- Today’s main news: Affirm debuts shopping app. Zopa profits tick upward. RateSetter recovering from loan scandal. PPDAI stock rises 7% with lift in institutional-funded loans. Oportun ends Nasdaq debut with 8% gain. Australia: RBA cuts interest rates, online lenders follow.
- Today’s main analysis: The Future of Finance: Marcus, Neobank, and fintech. (A MUST-READ)
- Today’s thought-provoking articles: Peter Renton’s quarterly marketplace lending results. Loans for sneakers. Lessons learned from LendIt Fintech Europe. What’s happening in fintech worldwide.
- Affirm debuts new app for shoppers. The app allows consumers to shop and check out with “virtually any retailer.” This Business Insider article highlights Affirm’s need to step up its game in order to compete with Amazon, 66 percent of whose customers begin their search for new product at Amazon. Affirm will have to offer better deals for consumers and make it easy to purchase things. With Affirm’s relationship with Walmart, that shouldn’t be too much of a challenge. However, it will be a challenge.
- Affirm app allows for bill splitting.
- Interview with Max Levchin, founder and CEO of Affirm.
- OnDeck survey indicates small businesses are concerned about economy. Old news, still interesting.
- Marcus, jobs, the economy, housing prices, and Oportun. From PeerIQ, well worth the read.
- Peter Renton’s quarterly MPL results. For Q2 2019. Always interesting to read how Renton’s investments have been doing. With lots of charts.
- The rose of “loans for sneakers” as a business. The focus is on Afterpay, an Affirm competitor, but this is a good read because it tackles POS lending from a consumer’s perspective. Insightful and interesting.
- What happened to Borro?
- Auto, home equity are soft spots in consumer lending.
- Maker offers multi-collateral DAI lending.
- A $40 billion pile of leveraged loans battered by huge losses.
- CFPB ruling shorts debt collectors.
- The SEC is hiring a data chief.
- Voyager selects Celsius Network for asset management.
- Zopa’s profits tick upward.
- Zopa says 9 out of 10 shoppers are confused by car finance options.
- RateSetter recovering from loan scandal.
- Wonga customers average 118 GBP payout.
- Savvy secures 20 million GBP funding facility.
- Interview with founder of Blend Network.
- Crowdfunding options for startups explained.
- Lessons learned from LendIt Fintech Europe.
- Linked Finance launches ‘Beyond Brexit’ business loans.
- ID Finance to double revenues within two years.
- Binance launches next phase of crypto lending program.
- What’s happening in the fintech revolution worldwide. A great read with interesting charts.
- Marcus, Neobank, and fintech developments. This is today’s must-read. Very detailed with lots of charts, but the focus is mostly on digital banking. Still, a very good read.
- Blockchain: The future of finance.
- China: PPDAI stock soars 7% on institutional-funding lending increase.
- Australia: RBA cuts rates. Online lenders do too.
- Australia: loans.com.au cuts rates.
- Bahrain: Beehive funds first SME.
- Malaysia: The risks and rewards of SPV 2030.
- Australia: OnDeck appoints national broker chief.
- Canada: BFS Capital opens data science and engineering hub in Toronto.
- United States
- OnDeck Survey: Economy is Top Concern for Small Businesses Ahead of 2020 Election (New Kerala), Rated: AAA
- Affirm debuted a new app encouraging customers to start their shopping journeys with it (Business Insider), Rated: AAA
- Affirm ships new shopping and bill splitting app (Finextra), Rated: A
- Max Levchin On The Future-Present Of Everywhere POS Lending (PYMNTS), Rated: A
- Latest Macro; latest from Marcus; Oportun goes IPO (PeerIQ), Rated: AAA
- My Quarterly Marketplace Lending Results – Q2 2019 (Lend Academy), Rated: AAA
- The Maybe-Dubious Rise of the Loans-for-Sneaker Business (GQ), Rated: AAA
- What Happened to Borro? (deBanked), Rated: A
- Auto, home equity are soft spots in consumer lending (American Banker), Rated: A
- Finally! Maker Offers Multi-Collateral DAI Lending (Cryptovest), Rated: A
- A $ 40 Billion Pile of Leveraged Loans Is Battered by Big Losses (Bloomberg), Rated: A
- Ruling cuts short debt collectors’ victory lap over CFPB proposal (American Banker), Rated: B
- The SEC is hiring a chief data officer (Business Insider), Rated: B
- Voyager Selects Celsius Network to Manage Certain Assets (AP News), Rated: B
- United Kingdom
- Zopa’s P2P profits tick up but group losses widen due to heavy investment in bank (P2P Finance News), Rated: AAA
- Zopa: nine in 10 shoppers confused by car finance options (Verdict), Rated: A
- Ratesetter recovering from loan scandal (The Times), Rated: AAA
- Wonga customers’ average compensation payout may be just £118 (The Guardian), Rated: A
- Payday loan alternative Savvy secures £20 million funding facility (Finextra), Rated: A
- MEET THE FRENCHMAN WHO WANTS TO SOLVE THE UK’S HOUSING CRISIS (Business Leader), Rated: A
- Crowdfunding a start up options explained for businesses and investors (What Investment), Rated: A
- Landlords wary of tax changes (Money International), Rated: A
- PPDAI Stock Soars 7% on Increase in Institutionally-Funded Loans (Capital Watch), Rated: AAA
- European Union
- What we learned at this year’s LendIt Fintech Europe (Business Insider), Rated: AAA
- Linked Finance launches ‘Beyond Brexit’ business loans (Bridging and Commercial), Rated: A
- ID on track to double revenues as it eyes €300m+ of revenue within 2 years (Fintech Finance), Rated: A
- Binance Launches New Lending Program Phase (CoinCodex), Rated: A
- A Guide to What’s Happening in the Fintech Revolution (Bloomberg), Rated: AAA
- Goldman’s $ 1.3B Marcus burn, Neobank £200MM loss; plus 14 short takes on top developments (Lex), Rated: AAA
- Blockchain: the future of finance (Financier Worldwide), Rated: A
- Hot home loan rates starting with a 2 (mozo), Rated: AAA
- loans.com.au jumps on October RBA home loan rate cut party (mozo), Rated: AAA
- OnDeck appoints Robbie Fidler as new national broker chief (IT Wire), Rated: B
- SPV 2030: Sharing of risks and reward (The Malaysian Reserve), Rated: A
- Beehive funds first SME in Bahrain (Arabian Business), Rated: AAA
- BFS Capital Opens New Data Science and Engineering Hub in Toronto (Financial Post), Rated: B
OnDeck Survey: Economy is Top Concern for Small Businesses Ahead of 2020 Election (New Kerala), Rated: AAA
OnDeck today announced the results of a national survey of U.S. small business owners that finds economic issues are the most important factors in determining their choice for president in 2020.
- Economic concerns arise in several dimensions, including tax policy, job growth, support for small businesses, government spending and the overall economic climate. These issues were cited as the top concerns of more than 33% of those surveyed;
- Immigration was an issue of interest for 11.3% of small business owners surveyed, ranking second behind the economy as a concern.
- 57% of small businesses surveyed said they were either Very Optimistic or Somewhat Optimistic about the economic outlook for their businesses;
- 93% of those surveyed said they plan to vote in the 2020 election.
- 60% of small business owners surveyed said they already know who they plan to vote for in the 2020 presidential election.
Affirm debuted a new app encouraging customers to start their shopping journeys with it (Business Insider), Rated: AAA
The point-of-sale (POS) financing provider
Affirm ships new shopping and bill splitting app (Finextra), Rated: A
Affirm’s app also allows consumers to pay at any brick-and-mortar store that accepts Apple Pay or Google Pay, which is increasingly important as 24% of consumers want the flexibility to look online and shop in-store.
Those with Apple Pay or Google Pay enabled have also seen up to 14% of transactions driven in-store, making the Affirm app a rare omnichannel solution for customer acquisition.
Max Levchin On The Future-Present Of Everywhere POS Lending (PYMNTS), Rated: A
Since Affirm’s launch, the landscape in the POS space is radically different than it was when Affirm entered. It is, first and foremost, a much bigger and more populated space than it once was. Other startups have come to the field — Afterpay, Uplift and Sezzle for example — but also bigger and more established names in financial services. In the last 12 months alone Square, Mastercard, PayPal and Chase have all rolled out POS installment lending products or enhancements as the market continues to pick up popularity among consumers, particularly younger ones.
Latest Macro; latest from Marcus; Oportun goes IPO (PeerIQ), Rated: AAA
Q4 is off to a brisk start. The jobs report released this past Friday shows 114K in net new jobs (vs expectations of 120K), generally flat wages, and a drop in the unemployment rate to 3.5%.
On the one hand, the US economy is near ‘stall speed’ – around 1 to 1.5% growth rate.
House prices are expected to rise 5.8% over the next year due to low mortgage rates.
Two major financing announcements this week. FinTech lender, Oportun, led by CEO Raul Vazquez, ends its Nasdaq debut with an 8% gain. The debut is notable as it represents a positive shift in the sentiment to the reception of lenders to the IPO market.
My Quarterly Marketplace Lending Results – Q2 2019 (Lend Academy), Rated: AAA
The upward trend in my returns continued in Q2, making it the fifth quarter in a row with increasing returns. My preliminary return for the 12 months ending June 30, 2019 is 6.20% (one investment is still not final), the best I have achieved since Q3 2017.
The Maybe-Dubious Rise of the Loans-for-Sneaker Business (GQ), Rated: AAA
Afterpay is one of a number of platforms that have sprouted up over the past couple years that are willing to float customers a couple hundred or thousand dollars to shop. In addition to it, there are Affirm, Sezzle, Klarna, and Quadpay. They are positioned as a more consumer-friendly option than credit cards, a whole host of services bent on—because this is 2019—disrupting the powers that be.
Globally, Afterpay, which launched in Australia, has over 4.6 million customers and 35,000 retail partners. In the U.S., where Afterpay only launched in May of last year, it has two million customers and is available at 6,500 retailers. Over three million people use Affirm, while another 500,000 have shopped with Sezzle.
Silicon Valley promises aside, Afterpay is, at best, a platform that allows you to take out what amounts to a small loan on an item. After an approval process—Afterpay does not check a credit score; others like Affirm do—the customer pays a fourth of the price upfront and the rest is paid off in three equal installments every two weeks.
Also new is the $1,500 limit, up from $500, that Afterpay raised after Hyde-McCormick proved himself a responsible shopper and the $87.50 payments currently due every two weeks.
What Happened to Borro? (deBanked), Rated: A
In 2013, Borro, an innovative online lending company that was poised to disrupt pawn shop lending forever, invited me to their stylish offices at 767 Third Avenue in Manhattan.
Borro made $50 million worth of such loans in 2013 and doubled that number in 2014.
Auto, home equity are soft spots in consumer lending (American Banker), Rated: A
In its quarterly report that tracks consumer delinquency trends, the American Bankers Association said that 30-day past-due rates ticked up in eight of 11 categories in the second quarter when compared with the first quarter, but stressed that delinquencies remain well below historic norms.
Finally! Maker Offers Multi-Collateral DAI Lending (Cryptovest), Rated: A
Maker DAO, the most active decentralized finance app on the Ethereum network, has announced a date for its long-awaited multi-collateral DAI generation. According to observers, November 18 may be the date MKR starts accepting other assets as collateral.
Multi-collateral DAI creation has the potential to be riskier in comparison to ETH-based models. Currently, Maker is deliberately over-collateralized at above 300%, with the minimum at 150%, due to the high volatility of crypto assets.
A $ 40 Billion Pile of Leveraged Loans Is Battered by Big Losses (Bloomberg), Rated: A
Loans tied to more than 50 companies have lost at least 10 percentage points of face value in just three months, according to data compiled by Bloomberg. Some have dropped a lot more, with lenders lucky to get back just two-thirds of their investment if they tried to sell.
Energy is the hardest-hit sector on the list, with more than $12 billion of loans falling more than 10 cents on the dollar. Consumer and health care follow, comprising around $8 billion and $5 billion of loans outstanding, respectively.
The SEC is hiring a chief data officer (Business Insider), Rated: B
The Securities and Exchange Commission is hiring its first chief data officer, according to a job posting for the role.
Voyager Selects Celsius Network to Manage Certain Assets (AP News), Rated: B
Voyager Digital, LLC, a subsidiary of publicly-traded Voyager Digital (Canada) Ltd (Ticker VYGR.CN), an industry-leading best execution crypto asset broker, today announced a partnership with Celsius Network, in which Celsius will manage a portion of Voyager’s digital assets.
Zopa’s P2P profits tick up but group losses widen due to heavy investment in bank (P2P Finance News), Rated: AAA
Zopa Group – which incorporates the P2P platform and upcoming digital bank – reported a pre-tax loss of £18.295m for the year ended 31 December 2018, compared to a pre-tax loss of £5.536m the previous year.
Zopa: nine in 10 shoppers confused by car finance options (Verdict), Rated: A
In a survey of 2,000 consumers, 47% of people who had recently bought a car with finance are unable to identify which type of finance deal they signed up for. Zopa estimates that the average car buyer could save up to £11,000 over the course of their lifetime by working out the best finance deal available.
Wonga customers’ average compensation payout may be just £118 (The Guardian), Rated: A
Customers who were mis-sold loans by the collapsed payday lender Wonga are expected to receive less than 10% of what they are owed in compensation after administrators revealed that only £41m will be put aside for claimants.
Payday loan alternative Savvy secures £20 million funding facility (Finextra), Rated: A
Stockport and Wilmslow based fintech company Savvy.co.uk is to create 25 jobs after securing a £20 million investment.
MEET THE FRENCHMAN WHO WANTS TO SOLVE THE UK’S HOUSING CRISIS (Business Leader), Rated: A
WHY DID YOU START BLEND NETWORK?
I started working in the financial industry as an FX trader before moving to trading gold and copper, both much more inefficient markets than FX. I realised that the UK property market was a hugely inefficient market in the sense that lenders and borrowers are not meeting. On the one hand, you have very experienced property developers across the country who are trying to access funds to build homes but traditional lenders are no longer active in providing development finance.
Instead, we lend in places such as Coventry, East Anglia, Doncaster, Northern Ireland. Northern Ireland is a very good example of our strategic approach to lending. Last year, we did around 80-85% of our business in Northern Ireland.
Crowdfunding a start up options explained for businesses and investors (What Investment), Rated: A
Crowdfunding a start up brings to mind the statement ‘Nothing worth having comes easy’, never truer than in the case of launching a start-up. Getting a new business off the ground will often require capital. Something which a lot of people don’t know how to go about getting.
- Reward based crowdfunding;
- Equity based crowdfunding;
- Debt based crowdfunding, and
- Donation based crowdfunding.
Landlords wary of tax changes (Money International), Rated: A
Half of the 200 landlords approached agreed tax changes and tougher mortgage borrowing criteria have thwarted their plans to buy more properties, while 15% admitted they had been put off buying homes to rent.
A third who still wanted to invest are considering a switch from buy to let to peer-to-peer lending secured against property, while 8% have already done so.
PPDAI Stock Soars 7% on Increase in Institutionally-Funded Loans (Capital Watch), Rated: AAA
The stock in PPDAI Group Inc (NYSE: PPDF) closed 7% higher on Wednesday, at $2.83 per American depositary share, after it announced a positive trend in funding of loans by its institutional partners and increased loan origination volume.
For the third quarter, the Shanghai-based company, which operates an online consumer finance marketplace, said in a statement on Wednesday that the volume of loans facilitated by its institutional funding partners jumped to $2.64 billion, up 91% from the second quarter. Total loan origination volume was above PPDAI’s guidance, it said, as it reached $3.51 billion, up 14% from the previous quarter.
What we learned at this year’s LendIt Fintech Europe (Business Insider), Rated: AAA
At the conference, Business Insider Intelligence identified four emerging themes that we expect to set the tone for the space for the next year: further proliferation of partnerships between banks and fintechs, increased focus on digital banks’ sustainability, accelerated innovation and disruption from small- and medium-sized business (SMB) lenders, and more challenges ahead for the UK’s P2P lenders.
- CYBG bank and price comparison site GoCompare recently partnered to offer an energy compare and switch service for all of CYBG’s B customers.
- Barclays bank partnered with SMB finance fintech MarketInvoice last year to give Barclays’ SMB clients access to MarkeInvoice’s solutions.
- French Banking-as-a-Service platform Treezor was acquired by Société Générale last year, as the bank looked to enhance its ability to innovate and decrease time to market.
Linked Finance launches ‘Beyond Brexit’ business loans (Bridging and Commercial), Rated: A
The new 18-month loan period will allow borrowers to access working capital facilities of up to €300,000 (approximately £265,194) in just 24 hours.
ID on track to double revenues as it eyes €300m+ of revenue within 2 years (Fintech Finance), Rated: A
ID Finance, the fintech operating in Europe and Latin America, saw revenue growth of over 100% in the first 9 months of 2019 and is on track to double its revenues to €90m revenue this year. The data science, credit scoring and digital finance company is now planning its first equity crowdfunding round via Crowdcube as it targets €300m+ of revenue within 2 years.
Binance Launches New Lending Program Phase (CoinCodex), Rated: A
The Binance cryptocurrency exchange has launched the latest phase of its relatively new lending program. For the program’s eighth installment, Binance is sticking with the model of short-term loans, as users only have to commit their crypto for 14 days.
A Guide to What’s Happening in the Fintech Revolution (Bloomberg), Rated: AAA
These underbanked markets, led by countries in Asia and Africa, have inspired fintech innovation that’s leapfrogging the technology available in the developed world. Ant Financial Services Group’s Alipay and Tencent Holdings’ WeChat Pay in China, Paytm in India, and Safaricom’s M-Pesa in Kenya are some well-known examples.
Take Facebook Inc.’s plan to launch a digital currency called Libra in 2020. The social network’s gigantic reach—more than 2.4 billion active monthly users—could draw a much wider audience to Libra than has used previous cryptocurrencies. For instance, global remittances by migrants reached a record $689 billion last year, according to the World Bank.
San Francisco-based 500 Startups staked 43 such companies in the 12 months ended June 30.
Goldman’s $ 1.3B Marcus burn, Neobank £200MM loss; plus 14 short takes on top developments (Lex), Rated: AAA
Goldman is losing $1.3 billion on Marcus, trying to build a Fintech leader. Etrade is going to lose $75 million from cutting trading fees to $0 to keep up with Robinhood. Revolut is losing £35 million on £60 million in revenue, with another £140 million burned by Atom, Monzo, Tandem, and the rest.
Generally speaking, from a deposit point of view, these are still all small businesses at £1 billion in assets (e.g., Betterment manages $20 billion).
The first is that the Robinhoods and Monzos of the world are 10x overpriced relative to the payments apps. I can sort of buy this — though money in motion is way easier to capture than money at rest. The second is that venture investors think a finance user is worth $1,500 in a digital bank.
Blockchain: the future of finance (Financier Worldwide), Rated: A
Recent examples of blockchain’s impact on financial markets go well beyond these initial applications or P2P lending or crowdfunding.
The first wave of applications in finance and banking is being driven by easily achievable gains in actively traded assets.
MasterCard incorporated a blockchain payment system providing vendors real time, lower cost settlements on cross-border transactions. Representing a consortium of more than 40 of the world’s largest banks, fintech firm R3 launched a payment system built on DLT platform Corda, to expedite intra-bank transfers.
St. Regis Aspen, a Colorado resort, is a partnership formed with a crowdfunding site, Indiegogo, that in lieu of a traditional IPO completed a private placement via DLT financing real estate. This sale of ‘tokens’ – fractional interests in the underlying property – raised $18m, compliant with securities laws.
Hot home loan rates starting with a 2 (mozo), Rated: AAA
The RBA has cut official interest rates for the third time this year, and already a handful of lenders have responded by slashing rates across their range of variable rate home loans. Right now, if your home loan doesn’t have a ‘2’ in front of it, you’re missing out.
OnDeck appoints Robbie Fidler as new national broker chief (IT Wire), Rated: B
Online SME lender OnDeck Australia has appointed experienced commercial lending operator Robbie Fidler as its national broker channel manager.
SPV 2030: Sharing of risks and reward (The Malaysian Reserve), Rated: A
BFS Capital Opens New Data Science and Engineering Hub in Toronto (Financial Post), Rated: B
BFS Capital, a leader in small business lending, has officially launched a data science and engineering hub in Toronto as the company accelerates its plans to develop best-in-class digital financial products for small businesses across the globe.
News Comments Today’s main news: LendingClub expands borrower program. Funding Circle forced to narrow range of valuation. Yirendai revenues come from haircut loans. Chinese P2P lenders explore southeast Asia. Borrowell passes 1M members, raises $20M. Today’s main analysis: 5 ASIC findings on marketplace lending. Today’s thought-provoking articles: US Core, inflation ease. Fintech lending algorithms discriminate […]
- Today’s main news: LendingClub expands borrower program. Funding Circle forced to narrow range of valuation. Yirendai revenues come from haircut loans. Chinese P2P lenders explore southeast Asia. Borrowell passes 1M members, raises $20M.
- Today’s main analysis: 5 ASIC findings on marketplace lending.
- Today’s thought-provoking articles: US Core, inflation ease. Fintech lending algorithms discriminate 40% less than traditional lenders. 3 big P2P lending overperformers, 1 underperformer. How Klarna helps the world shop like a queen.
- LendingClub expands borrower program. LendingClub’s network consists of more than 1,700 credit card, bank, and loan companies.
- Turning LendingClub’s worst loans into investment gold.
- Inflation miss. A PeerIQ analysis.
- Fintech lending algorithms discriminate 40% less than traditional lenders. A very interesting read.
