wrong step.