As online lending grows up, banks work to strengthen partnerships
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Marketplace lending as an industry is hitting its stride. Some platforms are becoming profitable, some are diversifying, new players are entering the market with new business models and the competition is heating up. But that means banks need to start strengthening ties with their online lending partners.
As more consumer-facing fintech companies are learning, that’s best done by building products that make people’s lives easier.
At Cross River Bank, the goal is to build and improve its banking-as-a-service platform in order to improve the consumer experience of its online lending and other fintech partners, and at a time when such fintech companies are considering filing for ILC charters (like Square and SoFi, for example). A partnership it formed last week with PeerIQ, which will allow the bank to provide better risk management and transparency tools to the online lending partners, is part of that strategy.