Regulatory headwinds and questions around the stability of funding sources were the key themes at a conference focused on digital lenders in San Francisco recently. Combined, the dynamics left many conference participants thinking several marketplace lenders would fail this year and increase pressure on lenders to tap bank capital.
At LendIt USA, a top conference for the emerging digital lending space, several speakers noted a more dour tone compared to years past. Market volatility in the first quarter means venture capital is less available, and private equity companies are not nearly as eager to launch funds buying loans originated by the new platforms.
