Macquarie considers US fintech deals, but 'risk retention' a worry

Macquarie Bank is looking at a host of possible new online lending partners globally, but is worried regulators are closing in on the new players.

Ben Perham, head of strategy and corporate development at Macquarie, said like most banks, it is exploring deals with the various new lenders, including the many small business lenders and P2P lenders.

“We are [looking at] collaborating with US lenders and on the equity side as well,” he said. “We are hoping to partner with them and get some of their activities into Australia.”

But he pointed out that many originate and make the risk assessment on loans, but then sell them off completely, and regulators are discussing whether there is enough “risk retention” to keep risks under control.

“[Marketplace lender] Lending Club, for example, does not believe they should hold any of the loans they originate,” he said.

“We look at that and it worries us. Regulators are interested more and more in [the level of] risk retention.”

Source: Macquarie considers US fintech deals, but ‘risk retention’ a worry