- Buttigieg worries artificial intelligence may add racial bias to credit decisions.
- Commercial real estate crowdfunding eyes 18-hour cities for small investors.
- HSBC launches digital mortgage platform with Roostify’s help.
- The world doesn’t need another high-price lender. A Tearsheet podcast.
- Dave is launching a checking account to help users build credit score.
- CoreLogic launches Marketrac Platinum.
- Zirtue revolutionizes P2P lending.
- Sprout Mortgage launches ACORN automated underwriting system.
- Finicity integrates with LendingQB to optimize mortgage origination process.
- Cardholders sue Capital One.
- Fundbox tapped by OroCommerce to power net terms.
- Cross River poaches Laurel Road executives.
- Optimizely closes $105 million funding round.
- Quicken Loans Mortgage Services names EVP.
- Self Lender included in Fintech 50.
- No sign of breaking the circle. An interesting read on Funding Circle’s valuation.
- Three big P2P overperformers an 1 underperformer. According to 4th Way.
- British Business Bank funds Simply with 60 million GBP.
- One fifth of UK investors up exposure to debt investments.
- OakNorth completes loan to Oncore IT for Fuse Technologies acquisition.
- Brexit, drive for growth cause fintech IT salaries to surge.
- Lloyds launches open banking app for credit cards, savings.
- JPMorgan works on secretive digital banking project.
- FCA hints at more scrutiny of big tech, fintech.
- Yirendai revenues come from suspect haircut loans. I’m not sure what this will mean for China’s P2P lending industry. Could it lead to further setbacks?
- Chinese P2P lenders look to southeast Asia. Naturally.
- IMF recognizes 6 outstanding fintech companies.
- Canada: Borrowell passes 1 million members, raises $20 million. Congratulations!
- Australia: Five ASIC findings on marketplace lending. This is a must-read, an excellent analysis.
- International: Klarna helps the world shop like a queen. Literally, Klarna is a global company, taking ‘buy now, pay later’ to new places.
- India: All you need to know about P2P lending and commodities (video).
- Indonesia: Small companies turn to P2P lenders.
- Europe: Snask helps Klarna communicate with film, photography.
- Estonia: LHV Bank integrates with Estateguru.
- Canada: AltFi heads to Toronto in October.
- United States
- LendingClub Expands Program to Help Borrowers Actually Pay Off Debt (Lend Academy), Rated: AAA
- Turning Lending Club’s Worst Loans into Investment Gold (Towards Data Science), Rated: A
- Inflation Miss (PeerIQ), Rated: AAA
- Fintech algorithms discriminate 40% less than traditional lenders (Quartz), Rated: AAA
- Buttigieg worries tech may add racial bias to credit decisions (American Banker), Rated: A
- Commercial Real Estate Crowdfunding Eyes ’18-Hour Cities’ for Small Investors (The Street), Rated: A
- HSBC launches digital mortgage platform with help from Roostify (HousingWire), Rated: A
- Mirador’s Trevor Dryer: ‘The world doesn’t need another high price lender’ (Tearsheet), Rated: A
- Dave is launching a checking account that helps users build their credit score (Business Insider), Rated: A
- CoreLogic Launches Marketrac Platinum (CoreLogic), Rated: A
- Zirtue Revolutionizes Peer-to-Peer Lending (IT Business Net), Rated: A
- Sprout Mortgage Launches ACORN Automated Underwriting System (Yahoo! Finance), Rated: A
- Finicity Integrates with LendingQB to Optimize Mortgage Origination Process (PR Web), Rated: B
- Cardholders Seek to Capital-ize on Madden (The National Law Review), Rated: A
- Fundbox Tapped By Top B2B E-Commerce Software Provider OroCommerce to Power Net Terms (Fundbox Email), Rated: A
- Cross River poaches execs from student refinancing firm Laurel Road (American Banker), Rated: A
- Optimizely Closes $ US105M Financing Round (Which-50), Rated: A
- Austin Niemiec Named New Executive Vice President of Quicken Loans Mortgage Services (Yahoo! Finance), Rated: B
- Self Lender Awarded Inaugural Inclusive Fintech 50 (PR Newswire), Rated: B
- United Kingdom
- No sign yet of breaking out of circle (The Times), Rated: AAA
- Three Biggest Overperformers And One Underperformer In Peer-To-Peer Lending (4th Way Email), Rated: AAA
- British Business Bank adds £60m firepower to non-bank lender (AltFi), Rated: A
- One fifth of UK investors upping exposure to debt investments (Investment Week), Rated: A
- OakNorth completes loan to Oncore IT for the acquisition of Fuse Technologies (Fintech Finance), Rated: A
- Brexit and drive for growth sees IT fintech salaries surge (AltFi), Rated: A
- Lloyds first to launch open banking app for credit cards and savings (Fintech Futures), Rated: A
- J.P. Morgan working on a secretive digital banking project based out of London (TechCrunch), Rated: A
- Following Facebook’s Libra launch, UK regulator hints at greater Big Tech scrutiny (AltFi), Rated: A
- Yirendai Revenues Come From Suspect Haircut Loans (Seeking Alpha), Rated: AAA
- Chinese P2P lending platforms look to Southeast Asia amid industry purge back home (Technode), Rated: AAA
- XW Bank Welcomed by IMF as One of 6 Outstanding FinTech Companies From China (Yahoo! Finance), Rated: A
- European Union
- Snask helps Klarna to communicate its ‘smooth’ banking offer with off-the-wall film and photography (Creative Boom), Rated: A
- LHV Bank Integrates Estateguru Investments in Online Banking Dashboard (P2P-Banking), Rated: A
- How Klarna is Helping the World Shop Like a Queen (Power Retail), Rated: AAA
- Five key ASIC findings on marketplace lending (Cuffelinks), Rated: AAA
- All you need to know about P2P lending and Commodities (India Times), Rated: AAA
- Indonesian firms turn to P2P lenders for funds (Asia-First), Rated: AAA
- Borrowell passes one million members, raises $ 20 million in new capital (Zone Startups), Rated: AAA
- AltFi Toronto Summit 2019 (AltFi), Rated: B
LendingClub Expands Program to Help Borrowers Actually Pay Off Debt (Lend Academy), Rated: AAA
LendingClub shared a few stats on borrowers who choose this method:
- Save an average of nearly $900 over the course of their loan
- Cut their credit card interest rate nearly in half
- Increase their credit score in just three months
The product has been tested for over a year and LendingClub is working with a partner network of over 1,700 credit card, bank and loan companies to make the process seamless. What’s interesting is borrowers can add up to 12 creditors per loan which is an important feature since borrowers often hold balances across many cards.
Turning Lending Club’s Worst Loans into Investment Gold (Towards Data Science), Rated: A
This is a writeup of a machine learning project I completed. In this post I hope to:
- Describe my algorithm for predicting loan defaults.
- Use the algorithm to construct a portfolio of clean loans…
Inflation Miss (PeerIQ), Rated: AAA
US Core CPI rose by 2% YoY in May, just at the Fed’s target rate but below economists’ expectations. Consistently low inflation is boosting calls for a rate cut next week. The market is pricing in a 24% probability of a rate cut next week and a 76% probability of a rate cut in September.
Fintech algorithms discriminate 40% less than traditional lenders (Quartz), Rated: AAA
Algorithmic fintech lending is less discriminatory against minorities than traditional loan officers, according to a recent study of US mortgages. The findings signal hope that technology could provide financing that’s more fair, but the research also underscores how widespread discrimination remains.
The US housing market has long been prejudiced against minorities. When Latino and Africa-American borrowers are looking to buy a home, they usually end up paying 7.9 basis points (0.079 percentage points) more than whites to take out the mortgage, and 3.6 basis points more when they refinance the debt, according to a National Bureau of Economic Researchworking paper published this month.
Buttigieg worries tech may add racial bias to credit decisions (American Banker), Rated: A
Pete Buttigieg said the way credit scoring is done in the U.S. is fraught with inequality and he’s worried the process may get worse with systems based on artificial intelligence.
Commercial Real Estate Crowdfunding Eyes ’18-Hour Cities’ for Small Investors (The Street), Rated: A
When Clear Point Gardens, a 604-unit apartment complex in Columbus, Ohio, recently changed hands, it produced a nearly 43% gain in 16 months, an amazing windfall for investors in the deal.
All 68 of them.
The sale of Clear Point, financed with help from investors on CrowdStreet’s online platform, is the latest example of how online syndication is revolutionizing the way deals are financed in the $6 trillion commercial real estate market.
HSBC launches digital mortgage platform with help from Roostify (HousingWire), Rated: A
One of the world’s largest banks is about to join the digital mortgage revolution, as HSBC Bank USA, the U.S. arm of HSBC Group, announced that it is partnering with Roostify to launch a digital mortgage platform.
Mirador’s Trevor Dryer: ‘The world doesn’t need another high price lender’ (Tearsheet), Rated: A
Trevor started Mirador to fill this void of bank-originated small business lending. We talk about why he started Mirador with a lending as a service model and what painpoints he was addressing.
Dave is launching a checking account that helps users build their credit score (Business Insider), Rated: A
The Los Angeles-based company, backed by investors including Mark Cuban, the DJ Diplo, and hedge fund Mark 2 Capital, said on Tuesday it’s rolling out a new checking account product that reports all rent payments to credit agencies. The new feature, added to Dave’s original app, helps customers to build their credit. Dave plans to begin reporting utility payments later this summer.
CoreLogic Launches Marketrac Platinum (CoreLogic), Rated: A
With Marketrac Platinum, lenders and title companies can utilize the interactive platform to identify top performing real estate agents and brokerage firms to prioritize professional relationships based on market trends.
Zirtue Revolutionizes Peer-to-Peer Lending (IT Business Net), Rated: A
Sprout Mortgage Launches ACORN Automated Underwriting System (Yahoo! Finance), Rated: A
Sprout Mortgage, the innovative force in Non-QM lending, today announced the launch of its ACORN automated underwriting system (AUS) as part of an ongoing effort to deliver value-added services to its third-party origination clients.
Finicity Integrates with LendingQB to Optimize Mortgage Origination Process (PR Web), Rated: B
Finicity announced today an integration with LendingQB. LendingQB’s platform now uses Finicity’s digital Verification of Assets (VoA) solution to allow lenders to free up resources, increase processing speed and reduce mortgage fraud while providing borrowers with a more efficient and positive experience.
Cardholders Seek to Capital-ize on Madden (The National Law Review), Rated: A
Last week, three Capital One cardholders filed a putative class action in the Eastern District of New York, Cohen v. Capital One Funding, LLC,1 alleging that the rates of interest they paid to a securitization trust unlawfully exceed the sixteen percent threshold in New York’s usury statutes. The Plaintiffs seek to recoup the allegedly excessive interest payments and an injunction to cap the interest rates going forward.
Fundbox Tapped By Top B2B E-Commerce Software Provider OroCommerce to Power Net Terms (Fundbox Email), Rated: A
Cross River poaches execs from student refinancing firm Laurel Road (American Banker), Rated: A
Cross River Bank, a Teaneck, N.J.-based bank that focuses most of its energy on supporting fintechs, is hiring several people from the student loan refinancing company Laurel Road to its capital markets team.
Cross River’s fintech partners include Affirm, Circle, Best Egg, Coinbase, Rocket Loans, Stripe, Upstart and Transferwise.
Optimizely Closes $ US105M Financing Round (Which-50), Rated: A
Optimisation platform Optimizely has closed US$105 million in financing, including US$50 million in Series D funding. The funding, led by Goldman Sachs Private Capital Investing, also included Accenture Ventures.
Austin Niemiec Named New Executive Vice President of Quicken Loans Mortgage Services (Yahoo! Finance), Rated: B
Quicken Loans Mortgage Services (QLMS), the second largest mortgage lender serving the needs of brokers, regional banks and credit unions, today announced that Austin Niemiec has been named Executive Vice President.
Self Lender Awarded Inaugural Inclusive Fintech 50 (PR Newswire), Rated: B
Self Lender is pleased to announce its inclusion in the inaugural list of winners of the Inclusive Fintech 50. The Inclusive Fintech 50 is a competition launched in February to help early-stage fintech companies attract capital and resources to benefit the world’s 3 billion financially underserved people. The competition was organized by MetLife Foundation and Visa Inc., with global nonprofit Accion and World Bank Group member IFC.
No sign yet of breaking out of circle (The Times), Rated: AAA
The early days of a company’s life on the stock market tends to set the tone for what follows. The grief around Funding Circle’s listing began even earlier and has continued to plague it.
Days before trading in shares of the specialist online lender began at the end of September, Funding Circle and its bankers were gunning for a valuation of up to £1.75 billion, only to be forced to narrow the expected range shortly before it came to market, and then to price the shares at the lower level of 440p apiece.
Three Biggest Overperformers And One Underperformer In Peer-To-Peer Lending (4th Way Email), Rated: AAA
- Over £300 million lent.
- Maximum loan size to property valuation (LTV) 80% – better than all the major high-street banks.
- Average LTV: 72% – highly suitable for these kinds of mortgages.
- Average rent: 190% of the monthly mortgage payment.
- Over 90% of mortgages are to experienced and professional landlords.
- Reserve fund: 0.6% of outstanding mortgages – modest but useful.
- Type of lending: residential BTL.
- Typical risk of this type of bank lending: very low.
- P2P bad debts: none.
- Interest rate: 3.54% after expected bad debts.
- £65 million lent.
- Maximum loan size to property valuation (LTV) 75% and investors can choose to limit to 50% – lower than all high-street banks.
- Average LTV 60% – highly suitable for these kinds of mortgages and loans.
- Minimum rent on rental properties usually 110% of the monthly mortgage payment.
- Type of lending: residential and commercial rented properties up to five years; some development lending; a mix of senior and junior debt (junior means other lenders get repaid first if the borrower’s property has to be forcibly sold to repay the loans).
- Typical risk of this type of bank lending: low to moderate for shorter-term rental properties; moderate to high for developments and junior debt.
- P2P bad debts: none.
- Interest rate: 7.32% to 9.43% after expected bad debts (7.32%-12.13% before bad debts).
- £35 million lent.
- Maximum loan size to property valuation (LTV) 70% and investors can choose to limit to 50% – lower than all high-street banks.
- Average LTV 61% (against starting value of property) – very low for these kinds of loans.
- Type of lending: property development lending.
- Typical risk of this type of bank lending: moderate to high.
- P2P bad debts: none.
- Interest rate: 8% after expected bad debts (7.32%-12.13% before bad debts).
Rebuildingsociety – the Underperformer
- £15 million lent.
- Type of lending: unsecured small business lending to sub-prime.
- Typical risk of this type of bank lending: moderate to high.
- P2P bad debts: 17% of total lent in pounds
- Interest rates: estimate an average 5% after heavy losses.
British Business Bank adds £60m firepower to non-bank lender (AltFi), Rated: A
Simply, a non-bank lender, focused on SME asset financing has scored a a third financing tranche of £60m from the British Business Bank.
One fifth of UK investors upping exposure to debt investments (Investment Week), Rated: A
One-fifth of UK investors are increasing their exposure to debt amid low interest rates and Brexit uncertainty, according to research from FJP Investment, which found this number climbs to 34% when 18-to-35 year-olds are considered in isolation.
However, the independent survey – which comprises 950 investors – discovered 44% of participants are more focused on short-term debt investments over this financial year due to both political and economic uncertainty; this figure rose to 68% among under 35s.
OakNorth completes loan to Oncore IT for the acquisition of Fuse Technologies (Fintech Finance), Rated: A
The finance has been used for the acquisition of Fuse Technologies, a London based provider of unified communications tools.
Brexit and drive for growth sees IT fintech salaries surge (AltFi), Rated: A
London-based java developers lead the pack, commanding starting salaries of up to £60,000, followed by software developers in the capital on up to £55,000.
Intense competition between UK-based fintechs – lead by Revolut, TransferWise, OakNorth and Funding Circle – and high street banks attempting to upgrade their services has led to bidding wars in order to gain top level IT professionals, said the report called The UK Fintech Revolution.
Lloyds first to launch open banking app for credit cards and savings (Fintech Futures), Rated: A
Customers of Lloyds Bank, Halifax and Bank of Scotland are the first to see their savings accounts and credit cards in one place, thanks to open banking technology, reports Jane Connolly.
J.P. Morgan working on a secretive digital banking project based out of London (TechCrunch), Rated: A
A number of incumbent banks are known to be developing new digital-first products in a bid to keep the new wave of challenger banks at bay and now it appears that the latest to make that move is J.P. Morgan.
According to sources, the investment bank has begun recruiting for a secretive skunkworks project within London’s booming fintech industry. Very few details are known about what exactly J.P. Morgan plans to build, although TechCrunch understands the bank is busy hiring high level developers with full-stack and cloud-based dev skills for the new project, along with other personnel.
Following Facebook’s Libra launch, UK regulator hints at greater Big Tech scrutiny (AltFi), Rated: A
The FCA says technology is dramatically changing the markets it regulates and blurring regulatory boundaries in a new report into its activities.
Yirendai Revenues Come From Suspect Haircut Loans (Seeking Alpha), Rated: AAA
Over 60% of YRD’s FY 2018 revenues stem from “haircut loans” (P2P service fees charged to borrowers) that are prohibited by Chinese regulation. Recent developments in the P2P lending sector with regards to questionable lending practices, unethical collections, and usury are not being disclosed in YRD’s SEC filings, leaving U.S., Canadian, and international investors completely in the dark.
The Chinese P2P Lending Market
Unlike in developed countries, there are no administrative bodies (such as the U.S. Securities Exchange Commission) which regulate peer to peer lending exchanges in China. Instead, such services are regulated by self-organized internet associations and retail banks. The lack of meaningful oversight has caused the Chinese P2P lending market to bubble into $178.9 Billion in FY2018, almost 22 times the size of the P2P lending market in the United States and 447 times that of Japan’s.
Over 850+ fraudulent/ponzi lending platforms were exposed in FY 2018 alone.
But the bad numbers don’t end here:
– The total loan volume amounted to 245.9 billion in Q12019, down -55.5% Y/Y.
– 85.7 in new loans were lent in March 2019, down -53.5% Y/Y.
– Principal balance of all loans: 8,029 CNY billion, down -3.6% Y/Y.
– sum of P2P lenders and borrowers, up 21%.
Chinese P2P lending platforms look to Southeast Asia amid industry purge back home (Technode), Rated: AAA
A slew of Chinese fintech and peer-to-peer (P2P) lending platforms are looking to more lenient markets in Southeast Asia (SEA), following a prolonged industry crackdown in China that has left the sector reeling.
Over the past year, China’s regulatory clampdown on risky financial practices has wiped out more than half of the country’s P2P lending platforms. As of May, just 900 survived, down from almost 1,900 recorded a year ago.
In early June, Indian daily newspaper the Economic Times reported that Chinese fintech companies, including WeShare, 9F Group, and CashBUS, are exploring investment opportunities in the country’s burgeoning online lending sector, particularly in the P2P lending space.
XW Bank Welcomed by IMF as One of 6 Outstanding FinTech Companies From China (Yahoo! Finance), Rated: A
The International Monetary Fund (IMF) welcomed 6 outstanding FinTech companies from China including Ant Financial, WeBank and XW Bank.
Snask helps Klarna to communicate its ‘smooth’ banking offer with off-the-wall film and photography (Creative Boom), Rated: A
When Stockholm studio Snask was approached by Klarna, one of Europe’s biggest banks, to help communicate how its revolutionary payment solutions make life easier for its customers, it set out to create seven “never-seen-before” worlds.
LHV Bank Integrates Estateguru Investments in Online Banking Dashboard (P2P-Banking), Rated: A
You might wonder why that is relevant as most readers are unlikely to be LHV Bank customers. LHV Bank is a bank in Estonia.
I think it is highly interesting, as it is – to my knowledge – the first time a bank has integrated p2p lending investments in its customer interface. So the LHV bank customers, not only see their accounts and stock depots, but also their Estateguru investments conveniently listed in their online bank dashboard. Much has been talked about what role could banks have in p2p lending (mere transaction banks? providing credit lines?) and also there is a lot of speculation if PSD2 (open banking) will help fintechs to seize the access to the customer from banks because they could control the user interface in the future. But this is actually a first step a bank takes in the opposite direction. By aggregating “non-bank” information inside the dashboard, they aim to make the banking interface more useful for the customers.
How Klarna is Helping the World Shop Like a Queen (Power Retail), Rated: AAA
Klarna is the latest Buy Now Pay Later (BNPL) app to sweep through the world. Originating in Sweden, the BNPL platform allows users to purchase goods and schedule repayments in timeslots. At this point in time, Klarna is the first and only BNPL platform that’s available in the U.S. It’s also available in the UK, Denmark, Norway, Belgium and many other European countries.
Five key ASIC findings on marketplace lending (Cuffelinks), Rated: AAA
In April 2019, the Australian Securities and Investments Commission (ASIC) released its third report on marketplace lending, the Survey of marketplace lending providers: 2017–18. The report paints a clear picture of a once-nascent industry enjoying growth with new borrowing increasing by nearly 45% in the 2017-18 financial year. The report notes that this growth is moderating compared to the near doubling in funds borrowed the previous year (from $156 million to $300 million). By contrast, the Australian Bureau of Statistics (ABS) reports that overall personal lending has declined by an astonishing 24% in the 12 months to March 2019.
The ASIC report found that the average interest rate charged for marketplace loans entered into during the 2017–18 financial year was 11.5%, up from 10.5% in the 2016–17 financial year.
All you need to know about P2P lending and Commodities (India Times), Rated: AAA
Vinay Mathews, Founder and COO, Faircent and Sanjay Gakhar, Vice President, MCX talks about the benefits of investing via the P2P platform and Commodities, ET Wealth investment Workshop in Delhi Listen in!
