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But applying fintech's data-guzzling model for consumer lending to small firms is tricky.
But loan growth has been flat across the industry, especially for consumer lending.
The penalty is the largest ever imposed by the Fed, the nation's leading bank regulator, for consumer lending violations.
There are two types of online P2P platforms: for consumer lending through companies like Zopa, or business lending through the likes of Funding Circle.
In one swoop, Citigroup would become the fifth-biggest consumer finance company in Japan, the world's second-biggest market for consumer lending, Mr. Weill said.
"They are coming in under the guise of accepting regulation when in fact what they are trying to do is to legalize lawsuit lending and to explicitly exempt themselves for consumer lending requirements," said Lisa A. Rickard, president of the Institute for Legal Reform, an arm of the United States Chamber of Commerce.
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An option-ARM product called Pick-a-Pay (a name that gave fair warning it could lead to trouble) accounts for 45% of consumer lending at Wachovia, a large bank.
Given the size of the gap and no signs that rate increases are imminent, why introduce this option now? "We think that students and parents are looking for some level of certainty in the long run," said Lucille Conley, senior vice president of consumer lending for U.S. Bank.
In America about 70% of consumer lending is for mortgages, a sector banks have almost to themselves (thanks in part to government meddling).Moreover, banks have done fairly well with moving their services onto the internet and then to mobiles.
Mr. Gerspach said the bank continued to solicit buyers for the consumer lending franchise and the mortgage portfolio.
Bank functions such as cross-border integration, turnaround management, push marketing, third-party channel development (for mortgages and consumer lending, for example) and underwriting and monitoring retail credit all will require skills that are in relatively short supply.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com