Marketplace lending is a rapidly evolving segment of debt markets around the world, presenting opportunities to banks, institutional investors, venture capitalists, and technology platforms. The segment’s evolution is echoed in the varying terms describing marketplace lending, including P2P lending; online lending; marketplace lending; digital lending; algorithmic credit; direct lending. With fast-paced innovation and the ideal regulatory climate, perhaps the segment may simply be called “lending” in the future.
As technologies and regulatory guidelines shape the burgeoning segment, lawyers in our Marketplace Lending Practice can assist sector participants in achieving their business and investment objectives, while managing risks. Whatever market niches, strategies, and algorithms our clients wish to develop, we work side by side with them to innovate and navigate the legal, regulatory, and commercial challenges of this evolving consumer debt market segment. We assist sector participants with strategies, including:
- Combining digital technology with crowdfunding techniques to offer consumers unsecured credit
- Partnering with banks and platforms to provide credit in entirely new ways
- Servicing consumer and commercial loans on behalf of institutional investors
- Exploring new frontiers of providing secured credit on internet sites or web apps
- Investing in marketplace loans as a new credit asset class
We leverage our deep experience in consumer financial services regulation, e-commerce regulation, private equity, private fund formation, cybersecurity, finance and intellectual property to provide holistic support to market participants and provide the legal underpinning to innovation in the delivery of financial services in marketplace lending.