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PitchBook Fintech Analyst Note: Marketplace Lending

3Q 2017

PitchBook Fintech Analyst Note: Marketplace Lending

August 28, 2017

The online lending space has matured considerably since PitchBook initiated coverage last summer. At the time, the industry was still being rocked by scandal most notably at Lending Club, and unanswered legal questions in the Madden vs. Midland court case. A year later, the largest firms have made progress towards profitability and private capital has continued to flow into the space. 

Key takeaways & highlights: 

  • Online lenders have faced increased competition from other more established fintech companies. Furthermore, banks such as Goldman Sachs have started their own lending arms
  • Publicly traded firms have made great strides in improving financials; the analyst consensus has Lending Club moving into positive GAAP earnings by year end in part driven by securitizations as a lower-cost source of capital
  • SoFi has made strides towards becoming more bank-like after adding mortgage loans, wealth management services and acquiring (and subsequently shuttering) online bank and money transfer service Zenbanx