Watch the video here.
Indonesian firms turn to P2P lenders for funds (Asia-First), Rated: AAA
Small companies in Asia-Pacific are tapping new funding sources, according to the Economist Intelligence Unit (EIU) study commissioned by Mastercard, with peer-to-peer (P2P) lending platforms in Indonesia reportedly posting USD1.4bn worth of transactions in 2018, an increase from USD20m in 2016.
Borrowell passes one million members, raises $ 20 million in new capital (Zone Startups), Rated: AAA
RFI alumni company Borrowell announced that it had reached significantly more than a million users, making it Canada’s largest consumer fintech company by that measure.
In addition to this membership milestone, Borrowell also confirmed that it has received $20 million in Series B funding.
AltFi Toronto Summit 2019 (AltFi), Rated: B
WED, 9 OCTOBER 2019, 08:30 – 17:30 EDT
Blind Bird tickets are now on sale at a 50% discount ahead of the Summit’s agenda being announced later this Summer.
News Comments Today’s main news: Kabbage expands into India. GreenSky launches loan product for elective health care. Lending Works hits 150M GBP in loans in five years. Ant Financial’s money market fund shrinks to two-year low. Ant Financial raised close to combined raise of all U.S., Europe fintechs last year. Varo Money raises annual percentage yield on savings accounts to […]
- Today’s main news: Kabbage expands into India. GreenSky launches loan product for elective health care. Lending Works hits 150M GBP in loans in five years. Ant Financial’s money market fund shrinks to two-year low. Ant Financial raised close to combined raise of all U.S., Europe fintechs last year. Varo Money raises annual percentage yield on savings accounts to highest in industry.
- Today’s main analysis: How personal loan purposes vary by state and credit scores (A MUST READ).
- Today’s thought-provoking articles: Lend Academy reviews SoFi Money. Mixed credit card issuers’ earnings. How online lenders shook SMB lending in the U.S. Where homeowners stay put the longest.
- GreenSky launches new elective health care loan product. I’m sure there’s a market for this. I’m certainly no expert in elective health care funding, but I’m sure there is a big market for this.
- Review of SoFi Money. I, too, signed up for a SoFi Money account, though I haven’t funded it yet even though I’ve been taken off the waiting list. This is an excellent review, and I agree with the conclusion that digital banking is at the earliest stages of mass adoption. There have been several challenger banks in Europe. The U.S. has been reluctant to adopt digital banking alternatives, but SoFi Money is likely one of the contenders to change that.
- Varo Money raises annual percentage yield on savings account to highest in the industry. Varo Money is another company that is challenging the traditional banking model. This is a competitive move.
- Mixed credit card issuers’ earnings. A PeerIQ analysis.
- How online platforms shook small business lending. An excellent read from Financial Times.
- How personal loan purposes vary by state and credit scores. A must-read LendingTree analysis.
- Where homeowners stay put the longest. Another LendingTree study that shows that cities with shorter housing tenure have greater price appreciation.
- dv01 raises $15 million.
- Kabbage poaches LegalZoom chief revenue officer.
- Elevate’s RISE starts scholarship to promote financial literacy.
- Petal raises $30 million.
- CrediFi takes aim at commercial real estate.
- LoanSnap raises $4.7 million.
- Oxygen gets $2.3 million in funding.
- CFPB announces $3.2 million settlement with online payday lender.
- Betterment opens office in Philadelphia.
- Numerated, PayNet partner on digital lending solution.
- Planet Home Lending open 26 new branches last year.
- Guaranteed Rate looking for senior litigation counsel.
- Lending Works hits 150 million GBP in loans in five years.
- LendInvest provides 7.35 million GBP in bridging loan in under seven days.
- Brexit blamed for slowdown in consumer lending.
- Ultimate Finance lends 1.4 billion to small firms.
- Factors of borrowing money online.
- Ant Financial raised almost as much money as all U.S., Europe fintechs combined. If there is truly a powerhouse fintech company, it’s Ant Financial.
- Cross River, Railsbank partner.
- Fintechs raised $39.6 billion in 2018.
- Kabbage expands into India. Kabbage is the first U.S.-based lender to enter India. This is significant, and given Kabbage’s reputation in the U.S., this move positions the company to do great things in India.
- Reserve Bank of India directs P2P lenders to file quarterly reports on key metrics.
- MobiKwik founder says lending is its star performer.
- Streamsource raises $1 million seed funding.
- 11 banks partner on blockchain-based SME funding.
- How P2P lending interest rates are set.
- 2019 P2P industry expectations.
- How to invest in P2P lending.
- IndiaMoneyMart takes P2P investment, wealth creation mainstream.
- CreditVidya gets $3 million in funding for credit score technology.
- Paisadukan gets new marketing advisor.
- China: Ant Financial’s money market fund shrinks to two-year low.
- Europe: Fintechs prepare for no-deal Brexit.
- Indonesia: P2P lending is third most complained about business sector.
- China: Illegal fundraising surged $44.5 billion.
- Australia: RateSetter to help fund South Australia Home Battery Scheme.
- Europe: Synsam Group, Klarna partner on contact lens subscriptions.
- Australia: ING hikes variable home loan rates.
- Asia: WeBank, Nanyang Technological University launch financial research center.
- United States
- GreenSky launches new loan product for elective health care (American Banker), Rated: AAA
- Is SoFi Money the Bank Account of the Future? (Lend Academy), Rated: AAA
- Mixed Credit Card Issuers’ Earnings (PeerIQ), Rated: AAA
- How online platforms shook small-business lending in America (Financial Times), Rated: AAA
- LendingTree Analysis Reveals How Personal Loan Purposes Vary by States and Credit Scores (PR Newswire), Rated: AAA
- Cities Where Homeowners Stay Put the Longest (LendingTree), Rated: AAA
- A George Soros-backed fintech has raised millions to analyze consumer loan trends just as recession worries pick up steam (Business Insider), Rated: A
- Kabbage hires chief revenue officer from LegalZoom (Biz Journals), Rated: A
- Varo Raises Annual Percentage Yield on Savings Account to Industry-Leading 2.80% (PR Newswire), Rated: AAA
- Elevate’s RISE Brand Announces Scholarship to Promote Financial Literacy (BusinessWire), Rated: A
- Credit card player Petal picks up $ 30m funding (Fintech Futures), Rated: A
- Fintech targets banks keen for out-of-market CRE loans (American Banker), Rated: A
- LoanSnap Raises $ 4.7M in Funding (Finsmes), Rated: A
- Oxygen gets $ 2.3m funding for digital banking life (Fintech Futures), Rated: A
- CFPB Announces $ 3.2 Million Settlement with Online Payday Lender (JD Supra), Rated: A
- Popular ‘robo-advisor’ Betterment picks Philly for its first office outside New York; to hire 20 by end of 2019 (Philly.com), Rated: A
- Numerated and PayNet Partner to Improve Digital Lending (BusinessWire), Rated: B
- Planet Home Lending Opens Several Branches; Sees Growth in Business Channels (PR Newswire), Rated: B
- Senior Counsel, Litigation (Employment Focus) (Built in Chicago), Rated: B
- United Kingdom
- Lending Works hits £150m of loans in five years (AltFi), Rated: AAA
- LendInvest provides GBP7.35 million bridging loan in under seven days (Property Funds World), Rated: A
- Brexit blamed for slowdown in consumer lending (P2P Finance News), Rated: A
- Ultimate Finance lends record £1.4bn to small firms (AltFi), Rated: A
- Primary Factors to Have At Hand When Borrowing Money Online (EconoTimes), Rated: A
- Ant Financial’s money market fund shrinks to 2-year low (Financial Times), Rated: AAA
- Cryptocurrency and pyramid schemes add to US$ 44.5 billion surge in illegal fundraising in China (SCMP), Rated: A
- European Union
- Europe’s fintech companies are preparing for a no-deal Brexit (CNBC), Rated: AAA
- Synsam Group and Klarna Launch Innovative Contact Lens Subscription in the Nordics (Webwire), Rated: A
- China’s Ant Financial raised almost as much money as all US and European fintech firms combined (Quartz), Rated: AAA
- Cross River and Railsbank Announce Partnership (BusinessWire), Rated: A
- Fintech companies raised a record $ 39.6 billion in 2018 (Reuters), Rated: A
- Canada’s Eguana will set up local manufacturing to join South Australia Home Battery Scheme (Energy-Storage.news), Rated: AAA
- ING latest lender to hike variable home loan rates (Mozo), Rated: A
- Small Business Lender Kabbage Expanding to India (Lend Academy), Rated: AAA
- RBI directs P2P lenders to file quarterly reports on key metrics (TechCircle), Rated: AAA
- Lending has been our star performer: MobiKwik founder (India Times), Rated: A
- Blockchain-based Loan Marketplace Streamsource Raises $ 1 Mn Seed Funding from Accel India (IndianWeb2), Rated: A
- Indian banks unveil blockchain-linked funding for SMEs (Fintech Futures), Rated: A
- How are interest rates set on P2P platforms? (India Times), Rated: A
- IndiaMoneyMart App Brings P2P Investment and Wealth Creation for Masses (Business Standard), Rated: A
- P2P industry expectations from Budget 2019 (India Times), Rated: A
- Here’s how you can invest in peer-to-peer lending (CNBCTV18), Rated: A
- CreditVidya receives $ 3m funding to develop credit score tech (Fintech Futures), Rated: A
- Abhinav Kumar, of Trivago fame, joins Paisadukan as a marketing advisor (India Times), Rated: B
- P2P lending third most complained about business sector (The Jakarta Post), Rated: AAA
- NTU and Chinese online lender WeBank launch research centre (Straits Times), Rated: A
GreenSky launches new loan product for elective health care (American Banker), Rated: AAA
The Atlanta fintech on Tuesday announced the launch of a revolving credit line of up to $25,000. GreenSky previously offered only installment loans; the new product is designed to be a better fit for elective medical providers that rely heavily on repeat business.
Is SoFi Money the Bank Account of the Future? (Lend Academy), Rated: AAA
There are three main benefits that SoFi touts with the SoFi Money account:
- Pay zero account fees.
- Earn more interest.
- Free ATMs everywhere.
SoFi will pay (as of this writing) 2.25% on balances held in a SoFi Money account. Note about the small print: you will only earn this 2.25% for the first three months and then the interest rate drops to a (still respectable) 1.25% unless you do one of two things. Either setup a salary direct deposit of $3,000 or more a month or do $500 in debit card transactions each month. I am in the process of moving my salary deposit to my SoFi Money account.
The cash balance in SoFi Money Accounts is swept to one or more program banks where it earns a variable rate of interest and is eligible for FDIC insurance. FDIC Insurance is not provided until the funds arrive at partner bank. There are currently six banks available to accept these deposits, making customers eligible for up to $1,500,000 of FDIC insurance (six banks, $250,000 per bank).
Mixed Credit Card Issuers’ Earnings (PeerIQ), Rated: AAA
Credit card master trust data shows that delinquencies have picked up from their lows but remain significantly below their peaks. Issuers (with the exception of Capital One), have increased loan loss reserves at a rate higher than loan growth as credit renormalization continues.
30 and 90-day delinquency rates from credit card master trust data
How online platforms shook small-business lending in America (Financial Times), Rated: AAA
In the years after the financial crisis, small businesses that needed credit were stuck. New capital rules discouraged big banks from touching any borrower perceived as risky. The bond and loan markets, where larger businesses flocked for inexpensive debt capital, have little use for sums under $100,000 — which is what most small enterprises need.
A handful of non-bank lenders, payment and e-commerce companies have leapt into the gap. In an environment of easy money and economic expansion, small business lending operations at OnDeck, Kabbage, PayPal, Square and others have grown fast.
LendingTree Analysis Reveals How Personal Loan Purposes Vary by States and Credit Scores (PR Newswire), Rated: AAA
- Managing existing debt is far and away the most popular reason for a personal loan, representing 61 percent of all loan requests in 2018. Thirty-nine percent of borrowers plan to use their loans to consolidate debt, and 22 percent plan to use it to refinance credit cards.
- Consumers seeking personal loans to manage debt also requested the highest origination amounts: $14,107average amount for credit card refinance, and $12,670 for debt consolidation.
- Almost 15 percent of loans reasons are categorized as “other” — the third most popular choice. Home renovation and improvement loans are the next-most popular loan purpose, accounting for 7.7 percent of loan requests with an average loan amount of $12,384.
- New Englanders are the most likely to use their loans to manage existing debt, taking the top five spots. The residents of Mississippi, Louisiana, and Arkansas are the least likely.
- Washington, D.C. is home to the highest rates of a few offbeat loan purposes, with more residents requesting loans here for a move (7.4 percent) or business (2.6 percent). It’s also tied with New York and Louisiana as the place where wedding loans are most requested, with 1.5 percent of loans in these states intended to cover the costs of tying the knot.
- West Virginia is the top state for borrowers requesting loans for their home, specifically home improvements (8.6 percent of loans requested in this state) or home buying (4.9 percent).
- In Wyoming, residents request personal loans for medical expenses more than anywhere else (6.5 percent). In fact, most of the states where people are more likely to request a loan for medical costs are low-density states with more rural areas.
Cities Where Homeowners Stay Put the Longest (LendingTree), Rated: AAA
- Cities with shorter housing tenure have greater price appreciation. The top 10 cities had an average tenure of 7.46 years and an average three-year home price appreciation of 12%. The bottom 10, with an average tenure of 6.63 years, have average price appreciation 30%. This suggests that higher housing turnover drives prices upwards, while faster price appreciation could be enticing home owners to sell.
- The northeast dominates the list of cities with the longest tenure. The top three cities, Pittsburgh, New York and Buffalo are all in the northeast. An additional three northeastern cities are in the top 10 for a total of six.
- Hot and sunny places have the shortest tenures. The three cities with the shortest tenures — Las Vegas, Phoenix and Austin — are all in warm-weather areas. This reflects high migration rates to those cities, something we looked at in a prior study on where Americans are moving. Denver is the only city in the bottom 10 that experiences a significant winter season.
A George Soros-backed fintech has raised millions to analyze consumer loan trends just as recession worries pick up steam (Business Insider), Rated: A
dv01, a New York-based startup, has raised $15 million in a series B round led by Pivot Investment Partners, a venture capital firm started by a a trio of bankers who worked together at Deutsche Bank AG. One of those ex-bankers, Dinkar Jetley, will join dv01’s board.
Varo Raises Annual Percentage Yield on Savings Account to Industry-Leading 2.80% (PR Newswire), Rated: AAA
In a move to make high-yield savings available to more Americans, no-fee mobile banking company Varo Money, Inc., announced today that it raised the Annual Percentage Yield (“APY”) on its FDIC-insured Varo Savings Account to 2.80% for customers whose Savings Account balance is $50,000 or less, and who have qualifying direct deposits and debit card purchases from their Varo Bank Account.1 An APY of 2.12%1 will apply if these conditions are not met.
Elevate’s RISE Brand Announces Scholarship to Promote Financial Literacy (BusinessWire), Rated: A
Elevate Credit, Inc. (“Elevate”), a tech-enabled provider of innovative and responsible online credit solutions for non-prime consumers, today announced that its largest consumer product, RISE, will offer college scholarships in an effort to promote financial literacy.
The RISE scholarship will offer five $5,000 awards each year to students who demonstrate a desire to improve their financial knowledge and educate others on personal finance. To be eligible for the scholarship, students must complete an online financial literacy course that was developed in partnership with digital education expert EVERFI.
Credit card player Petal picks up $ 30m funding (Fintech Futures), Rated: A
New York-based credit card firm Petal is back in the money with $30 million in Series B funding.
This is Petal’s second investment from Valar, which was also the lead investor in its Series A funding round. Back in October 2018, Petal got $34 million in financing.
Fintech targets banks keen for out-of-market CRE loans (American Banker), Rated: A
As more banks take the often risky step of expanding outside their traditional markets, especially through digital means, some fintechs sense an opportunity to offer them data they need to find new customers and assess risk.
LendingClub, OnDeck Capital and Lending Tree are each online lending platforms that have bet on this trend. CrediFi, a finance data provider, aims to do the same with a focus on one of the largest asset classes around: commercial real estate.
LoanSnap Raises $ 4.7M in Funding (Finsmes), Rated: A
LoanSnap, a San Francisco, CA-based creator of smart loan technology, raised an additional $4.7M in funding.
The round, which brought total financing to $17M, was led by Thomvest Ventures and existing investors.
Oxygen gets $ 2.3m funding for digital banking life (Fintech Futures), Rated: A
San Francisco-based digital banking service Oxygen has raised $2.3 million in funding to breathe life into its gig economy plans.
In this round it got funding from Digital Horizon Capital; Cynthia Chen, investor, advisor, executive and board member for several US-based fintechs and now co-founder and chief risk officer at Figure; ZMT Capital (China); Locus Ventures; Endure Capital; PioneerFund; Magic City; Light Bridge; Strawberry Creek; Base Ventures; The House Fund and Sam Yam, co-founder of Patreon.
Better Mortgage Secures $ 70 Million in Series C Funding from American Express Ventures and the Healthcare of Ontario Pension Plan (PR Newswire), Rated: A
Better Mortgage, one of the leading digital mortgage lenders in the U.S., today announced its closing of $70 million in Series C financing from American Express Ventures and the Healthcare of Ontario Pension Plan (HOOPP), in addition to existing investors Kleiner Perkins, Goldman Sachs, and Pine Brook. The new capital will support continued growth and investment in Better’s technology platform.
CFPB Announces $ 3.2 Million Settlement with Online Payday Lender (JD Supra), Rated: A
On January 25, 2019, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with an online lender that extends unsecured payday and installment loans, as well as lines of credit, resolving allegations that the lender had engaged in unfair acts or practices in violation of the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531, 5536.
Popular ‘robo-advisor’ Betterment picks Philly for its first office outside New York; to hire 20 by end of 2019 (Philly.com), Rated: A
Betterment, a digital wealth manager popular among millennials, has picked Philadelphia for the first office outside its New York home base.
The company, which manages $15 billion in assets, plans to open a Philadelphia office as soon as February, according to founder Jon Stein. Betterment is looking for office space in Center City, with the intent of adding 20 employees in its computer and engineering departments by the end of 2019.
Numerated and PayNet Partner to Improve Digital Lending (BusinessWire), Rated: B
Numerated announces that it will integrate PayNet’s MasterScore v2 within its real-time lending and growth platform. PayNet, a leading commercial lending data and analytics firm, will integrate its proprietary database within Numerated’s customizable rules- and segment-based credit decisioning engine to offer banks additional business scoring criteria for managing risk when lending to businesses in real-time.
Planet Home Lending Opens Several Branches; Sees Growth in Business Channels (PR Newswire), Rated: B
Planet Home Lending, LLC opened 26 active distributed retail branches and brought on 165 mortgage loan originators in 2018. Planet Home Lending also enjoyed additional growth in 2018 in its other channels.
Senior Counsel, Litigation (Employment Focus) (Built in Chicago), Rated: B
Guaranteed Rate is building a winning team to reinvent the mortgage experience through innovation, technology and a relentless focus on providing industry-leading mortgage products and superlative customer service. The Senior Counsel will embrace and support these efforts by working to pursue claims and resolve disputes as appropriate through negotiation, arbitration or litigation, with a particular focus on employment claims and matters.
Lending Works hits £150m of loans in five years (AltFi), Rated: AAA
Lending Works, the peer-to-peer lender, has surpassed £150m in loans to households and firms.
LendInvest provides GBP7.35 million bridging loan in under seven days (Property Funds World), Rated: A
UK property finance specialist LendInvest has facilitated a GBP7.35 million bridging finance loan for a developer in just seven days.
Brexit blamed for slowdown in consumer lending (P2P Finance News), Rated: A
UNSECURED consumer lending has slowed to its lowest level since 2014, as Brits scale back their spending amid Brexit uncertainty.
The latest Bank of England Money and Credit statistics also found that the total number of mortgage approvals fell from 126,794 to 124,829 in December 2018, indicating an overall lag in the lending market.
Meanwhile, mortgage approvals for house purchase were around 63,800 in December – just slightly less than the 2018 average of 65,200.
Ultimate Finance lends record £1.4bn to small firms (AltFi), Rated: A
Small business financer Ultimate Finance said it lent a record £1.4bn to small firms across the UK last year.
The Bristol-based business said its overall lending jumped 35 per cent in the year to December 2018, boosted by writing more loans across its operations.
It said its bridging loans more than doubled to £31m over the period, asset finance jumped 37 per cent to £46m, while invoice finance also increased by almost a quarter to £117m.
Primary Factors to Have At Hand When Borrowing Money Online (EconoTimes), Rated: A
Online borrowing should be all about convenience, and Loanski loans have made this aspect their rising pillar for excellence. The only requirement for one to apply for a loan through the platform is they must be United Kingdom residents and have an active bank account. These minimum requirements essentially mean that anyone who uses their bank accounts frequently can have the pleasures of having an instant loan when they need it the most.
Ant Financial’s money market fund shrinks to 2-year low (Financial Times), Rated: AAA
The world’s largest money-market mutual fund, Ant Financial’s Tianhong Yu’E Bao, was at its smallest for two years by the end of last year as Chinese regulators pressured it to downsize over concerns about systemic risk.
The shrinkage is a sign that Ant, the financial services business of Alibaba Group, is shifting away from marketing its own financial products to serving as a platform for other groups to access its huge customer base.
