Alternative lending done via the marketplace allows the investor to achieve higher returns by eliminating the role and cost of a traditional bank. Using technology, platforms are upending the traditional bank model, capitalizing on structural inefficiencies, and are compressing the costs of originating, servicing and funding loans. These lenders meet borrower and investor needs in a way that banks simply can’t. Borrowers typically receive lower interest rates than they would with a traditional loan, and investors are repaid with healthy rates of return, through monthly payments, minimizing default risk. Yields are based on borrower interest rates and credit characteristics, providing an alternative that is has low correlation to the traditional bond market.