US peer-to-peer lending platform Prosper, former P2P platform LendingClub and Victory Park Capital (VPC) are among the founding members of the newly formed American Fintech Council (AFC).
The Marketplace Lending Association (MLA) and Online Lending Policy Institute (OLPI) have merged to form the AFC.
The mission of AFC is to promote policies that advance responsible innovation and inclusivity within financial services.
AFC members include technology companies offering a wide range of financial products for consumers and businesses.
The group’s core principles include: supporting the use of technology to develop financial services to enrich people’s lives and offering affordable, transparent, and responsible products. Other core principles include advancing financial inclusion and racial equity and embracing and supporting regulation that furthers and promotes responsible innovation.
Membership requires lenders to support a 36 per cent APR cap on the cost of loans, adherence to the Small Business Borrower’s Bill of Rights, and offering transparent products and fees.
The AFC will consist of existing MLA and OLPI members and will expand membership to diversified fintech companies, digital banks and other financial services providers.
“This is a transformational merger between two organisations committed to financial inclusion and a customer friendly financial system,” said Richard Neiman, head of regulatory and public policy at LendingClub and founding member of the MLA.
“Together we will create a more expansive fintech association of companies that foster responsible innovation and growth while encouraging sound public policy.”
“Joining these two organisations together will allow us to build on our complementary strengths and create a unified voice for all industry stakeholders committed to helping hardworking families take control of their financial health,” said Professor Cornelius Hurley, executive director of OLPI.
“The AFC will be the epicentre for those looking to create a modern and inclusive financial system.”
Along with LendingClub and Prosper, Funding Circle founded MLA in April 2015. VPC then joined in 2018.