Cryptocurrency and pyramid schemes add to US$ 44.5 billion surge in illegal fundraising in China (SCMP), Rated: A
Chinese police investigated more than 10,000 cases of illegal fundraising last year, a 22 per cent rise in the caseload, according to China’s top prosecutors.
The total amount involved also rose, more than doubling to about 300 billion yuan (US$44.5 billion), the Supreme People’s Procuratorate said on Wednesday.
Apart from traditional hotbeds such as product marketing, real estate investment, and education, there has been a big rise in fundraising schemes in online lending, wealth management, private equity, cryptocurrency, and elderly care services.
Europe’s fintech companies are preparing for a no-deal Brexit (CNBC), Rated: AAA
Europe’s fintech companies are getting serious about the possibility of a no-deal Brexit.
As uncertainty looms over the U.K.’s split from the EU, the industry gathered this week at the Paris Fintech Forum. Payments providers, cryptocurrency exchanges and digital banks all said they were taking steps to prepare for the worst-case scenario.
N26 is a Berlin-based digital bank that was recently named one of Europe’s largest fintech start-ups.
Synsam Group and Klarna Launch Innovative Contact Lens Subscription in the Nordics (Webwire), Rated: A
Synsam Group has over 50 years of experience in improving people’s eye health and is today Sweden’s largest optician chain with over 190 stores in Sweden, and 500 stores throughout the Nordic region. One of the company’s most popular services is Synsam Lifestyle Contact Lens Subscription, which includes home deliveries and annual contact lens examinations. To create a better and smoother customer experience, Synsam Group and Klarna have developed a new concept that allows customers to subscribe to contact lenses by using their mobile phones instore, while they can manage all the administration around the subscription online.
China’s Ant Financial raised almost as much money as all US and European fintech firms combined (Quartz), Rated: AAA
When it comes to financial technology companies, Ant Financial is in it own league. The affiliate of e-commerce giant Alibaba raised $14 billion in venture capital last year, not far from the $15.9 billion for all fintech investments in the EU and US in the same period. A key question is whether the growth of the world’s most valuable fintech firm is an anomaly or a sign of things to come from China.
Ant Financial accounted for 35% of global venture capital investment in fintech firms last year, according to CB Insights.
Cross River and Railsbank Announce Partnership (BusinessWire), Rated: A
Cross River Bank (“Cross River”), a leading innovator and provider of banking services for financial technology companies, and Railsbank Technology Limited (“Railsbank”), a leading UK-based open banking and RegTech technology services platform, today announced that they have entered into a partnership arrangement that will provide Railsbank the opportunity to offer a variety of API-powered, banking and payment processing services across the U.S.
Fintech companies raised a record $ 39.6 billion in 2018 (Reuters), Rated: A
In the last three months of the year, five companies joined the coveted ranks of fintech “unicorns”, or companies valued at more than $1 billion. These include credit card provider Brex, digital bank Monzo and data aggregator Plaid.
Canada’s Eguana will set up local manufacturing to join South Australia Home Battery Scheme (Energy-Storage.news), Rated: AAA
The South Australia Home Battery Scheme, launched by the state government, offers a maximum of AU$6,000 assistance per household for the purchase of battery energy storage. Home storage systems are typically, but not always, paired with solar PV, and homeowners can get back between AU$500 and AU$600 per kilowatt hour of battery storage capacity purchased.
Announced in September and then launched a month later, the scheme will assist up to 40,000 households financially, with the state government putting in AU$100 million and peer-to-peer lending group RateSetter later committing the same amount of funding in the form of low-interest loans.
ING latest lender to hike variable home loan rates (Mozo), Rated: A
Online lender ING has become the latest bank to lift its variable home loan rates following an announcement earlier today.
The lender will raise rates across all of its variable rate home loan products by 15 basis points, effective as of February 7, 2019.
Small Business Lender Kabbage Expanding to India (Lend Academy), Rated: AAA
Kabbage has opened an office in Bengaluru (formerly Bangalore) and plans to have 125 employees by year end. For comparison, the company has about 350 employees in their Atlanta headquarters.
To our knowledge Kabbage is the first US-based lender to enter the Indian market.
RBI directs P2P lenders to file quarterly reports on key metrics (TechCircle), Rated: AAA
Lending has been our star performer: MobiKwik founder (India Times), Rated: A
As of the end of the last financial year, we have a register user base of more than 107 Mn users and a network of over 3 Mn merchants. We are aiming at 400% growth this fiscal. We are aiming at 400% growth this fiscal. We are adding over 3 Mn new users every month, one of the highest in the industry. We will have close to 200 million users by the end of 2019.
Blockchain-based Loan Marketplace Streamsource Raises $ 1 Mn Seed Funding from Accel India (IndianWeb2), Rated: A
Gurgaon-based StreamSource Technologies, a decentralized marketplace for loans, has raised $1 million in seed funding from Accel India, making it Accel’s first local investment in the blockchain sector.
Indian banks unveil blockchain-linked funding for SMEs (Fintech Futures), Rated: A
A group of 11 Indian banks have teamed together to unveil the nation’s first blockchain-linked funding for SMEs.
According to the Economic Times, the participants include ICICI, Axis, HDFC, Kotak Mahindra, Yes Bank, Standard Chartered, RBL, South Indian Bank, IndusInd Bank, State Bank of India and Bank of Baroda.
How are interest rates set on P2P platforms? (India Times), Rated: A
“Borrowers on our platform are given a score out of 100, which determines their risk profile. A score of 52 to 60 points is high risk while a borrower with more than 60 points will get a lower interest rate,” says Bhavin Patel, Founder & CEO, LenDenClub.
IndiaMoneyMart App Brings P2P Investment and Wealth Creation for Masses (Business Standard), Rated: A
P2P lending or peer-to-peer lending is a mode of direct debt financing that enables individuals to borrow and lend money on mutual terms. Platforms like IndiaMoneyMart (IMM) eliminate the traditional financial institutions and enable businesses to flourish through a people to people contact.
P2P industry expectations from Budget 2019 (India Times), Rated: A
“While a great boost to the P2P industry would be via the regulator easing lending caps, we look forward to a critical role from the finance ministry for better financial inclusion by extending SOPs to retail investors,” says Dhiren Makhija, CEO, Cashkumar.
Here’s how you can invest in peer-to-peer lending (CNBCTV18), Rated: A
According to i2ifunding.com, a category A borrower may face the least risk while a category F borrower faces the highest risk.
Following interest rates are paid by borrowers across categories:
- A category borrowers – 12.00 percent to 14.99 percent
- B category borrowers – 15.00 percent to 17.49 percent
- C category borrowers – 17.50 percent to 19.99 percent
- D category borrowers – 20.00 percent to 22.49 percent
- E category borrowers – 22.50 percent to 24.99 percent
- F category borrowers – 25.00 percent to 36.00 percent
CreditVidya receives $ 3m funding to develop credit score tech (Fintech Futures), Rated: A
CreditVidya, an Indian alternative credit score firm, has raised $3 million in a funding round led by Bharat Innovation Fund.
Ryan Khoury, Navroz D. Udwadia and Rick Gerson (founding members of Falcon Edge Capital) also participated in the round.
Abhinav Kumar, of Trivago fame, joins Paisadukan as a marketing advisor (India Times), Rated: B
Digital marketing strategist Abhinav Kumar who shot to fame because of his appearance on television commercials of travel search engine Trivago has joined peer to peer lending platform Paisadukan as a digital marketing and branding advisor and also will be on the company’s advisory board.
P2P lending third most complained about business sector (The Jakarta Post), Rated: AAA
The country’s growing peer-to-peer (P2P) lending sector has become one of the most complained about business sectors partly because of high interest rates and aggressive debt collection practices, according to a report.
The report by the Indonesian Consumers Foundation (YLKI) shows online lending platforms are the third most complained about business sector while property and banking rank second and first respectively.
NTU and Chinese online lender WeBank launch research centre (Straits Times), Rated: A
Nanyang Technological University (NTU) and China’s first digital-only bank have opened a research centre that aims to help customers manage their finances in real-time wherever they are.
NTU research scientists and engineers from WeBank will also study how to provide personalised wealth management advice to customers, among other projects, in the five-year partnership.
News Comments Today’s main news: Upgrade completes $282M securitization. KBRA assigns preliminary ratings to SoFi Consumer Loan Program 2018-4 Trust. Funding Circle backs Just a Card. Monzo raises 85M GBP. Lendix changes name to October. Today’s main analysis: Which cities are spending within their means? Today’s thought-provoking articles: Total student loan balances by age group. Which cities are spending within […]
- Today’s main news: Upgrade completes $282M securitization. KBRA assigns preliminary ratings to SoFi Consumer Loan Program 2018-4 Trust. Funding Circle backs Just a Card. Monzo raises 85M GBP. Lendix changes name to October.
- Today’s main analysis: Which cities are spending within their means?
- Today’s thought-provoking articles: Total student loan balances by age group. Which cities are spending within their means? Why Kevin Zhang is bullish on Chinese P2P lending. The 25 most innovative fintechs.
- Upgrade completes $282 million securitization. Upgrade has now joined an elite club of marketplace lenders.
- KBRA assigns preliminary ratings to SoFi Consumer Loan Program 2018-4 Trust. As to be expected, the ratings are quite positive.
- Total student loan balances by age group. Excellent chart, with some additional news on exactly how much SoFi ads mislead.
- Which cities do well in spending within their means. Another LendingTree study.
- New study shows entrepreneurs need more mentoring.
- Popular Bank’s bid to streamline small business lending.
- Judge tosses RICO claims againt Montel Williams and payday lending website.
- What challenger banks get about small businesses that banks don’t.
- Even Financial acquires Birch Finance.
- Cred adds to global leadership team.
- Factual Data integrates with LendingPad.
- White Oak Commercial Finance hires new talent.
- Funding Circle backs Just A Card.
- Monzo raises $85 million GBP at 1 billion GBP pre-money valuation.
- iwoca connects to UK bank via open banking.
- P2P lending platforms reassure investors.
- OakNorth says artificial intelligence can fuel banks’ return to small business lending.
- The top 25 most innovative fintech startups. This is quite a list, with quite a few in the alternative lending space.
- BlockFi expands crypto lending services.
- Europe: Lendix changes name to October.
- China: X Financial’s Keven Zhang is bullish on P2P.
- Ireland: Property Bridges seeks investments as low as 500 euro.
- Australia: RateSetter puts $100 million AUS into home battery scheme.
- Singapore: Opportunity and risk in fintech.
- India: How do P2P lenders handle defaults?
- Australia: Xinja hires Brett King as advisor.
- India: Pramod Akhramka elected president of NBFC P2P lending association.
- United States
- Upgrade, Inc. Completes $ 282 Million Securitization (PR Newswire) Rated: A
- KBRA Assigns Preliminary Ratings to SoFi Consumer Loan Program 2018-4 Trust (Business Wire) Rated: AAA
- This company advertised student loan savings of more than $ 20,000. That promise was misleading (CNBC) Rated: AAA
- Spending Within Their Means: Some Cities Do It Better Than Others (PR Newswire) Rated: AAA
- New Study Reveals Entrepreneurs Need More Mentoring (Forbes) Rated: A
- Popular Bank’s bid to streamline small-business lending (American Banker) Rated: A
- Judge tosses RICO claims against Montel Williams, payday loan site (Reuters) Rated: A
- What challenger banks get about small businesses that banks don’t (American Banker) Rated: A
- Even Financial acquires Birch Finance, a credit card rewards startup (Tech Crunch) Rated: B
- Cred Adds PayPal, Goldman Sachs, Tradeshift Executives to Global Leadership Team (Business Wire) Rated: B
- Factual Data Announces Integration with LendingPad (Business Wire) Rated: B
- White Oak Commercial Finance Hires New Talent to Meet Growing Client Demand (AP News) Rated: B
- United Kingdom
- Funding Circle backs independent alternative to Black Friday (Peer2Peer Finance News) Rated: AAA
- Monzo, the UK challenger bank, raises £85M Series E at a £1B pre-money valuation (Tech Crunch) Rated: AAA
- iwoca becomes first business lender to connect to UK bank via Open Banking (Fintech Finance) Rated: A
- P2P platforms reassure investors over risks of borrower litigation (Peer2Peer Finance) Rated: A
- OakNorth: How AI Can Fuel Banks’ Return To SMB Lending (PYMNTS) Rated: A
- X Financial’s Kevin Zhang Is Long-Term Bullish For China’s P2P Sector (China Money Network) Rated: AAA
- European Union
- European Marketplace Lender Lendix Changes its Name to October (Crowdfund Insider) Rated: AAA
- New peer-to-peer property lending platform seeking investments as low as €500 (RTE) Rated: A
- These are the 25 most innovative FinTech startups in the world, according to KPMG (Business Insider) Rated: AAA
- BlockFi Blockchain Crypto Lending Platform Expands Services to the International Stage (Bitcoin Exchange Guide) Rated: A
- Peer-to-peer lending group puts in AU$ 100m funding for South Australia home battery scheme (Energy Storage News) Rated: AAA
- Australian neo-bank Xinja hires Brett King as Advisor (FinExtra) Rated: A
- How do P2P companies handle defaults? (The Economic Times) Rated: AAA
- Pramod Akhramka elected President of the association of NBFC P2P Platforms (News Barons) Rated: B
- New tech and FinTech: opportunity and risk in Singapore case study (The Nation) Rated: AAA
Upgrade, Inc. Completes $ 282 Million Securitization (PR Newswire) Rated: A
Upgrade, Inc., a consumer credit platform that offers affordable personal loans and personal credit lines with credit monitoring and education tools that help consumers better understand their credit, announced today it closed its inaugural securitization of personal loans. Upgrade Receivables Trust 2018-1 (“UPGR 2018-1”) issued approximately $282 million in notes to nearly 20 banks and asset managers.
This transaction marks the inauguration of Upgrade’s securitization program, designed as a quarterly issuance program. Credit Suisse and Jefferies acted as joint lead underwriters, and Upgrade served as sponsor, servicer and administrator for the transaction.
KBRA Assigns Preliminary Ratings to SoFi Consumer Loan Program 2018-4 Trust (Business Wire) Rated: AAA
Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by SoFi Consumer Loan Program 2018-4 (“SCLP 2018-4”). This is a $549.00 million consumer loan ABS transaction.
Initial credit enhancement levels are 37.29% for the Class A Notes, 29.29% for the Class B Notes. 17.96% for the Class C Notes and 8.96% for the Class D Notes. Credit enhancement consists of overcollateralization, subordination (in the case of the Class A Notes, Class B Notes and Class C Notes), excess spread and a reserve account funded at closing.
This company advertised student loan savings of more than $ 20,000. That promise was misleading (CNBC) Rated: AAA
SoFi’s ads boasted that its products led to people saving more than $20,000 on average. But, in its calculations, the company excluded student loan borrowers for whom refinancing resulted in a longer, and sometimes more expensive, repayment timeline than they had held prior, according to the FTC.
Spending Within Their Means: Some Cities Do It Better Than Others (PR Newswire) Rated: AAA
To determine where people can afford their financial obligations, LendingTree analysts combed through anonymized credit report data of My LendingTree users from August 2018 and compared it to the average household income from the latest U.S. Census Bureau data. The ranking of the 50 largest metro areas factored in data such as the number of credit inquiries from the past two years, the use of revolving credit lines, non-housing debt and mortgage balances.
- It may come as a surprise, but some of the most expensive U.S. cities have residents living within their budgets, suggesting that higher education and greater income may be the most salient factors for living within your means.
- San Jose, Calif. (Silicon Valley), San Francisco and Raleigh, N.C., top the list for cities in which people are living within their means. High incomes help residents of San Jose and San Francisco pay their bills (despite exceptionally high housing costs), while a modest mortgage-to-income ratio gives Raleigh a big boost.
- Residents of San Antonio, Riverside, Calif., and Las Vegas are struggling to meet their bills. Previous studies have shown that people spend a lot on vehicles in San Antonio, incomes are very low in Riverside and unemployment runs high in Las Vegas.
New Study Reveals Entrepreneurs Need More Mentoring (Forbes) Rated: A
Popular Bank’s bid to streamline small-business lending (American Banker) Rated: A
Popular Bank in New York has contracted with Biz2Credit to use its software for automating commercial loan approvals and to outsource the underwriting of certain small-business loans — a move that is part of a broader effort among banks to better compete with online lenders.
The $9.5 billion-asset Popular Bank started using the loan software earlier this month, said Rohit Arora, the CEO of Biz2Credit, an online marketplace that connects lenders and small businesses seeking credit.
Financial terms of the contract were not disclosed.
Judge tosses RICO claims against Montel Williams, payday loan site (Reuters) Rated: A
TV personality Montel Williams and a payday loan website he endorsed do not have to face racketeering charges for allegedly marketing illegal payday loans, a federal judge in California ruled on Tuesday.
U.S. District Judge Jeffrey White in Oakland granted a judgment in favor of Williams and online firm MoneyMutual, saying borrowers suing them failed to show that they participated in coordinated activity to commit fraud, as required for claims under the U.S. Racketeer Influenced and Corrupt Organizations Act.
What challenger banks get about small businesses that banks don’t (American Banker) Rated: A
The ranks of challenger banks offering financial products and services to small businesses are growing.
But what do these firms offer that banks don’t or won’t?
In interviews, several executives argue that they make the process easier and more user-friendly. Loans can be approved quickly and digitally and challenger banks say they can provide a better customer service experience than traditional institutions.
Strong mobile apps
Only 52% consider their bank’s mobile banking solution to be satisfactory, according to Javelin surveys.
Even Financial acquires Birch Finance, a credit card rewards startup (Tech Crunch) Rated: B
On the heels of a funding round to the tune of $18.8 million, Even Financial has acquired Birch Finance for an undisclosed sum.
Cred Adds PayPal, Goldman Sachs, Tradeshift Executives to Global Leadership Team (Business Wire) Rated: B
Cred, the leading provider of crypto-backed lending with over $250 million in credit facilities, today announced the addition of three executive team members. Maxim Rohkline joins as Chief Product Officer, James Alexander joins as Chief Capital Officer, and Richard Oh joins as GM of Asia. Each executive brings a 20+ year proven track record of financial technology innovation, spanning capital markets, online lending, payment systems, risk management, and analytics.
Factual Data Announces Integration with LendingPad (Business Wire) Rated: B
Factual Data, one of the nation’s premier providers of credit and data verification services to lenders nationwide, today announced an integration of its credit reporting capabilities with LendingPad (www.lendingpad.com), a leading provider of loan origination software headquartered in McLean, VA.
This integration allows clients to order tri-merged credit reports directly from Factual Data. Credit reports are merged in LendingPad’s document management system and liabilities data is updated in real time. The integration is available to all LendingPad users and will automatically populate credit information into the platform.
White Oak Commercial Finance Hires New Talent to Meet Growing Client Demand (AP News) Rated: B
White Oak Commercial Finance, a division of White Oak Global Advisors, today announced the appointment of Robert Dean to Managing Director of Risk Management for ABL and Factoring. Mr. Dean joins from Wells Fargo Capital Finance, where he served as Senior Vice President and Regional Sales Manager responsible for sourcing and structuring asset-based financing for middle-market companies with credit needs ranging from $5 million to $40 million.
Funding Circle backs independent alternative to Black Friday (Peer2Peer Finance News) Rated: AAA
FUNDING Circle has teamed up with small business campaign group Just A Card to provide an alternative to the annual Black Friday shopping event.
The peer-to-peer business lending giant will help promote the Just A Card campaign – run by artists, designers and small business owners – to encourage people to shop locally in the run up to Christmas.
The joint campaign will take place during Just A Card Indie Week on 19 November, the week before Black Friday where bigger retailers hold sales.
Monzo, the UK challenger bank, raises £85M Series E at a £1B pre-money valuation (Tech Crunch) Rated: AAA
Monzo, the U.K. challenger bank that now boasts more than a million customers, has raised £85 million in Series E funding. The round is led by U.S. venture capital firm General Catalyst and Accel. Existing backers Passion Capital, Goodwater, Thrive Capital, Orange Digital Ventures and Stripe also participated.
Meanwhile, the bank upstart is also planning to launch a large crowdfunding round later this year. Like a lot of other fintechs — and before it was fashionable — Monzo has historically opened up its fundraising to its passionate community and other armchair investors.
iwoca becomes first business lender to connect to UK bank via Open Banking (Fintech Finance) Rated: A
iwoca, one of Europe’s fastest growing small business lenders, has today successfully released Open Banking for all new customers with a Lloyds Bank account. The company becomes the first ever business lender to connect with any of the UK’s nine largest banks under the Open Banking initiative, launched in January 2018.
By securely linking their Lloyds Bank data, business owners can now provide iwoca up to five years of transaction history with a few quick clicks of a mouse. This speeds up the lender’s already swift application process even further for Lloyds customers, reducing the time they spend submitting bank information to less than 60 seconds.
P2P platforms reassure investors over risks of borrower litigation (Peer2Peer Finance) Rated: A
A property developer who borrowed money from Lendy is threatening to sue the P2P property platform and its investors for £10m, after Lendy put the developer’s loans in default.
Lendy has described the threat as “vexatious” and with “little prospect of victory.”
This has prompted Lendy investors who are on other platforms to seek clarification on the risks involved in the wider sector.
OakNorth: How AI Can Fuel Banks’ Return To SMB Lending (PYMNTS) Rated: A
Small businesses (SMBs) left behind by their banks, thanks to tightening risk and capital requirements post-financial crisis, certainly left a gap in the SMB lending market that alternative and marketplace lenders rushed to fill. In the U.K., support for FinTech, as well as challenger banks, to boost competition in the small business lending market is driven by the oft-repeated conundrum for this industry: small businesses are more complex than a consumer, yet not as lucrative as a large enterprise, and are, therefore, unattractive borrowers to traditional, large lenders.
