Student Lending Begins to Scale
Student Lending Begins to Scale panel with Mike Cagney, of SoFi; David Klein, of CommonBond; Vince Passione, of LendKey; Zander Rafael, of Climb Credit; Cameron Stevens, of Prodigy Finance; and moderator Stephen Dash, of Credible.
Each panelist began by discussing the intense competition in the student loan market. SoFi acknowledged that they all must expand to other products in the near future. In fact, this year SoFi will issue more mortgages and personal loans than student loans.
Some parts of the student loan market are still relatively untapped, such as international student loans, which are fundamentally different from domestic student loans. As for sustained long term growth, LendKey mentioned the importance of partnerships, both with schools and banks. Also, CommonBond shared that where marketplace lenders added most value is in the customer acquisition, brand and service (“front-end”), whereas traditional banks still have a “back-end” advantage via their lower cost of capital. This creates potential partnership opportunities.