Question
1. What strategies did Lending Club employ to mitigate adverse selection on its platform? Were these strategies successful? a) in the early days of the
1. What strategies did Lending Club employ to mitigate "adverse selection" on its platform? Were these strategies successful?
a) in the early days of the platform? b) more recently? 2. Lending club is "tech" not "fin"? Agree or disagree? Implications? 3. Lending Club began as a matching engine, and evolved into a full intermediation platform. Please identify:
a) At least one essential recent requirement for "reintermediation", explaining why b) At least one potential risk of reintermediation for other participants on the platform (ie for lenders or
borrowers) explaining why
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 Mitigation of Adverse Selection on Lending Clubs Platform a Early Days of the Platform Credit Scoring Models Lending Club employed sophisticated credit scoring models to assess the creditworthiness ...
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