With a growing community of alternative finance (AltFin) players, banks have taken to either letting AltFin handle filling the small business lending gap or partnering with and acquiring those FinTech firms to retain their SMB customers. Yet, a gap remains. While the Goldilocks Conundrum offers a simple explanation as to why, a deeper dive into the issue of small business bank lending reveals a far more complex issue.
According to OakNorth Analytical Intelligence, both large banks and alternative FinTech firms are struggling to overcome the challenges of SMB lending, and it often comes down to data. Amir Nooriala, COO of OakNorth, said that to underwrite an SMB loan, financiers have to take in and analyze unstructured data.
X Financial’s Kevin Zhang Is Long-Term Bullish For China’s P2P Sector (China Money Network) Rated: AAA
China’s online peer-to-peer (P2P) lending industry will grow at an estimated annual growth rate of 30% to 40% after the government’s tightened regulations weeding out bad and small players in the following two to three years. That’s the projection of Kevin Zhang, chief financial officer of X Financial, a Chinese P2P lender that completed a listing in New York two months ago.
European Marketplace Lender Lendix Changes its Name to October (Crowdfund Insider) Rated: AAA
The news was leaked last week. Now it’s official. From its Paris headquarters, Olivier Goy, founder and CEO, announced that the European lending marketplace formerly known as Lendix is changing its name into October. With this name change the company reasserts its ambition to expand both into new geographies and new products.
Why October? Among other things, the name celebrates the 4th anniversary of the company founded in October 2014. But more importantly, it is better suited to support the company’s international ambitions. Earlier this year, Lendix / October raised €32 million to fuel its international expansion. The marketplace already operates in four countries: France, Spain, Italy and the Netherlands where it has helped finance more than €230 million worth of SME loans. October as a name is easy to understand, to remember and to spell in most languages.
Another important reason behind the name change is that October as a name frees the company from an exclusive association with the lending category. We can expect more announcements soon. A banking license? Bonds retail? An equity platform? We can expect the unexpected from October.
Ireland’s first online peer-to-peer lending platform for property investors went live yesterday.
Property Bridges is targeting investors who are finding it difficult to secure a loan from a bank, or who need funding relatively quickly, with people able to invest in projects with as little as €500.
Marc Rafferty – who was also an investor in the SME peer-to-peer lending platform Linked Finance – is one of the Co-founders of Property Bridges.
These are the 25 most innovative FinTech startups in the world, according to KPMG (Business Insider) Rated: AAA
KPMG, a global network of professional firms providing audit, tax and advisory services, has just published its ranking of the 100 most innovative fintech start-ups.
Several factors were taken into account to establish this ranking, including the amount raised on average over a year or the degree of innovation of their products or services.
24. N26 – Offering a mobile banking app that operates without a single physical branch, N26 is expecting to enter the US market in the first quarter of 2019 — the company is a new entry in this year’s ranking.
22. Monzo – Monzo, a new entry to the list, is a digital bank focused on building the best current account in the world.
19. Klarna – Klarna is a leading European provider of e-commerce payment options that distinguishes payers from buyers — the company came 14th in last year’s ranking.
5. SoFi – Social Finance Inc. is an online finance company that provides lending products, such as student loan refinancing, mortgages, and personal loans — SoFi came 11th in last year’s ranking.
1. Ant Financial – Ant Financial Services Group is dedicated to using technology to bring the world equal opportunities.
Their technologies, from blockchain and artificial intelligence to security, the Internet of Things and computing, have helped Ant Financial to “serve the unbanked and underbanked”.
BlockFi Blockchain Crypto Lending Platform Expands Services to the International Stage (Bitcoin Exchange Guide) Rated: A
BlockFi, a blockchain-based platform backed by Galaxy Capital, is taking its lending services to the global market.
The primary objective of BlockFi is to provide incremental liquidity for clients in the cryptocurrency space. Recently, the company expanded its customer service team to onboard Spanish and Mandarin speakers. In Q3 2018, half of the traffic on the BlockFiwebsite came from users residing outside the US. These foreigners were also responsible for 33% of loan applications on the platform.
Peer-to-peer lending group puts in AU$ 100m funding for South Australia home battery scheme (Energy Storage News) Rated: AAA
An extra AU$100 million (US$70.76 million) of funding could be put into a rebate scheme for households buying energy storage systems in South Australia, after a peer-to-peer lending group stepped in.
Peer-to-peer lending company RateSetter has agreed to finance the sum as part of the South Australian government Home Battery Scheme, which has committed to granting 40,000 households in the state up to AU$6,000 each in subsidies towards the purchase of batteries for use in home solar-plus-storage solutions. The Home Battery Scheme also allows households to finance the unsubsidised remainder of the cost, as well as rooftop solar. Launched in September, the scheme is partly motivated by the need to help manage peaks in energy demand on the state’s grid network.
Australian neo-bank Xinja hires Brett King as Advisor (FinExtra) Rated: A
Xinja, which is building a 100% independent digital bank, or ‘neobank’ for mobile, (subject to it receiving a banking licence) is adding significant global expertise to its organisation with the announcement that Brett King will act as a permanent advisor to the Board, and help guide Xinja’s strategic direction.
Brett King founded neobank Moven in 2011, which launched the world’s first mobile, downloadable bank account. He is widely considered the most influential expert on retail banking innovation globally.
How do P2P companies handle defaults? (The Economic Times) Rated: AAA
Many investors get excited the moment they hear that P2P lending can earn them higher double-digit returns. However, the very next moment they would ask: what happens if the borrower defaults? How do P2P companies handle such defaults.
To begin with, P2P companies assess the financial footprints of the borrower through different sources as per their own credit evaluation system. “We try to ensure that loans are advanced to genuine customers with a structured credit evaluation process. Usage of alternate data also helps in refining the process to gauge the intent of a customer,” says Dhiren Makhija, co-founder and CEO, Cashkumar.
Pramod Akhramka elected President of the association of NBFC P2P Platforms (News Barons) Rated: B
Pramod Akhramka, Founder and Managing Director of OML P2P has been elected as the President of the newly formed association of NBFC P2P Platforms. Rajiv Ranjan, Founder of PaisaDukan has been appointed as the Secretary and Mukesh Bubna, Founder of Monexo has been elected as the Treasurer of the association.
To represent the NBFC-P2P lending industry at international forums, existing and new players in the industry has formed an association of NBFC P2P Platforms.
New tech and FinTech: opportunity and risk in Singapore case study (The Nation) Rated: AAA
DISRUPTIVE technology evolution has made a wide impact to global economies, the very first forefront business that feel this in both positive and negative way is financial service industry.
Due to the nature of business has been digitised and operated both locally and internationally when conduct business transaction and service. In this “global-digitisation” context, financial service firm must excel how to harness these technologies to improve efficiency and enhance customer experiences. New tech and fin tech in particular, have been increasing adopted by not only financial industry but also other businesses as well. This promote the collaboration and interdependency within and outside of the industry.
News Comments Today’s main news: Zuckerberg, Bezos, Gates back Wagestream. Funding Circle plans 300M GBP IPO. P2P lenders take in 300M GBP in second year of IFISA. Hong Kong receives 29 bids for virtual bank licenses. Today’s main analysis: Does fintech has a vicious funding circle? Today’s thought-provoking articles: Samir Desai discusses Funding Circle’s IPO as plan to […]
- Today’s main news: Zuckerberg, Bezos, Gates back Wagestream. Funding Circle plans 300M GBP IPO. P2P lenders take in 300M GBP in second year of IFISA. Hong Kong receives 29 bids for virtual bank licenses.
- Today’s main analysis: Does fintech has a vicious funding circle?
- Today’s thought-provoking articles: Samir Desai discusses Funding Circle’s IPO as plan to conquer America. Q3 lending earnings insights. Sub-prime lenders shrug off Wonga’s political cloud. China’s fintech giants have the clout to dominate.
- Zuckerberg, Gates, Bezos back UK-based Wagestream. This makes sense, but I wonder if they may be thinking that their own employees will be the ones to take advantage of what Wagestream has to offer.
- Samir Desai on Funding Circle’s IPO as a path to conquer America. This is an excellent article with a lot of detail and critical perspective. It discusses more than Funding Circle and UK lending. There is also much to say about international competition, including China, U.S., Asia, and the rest of Europe. A great read.
- Does fintech have a vicious funding circle? This is a great quetion, and an excellent exploration into its answer.
- Q3 2018 Lending Earnings Insights. From PeerIQ.
- Scratch intros loan servicing platform that align interests of lenders and borrowers.
- Funding Circle to raise 300 milliong GBP in London IPO. This is an important IPO. Not just for Funding Circle, but for the online lending industry as a whole. Could it take Funding Circle beyond Europe?
- Funding Circle’s IPO will be open to existing investors.
- Don’t be blinded by Funding Circle’s wizardry.
- Funding Circle to host cryptocurrency event to promote women in fintech.
- Sub-prime lenders shrug off Wonga’s political cloud. After Wonga’s collapse, will there be another online lender to step up and take over the market?
- Kreos Capital is first in line for Wonga payout.
- P2P lenders record taking in 300 million GBP in IFISA’s second year.
- Cash ISA accounts are at an 18-year low.
- County Down Developments gets 250,000 GBP credit facility from Blend Network.
- Casper offered Klarna credit without permission.
- Fintech giants have the clout to dominate. And with the continued crackdown on smaller firms, they are the likely beneficiaries of the clamp down.
- Hong Kong Monetary Authority gets 29 bids for virtual bank licenses.
- Airwallex to seek virtual bank license.
- Banks expect stable earnings growth.
- State banks to boost lending.
- Australia: Wong’a collapse is a warning to Aussie fintechs.
- India: FinUp backs SlicePay.
- Indonesia: Kredivo hits speed bumps on Series B funding.
- International: Robo-advice is not dead.
- Sweden: Instantor opens up bank API.
- Australia: Micro lender makes a big difference.
- Israel: Tel Aviv on top 10 list for entrepreneurial undergrad programs.
- United States
- As Wonga Collapses, Zuckerberg, Bezos & Gates Back A Fairer Alternative To Payday Loans (Forbes), Rated: AAA
- Samir Desai On Funding Circle’s $ 2 Billion IPO And His Plan To Conquer America (Forbes) Rated: AAA
- The Risk of a Vicious Funding Circle in Fintech (Bloomberg) Rated: AAA
- Lending Earnings Insights (2018 Q3) (PeerIQ) Rated: AAA
- Scratch Introduces First Loan Servicing Platform To Align Financial Interests of Lenders and Borrowers (Scratch Email) Rated: A
- United Kingdom
- Funding Circle plans to raise £300m in London IPO (Financial Times), Rated: AA
- Funding Circle IPO will be open to platform’s existing investors (Peer2Peer Finance) Rated: A
- Don’t be blinded by the wizardry of tech darling Funding Circle (London Evening Standard) Rated: A
- Funding Circle to host cryptocurrency event to promote women in fintech (Peer2Peer Finance) Rated: B
- UK sub-prime lenders shrug off political cloud (Nasdaq), Rated: AAA
- Hedge fund Kreos Capital is first in line for Wonga payout deal after lending the collapsed payday loan company around £34m (This is Money) Rated: A
- P2P lenders record £300m intake in second year of the IFISA (P2P Finance News), Rated: AAA
- The end of the Cash Isa? Number of new accounts hits 18-year low (Moneywise), Rated: A
- P2P marketing clampdown ‘may restrict IFISA takeup’ (P2P Finance News), Rated: A
- Northern Irish housebuilder secures £250,000 from P2P platform (Development Finance Today), Rated: A
- Mattress start-up Casper offered credit in UK without permission (Financial Times), Rated: B
- China/Hong Kong
- China’s Fintech Giants Have The Money And Means To Dominate Despite The Wider Slowdown (Forbes), Rated: AAA
- HKMA Receives 29 Bids for First Round of Virtual Bank Licences (Regulation Asia) Rated: AAA
- Tencent-backed Airwallex to join push for Hong Kong virtual bank license (SCMP) Rated: A
- Stable earnings growth expected by mainland banks, but bad-loan worries linger (SCMP), Rated: A
- China’s state banks to boost lending as Beijing fans economy (Nikkei), Rated: A
- European Union
- INSTANTOR OPENS UP BANK API – PROVIDING UNIQUE ACCESS TO HALF A BILLION PEOPLE (Fintech Finance), Rated: B
- Robo-advice not dead: GlobalData (Financial Standard) Rated: A
- Collapse of UK payday lender Wonga sounds warning for Aussie fintech vigilance (Australian Financial Review) Rated:AAA
- Micro lender makes big difference (Latrobe Valley Express) Rated: A
- China’s FinUp, existing investors back digital lending startup SlicePay (VC Circle) Rated: AAA
- Southeast Asia’s startups suffer from Series B funding crunch, says Kredivo’s Gar (Deal Street Asia), Rated: AAA
- Tel Aviv Climbs on List of Top 10 Undergraduate Programs for Entrepreneurs (CTech) Rated: B
As Wonga Collapses, Zuckerberg, Bezos & Gates Back A Fairer Alternative To Payday Loans (Forbes), Rated: AAA
Samir Desai On Funding Circle’s $ 2 Billion IPO And His Plan To Conquer America (Forbes) Rated: AAA
Funding Circle has already facilitated over £5 billion ($6.37 billion) in loans since launching in 2010, mostly from its home U.K. market.
Funding Circle facilitated over £1 billion in loans to small businesses during the first six months of 2018 alone.
It’s now on track to become London’s biggest fintech IPO since global payments giant WorldPay’s bumper £4.8 billion ($6.1 billion) listing in 2015.
In the U.K. just 5% of businesses say Funding Circle when asked where they would go for finance, according to the company’s data, and 95% continue to chose their banks.
The Risk of a Vicious Funding Circle in Fintech (Bloomberg) Rated: AAA
There are fintechs, and then there are fintechs. Cheerleaders point to payments startups like Jack Dorsey’s Square Inc., whose stock has soared 242 percent in a year, as evidence of a Silicon-Valley-style revolution in the making. But there are sob stories, too: loan platforms LendingClub Corp. and On Deck Capital Inc. are still trading well below their IPO prices. Promises of break-neck expansion often crash into the reality of regulated finance.
Lending Earnings Insights (2018 Q3) (PeerIQ) Rated: AAA
We remain in the late stages of the credit cycle. The US consumer has benefitted from record low unemployment, rising incomes and home prices, and a lower tax rate. The supply of credit and competition to offer loans is increasing. Lenders are optimistic about consumer spending and debt levels, and are reserving for potentially higher losses in the future.
We see divergent credit performance across FinTech asset classes. Enova (Subprime) and OnDeck (Small Biz) are seeing near cycle-low charge-offs, while LendingClub (Prime) is seeing higher delinquencies on newer vintages. LendingClub also increased its charge-off estimates across loan grades by ~40 bps QoQ.
Card issuers are increasing loan loss reserves at a higher rate than loan growth, indicating expectations of higher losses going forward. Loan loss provisions are increasing at roughly twice the rate of loan growth across card issuers, but overall reserve levels are still low.
Scratch Introduces First Loan Servicing Platform To Align Financial Interests of Lenders and Borrowers (Scratch Email) Rated: A
Scratch, a new financial technology company started in 2015 to transform the antiquated business of getting America’s $13 trillion household debt repaid, introduced the first loan servicing platform to align the financial interests of lenders and borrowers.
The Scratch loan servicing platform empowers borrowers with a simple web application for understanding, managing and paying back their loans while providing lenders accurate, real-time portfolio insights. And, by automating the back-office complexities of loan management, Scratch can devote more resources to giving borrowers the attention and guidance they deserve.
Loan Servicing Crisis Persists
U.S. household debt composed of mortgages, student loans, auto loans, credit cards, home equity lines of credit, and other consumer loans, is at an all-time high and growing daily.
Today, household debt is at a high of $13 trillion and 8 out of 10 Americans carry some type of debt, including mortgages, credit cards, student loans, and auto loans. And everyone who has a loan has a loan servicer.
Funding Circle plans to raise £300m in London IPO (Financial Times), Rated: AA
Funding Circle has announced plans to become the first of Britain’s new generation of financial technology companies to go public, in a deal expected to raise £300m and value the peer-to-peer lender at more than £1.5bn.
The initial public offering of Britain’s biggest peer-to-peer lender will provide a significant test of investor appetite for the breed of fintechs that have sprung up in the past decade to challenge high-street banks. Funding Circle has arranged £5bn of loans to small companies in the UK, the US, Germany and the Netherlands since its launch in 2010 by connecting businesses looking to borrow money with retail and institutional investors willing to lend them money.
However, the company’s prospective value of more than £1.5bn is above the current value of US-listed peers OnDeck and Lending Club, which have both suffered tumbling share prices since their lPOs.
Funding Circle IPO will be open to platform’s existing investors (Peer2Peer Finance) Rated: A
FUNDING Circle has said it expects its existing investors will be able to become shareholders in the company after it goes public.
Funding Circle said that its initial public offering (IPO), if it goes ahead, would aim to raise around £300m, with at least 25 per cent of the company’s issued share capital to be placed on a free float.
In a blog post on its website, also on Monday, the P2P lender said that its customers would have the opportunity to apply to participate in the IPO and become a shareholder in Funding Circle via an intermediaries offer.
Don’t be blinded by the wizardry of tech darling Funding Circle (London Evening Standard) Rated: A
Given that Funding Circle’s flotation comes just days after the collapse of that other trailblazing fintech, Wonga, it’s hard not to compare the two.
Both were launched to fill the gaps in the lending market where traditional banks feared to tread. Both used tech wizardry to check they were lending to the right people at the right price. Both brilliantly deployed digital technology to make their services simple and fast to use.
Hopefully, for future investors, the similarities end there.
Funding Circle to host cryptocurrency event to promote women in fintech (Peer2Peer Finance) Rated: B
FUNDING Circle is to host a panel event focusing on cryptocurrency, described by the organisers as “one of the most interesting but least understood areas of fintech.”
The event is being held in connection with FinTechWomen, a London-based meet-up group, and is sponsored by Funding Circle.
UK sub-prime lenders shrug off political cloud (Nasdaq), Rated: AAA
UK sub-prime investors are shrugging off Wonga’s cloud. Customer complaints and a regulatory clampdown forced the payday lender to stop making loans. The likes of Amigo Holdings and Non-Standard Finance have different models, and regulators’ blessing. Yet, with Wonga out of the picture, they too risk becoming the focus of public ire.
Investors love it. Amigo’s return on equity will be around 40 percent this year, using Thomson Reuters I/B/E/S, while it and Non-Standard Finance should grow revenue on average by more than 20 percent each year up to 2021, analysts reckon. NSF, which has a more diversified business including unguaranteed loans, is valued at over 17 times forward earnings. Amigo’s shares were priced at 12 times forward earnings even after a selloff promoted by disappointing results on Thursday. The consumer finance sector on average trades at less than 11 times forward earnings, according to Eikon.
Hedge fund Kreos Capital is first in line for Wonga payout deal after lending the collapsed payday loan company around £34m (This is Money) Rated: A
A Mayfair hedge fund is at the front of the queue to be paid by collapsed Wonga as fears grow that thousands of its hard-up customers will get nothing.
Kreos Capital lent Wonga about £34million two years ago and is understood to be still owed around £10million by the payday loan company.
Under the arrangement, it is thought to be in line to collect that sum ahead of other creditors.
P2P lenders record £300m intake in second year of the IFISA (P2P Finance News), Rated: AAA
ALMOST £300m was invested across Innovative Finance ISAs (IFISA) in the previous tax year, HMRC data reveals.
The latest ISA statistics from the taxman shows £290m of subscriptions in IFISA for the 2017/2018 tax year across 31,000 accounts.
P2P lenders saved £9,355 on average.
Zopa revealed it received more than £150m in its IFISA during the previous tax year.
The end of the Cash Isa? Number of new accounts hits 18-year low (Moneywise), Rated: A
The data shows that savers subscribed to 10.8 million Isa accounts during the 2017-18 tax year, down from 11.1 million in the previous tax year. This represents a fall of 10%.
P2P marketing clampdown ‘may restrict IFISA takeup’ (P2P Finance News), Rated: A
Stuart Law, who heads up the business P2P lender, warned that the strong take-up of the IFISA could be hampered by the FCA’s proposed marketing restrictions for the sector.
Under the proposed changes, platforms would be restricted to marketing to those who are certified as sophisticated or high-net-worth investors or those that certify that they will not invest more than 10 per cent of their net portfolio in P2P agreements.
Northern Irish housebuilder secures £250,000 from P2P platform (Development Finance Today), Rated: A
The loan from Blend Network came after the housebuilder was turned down for a loan by Barclays.
Mattress start-up Casper offered credit in UK without permission (Financial Times), Rated: B
A US online mattress start-up backed by rapper 50 Cent has been forced to stop offering credit to UK customers, after it emerged it had been doing so without permission from the regulator.
Casper, a five-year-old company that is on a major European expansion drive, was allowing UK customers to buy on credit from Swedish bank Klarna.
China’s Fintech Giants Have The Money And Means To Dominate Despite The Wider Slowdown (Forbes), Rated: AAA
HKMA Receives 29 Bids for First Round of Virtual Bank Licences (Regulation Asia) Rated: AAA
Standard Chartered, WeLab, Zhong An Bank and HKT among several banking, technology and telecom firms applying for virtual banking licenses.
Twenty-nine financial and technology firms, including Standard Chartered and WeLab have submitted applications to obtain Hong Kong’s first online-only banking licenses.
