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Showing posts from January, 2017

3 Ways Marketplace Lenders Can Expand Internationally

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Originally @ Lending Times

The most successful online lenders frequently reach a point where they are faced with a question: Continue developing domain expertise over one’s geography or expand internationally? Last year, we covered in-depth the kinds of markets that online lenders can expand into in a three-part series (part 1, part 2, part 3.) Yet, when a company makes a decision to expand, this still leaves a big question open: How will they do it?

Most marketplace lenders come to a three-pronged fork in the road: Expand by partnership, by acquisition, or by colonization.

Partnering into a Market

The first type of expansion is the most low-risk and the fastest to successfully undertake. A successful online lender looking at new geographies also faces a significant slate of new risks should they choose to expand without fully understanding the new market. If they partner with an existing player – whether another lender or an established financial institution – they mitigate a large pa…