Participation Type

Paper Talk

Title of Poster or Paper

Disruption within Alternative Lending

Mentor/s

N/A

Location

Panel F: University Commons UC 108

Start Day/Time

4-20-2018 12:30 PM

End Day/Time

4-20-2018 1:45 PM

Abstract

Since the 2008 financial crisis, there has been significant disruption within the financial services industry. We will pinpoint companies within the financial technology industry, particularly those that conduct lending and various products to consumers and businesses. In addition, we will discuss the benefits that are associated with this disruption and the reasoning why financial institutions like banks and hedge funds are attracted to these companies. With alternative lending becoming increasingly popular, there will be an in-depth examination concerning the risks that correlate with this newfound popularity among borrowers and investors. We will touch upon the sustainability of these alternative lenders while weighing the risks involved in recent years. There will also be a focus on the business model of these companies to see if the industry in its entirety is sustainable once the consolidation that took place in the second quarter of 2016 and risks that include event, leverage, and credit. Thus, the measured sustainability will weigh in the effects on both the market as well as those directly involved in the transactions.

College

Welch College of Business

College and Major available

Business Economics, Finance

Creative Commons License

Creative Commons Attribution-Noncommercial 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 4.0 License.

Comments

The whitepaper was created in a group setting within our Global Markets and Financial Institutions Class. Individuals besides James Chiavaro and Chris Saunderson who were on our team include Nicole Esposito, Tom Ketchum, and Mario Macera.

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Apr 20th, 12:30 PM Apr 20th, 1:45 PM

Disruption within Alternative Lending

Panel F: University Commons UC 108

Since the 2008 financial crisis, there has been significant disruption within the financial services industry. We will pinpoint companies within the financial technology industry, particularly those that conduct lending and various products to consumers and businesses. In addition, we will discuss the benefits that are associated with this disruption and the reasoning why financial institutions like banks and hedge funds are attracted to these companies. With alternative lending becoming increasingly popular, there will be an in-depth examination concerning the risks that correlate with this newfound popularity among borrowers and investors. We will touch upon the sustainability of these alternative lenders while weighing the risks involved in recent years. There will also be a focus on the business model of these companies to see if the industry in its entirety is sustainable once the consolidation that took place in the second quarter of 2016 and risks that include event, leverage, and credit. Thus, the measured sustainability will weigh in the effects on both the market as well as those directly involved in the transactions.

 

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