The company shifted its headquarters to Hong Kong from Melbourne earlier this month as it prepares to submit a virtual banking license application, along with partners, ahead of Friday’s deadline.
Airwallex co-founder and chief executive Jack Zhang said the company will team up with a traditional bank and other local partners as part of the application process, although he declined to reveal their identities.
Another reason for the relocation to Hong Kong is proximity to major clients, including Tencent, online travel operator Ctrip, e-commerce JD.com as well as traditional lender Bank of East Asia.
And Beijing’s crackdown on the peer-to-peer lending sector – the shadow banking system that saw rampant illicit and risky behaviour continue in the first half of this year – has helped increase demand for corporate lending levels too.
The country’s big four banks – Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of Chinaand Bank of China – reported profit rises of between 5.2 and 7.9 per cent in the three months ending June.
China’s state banks to boost lending as Beijing fans economy (Nikkei), Rated: A
First-half earnings showed the lenders rallying after several years of low growth. Collective net profit rose 5.7% year on year to 532.1 billion yuan ($77.9 billion), while the lenders’ average ratio of bad debt fell 0.06 percentage point in six months to 1.52% at the end of June.
INSTANTOR OPENS UP BANK API – PROVIDING UNIQUE ACCESS TO HALF A BILLION PEOPLE (Fintech Finance), Rated: B
Today Instantor, the Swedish fintech company making financial decisions easy, announces, WDSK, The World Domination Starter Kit. The WDSK is an initiative to support start-ups and scale-ups to develop next-generation products by giving them access to Instantor´s Bank API with no associated costs for new Instantor customers. By using Instantors bank API, developers will have access to transactional data from over 300 banks in 25 countries, with the potential to reach half a billion people. Instantor´s bank API has an unrivaled reach, and the WDSK initiative includes access to several markets outside new Open Banking legislation. The authentication and the end user’s interaction with banks are handled by Instantor, and the data can be accessed once the end user has given their consent.
Robo-advice not dead: GlobalData (Financial Standard) Rated: A
The analyst suggested robo-adviser may be ahead of their time, given high net-worth demand for robo-advice is on the rise among the next generation of investors.
“While robo-advice is here to stay, it will take time to cement itself. The digitally-savvy next generation will embrace an automated service and big banks should capitalize on this. However, a big brand is not enough to justify much higher fees,” Woldemichael said.
To succeed, incumbents will have to provide a level of service, and prices, that are genuinely competitive with those offered by startups.”
Collapse of UK payday lender Wonga sounds warning for Aussie fintech vigilance (Australian Financial Review) Rated:AAA
The collapse of Wonga, one of Britain’s most high-profile fintech lenders, provides salient lessons for Australia, which considers the UK a template for financial technology policy and where tighter laws to protect vulnerable customers from payday lenders appear to have stalled.
Wonga, built around a slick app allowing customers to get expensive loans via their mobile phone, was “notorious for its extortionate interest rates and was a toxic symbol of Britain’s household debt crisis”, said The Guardian last week.
The payday lender “failed because it was too greedy and at times crossed the ethical line”, it said, quoting prominent UK financial columnist Martin Lewis, who described Wonga’s loans as “the crack cocaine of debt – unneeded, unwanted, unhelpful, destructive and addictive”.
Micro lender makes big difference (Latrobe Valley Express) Rated: A
Her heartfelt story was told at Good Money’s one-year anniversary last week during what Carol described as a “life-changing event” after borrowing money to buy essential appliances like a new fridge and washing machine.
The low to no-interest lender was set up in July last year in partnership with Good Shepherd Microfinance and the National Australia Bank, following a $2.3 million investment from the state government.
More than 2900 people made enquiries in the hub’s first year, and the store has provided more than 500 no and low-interest loans for household appliances, car-related expenses, household furniture and costs such as medical and education expenses.
China’s FinUp, existing investors back digital lending startup SlicePay (VC Circle) Rated: AAA
SlicePay, a digital lending platform which caters to college students and young professionals, has raised an undisclosed amount in an extended Series A round of funding led by Chinese firm FinUp Finance Technology Group.
The company said in a statement that existing investors Blume Ventures, Japan’s Das Capital, and Russia’s Simile Ventures had also participated in the round.
A person close to the development who did not wish to be named pegged the deal at $14.9 million (around Rs 105 crore at current exchange rates).
Southeast Asia’s startups suffer from Series B funding crunch, says Kredivo’s Gar (Deal Street Asia), Rated: AAA
Having recently raised what is estimated to be the largest Series B funding round for a fintech firm in Southeast Asia, Indonesia-focused lending platform Kredivo says the process was far from smooth sailing.
The company was forced to look beyond the region to raise the majority of its fund, as it found that there were simply very few investors in the region that specialized in doing Series B investments.
Tel Aviv University is among the top ten global undergraduate programs in terms of producing venture capital-backed entrepreneurs, according to a report published last week by Seattle-based market research company Pitchbook. Pitchbook ranked Tel Aviv in eighth place, up from ninth last year, above Yale, Princeton, and Brown.
Two other Israeli universities made the top 50 list: the Technion-Israel Institute of Technology came in at 14, while the Hebrew University of Jerusalem placed at 35.
News Comments Today’s main news: Elevate Credit expected to announce $203.49M in sales. Ant Financial delays IPO again. SocietyOne getting close to $500M in total lending, six years in. ClearScore to offer credit scores in India. Capital Float buys Sequoia and Walnut. Today’s main analysis: 10 years after financial crisis, credit market on upward curve. Today’s thought-provoking articles: New […]
- Today’s main news: Elevate Credit expected to announce $203.49M in sales. Ant Financial delays IPO again. SocietyOne getting close to $500M in total lending, six years in. ClearScore to offer credit scores in India. Capital Float buys Sequoia and Walnut.
- Today’s main analysis: 10 years after financial crisis, credit market on upward curve.
- Today’s thought-provoking articles: New measures on P2P lending are a credit positive, says Moody’s. How non-U.S. countries determine creditworthiness. Mexican government wants banks, fintechs to help with financial inclusion.
- Elevate Credit expected to announce quarterly sales of $203.49 million. I think investors will be pleased whatever the number is.
- 10 years after financial crisis, consumer credit market on upward curve. A must-read report.
- Lawmaker questions fintech over lending practices.
- Small banks need big data.
- Blockchain meets REIT.
- JPMorgan launches Roar for crowdsourced data.
- Report shows identity verification a priority for online lending.
- Bank of the West exec bails for Varo Money.
- White Oak Healthcare Finance closes $40 million in financing.
- TradeStation launches fully paid lending program.
- US wakes up to SME cybersecurity needs.
- Ant Financial delays IPO again.
- China’s new measures on P2P lending are a credit positive, according to Moody’s.
- The next step to regulating P2P lending firms is to figure out who owns them.
- Police launch global search for alleged P2P lending scam fugitive.
- HuaAn targeted for alleged fraud.
- How non-U.S. countries determine credit worth. A very good read.
- Blockchain can help P2P car lending schemes gain traction.
- ClearScore to offer credit scores in India.
- Capital Float buys Sequoia, Walnut.
- OfBusiness raises INR 200 Crore.
- Five Star Business Finance raises $100 milion.
- Finzy completes $2.3 million pre-series A round.
- Five things to know about P2P lending before you invest.
- United Kingdom: Private credit offers escape from miserly bond yields.
- Australia: SocietyOne celebrates sixth anniversary, closes in on $500 million in lending.
- Singapore: Police recover $27 million linked to Chinese P2P lending Ponzi scheme.
- Mexico: Government wants fintech, banks to help with financial inclusion.
- United States
- Brokerages Anticipate Elevate Credit Inc (ELVT) Will Announce Quarterly Sales of $ 203.49 Million (Baseball Daily Digest) Rated: AAA
- Financial Crisis – 10 Years Later: Consumer Credit Market on an Upward Curve (Nasdaq) Rated: AAA
- Lawmaker Questions FinTech Industry Over Lending Practices (Govtech) Rated:A
- Small banks need big data to maintain customer service edge (American Banker) Rated: A
- Blockchain Meets REIT – A New Era in Real Estate Investing (Market Insider) Rated: A
- JPMorgan launching Roar platform for crowdsourced data (Business Insider) Rated: A
- New Report Shows Identity Verification a Priority for eCommerce and Online Lending Businesses (Global News) Rated: A
- Bank of the West exec bolts for startup, sees chance ‘to redefine retail banking’ (American Banker) Rated: A
- White Oak Healthcare Finance Closes $ 40 Million Financing for LifeCare Holdings, Inc. (Business Wire) Rated: A
- TradeStation Launches New Fully Paid Lending Program (GlobeNewswire), Rated: A
- US wakes up to SME cybersecurity needs (Fintech Futures) Rated: B
- United Kingdom
- Private credit offers an escape from miserly bond yields (Citywire) Rated: AAA
- Ant Financial IPO plans pushed back again (Financial Times) Rated: AAA
- Moody’s: China’s new measures on P2P lending are credit positive (ECNS) Rated: AAA
- Next Step to Regulating P2P Lending Platforms — Figuring Out Who Owns Them (Caixin Global) Rated: A
- In-Depth: Police Launch Global Hunt for ‘Solar King’ Caught Up in P2P Bust (Caixin Global) Rated: AAA
- HuaAn Finds Itself Target of Investor Ire After P2P Company Accused of Fraud (Caixin Global) Rated: A
- Many countries don’t use credit scores like the US — here’s how they determine your worth (Business Insider) Rated: AAA
- Blockchain Can Help Peer-To-Peer Car Lending Schemes Gain Traction (Market News) Rated: A
- SocietyOne Celebrates Sixth Anniversary; Total Lending Now Approaching $ 500 Million (Crowdfund Insider) Rated: AAA
- UK’s fintech startup ClearScore set to offer credit scores in India (Economic Times) Rated: AAA
- Capital Float buys Sequoia & SAIF-backed Walnut for $ 30 mn (VC Circle) Rated: AAA
- OfBusiness Raises INR 200 Crore in Series C Financing (FinSMEs) Rated: A
- Five Star Business Finance Raises USD$ 100M in Funding (FinSMEs) Rated: A
- P2P Online Lending Startup Finzy Completes $ 2.3 Mn Pre-Series A Fund Raise (Indian Web) Rated: A
- Five things you should know before lending on P2P platform (Economic Times) Rated: A
- Singapore police recover S$ 27 million linked to China Ponzi scheme (Channel News Asia) Rated: AAA
- Latin American
- Mexico’s new government wants fintech, banks to help financial inclusion (Channel News Asia) Rated: AAA
Brokerages Anticipate Elevate Credit Inc (ELVT) Will Announce Quarterly Sales of $ 203.49 Million (Baseball Daily Digest) Rated: AAA
Equities research analysts forecast that Elevate Credit Inc (NYSE:ELVT) will post $203.49 million in sales for the current fiscal quarter, Zacks reports. Two analysts have issued estimates for Elevate Credit’s earnings, with estimates ranging from $201.00 million to $205.97 million. Elevate Credit reported sales of $172.85 million during the same quarter last year, which indicates a positive year-over-year growth rate of 17.7%. The firm is expected to report its next quarterly earnings report on Monday, October 29th.
According to Zacks, analysts expect that Elevate Credit will report full-year sales of $803.23 million for the current financial year, with estimates ranging from $801.00 million to $805.45 million. For the next financial year, analysts expect that the company will report sales of $927.09 million per share, with estimates ranging from $926.97 million to $927.20 million. Zacks’ sales calculations are a mean average based on a survey of research firms that follow Elevate Credit.
Financial Crisis – 10 Years Later: Consumer Credit Market on an Upward Curve (Nasdaq) Rated: AAA
Ten years after the biggest financial crisis to hit the United States since the Great Depression, much has changed in the consumer credit marketplace. Serious delinquency rates have recovered since that period, and the credit quality of consumers has broadly improved. Yet the crisis has had a profound effect on consumer access to credit and the relationship they have with it.
TransUnion’s (NYSE:TRU) just-released Q2 2018 Industry Insights Report allows for comparisons between Americans’ credit preferences today versus 2008, specifically in the auto finance, credit card, mortgage and unsecured personal loan markets.
Lawmaker Questions FinTech Industry Over Lending Practices (Govtech) Rated:A
Rep. Emanuel Cleaver (D-Mo.) released a report Friday detailing the lending practices of some prominent fintech companies, finding that some companies could be discriminating against minorities and calling for more transparency from the fintech sector.
Fintech companies are somewhat controversial because many engage in traditional banking practices, and some consumers and regulators are calling for them to be regulated like traditional banks.
Small banks need big data to maintain customer service edge (American Banker) Rated: A
Big data isn’t just for big banks.
The modern banking customer wants advanced online and mobile banking options, and delivering such services requires even the smallest community bank to get a handle on customer data, said Corey LeBlanc, chief technology officer and vice president at Origin Bank.
Blockchain Meets REIT – A New Era in Real Estate Investing (Market Insider) Rated: A
Building Block, Inc. announced today it is the first North American REIT (Real Estate Investment Trust) to embrace the emerging efficiencies of blockchain technology and provide a new way to invest in one of the world’s most well-known and trusted assets, real estate. Blockchain technology will enable Building Block REIT to virtually eliminate friction in REIT shareholder communication by allowing direct dividend disbursement, secure user voting, and smart contract functions that execute automatically when pre-set parameters are met.
Building Block REIT plans to raise funds in the form of a digital initial public offering (Digital IPO) accepting payments via U.S. Dollars or fractional Ethereum cryptocurrency. Investors worldwide will be able to purchase shares in Building Block REIT on SEC compliant alternative trading systems (ATS) or peer-to-peer exchanges with whitelisted parties to invest in US commercial office, multi-family and mixed-use real estate.
JPMorgan launching Roar platform for crowdsourced data (Business Insider) Rated: A
JPMorgan’s corporate and investment bank is best known for advising businesses on billion-dollar acquisitions, helping private unicorns tap into the public markets, and managing the cash of Fortune 500 companies.
But now it is quietly working on a new platform that would go far beyond anything the firm has previously done, using crowdsourcing to accumulate massive amounts of data intended to one day help its clients make complex decisions about how to run their businesses, according to people familiar with the project.
The platform, called Roar by JPMorgan, would store sensitive private data, such as hospital records or satellite imagery, that’s not in the public domain. Typically, this type of information is exchanged between firms on a bilateral arrangement so it is not improperly used. But Roar would allow clients to tap into this data, which they could then use in a secure fashion to make forecasts and gain business insights.
New Report Shows Identity Verification a Priority for eCommerce and Online Lending Businesses (Global News) Rated: A
A new report from Whitepages Pro shows that an overwhelming majority of North American companies in ecommerce and financial services surveyed consider identity verification to be a top business priority but many still don’t believe they do it well or have all the data and tools they need to be successful. For the report, “The State of Identity Verification Maturity in North America,” businesses were asked, among other things, to rank themselves on a 4-stage scale of identity verification maturity for how they use identity data to combat fraud and improve the customer experience.
Among the report’s key findings:
- Driven by the belief that fraud attempts are increasing in frequency and sophistication, identity verification is a priority for most organizations (93 percent). While they vary in the degree to which they use advanced techniques, most organizations want to improve their identity verification methods and outcomes. Just 2 percent believe they are completely successful at identity verification.
- Organizations want access to more data points (just 13 percent say they have all the data they need) and see data linkages (the relationships between data elements) as a way to improve their identity verification processes. While access to traditional data (like a street address) is common, many still don’t have or use digital data (like an IP address). Most of the survey respondents believe linking data reduces fraud with 77 percent believing it increases confidence in a customer’s identity.
- Organizations want more and improved identity verification automation. However they often rely on in-house (such as historical data and white/black lists) that make it difficult to expand the use of automation, resulting in an over reliance on costly and time consuming manual reviews. A large majority (71 percent) believe machine learning can play a role in reducing manual reviews and making identity verification more effective.
Bank of the West exec bolts for startup, sees chance ‘to redefine retail banking’ (American Banker) Rated: A
Thibault Fulconis, who until recently was chief operating officer of Bank of the West, has joined the fintech digital banking startup Varo Money as its chief financial officer.
Varo Money is a mobile-first challenger bank that aims to help Americans achieve financial health. It is in the same league as Chime, Digit, Moven, MoneyLion, Qapital and N26.
White Oak Healthcare Finance Closes $ 40 Million Financing for LifeCare Holdings, Inc. (Business Wire) Rated: A
White Oak Healthcare Finance, LLC (“White Oak”), today announced it acted as lead lender and administrative agent on the funding of a $40 million asset based senior credit facility for LifeCare Holdings, Inc. (“LifeCare”). The funds were primarily used to refinance existing indebtedness. White Oak previously announced the financing of LifeCare Home Health LLC, the home health entity owned by LifeCare.
TradeStation Launches New Fully Paid Lending Program (GlobeNewswire), Rated: A
TradeStation, a Monex Group company and award-winning online broker-dealer and futures commission merchant, today announced the launch of its Fully Paid Lending Program. This program allows qualified equities account holders the opportunity to earn interest income on lendable securities in their accounts.
Under the Fully Paid Lending Program, TradeStation identifies stocks in qualified accounts that are eligible for lending. Based on market demand, some or all of a qualified client’s fully paid positions or excess-margin securities may be lent out to other financial institutions to satisfy their customers’ position requirements. While their stocks are on loan, clients automatically receive 50% of the net proceeds earned by TradeStation for lending out the shares, which is accrued daily and automatically posted monthly to their accounts. Daily income ceases to accrue when the client sells a lendable stock or the stock is no longer on loan.
US wakes up to SME cybersecurity needs (Fintech Futures) Rated: B
US President Donald Trump has signed the National Institute of Standards and Technology (NIST) Small Business Cybersecurity Act, a bill which will provide a set of resources for small businesses to best protect their digital assets from cybersecurity threats.
Private credit offers an escape from miserly bond yields (Citywire) Rated: AAA
For reasons that are quite clear if you follow my writings on a regular basis, equities and bonds will most likely deliver disappointing returns for many years to come.
My central forecast is an annual average inflation-adjusted return of 0-2% on a global portfolio consisting of 40% bonds and 60% equities between now and 2050.
The good news next. Fortunately, there are many things you can do to improve on those lacklustre numbers. Those returns are for the lazy investor; someone who invests passively.
Ant Financial IPO plans pushed back again (Financial Times) Rated: AAA
A blockbuster listing of Ant Financial, the fast-growing electronic payment affiliate of China’s leading tech group Alibaba, has again been delayed as it continues to burn through cash and come under pressure from Beijing’s crackdown on non-traditional financial institutions.
Ant was valued at $150bn in its last private fundraising in June, a round that bankers said paved the way for an initial public offering as early as this year.
Moody’s: China’s new measures on P2P lending are credit positive (ECNS) Rated: AAA
The global credit rating agency Moody’s called China’s newly-issued regulations on peer-to-peer lending platforms are “credit positive”, because they will strengthen protections to individual lenders and prevent risk spilling over to the broader financial system.
Moody’s commentary came after Chinese regulators announced 10 measures to address risks related to P2P lending platforms on August 12. The P2P platforms enable individuals to lend directly to borrowers through the Internet.
The new regulations clarified responsibilities of P2P platforms and their shareholders, stipulated conditions for orderly liquidation of failed platforms, outlined penalties for borrowers that escape their debt obligations and prohibited registration of new platforms.
Next Step to Regulating P2P Lending Platforms — Figuring Out Who Owns Them (Caixin Global) Rated: A
Months into the crisis in China’s online lending industry, regulators want to know who actually owns the country’s peer-to-peer (P2P) lending platforms.
The National Internet Finance Association of China (NIFA) issued a notice on Monday designed to help it keep tabs on key stakeholders in China’s online P2P lending platforms as financial and legal difficulties continue to engulf the business.
The effort to bring greater clarity to the workings of P2P platforms comes after hundreds of online platforms have encountered financial and legal troubles in the last few months. In July, at least 165 P2P platforms had difficulties meeting cash-withdrawal demands, saw their owners abscond with investor funds, or were investigated by police, according to a report by internet lending research firm Wangdaizhijia. The number was nearly triple that in June, Wangdaizhijia said.
In-Depth: Police Launch Global Hunt for ‘Solar King’ Caught Up in P2P Bust (Caixin Global) Rated: AAA
Peng Xiaofeng was once China’s youngest billionaire and a rising star in the solar industry. But the founder of now-bankrupt LDK Solar has been put on China’s most-wanted list, hunted by law enforcement agencies for illegal fund-raising by his peer-to-peer (P2P) lending platform Solarbao.com.
Police in the city of Suzhou, where Solarbao.com is registered, want Interpol to issue a Red Notice against 43-year-old Peng, who is accused of swindling more than 5,000 investors and leaving a trail of debt amounting to 220 million yuan ($32.1 million). They have also branded the platform, a subsidiary of Nasdaq-listed SPI Energy Co. Ltd., a fraud.
HuaAn Finds Itself Target of Investor Ire After P2P Company Accused of Fraud (Caixin Global) Rated: A
The Shanghai office of fund manager HuaAn Future Asset Management Co. Ltd.was surrounded on Monday by throngs of angry investors who blame the company for what they perceive to be its role in an online-lending fraud. HuaAn denies any involvement.
Monday’s protest centered on P2P site PPMiao.com, which was accused of illegal fundraising by police in the eastern city of Hangzhou, where PPMiao.com operator Guangxi PPMiao Internet Technology Co. Ltd. is registered. HuaAn held a 37.5% stake on behalf of an asset management plan in PPMiao.com’s former operator, Hangzhou Fuqian Network Technology Co. Ltd., as of June 30, making HuaAn the target of investor ire when PPMiao.com’s financial problems surfaced.
