Ron Suber, the President of Prosper and a perennial keynote speaker at the annual LendIt conference, delivered a rousing update on the status of marketplace lending. Directly addressing the challenges that impacted all online lenders in the past year, Suber stated;
“Success this past year required the patience of a monk, agility of a cheetah and stamina of Rocky Balboa.”
Patience, Agility, Stamina
The previous 12 months have been tough on the online lending sector, funding dried up as institutional money panicked leaving platforms gasping for cash. Platforms were compelled to revisit operating models looking for efficiencies while honing the credit process. Yet the platforms that have survived stand to benefit and grow from the new resilience and confidence created from shared survival. Suber explained;
“Our industry today has more talent, awareness and interest than ever as evidenced by the more than 5000 people attending Lendit in New York City. Banks, asset managers, institutions and individual investors always knew why we do what we do. Now they truly know what we do and how we do it.”
Today, marketplace lending is building an industry to last and perhaps surpass traditional finance. Platforms are inking partnerships with banks, securing long time capital while looking to provide lending as a service (LaaS) all the while targeting profitability.
“We are not just modernizing borrowing and lending; we are often creating something new,” said Suber.
The key to future success included the following foundational elements: loan performance, data transparency, platform profitability, customer acquisition, and automation.
Suber stated with confidence;
“Our industry should be proud, energized and excited for what’s ahead as we have the ingredients and wisdom to deliver on the opportunity ahead of us.”