Marketplace lending is booming. Just this week, Avant raised $325 million and SoFi raised a staggering $1 billion. All of this money is being used to fund a new generation of digital lenders, who, according to McKinsey, have the potential to threaten up to 60% of consumer lending profits at traditional banks. Marketplace lenders use low cost, digital platforms to provide higher returns to investors and lower interest rates to borrowers.