This Fact Is 'Absent' From The Conversation Around Online Lenders

Conversations around online lending in the media tend to revolve around ways the industry seems to be on shaky ground, as evidence by a series of fiascos at LendingClub Corp LC.

However, one lending expert feels the conversation isn't focused on an important distinction where credit markets are concerned.

"A big chill that is conspicuously absent is credit deterioration or credit correction," Credibly CEO Glenn Goldman said in a recent interview.

"What the [lending] industry is experiencing right now really is a liquidity crunch. [The lack of a credit crisis] highlights the benefit that we bring...we are getting the user experience right," Goldman said.

Related Link: Myth Busting: Are Online Lenders Shadow Banks?

This indicates strength in the lending market, according to Goldman. Earlier in the interview, he noted that the majority of Credibly's clients take less capital than they are approved for -- a sign to Goldman that small business owners are making responsible credit choices.

"We have the opportunity here as an industry to right the ships, so to speak, diversity funding sources, share data in a more transparent way, and to create a great industry that we now have in front of us," Goldman concluded.