What you need to know: First, collaboration between conventional banks and fintech platforms will continue. Yet, the limited-purpose fintech bank charter may not reach final developments before 2017 ends. Second, marketplace lending will continue with smaller capitalized firms unlikely to survive. Lastly, merger and acquisitions in the marketplace will probably accelerate. With the new Trump administration, it is difficult to decipher what its regulatory agenda will be.

Why this is important: Parties involved in marketplace lending are cautiously optimistic about 2017, which promises resolution of uncertainty and legal cases. It is a transition onto 2018 where we expect to see  challengers becoming fully fledged banks.

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