A flood of new capital from hedge funds and other institutional investors entered the market. Bankers sat up and took notice. New asset classes — including small-business loans, real estate loans, and even loans for the purchase of solar panels — were pioneered. An ecosystem of ancillary firms matured. By December, roughly 100 different online platforms were operating in the U.S., according to one estimate. As a result of the industry's rapid growth and evolution, American Banker has named marketplace lending its Innovation of the Year. Here's one sign of dizzying change in this industry: American Banker's editorial staff recently had an internal debate over what moniker to use to describe it. Until recently, "peer-to-peer lending" was the preferred term for the business activity of companies like Lending Club and Prosper.

http://www.americanbanker.com/news/bank-technology/innovation-of-the-year-online-marketplace-lending-1071693-1.html