Online lending platforms have become a popular way for consumers to access credit. However, unlike traditional banks, these lenders may not be insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). This raises concerns about the safety of deposited funds.

To mitigate risks, it's essential to research and understand the lender's financial stability and regulatory status. Look for lenders that are registered with the Securities and Exchange Commission (SEC) and have a track record of transparency and customer satisfaction.

Additionally, consider diversifying your investments by splitting them across multiple platforms or exploring FDIC-insured options. It's also crucial to read and understand the terms and conditions of any loan agreement before signing.

Source: https://www.nytimes.com/2024/08/10/business/online-lending-banking-money-risks.html