We’ve seen on friday that LendingClub pushed the limits of fintech regulations showing how easy it is to change the old financing system regulations.
LendingClub basically arranges loans between lenders and loaners using a third bank called WebBank based in Utah and sells them further on to investors.
A legal case is threatening the deal, questioning if loans made by national banks are falling afoul of state anti-usury laws. LendingClub’s response is to preserve a link between WebBank and the loan products by giving the bank a stake in how the loan performs afterwards. The catch: LendingClub would pay a higher fee to WebBank in exchange for taking on this new risk.
This shows us that fintech companies will eventually be affected by the old-school finance companies regulations.