Skip to main content
ALTERNATIVE LENDER BAGS BAIR FOR ITS BOARD
Bloomberg news is reporting that Shelia Bair, the ex head of the FDIC and Washington College president, is joining the board of directors of Avant, an alternative lender focusing on loans to consumers. The article notes that Bair was impressed by Avant's unusual practice of voluntarily adopting banking lending standards, capped interest rates, and its policy of retention a significant portion of credits originated on its balance sheet. Only last autumn, I recall Avant raising some $300mio of new capital from a group of investors including Tiger, RRE, and JP Morgan, supplementing the financial capital raised from Jefferies and others. While it currently offers unsecured lending in the US and Canada, it is rumored to be next considering the auto loan space next. This move is consistent with the growing trend of seasoned financial professionals tying up with players in marketplace lending sector, such as John Mack's joining the board of Lending Club amongst others. The growing success of marketplace lenders provide evidence of their success in identifying clients which are underserved by traditional banking players and use technology to revolutionise the provision of credit to consumers and businesses alike.
Bloomberg news is reporting that Shelia Bair, the ex head of the FDIC and Washington College president, is joining the board of directors of Avant, an alternative lender focusing on loans to consumers. The article notes that Bair was impressed by Avant's unusual practice of voluntarily adopting banking lending standards, capped interest rates, and its policy of retention a significant portion of credits originated on its balance sheet. Only last autumn, I recall Avant raising some $300mio of new capital from a group of investors including Tiger, RRE, and JP Morgan, supplementing the financial capital raised from Jefferies and others. While it currently offers unsecured lending in the US and Canada, it is rumored to be next considering the auto loan space next. This move is consistent with the growing trend of seasoned financial professionals tying up with players in marketplace lending sector, such as John Mack's joining the board of Lending Club amongst others. The growing success of marketplace lenders provide evidence of their success in identifying clients which are underserved by traditional banking players and use technology to revolutionise the provision of credit to consumers and businesses alike.
Comments
Post a Comment