Many countries don’t use credit scores like the US — here’s how they determine your worth (Business Insider) Rated: AAA
In the US, a good credit score can feel like a key determinant of success. It defines how good an interest rate you can get on a car loan or mortgage, the quality of credit card you can get approved for, or if you’ll get approved for any credit at all.
The better your score, the better the perks. A bad score can become a black mark that leads to missing out on the home you want (credit checks are a common aspect of apartment applications), higher car insurance rates, or even difficulty getting a cell phone, according to Nerdwallet.
But as monolithic as the credit score seems, many countries in the world handle credit very differently — with many having no credit score system at all.
Blockchain Can Help Peer-To-Peer Car Lending Schemes Gain Traction (Market News) Rated: A
Blockchain technology can help car-sharing companies to track a person using the car any time. According to industry analysts, the car sharing economy is expected to hit $335 billion by the year 2025.
The car sharing idea has been gaining a lot of interest among car drivers over the recent years. According to estimates by Global Market Insight, the peer-to-peer car sharing sector will amount to $11 billion. The growth has largely been attributed to raising cost of owning a car.
The biggest challenge with the Peer-to-peer lending system is trust. The car owner has to have total trust in the person hiring the car. Additionally, the car owner has to be sure that the hirer has enough money to cover the period the car is hired. The owner of the vehicle would also like to track where the car is as well as the condition in which it is being driven. On the side of the hirer, they would love to know if they are hiring the car from the original owner and that the data exchanged between the two parties is secure.
SocietyOne Celebrates Sixth Anniversary; Total Lending Now Approaching $ 500 Million (Crowdfund Insider) Rated: AAA
Australia-based marketplace lender SocietyOne announced celebrated its sixth anniversary of operations as total lending since inception approaches $500 million.
SocietyOne also reported it has more than 20,000 customers and since the beginning of 2016, total lending has grown nearly 6 times and the lender’s loan book now totals over $220 million, up from $41 million at the start of 2016.
UK’s fintech startup ClearScore set to offer credit scores in India (Economic Times) Rated: AAA
UK-headquartered fintech startup ClearScore is all set to start its business in India offering credit scores to Indian consumers in partnership with Experian, free of cost, to improve the awareness levels of the consumers regarding credit. India is their second international market after the company started operations in South Africa last year.
ClearScore will be available on Google Play Store and will provide details of the credit score, giving alerts about changes in the score and provide details about how consumers can improve the score.
Capital Float buys Sequoia & SAIF-backed Walnut for $ 30 mn (VC Circle) Rated: AAA
Bengaluru-based digital lending platform Capital Float has acquired personal finance management app-maker Walnut for $30 million (Rs 209 crore) in a cash and stock deal, a company statement said. Both the companies count Sequoia Capital and SAIF Partners as common venture capital investors.
Walnut allows users to track spends, check on credit and bank balance, bill payments and split expenses within a group. In July 2017, it launched a small ticket credit line for its users called Walnut Prime based on user data and consumer behaviour. The platform has so far disbursed Rs 100 crore in consumer loans.
OfBusiness Raises INR 200 Crore in Series C Financing (FinSMEs) Rated: A
OfBusiness, a Gurgaon, India – based technology enabled SME financing platform, raised INR 200 crore (approx $29m) in Series C financing.
The round was led by Creation Investments and Falcon Edge with participation from existing investors Matrix Partners India and Zodius Capital. With this new round of funding, the company has raised a total of INR 500 crore of equity and debt funding to date. It has also raised debt lines from Kotak, Tata Capital, RBL Bank and Northern Arc amongst other lending partners.
The capital will be used for continued rapid growth and model scaling.
Five Star Business Finance Raises USD$ 100M in Funding (FinSMEs) Rated: A
Five Star Business Finance Limited, a Chennai, India–based fully-secured small business financing company focused on South India, raises USD$100M in funding.
The round was led by alternative asset firm TPG, with participation from existing investors Norwest Venture Partners, an investment fund managed by Morgan Stanley, and Sequoia Capital. The company’s first investor, Matrix Partners India, continues to stay invested in the company.
Led by D. Lakshmipathy, Chairman and Managing Director, Five Star is a non-bank finance company providing loans to nearly 40,000 customers.
P2P Online Lending Startup Finzy Completes $ 2.3 Mn Pre-Series A Fund Raise (Indian Web) Rated: A
Bangalore-based peer to peer (P2P) lending platform Finzy on Monday announced raising funds worth USD 2.3 million in Pre-Series A round, including USD 1.3 million raised in the first tranche in March 2018.
This funding round has been funded by senior professionals from BFSI industry and successful entrepreneurs. The startup plans to use the freshly raised capital for geographical expansion, technology investment and stronger distribution networks.
Founded in 2016, by Abhinandan Sangam, Amit More and Vishwas Dixit, Finzy is a premier P2P lending solution in India that connect borrowers with investors and make the entire process simple and easy so that one can get a loan in as little as 48 hours.
Five things you should know before lending on P2P platform (Economic Times) Rated: A
Don’t let greed cloud your judgment. If you are in a tearing hurry to pocket double-digit returns, you are likely to overlook many warnings signs. That is why it is always better to start with a small amount, learn the ropes, before going for the kill.
Different platforms have different ticket size for lending. With companies like Faircent offering as low as Rs 750 per loan. The ROI would vary as per the borrower profile and loan tenure. The total amount invested by a lender across all P2P-NBFCs is capped at Rs 10 lakh, as per the existing RBI norms.
The RBI came out with regulations for P2P companies in October. There are around 30 online P2P companies in India, of which only eight have received a certificate of registration (CoR) from the RBI to carry out P2P lending activities.
Singapore police recover S$ 27 million linked to China Ponzi scheme (Channel News Asia) Rated: AAA
Singapore police said on Tuesday (Aug 21) they have recovered more than S$27 million linked to one of the biggest Ponzi schemes in China, which saw 1.15 million investors cheated out of 38 billion yuan (S$7 billion).
Ezubao, once China’s biggest peer-to-peer lending platform, folded in 2016 after it turned out to be an online scam that concocted fake projects to attract investment and pocketed funds instead of passing them to borrowers to generate returns.
Mexico’s new government wants fintech, banks to help financial inclusion (Channel News Asia) Rated: AAA
Mexico’s next government will look to fintech companies and large corporate banks to increase financial inclusion in the country, where only one-third of adults have a bank account, senior officials said on Tuesday.
Arturo Herrera, one of two future deputy finance ministers, said in an interview that the lack of financial inclusion was one of the biggest obstacles in the new government’s fight against poverty, inequality and slow economic growth.
News Comments Today’s main news: PayPal is on an acquisition binge. Financial advisers eschew P2P lending. Ant Financial to go all in on the blockchain. 51 Credit Card IPO priced at HKD 8.50 per share. Today’s main analysis: Consumer debt increases in May. Today’s thought-provoking articles: Business loan drought ends for banks. Germany’s crowdfunding market hits $588M. Brazil leaders want […]
- Today’s main news: PayPal is on an acquisition binge. Financial advisers eschew P2P lending. Ant Financial to go all in on the blockchain. 51 Credit Card IPO priced at HKD 8.50 per share.
- Today’s main analysis: Consumer debt increases in May.
- Today’s thought-provoking articles: Business loan drought ends for banks. Germany’s crowdfunding market hits $588M. Brazil leaders want investments to make social impact. Consumer debt increases in May.
- PayPal leads an acquisition binge. PayPal is a forerunner to the modern fintech company, but for a long time it rested on its laurels. Now, the company is snatching up smaller fintechs left and right. This should improve the company’s financial position and make it a real competitor globally.
- Business loan drought ends for banks. The question for alternative lenders is, will this rally eat into industry profits, or can alternative lenders rise with the tide?
- Consumer debt increases in May. Total consumer debt looks to be down from two years ago, but outstanding debt as a percentage of disposable income is going up at quite a pace. At first glance, this looks like disposable income may be going down. If that is the case, how will it affect consumer lending in the next 2-5 years?
- Insolvent insurer causes headache for Virginia bank’s student lending.
- Is Finn better than a real bank?
- The past, present, and future of ILCs.
- How to invest $100 regularly and come out ahead.
- Can you turn $100K into $1 million in 10 years?
- Credibly hires former CIO of FBI.
- Advisers eschew P2P lending.
- Is open banking a complete failure?
- Oblix gets FCA authorization to be a P2P lending platform.
- CrowdProperty gets new CEO.
- Ant Financial goes all in on the blockchain.
- 51 Credit Card IPO priced at HKD 8.50 per share.
- Neat grabs $2 million in funding.
- Auto sales hit a lending roadblock.
- Will tighter rules trigger a P2P lending shakeout?
- Dianrong names new CTO.
- LendLedger hits the decentralized crypto lending market.
- Etherisc launches blockchain consortium for crypto lenders.
PayPal is leading a payment company acquisition binge (Quartz) Rated: AAA
PayPal is tearing through a flurry of payment company acquisitions, having snapped up four in just a five-week period this year.
This year has already been a record for payment company deals, with $46 billion in acquisitions (paywall) though June, according to Dealogic. That compares with $33 billion in total for last year
Recent acquisitions include iZettle, a Swedish mobile payments company, and Hyperwallet, which businesses can use to pay employees around the world (the deal size is only shown if it has been verified by Pitchbook):
Business-Loan Drought Ends for Banks (Wall Street Journal) Rated: AAA
Preliminary second-quarter data from the Federal Reserve indicate the year-over-year growth rate of business loans rose to 5.5% in late June from less than 1% near the end of 2017. The upturn marks the reversal of a prolonged slump in business-loan growth that began in earnest about two years ago.
For banks, the acceleration in lending may help lift results when firms report quarterly results this month. Profits from lending are a major component of bank earnings and grow when total loans increase or rates on loans rise. Business-loan growth often helps on both fronts because these credits typically carry floating rates that allow banks to capture rate increases.
Consumer Debt Increases In May (PYMNTS) Rated: AAA
New data shows that U.S. consumer debt rose in May by the most in six months, showing that Americans were more comfortable with spending midway through the second quarter. The data from the Federal Reserve shows an increase in revolving debt, which includes credit cards, as well as a boost in non-revolving debt that includes educational and auto loans.
This latest news comes after LendingTree, the nation’s leading online loan marketplace, released its first Consumer Debt Outlook in May 2018, finding that Americans owe more than 26 percent of their income on consumer debt, up from 22 percent in 2010. That means Americans are on track to accumulate a collective $4 trillion in consumer debt by the end of this year. In fact, over the past five years, Americans have been accumulating more debt, and for nearly two years, consumer credit has grown at a steady rate of 5 to 6 percent annually.
See the full results of the study here.
Insolvent insurer causes headache for Va. bank’s student lending (American Banker) Rated: A
Virginia National Bankshares in Charlottesville, Va., will increase the loan-loss allowance for its student loan portfolio after an outside insurance carrier was shut down.
The $625 million-asset Virginia National said in a regulatory filing Thursday that ReliaMax Surety, a South Dakota insurer that issued surety bonds tied to purchased student loans, is insolvent and was placed into liquidation last month.
JPMorgan Chase launched an online bank for millennials called Finn, and I prefer it to the real thing (Business Insider) Rated: A
Finn, a mobile bank built by Chase, recently rolled out nationwide. And I gave it a try.
In addition to offering bread-and-butter checking and savings account functionality, it also offers services many firms in the personal finance startup space have built their businesses around. These include automatic saving tools and charts to see where you are spending money.
Personally, I think the app is a better experience than my traditional Chase mobile bank, since it more easily allows you to send checks from the app, save money in an easy and fun way, and keep track of your spending. It’s also free. And there’s no overdraft fees. But it’s not without flaws.
The Past, Present and Future of the ILC Bank (DeBanked) Rated: A
Last Thursday, Square confirmed that it withdrew its application to the FDIC for depository insurance, which would allow it to take deposits from customers in all 50 states. The company said it plans to refile.
Regardless of the reason for withdrawing the application, this news revives the debate over whether fintech companies should be allowed to become banks in the first place – at least in the manner that Square and SoFi have sought to attain bank status.
How to invest $ 100 regularly and make it a fortune? (Global Banking and Finance) Rated: A
Don’t let your money sit, let it work for you. I know I sound bit weird, but you can put your money to work. No! you do not need the fortune to invest in, just $100 is all that is required. Though investing an amount may appear bit difficult in starting but once you get a hold on the things, it will become easy eventually. Investing is all about making a choice, you can invest $100 and can earn thousands in future or you can just spend this amount on a dinner.
This could be another great option to make the investment in. Lending Club is basically a peer-to-peer lending, where borrowing and lending takes place between the ordinary folks. This is one of the largest online market in the world, that connects the investors and borrowers.
Can I turn $ 100k into $ 1 million in a decade? (Money Rates) Rated: A
A decade is a fairly short period of time, so think about what it will take to grow your initial investment by a factor of ten in ten years. With no additional investment, turning $100K into 1 million would require a compound average annual return of 25.9 percent, which is pretty unrealistic. Historically, the U.S. stock market has averaged a return on investment of about 10 percent per year.
Peer-to-peer lending has created a relatively new form of income investing in which you can invest by making personal loans. Higher risk loans produce higher income yields but are also more likely to default. You can manage your risk somewhat by choosing lower risk loans, focusing on shorter term loans and diversifying by funding small amounts of many different loans.
Credibly Hires Former CIO of FBI to Drive Information Technology Strategy (Crowdfund Insider) Rated: B
Credibly, a small and medium-sized business lending platform, announced on Tuesday it has hired Jerome Pender to drive its information technology strategy. According to the online lender, Lender is a seasoned professional more than three decades of experience in information technology. He has experience in business systems, enterprise architecture, technology, and governance.
Prior to joining Credibly, Pender was the Chief Information Officer, Operating Partner, and Managing Director at Z Capital Partners. He also spent more than a decade at the FBI, serving as Chief Information Officer and Executive Assistant Director, as well as Deputy Assistant Director. Before the FBI, he held several leadership positions at UBS AG.
Advisers eschewing P2P due to insurance ‘grey area’ (Peer2Peer Finance) Rated: AAA
FINANCIAL advisers are avoiding giving advice on peer-to-peer lending because they are worried it will not be covered by their professional indemnity insurance (PII).
Max Lehrain, chief operating officer at P2P property lender Relendex, said P2P investing is a “grey area” when it comes to PII.
Brendan Llewellyn, co- founder and director of communications platform Adviser Home, suggested PI insurers will decide whether or not to cover P2P investments on a case-by-case basis.
Open Banking – a complete failure? (The Finanser) Rated: A
PwC recently delivered a report on open banking – Open Banking market could be worth £7.2bn by 2022: PwC – PwC UK. Some notable points raised;
The principle growth areas are projected as account aggregation, analytics of expenditure and financial product comparisons. This is difficult to understand given that none of these areas is new – in fact the information is being delivered differently – that is all that has changed. And in most cases (relative to challenger banks) the data delivered is very limited, preventing innovation on these pre-existing services. The major market comparison engines pull richer data through a combination of private means and screen scraping, and have made clear that open banking APIs will not replace this in their current form.
Oblix secures FCA authorisation for P2P lending platform (Bridging & Commercial) Rated: A
Oblix Capital Technologies has been granted authorisation as a P2P firm by the FCA.
The authorisation allows the subsidiary to the London-based specialist lender Oblix Group to operate a regulated electronic lending platform.
Oblix has enjoyed a strong period of growth and hopes the launch of its P2P lending platform will supplement this.
NEW CHIEF EXECUTIVE FOR PROPERTY LENDER (Insider Media) Rated: B
A new chief executive has taken the helm at a Birmingham-based peer-to-peer property lender. Michael Bristow has assumed the role at CrowdProperty after acting as a non-executive director.
Bristow was previously managing partner at Growth Strategy, a property technology investor and private equity advisory business.
150 Billion Dollar-valued Firm Ant Financial Will Go All in on Blockchain (Toshi Times) Rated: AAA
Ant Financial: you may never have heard of it if you don’t live in Asia, but its payment platform Alipay is one of the biggest payments facilitators in the region, bigger than Samsung Pay, Apple Pay, and Android Pay in most Asian countries.
It is part of Jack Ma’s $450+ billion valued Alibaba empire and recently raised significant investment from investors worldwide pumping its own value up to a whopping $150 billion.
51 Credit Card’s IPO priced at HKD 8.50 per share (KrASIA) Rated: AAA
China’s 51 Credit Card, an online credit card management platform, is set to price its IPO at HKD 8.5 per share at the bottom of its indicative range of between HKD8.5 – 11.5, according to various reports.
The company is set to raise an estimated US$129 million in the flotation, according to a Tencent report.
Its net profit is up nearly 1304% in 2017 from a year earlier, standing at $112 million (RMB 744 million). However, it has been operating in a negative cash-flow for the last three years and its cash and cash equivalents dropped to 1.26 billion yuan in 2017 from 2.1 billion yuan in 2016.
Hong Kong digital bank Neat nabs tidy $ 2m funding (FinTech Futures) Rated: A
Hong Kong-based digital bank Neat has secured a new round of $2 million funding from Dymon Asia Ventures and Portag3 Ventures.
According to Neat, this investment will be used to unveil some new features and tools; and for recruitment.
For the features and tools, it offers a vote option on its website to create a “wishlist”. (A common ploy among new firms and banks.)
Chinese Auto Sales Run Into a Lending Roadblock (Wall Street Journal) Rated: A
China’s crackdown on shadow banking has caused some high-profile blowups. Now it’s driving the country’s car makers off course.
One big target for Beijing has been the proliferation of peer-to-peer lending platforms—total transactions on these ballooned to 2.8 trillion yuan ($423 billion) last year, more than 10 times the total in 2014, according to industry website wdzj.com. The worry is that such platforms have become a hotbed for embezzlement, or could simply run out of money. Local media reported dozens of them collapsing.
Tighter rules may trigger P2P industry shakeout (ECNS) Rated: A
Only one out of the nine peer-to-peer lending companies in China might be able to survive as top financial regulators are stepping up the pace of scrutiny to curb risks caused by the massive unregulated sprawl in the past few years.
The central government plans to maintain “pressing posture of severe attack” to clamp down on activities violating laws and regulations in internet finance, extending the ongoing nationwide crackdown for another year, Pan Gongsheng, deputy governor of the People’s Bank of China, the central bank, said during a meeting on Monday.
Dianrong Names Tony Zhang Chief Technology Officer (PR Newswire) Rated: B
Dianrong today announced the appointment of Tony Zhang as Chief Technology Officer (CTO). Mr. Zhang will report to Long Hsiang Loh, CEO of Dianrong.
Mr. Zhang has nearly two decades of experience in science and technology, with in-depth knowledge of financial and internet technology as well as company management. He worked in Silicon Valley for 11 years, including eight years at PayPal in various leadership roles. He provided recognized technical and business leadership across a range of PayPal’s core product features and functionalities.
LendLedger (LOAN Token): Decentralized Blockchain Crypto Lending Market? (Bitcoin Exchange Guide) Rated: A
LendLedger hopes to be the solution to these problems by opening up global lending markets. The platform is changing the face of lending to the underserved segments. Already this platform has processed tens of millions of dollars in loan requests in India, which has led to the provision of loans to hundreds of thousands of borrowers in the informal and small business sectors in 40 Indian cities. This platform is opening up new financial markets across the globe.
The platform unlocks data on informal and small business borrowers making it possible for lenders to offer loans to the informal traders. LendLedger seeks to bridge the $2.6 trillion lending gap between the institutional lending capital and informal borrowers. The aim of the platform is to come up with a lending market that is both inclusive and profitable for all the participants.
Leading Crypto-Backed Lending Networks Join Forces To Unlock Mass Adoption (Payment Week) Rated: B
Etherisc, the global, decentralized insurance platform for collectively building insurance products, has announced the launch of a blockchain consortium to create Collateral Protection Insurance (CPI) for the crypto lending market. The consortium aims to address a current, significant barrier to mass adoption by facilitating safe participation in crypto lending, clearing the way for more institutional players to enter the market.
The founding members of the lending consortium include bZx, formerly b0x, a decentralized margin lending protocol and liquidation oracle marketplace; Celsius Network, a peer-to-peer decentralized borrowing and lending platform; Colendi, a comprehensive credit scoring protocol and microcredit platform; ETHLend, a peer-to-peer lending smart contract on the Ethereum blockchain for lending ether; Lendroid, a unique non-custodial lending platform working to enable a range of collateralized loans, advanced auction markets and trust-independent margin trading; Libra Credit, a lending ecosystem that facilitates open access to credit; Nexo, a platform for instant crypto-backed loans, powered by the 10-year-old leading European FinTech group Credissimo; Ripio Credit Network, a protocol based on smart contracts and blockchain technology, which brings enhanced transparency and reliability in credit and lending; and Sweetbridge, a blockchain-based economic framework that transforms supply chain, logistics, and unleashes working capital.
Germany’s crowdfunding market reaches $ 588 million (Business Insider) Rated: AAA
At the end of June 2018, small- and medium-sized businesses (SMBs) in Germany had raised €500 million ($588 million) using equity crowdfunding and crowdlending marketplaces, according to a report from crowdfunding.de.
Here are a couple of key takeaways from the report:
- Real estate companies use crowdfunding most. Real estate accounted for over half, 53.3% of all the crowdfunding in Germany, making it the most common segment to opt for this funding method. It was followed by enterprise with a 42.6% share of funding raised and energy at 3.8%. Other segments combined only had a 0.3% share, showing that crowdfunding is largely dominated by two areas. However, as crowdfunding becomes more popular, we might see other sectors increasingly choosing it.
