In October 2016, two leading P2P platforms in the U.S. — Lending Club and Prosper — announced a new increase in interest rates for lower-grade loans. The decision was made in order to sustain investor demand, as the model platforms are operating under challenges faced during the last months due to compliance issues with Lending Club and the general turbulence of the P2P lending industry.
However, keeping the investor demand stable is not the only reason for recent changes — as Lending Club announced, delinquencies are growing, especially when it comes to high-risk loans.
October 2016 was not the first time […]
Full Post at techcrunch.com