Note from the CEO: With all due respect to our neighbors up north (Canada), “get with it”. Yes, the rest of the world is streaking ahead on peer-to-peer lending and a whole lot of business is getting done. But Canada has been very slow to allow platforms such as Lending Loop to put pedal to metal. But it now seems that is changing and the regulators are catching up to the fintech revolution. Yea to waking up.
“Peer-to-peer lending has taken off in many other countries, but Canada’s cautious regulatory environment has held it back here. That’s starting to change.
When it comes to startups and regulation, there’s the Uber way of doing it: charging ahead like a raging bull in an effort to force law makers to change their ways. Then there’s the Canadian way, which usually involves civil discourse and co-operation.
Lending Loop, when it launched its online peer-to-peer loan portal last year, first tried the Uber approach, but it quickly ran afoul of provincial securities regulators. Rather than ram onward, the Toronto-based company changed its tune and slowed its business down while working with regulators to come into compliance.
On Monday the company re-launched its service across Canada (except for Quebec) with the blessings of provincial regulators and a mission to change how loans are handled.
‘We’re dealing with people’s money so there’s a huge trust factor,’ says co-founder and chief executive Cato Pastoll. ‘You don’t have to go the Uber route to be successful.'”