ABA Seeks Marketplace Lender to Partner with its Members

January 27, 2017, 5:11 p.m. EST 1 Min Read

The American Bankers Association has been searching for an online platform to allow its member banks to get into the digital lending business.

The banking trade group has run a formal bidding process to find a partner in the marketplace lending business, ABA spokesman John Hall confirmed Friday. He would not say which companies were under consideration or provide additional information. Reuters reported on the ABA's efforts earlier Friday.

The trade group's initiative could enable small banks that do not have big technology budgets to get into the online lending business. Other banking industry groups have launched similar efforts in the last two years.

BancAlliance, a consortium of more than 200 small banks across the country, has entered partnerships with Lending Club, which is one of the nation's largest online consumer lenders, and the small-business lender Fundation.

Western Independent Bankers, another community banking group, struck a deal in 2015 with the online consumer lender Prosper Marketplace.

This article originally appeared in American Banker.

For reprint and licensing requests for this article, click here.

TRENDING

CLOs

U.S. CLO sales reach nearly $185 billion to surpass record

Yield-hungry insurers, banks and exchange-traded funds fueled demand this year while a wave of redemptions crimped net supply.

By Charles Williams and Immanual John Milton

November 22
Real estate investments

Real estate investors pull back on home buying in Q3

Investors bought 15.9% of U.S. homes sold in Q3, according to Redfin, a level similar to 2018 and 2019, when the share was around 14%.

By Maria Volkova

November 22
Consumer lending

Upgrade Receivables raises $299 million on unsecured consumer loans

Initially, the notes benefit from a reserve fund that equals 0.50% of the pool balance; overcollateralization, which represents 10.60% of the pool balance; and subordination.

By Donna M. Mitchell

November 22

MORE FROM ASSET SECURITIZATION REPORT

Real estate investments

Real estate investors pull back on home buying in Q3

Investors bought 15.9% of U.S. homes sold in Q3, according to Redfin, a level similar to 2018 and 2019, when the share was around 14%.

By Maria Volkova

November 22
Consumer lending

Upgrade Receivables raises $299 million on unsecured consumer loans

Initially, the notes benefit from a reserve fund that equals 0.50% of the pool balance; overcollateralization, which represents 10.60% of the pool balance; and subordination.

By Donna M. Mitchell

November 22
Securitization

Volkswagen raises at least $1.3 billion in auto ABS

Some recent performance deterioration in Volkswagen's managed portfolio vintages and securitization pools helped account for the increase in expected CNL losses.

By Donna M. Mitchell

November 21
Credit scores

CFPB's Chopra: AI can be the key to fairer credit scoring

Consumer Financial Protection Bureau Director Rohit Chopra said the FICO credit-scoring model has drawbacks in price, predictiveness and market competition, and stakeholders should develop a more open-sourced model that uses artificial intelligence.

By John Heltman

November 21
Bank stocks

Trump 2.0 and other catalysts for bank stocks in 2025

Analysts say lenders' shares could rally on deregulation, lighter tax burdens and a resurgence of M&A. Declining interest rates and lower loan losses could further bolster bottom lines and attract investor interest.

By Jim Dobbs

November 21
Apollo Global Management

Pivot Energy locks in $450 million warehouse facility to support solar projects

Pivot-HASI's portfolio consists of 96 projects, most of which are community solar facilities. Single off-take power purchase agreements for commercial clients make up the rest.

By Donna M. Mitchell

November 21