Partnering with Banks
Partnering with Banks panel with Drew Burchard, of Union Bank; Brian Graham, of Alliance Partners; Jeff Danford, of BlueYield, Andrew Deringer, of Lending Club; Kevin Lundquist, of Citi; Brad Kime, of LendKey; and moderator Ben Hoffman, of Oliver Wyman, at LendIt USA 2015.
There are huge advantages for the traditional banking sector to partner with p2p online lenders since regulation limits their underwriting capabilities. This regulation extends to the algorithms sifting the online traffic, which now accounts for 60% of initial loan-seeking.
Brad Kime of Lendkey, which announced a $1 billion deal for the student loan refinancing division currently works with 300 financial institutions and their proprietary algorithms to make them more credit-friendly. He advises partnerships so that banks can profit from the p2p marketplace that millennials love.
This panel agreed that although banks will most likely retain the top 15% of the market, online lending is so customer friendly, offering a high yield in little time, with such benefits as upfront underwriting and easy collection, it is impossible to ignore.