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Alt Lenders Face Hardships Amidst Rising Rates, but They Still Have the Potential to Disrupt

February 15, 2017

Rising interest rates make banks more profitable. That’s because the rates that banks pay for deposits tend to lag an increase in lending rates which, in turn, expands banks margins.

Rising rates treat alt lenders less kindly, as their access to capital dries up as returns on safer forms of investment increase. To make matters worse, alt lenders are facing increased scrutiny from regulators, which could increase their cost of doing business significantly.

John Zepecki, Group Head, Global Lending Product Management at D+H, joined the Lending on Call podcast to discuss how alt lenders, once heralded as the disruptors of traditional financial institutions like banks and credit unions, may soon have to pay the piper.

Our interview covered:

Hear the complete interview here.

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Author

David Zweifler
Leader, Content Marketing - Global Lending Solutions

David Zweifler leads communications for the Global Lending Solutions (GLS) division of D+H, and has more than 20 years of experience in content marketing. David’s career has taken him to Asia and back, and spanned equity research, journalism, and corporate communications. For the last decade, David has worked in-house in financial technology firms ranging from startups to global, publicly listed firms. When David isn’t podcasting, blogging, and talking to reporters, he enjoys cycling, reading, and being outsmarted by his three children.

David Zweifler