What a chaos, only concern is that the buzz could create real negative impact given the dependency on origination fees, as the negative news might slow down new sales
As the US P2P lending market approaches its 10-year anniversary, some sensational news came from major players in the industry. Companies had just reported their results for the first quarter of 2016, which increased the volatility of their share prices. It all started with OnDeck reporting poor numbers for the first quarter of 2016, which led to OnDeck shares plunging by more than 45%. The reason for poor performance of the company was simple: there weren’t enough lenders on their marketplace platforms. OnDeck sold only 26% (compared to 40% in the fourth quarter of 2015) of originated loans through their platform and gain on sale was only 5.7% (compared to 9%). This resulted in revenue taking a hit as well.