Plenty of people could use loans somewhere in the middle, and Raj Date wants to serve them. After spending time on Wall Street and then at the Consumer Financial Protection Bureau in its infancy, he has struck out on his own. Date is the founder of Fenway Summer, which is trying to provide loans to customers it considers under served. Date spoke to Vox about trying to find new ways to do student, mortgage, and credit card lending.
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Editor’s Notes: Rajeev V. Date was the first-ever Deputy Director of the U.S. Consumer Financial Protection Bureau. He had previously served in multiple leadership positions at the Bureau, including several months as the Special Advisor to the Secretary of the Treasury.
Mr.Date is credited with guiding the Consumer Financial Protection Bureau's early strategic, operational, and policy initiatives. He left this government career behind and is now free to pursue private sector ventures. He is wise to jump on board with P2P lending, and we're sure his position with the government didn't hurt his ability to see the most profitable markets to dabble in. He is now on the Board of Directors at peer-to-peer lending giant, Prosper Marketplace.
- Mr.Date believes that technology, whether it's mobile distribution or analytic technology, make both lending and borrowing much easier and cheaper and fills a huge gap in the lending market.
- His Fenway Summer lending firm finding looks to fund under-served potential borrowers, people that some may consider as having bad credit. The company tends to overdraft customers and payday loan customers who are using those products to solve temporary cash flow crunches, they strive to give those consumers a product that gives them more utility and at a dramatically better cost.
- He acknowledges that funding loans and giving credit is a risk. If you want to lend to you have to have a certain level of risk tolerance, even an appetite for it. Understanding you investment helps you judge correctly more times than not, and you need to be able to price for those times when you judge incorrectly.