The last week has signified an interesting turn in the relatively young history of the alternative lending industry. In particular, online lending took a hit and perpetuated a wave of skepticism around it.
The event to contribute to it is related to one of the largest alternative lenders – Lending Club – whose shares plummeted significantly in less than a week. In the period between May 6 and 10, Lending Club’s share prices went from $7.09 to $4.10 with the lowest point at $3.98 per share.
Overall, Lending Club’s share prices were reported to drop by 35%. Investigations around the quality of loans didn’t particularly help the situation.
By Sofia (letstalkpayments.com)
Read more on Lending Club casehere