Prosper Marketplace and On Deck Capital team up on loan provision

Prosper Marketplace, which operates the largest privately held online marketplace for credit, and On Deck Capital, Inc. (ONDK), a leading platform for small business loans, today jointly announced a strategic partnership aimed at helping both people and businesses find the loan that best meets their needs.

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The partnership between these two financial technology leaders committed to transforming traditional lending comes during LendIt, the largest conference series dedicated to connecting the global online lending community, taking place April 13th through 15th in New York City.

Under the partnership, Prosper Marketplace and OnDeck will develop new solutions to address their customers' needs that expand upon their current referral arrangement. Prosper, which through its platform offers consumers access to fixed-rate, fixed-term personal loans between $2,000 and $35,000, and OnDeck, which offers small businesses loans between $5,000 and $250,000 as well as business lines of credit, will be close integrated partners in the peer-to-peer space.

"This partnership gives Prosper Marketplace's customers access to more options for credit now and creates a great platform for the future," said Aaron Vermut, CEO, Prosper Marketplace. "Prosper Marketplace is focused on delivering access to a consumer-friendly personal loan product that offers people fair, competitive rates. We are excited to work with an industry leader like OnDeck to help our customers that are looking for loans for their small businesses."

"OnDeck is 100% focused on helping small businesses meet their capital needs," said Noah Breslow, CEO, OnDeck. "Our partnership with Prosper Marketplace, a like-minded technology innovator, will enable us to offer more small businesses a seamless experience to meet their financing needs."

Prosper recently crossed $3 billion in personal loan originations through its platform, and has grown more than 350% over the past year as online marketplaces for credit gain mainstream awareness and acceptance. The Prosper platform offers consumers access to loans based on their personal credit for the purpose of debt consolidation, large purchases, medical expenses and their business.

OnDeck has loaned over $2 billion to small businesses across 700 industries in all 50 U.S. states and Canada. The company's proprietary small business credit scoring system, the OnDeck Score®, evaluates thousands of data points to deliver a fast and accurate credit decision. Restaurants, medical professionals and retailers, among other small businesses, choose OnDeck for its convenience, speed and direct access to growth and working capital.

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Comments: (1)

A Finextra member 

This is a power move on behalf of prosper. Lending Club has been making very strategic partnerships and Prosper is not going to get left behind. I took note that while the two companies will operate in a “more and more integrated” way, they have no plans to mergeunder the new strategic partnership. They simply work together to develop new lending solutions and shared marketing efforts.

The closer ties will also provide some potential competitive protection again LendingClub, which competes directly against Prosper for peer-to-peer lending consumer business, and has also begun to ease its way into the same small-business lending space where OnDeck operates.

As someone who invests through Prosper I'm a fan of the move as long as they never merge as they are claiming.

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