You are here

Pitfalls for the unwary on banking's frontier in US

Eschewing traditional banks, strapped borrowers are getting loans from lenders who operate mostly online and offer easier terms - but who also exhibit troubling traits

"Silicon Valley is coming," the chief executive of JPMorgan Chase, Jamie Dimon, wrote in an annual letter to the bank's shareholders, warning of the competitive threat these lenders pose to traditional banks.

New York

SILICON Valley has helped enhance just about every aspect of modern life. Naturally, Mohammad Mansour figured it could help solve his money problems, too.

Mr Mansour borrowed US$7,680 from Lending Club, a San Francisco lender offering loans more conveniently and with lower