The fintech sector has attracted great attention and support from both investors and authorities in recent years. But the very public pain at LendingClub – one of its biggest success stories – raises the possibility of tougher oversight from regulators too, analysts and experts have warned.

The San Francisco-based marketplace lender announced on May 9 that its chief executive and founder Renaud Laplanche had resigned following a board inquiry into loan practices. LendingClub revealed it had sold $22 million in loans to a single investor, which did not meet the investor's agreed loan criteria.