Daily News: April 17, 2019

Reuters: Recession Fears Have Online Lenders Scaling Back


Reuters reported that U.S. online lenders such as LendingClub, Kabbage and Avant are scrutinizing loan quality, securing long-term financing and cutting costs, as executives prepare for what they fear could be the sector’s first economic downturn.

According to Reuters, online lenders rely on market funding that can be harder to come by in times of stress, unlike banks which rely on deposits.