Acting Comptroller Reaffirms Support For Online Lending

Acting Comptroller of the Currency Keith A. Noreika reaffirmed his support for measures to facilitate growth in the online lending industry.

In remarks before the Online Lending Policy Summit in Washington, D.C., Mr. Noreika reiterated points of focus from his June Senate testimony (see previous coverage) that characterized the growth of alternative lending as the "natural evolution" of banking. He explained that online lending has doubled every year since 2010, and that future growth is likely to be significant. At the same time, he acknowledged that the maturing nature of the industry presents new challenges, as evidenced by the fact that even recognizable companies in the marketplace struggle to be profitable. Mr. Noreika suggested that it will be important for these companies to make adjustments in response to new market conditions and to "effectively manag[e] evolving risks."