- Unsurprisingly, a digital real estate investment provider had the largest share of funding among platforms. Germany-based Exporo raised 32.3% of the total, followed by UK-based Funding Circle with 14.4%. This shows that foreign companies also have a lot to gain from Germany’s crowdfunding market.
Read the full report here.
Robo-advice users in for the long haul (Financial Standard) Rated: A
Insights from the automated investment platform show 36.5% of its users are attempting to grow wealth outside of super, while 28.6% are using it to accrue retirement savings.
The top reasons driving use of automated investment and advice platforms were lower fees and investment diversification, highlighted by 18.3% and 16.7% of users respectively.
Viewing the data through a gender lens, half of Six Park’s female clients are checking the progress of their portfolios at least once a month and their most common goal is the ability to purchase a property in the near-term; 25% of females flagged this, compared to just 10% of men. In contrast, more than half of Six Park’s male clients are checking their portfolios on a daily or weekly basis.
Local leaders in Brazil look for investments in social impact (Impact Alpha) Rated: AAA
At the country’s first social finance forum in 2014, you could count the participants on one hand. All of them were in Rio and Sao Paulo. Equity crowdfunding and peer-to-peer lending were still in regulatory review. Few universities included social finance in their curriculum. All of that has changed. Today:
- São Paulo-based Vox Capital scored a 26% IIR in an exit from affordable healthcare network TEM, marking one of the country’s first impact investment exit. Vox has raised two funds totaling more than 200 million-real and backed more than 20 social ventures since 2009;
- More than 30 Brazilian family offices, corporations, venture capital funds and subsidized lenders have made impact investments, in women-focused taxi companies, blockchain-enabled small business lenders and education technology startups.
- Brazil is one of 17 countries to add a National Advisory Board to the Global Steering Group for Impact Investing to educate investors about and promote impact investing in the country.
- Equity crowdfunding syndication has been used to fund several social entrepreneurs.
Credit manager AsiaCollect picks up $ 4.5m funding (FinTech Futures) Rated: AAA
Singapore-based credit management services (CMS) provider AsiaCollect has raised $4.5 million to date after closing its recent investment round led by SIG Asia Investments.
Dymon Asia Ventures, the venture capital arm of Dymon Asia Capital, a Singapore-based alternative investment management firm, returned to co-invest in this round after investing $1 million in AsiaCollect’s pre-series A equity round in August last year.
AsiaCollect offers CMS outsourcing, CMS advisory services, debt purchasing, and Software-As-A-Service (SaaS).
News Comments Today’s main news: How to invest in the sharing economy. Elevate expected to report $184.82M in sales. Funding Circle scraps downloadable loanbook. Ant Financial valued at $150B. Standard Chartered to apply for virtual bank license in Hong Kong. Today’s main analysis: Marcus update. Today’s thought-provoking articles: PeerIQ lending earnings insights. Alternative uses of fixed-income markets. LendingTree Personal Loan Offers […]
- Today’s main news: How to invest in the sharing economy. Elevate expected to report $184.82M in sales. Funding Circle scraps downloadable loanbook. Ant Financial valued at $150B. Standard Chartered to apply for virtual bank license in Hong Kong.
- Today’s main analysis: Marcus update.
- Today’s thought-provoking articles: PeerIQ lending earnings insights. Alternative uses of fixed-income markets. LendingTree Personal Loan Offers Report for May 2018. Foreign investment in UK tech doubles. The race to build Europe’s Robinhood. The Global Findex 2017.
- LendingClub presents opportunity to invest in sharing economy. P2P lending represents one of the best ways to invest in the sharing economy, as an investor in the companies as well as an investor in the lending products.
- PeerIQ lending earnings insights report. “Card issuers are increasing loan loss reserves at a higher rate than loan growth, indicating expectations of higher losses going forward.”
- The webinar.
- Marcus update. A must-read look at Marcus from PeerIQ.
- Elevate Credit expected to report $184.82 million in sales. We’re anticipating the actual numbers.
- Alternative uses of fixed-income markets.
- LendingTree’s Personal Loan Offers Report for May 2018. Weighted toward debt consolidation and credit card refis.
- Mulvaney fires the entire CFPB advisory board.
- Use tech to play the real estate investment market.
- PayPal is launching a pop-up art exhibit in NYC.
- Tulsa Real Estate Fund raises $10 million in one week.
- Ironhorse Funding raises $30 million.
- SBI Holdings ordinary shares.
- Renaud Laplanche, Mike Cagney rise from the ashes.
- Lendstreet receives $7 million.
- Knowledge gap contributes to housing market concerns.
- Funding Circle ditches downloadable loanbook.
- Foreign investment in UK tech firms doubles in one year.
- New SME funding hub to boost aware of P2P lending.
- Silicon Valley CTO joins MarketInvoice.
- Simon Champ leaves Pollen Street Capital.
- BNP Paribas Asset Management launches SME alt lending platform.
- Open banking in the UK.
- LendInvest buy-to-let product propels boom in hiring.
- Ant Financial valued at $150 billion. Congratulations.
- Standard Chartered to apply for virtual banking license.
- Tencent launches financial risk inquiry and reporting center.
- The Center for Financial Inclusion digs into Global Findex 2017.
- SuperMoney launches no-fee financing platform.
- How to spot a spamcoin.
- Europe: The race to build Europe’s Robinhood. Revolut has a good head start on most of the competition, but there is still stiff competition.
- Australia: Prospa funders admit float lost vital momentum.
- India: Digital SME lenders count on co-lending. If that’s what it takes to penetrate the market, alt lenders should consider all options.
- Brazil: Regulation promotes invocation.
- Asia: China exports AI, big data to Asia’s laggard banking markets.
- Korea: Bomapp wants to harvest the world’s data.
- United States
- 3 Ways to Invest in the Sharing Economy (Motley Fool) Rated: A
- Lending Earnings Insights: 2Q2018 (PeerIQ) Rated: AAA
- Marcus Update (PeerIQ), Rated: AAA
- PeerIQ Webinar: Lending Earnings Insights Report – 2Q2018 (PeerIQ) Rated: B
- $ 184.82 Million in Sales Expected for Elevate Credit (ELVT) This Quarter (StockNews Times) Rated: AAA
- Mulvaney Fires All 25 Members of CFPB Advisory Board (PJ Media) Rated: A
- ALTERNATIVE USES OF THE FIXED-INCOME MARKETS (All About Alpha) Rated: AAA
- LendingTree Personal Loan Offers Report – May 2018 (Lending Tree) Rated: AAA
- Use Technology To Play The Real Estate Investment Market (Forbes) Rated: A
- PayPal is launching a pop-up art exhibit in New York City (Tearsheet) Rated: A
- Real Estate Crowdfunding Earns $ 10 Million in First Week (DS News) Rated: A
- Ironhorse Funding Raises $ 30M of Capital from Crestline Investors (FinSmes) Rated: A
- SBI HOLDINGS INC ORDINARY SHARES (OTCMKTS:SBHGF) on Focus After Report of Less Shorts (Fricisco Fastball) Rated: A
- How two fintech entrepreneurs are rising from the ashes (San Francisco Business Times) Rated: A
- Debt restructuring company Lendstreet receives $ 7m funding (Fintech Futures) Rated: A
- Knowledge Gap Contributing To Housing Market And Affordability Concerns, Cautiousness (PR Newswire) Rated: A
- United Kingdom
- Funding Circle scraps downloadable loanbook (Peer2Peer Finance) Rated: AAA
- Foreign investment in UK technology firms doubles in just one year (The Telegraph) Rated: AAA
- New SME funding hub will boost awareness of P2P (P2P Finance News), Rated: A
- Silicon Valley CTO joins UK fintech MarketInvoice (PCR), Rated: A
- P2P fund boss Simon Champ exits Pollen Street Capital (AltFi News) Rated: B
- BNP Paribas Asset Management launches SME alternative lending platform, completes first UK loan (AltFi News) Rated: A
- Leading the way (Peer2Peer Finance) Rated: A
- LendInvest’s Buy to Let Product Propels Boom in Hiring as Demand Surges (Crowdfund Insider) Rated: B
- Jack Ma’s Ant Financial Valued Around $ 150 Billion After Funding Round (Wall Street Journal) Rated: AAA
- Standard Chartered says it will apply to operate a virtual bank in Hong Kong (SCMP), Rated: AAA
- WeiyangX Fintech Review (Crowdfund Insider), Rated: A
- European Union
- The race to build Europe’s Robinhood: Invstr, Freetrade, Revolut, Dabbl and more (Business Insider) Rated: AAA
- The Center for Financial Inclusion Digs Into the Global Findex 2017 Numbers (Lend Academy) Rated: AAA
- SuperMoney Launches No-fee Financing Platform (DeBanked) Rated: A
- Spotting a Scamcoin: Ethconnect (Coin Clarity) Rated: B
- Prospa founders admit float lost ‘vital momentum’ (Sidney Morning Herald) Rated: AAA
- Digital SME Lenders Bank On Co-Lending To Make Their Presence Felt (Bloomberg Quint), Rated: AAA
- Latin America
- Fintech Regulation Promotes Invocation In Brazil (Mondaq) Rated: AAA
- China’s fintech companies are exporting AI and big data to Asia’s ‘laggard’ banking markets (SCMP), Rated: AAA
- Korean web harvesting giant is ready to scrape data around the world (Korea Joongang Daily) Rated: A
3 Ways to Invest in the Sharing Economy (Motley Fool) Rated: A
While not a hard asset like a home or car, lending services have also come into the crosshairs of the sharing economy. Lending Club, the nation’s largest peer-to-peer lender, gets borrowers lower interest rates and smaller fees than a credit card or other traditional lending source typically offers by connecting them with investors on its online platform.
Since becoming a public company in December 2014, Lending Club revenue has soared more than 50% as seeking out alternative means of funding has increased in popularity. That sounds like a great investment, but Lending Club has actually fallen on hard times. The stock is down 75% from its 2014 debut as a result.
Other concerns, like increased competition, have surfaced: Goldman Sachs‘ online-only bank Marcus is just one of them. But there is some hope for this “sharing” company as first-quarter 2018 revenue increased 22% on an 18% increase in lending origination.
Lending Earnings Insights: 2Q2018 (PeerIQ) Rated: AAA
Where are we in the credit cycle? Most lenders see the US consumer in a good place with high consumer confidence, home prices, and higher take-home pay from tax cuts. The economy is at or near full employment with low wage and productivity growth. GDP gains are driven by consumer spending, fueled in term by consumer credit (8% YOY growth – well ahead of GDP and wage growth). Over the next few quarters due to stimulus and short-term effects there may be robust GDP prints, however, 16 to 24 months out we expect a lower pace of growth and heightened recession risk.
Credit re-normalization continues across all major lending groups. Credit performance this quarter is generally in-line with expectations. We see some of the lowest charge-offs and delinquencies at near-prime and retail lenders such as Enova and OneMain. Online lenders such as LendingClub have increased their charge-off estimates by ~50 bps.
Card issuers are increasing loan loss reserves at a higher rate than loan growth, indicating expectations of higher losses going forward. American Express increased loan loss provisions by 35% although loan growth was only 16% and Discover increased loan loss provisions by 26% on loan growth of 9%. Capital One saw a drop in loans outstanding.
Read the full report here.
Marcus Update (PeerIQ), Rated: AAA
GS Marcus Update
Personal loans are just the start, with possible expansion opportunities for Marcus into mortgages, credit cards, auto loans and insurance. There are 4 key product areas – Borrow, Spend, Save, Protect with 12 separate products listed with a focus on Clarity Money. Since its launch Marcus has served ~1.5 Mn customers with $3+ Bn loans originated and $20+ Bn in online deposits.
GS views their lack of legacy banking software as a competitive advantage and has invested heavily in building their platform. GS has invested, through capital spending and operating losses, $600 Mn, including reserves, up by $100 Mn.
GS is building Marcus as a business “for the next 50 years” but is expanding the personal loan program cautiously as the credit cycle may turn. GS wants to integrate the consumer platform with its wealth management business.
PeerIQ Webinar: Lending Earnings Insights Report – 2Q2018 (PeerIQ) Rated: B
PeerIQ is hosting a webinar by CEO Ram Ahluwalia on “Lending Earnings Insights 2Q2018” on Wednesday 6/13 at 3 p.m. EDT. We look forward to hosting you! Click to register and to add the invitation to your calendar.
$ 184.82 Million in Sales Expected for Elevate Credit (ELVT) This Quarter (StockNews Times) Rated: AAA
Equities analysts expect that Elevate Credit (NYSE:ELVT) will report $184.82 million in sales for the current quarter, Zacksreports. Two analysts have issued estimates for Elevate Credit’s earnings, with estimates ranging from $182.44 million to $187.20 million. Elevate Credit posted sales of $150.47 million during the same quarter last year, which suggests a positive year over year growth rate of 22.8%. The business is scheduled to issue its next earnings results on Monday, July 30th.
According to Zacks, analysts expect that Elevate Credit will report full-year sales of $803.08 million for the current fiscal year, with estimates ranging from $801.06 million to $805.10 million. For the next financial year, analysts expect that the firm will report sales of $930.53 million per share, with estimates ranging from $920.75 million to $940.30 million. Zacks’ sales averages are an average based on a survey of analysts that follow Elevate Credit.
Mulvaney Fires All 25 Members of CFPB Advisory Board (PJ Media) Rated: A
Mick Mulvaney, acting director of a controversial consumer finance bureau, fired an advisory board after the members criticized the new leadership for not taking their advice.
The Consumer Financial Protection Bureau (CFPB) announced Wednesday that the 25 current Consumer Advisory Board members will be replaced, and will be ineligible to reapply to the board, the Washington Post reports.
Eleven advisory board members held a news conference Monday calling out Mulvaney for canceling several meetings — which are required to take place under the Dodd-Frank Act which created the agency.
ALTERNATIVE USES OF THE FIXED-INCOME MARKETS (All About Alpha) Rated: AAA
The report, called “Building Resilience into Portfolios,” explains that the traditional use of fixed income in a portfolio is quite straightforward. That use generally involves a long position on debt of various sorts (sovereign, corporate, developed or emerging markets), that is relied upon to reap premiums from duration and credit risk.
But there are alternative uses of these instruments, and given the “rapid pace of change within fixed-income markets” in recent years they have become more available than ever, with the goal of securing absolute return, “steady positive returns above cash.”
These strategies include the exploitation of relative valuation differentials and/or the taking of short positions in order to profit from rising yields.
One obvious problem is that the central banks are about to start (in some jurisdictions have started) raising rates, reversing the tailwind that has benefitted the traditional use of FI in recent years.
Alternative investors in FX, though, have the flexibility to avoid such problems. They can “avoid issues, sectors, or sub-categories of assets altogether, as they see fit, investing solely in their highest conviction views.”
LendingTree Personal Loan Offers Report – May 2018 (Lending Tree) Rated: AAA
Offered APRs continue to rise for all borrowers, while lenders offer slightly lower loan amounts. Rate and loan amount offers varied widely among consumers, depending on factors including, but not limited to, credit score, income, and current debt obligations.
The most common reasons for seeking a personal loan are credit card refinancing and debt consolidation. These two categories comprise 63% of all loan inquiries.
Use Technology To Play The Real Estate Investment Market (Forbes) Rated: A
In Chicago, a new startup has introduced a tool that builds algorithms based on questions completed by the investor to establish the baselines. The tool then finds both on- and off-market deals that suit the preferences of the investor.
PayPal is launching a pop-up art exhibit in New York City (Tearsheet) Rated: A
PayPal wants its customers to get a tangible experience of what cash-back rewards look like, adding a physical and emotional association with the digital financial-services company.
PayPal is hosting a live walk-through pop-up exhibit in New York City on June 8 and June 9, the first time the company has hosted an experiential event of this kind. Anyone can attend the free event with music and refreshments. PayPal is the latest financial company to add realness to what many consumers see as abstract, transactional products.
Real Estate Crowdfunding Earns $ 10 Million in First Week (DS News) Rated: A
Atlanta-based real estate mogul Jay Morrison recently launched a new real estate crowdfundingprogram, and it’s finding some strong early success, having raised nearly $10 million in its first week.
The Tulsa Real Estate Fund is described as “the first African-American owned Regulation A+ Tier II crowdfund designed to revitalize urban communities across the U.S.” According to the group’s press release, the Tulsa Real Estate Fund “allows both accredited and non-accredited investors to collectively invest and own real estate projects around the country that are unique, diversified, and yield a reasonable rate of return.”
Ironhorse Funding Raises $ 30M of Capital from Crestline Investors (FinSmes) Rated: A
Ironhorse Funding, LLC, a Beverly, MA-based financing platform that provides operational and capital support for dealers and distributors in the motorcycle and powersports market, raised $30M strategic financing.
Crestline Investors made the investment through the firm’s Opportunity Fund III platform, which seeks to deploy capital where Crestline finds inefficiencies in the primary credit markets in North America and Europe.
The funding will be used to provide alternative financing solutions for consumers in the motorcycle and powersports market.
SBI HOLDINGS INC ORDINARY SHARES (OTCMKTS:SBHGF) on Focus After Report of Less Shorts (Fricisco Fastball) Rated: A
The stock of SBI HOLDINGS INC ORDINARY SHARES (OTCMKTS:SBHGF) registered a decrease of 3.53% in short interest. SBHGF’s total short interest was 3.16M shares in June as published by FINRA. Its down 3.53% from 3.28M shares, reported previously. With 11,600 shares average volume, it will take short sellers 273 days to cover their SBHGF’s short positions. The short interest to SBI HOLDINGS INC ORDINARY SHARES’s float is 1.59%.
The stock decreased 1.20% or $0.32 during the last trading session, reaching $26.41. About 3,352 shares traded. SBI Holdings, Inc. (OTCMKTS:SBHGF) has 0.00% since June 8, 2017 and is . It has underperformed by 12.57% the S&P500.
How two fintech entrepreneurs are rising from the ashes (San Francisco Business Times) Rated: A
Renaud Laplanche at Lending Club and Mike Cagney at SoFi were high-profile fintech founders, but each left under a cloud. Now they are seeking quick comebacks — and a measure of vindication.
Debt restructuring company Lendstreet receives $ 7m funding (Fintech Futures) Rated: A
US-based Lendstreet has just closed a $7 million series A equity round, led by Prudential Financial and Radicle Impact.
Prudential and Radicle join Lendstreet’s existing investors Accion, the Centre for Financial Services Innovation (CFSI), Serious Change, Crunchfund, Kapor Capital, and Cross Culture Ventures in participating in the round.
Knowledge Gap Contributing To Housing Market And Affordability Concerns, Cautiousness (PR Newswire) Rated: A
Ten years after the 2008 housing crisis, Americans eye the housing market with caution, as more than half (53%) of Americans who have or plan to buy a home admit they’re concerned about their ability to afford a home in the current market, according to a recent study of college-educated adults. The findings, release today by national online lender and FDIC-insured bank Laurel Road, also reveal that Americans on average believe a similar housing crash will occur in the next five years, and nearly one-fifth of respondents anticipate a crash in less than one year.
The survey found that women in particular are potentially underestimating affordability, as they are significantly less likely than men (49% vs. 59%) to be familiar with the alternatives.
This lack of knowledge around alternative options potentially contributes to the fact that more than one-third (35%) of respondents – and 46% of millennials – do not feel confident that they could currently afford a 20% down payment. Women (45%) feel particularly less confident than men (24%), while more than two-fifths (42%) of student loan carriers do not feel confident.
Funding Circle scraps downloadable loanbook (Peer2Peer Finance) Rated: AAA
FUNDING Circle has withdrawn its downloadable loanbook and stopped publishing loan performance data on a daily basis.
The peer-to-peer business lender announced on Thursday that it has launched a new statistics page which will be updated every three months.
The platform also announced that it has partnered with analytics firm AltFi Data who will provide independent verification of its quarterly loan information.
Foreign investment in UK technology firms doubles in just one year (The Telegraph) Rated: AAA
British tech businesses attracted $7.8bn of funding last year, which was almost double the amount received in 2016. Research by Dealroom and Tech Nation showed that the UK’s venture capital investment last year was higher than Germany’s total of $3.2bn and France, which brought in $2.8bn.
According to a report by EY, there was a 22pc increase in digital investment into the UK, which helped to offset a decline in investment to sectors such as a financial services and logistics, due to investor concerns over Brexit.
New SME funding hub will boost awareness of P2P (P2P Finance News), Rated: A
PEER-TO-PEER finance resources will be included in a new funding hub for high-growth businesses looking to scale up in the UK.
The state-backed development bank has partnered with 12 industry bodies to provide information on 17 types of finance, including P2P lending.
Silicon Valley CTO joins UK fintech MarketInvoice (PCR), Rated: A
Fintech start-up MarketInvoice has appointed Rija Javed as its chief technology officer (CTO) as the company looks to invest heavily into its technology. Rija Javed joins from Wealthfront, a leading Silicon Valley based start-up.
P2P fund boss Simon Champ exits Pollen Street Capital (AltFi News) Rated: B
P2P fund pioneer Simon Champ has left his role as head of the investment manager of the £735m P2P Global Investments trust, AltFi can exclusively reveal.
Champ was a founding partner of P2P Capital Solutions which later became MW Eaglewood Europe and was the driving force behind the launch of the P2P Global Investments trust (P2P GI), raising a large seed portfolio for the investment trust from respected fund managers such as Neil Woodford and Mark Barnett.
BNP Paribas Asset Management launches SME alternative lending platform, completes first UK loan (AltFi News) Rated: A
BNP Paribas Asset Management has completed its first UK loan on its new SME lending platform.
The loan, a six year senior unsecured amortising loan, was made to a specialist recruitment services company based in the West of England.
Leading the way (Peer2Peer Finance) Rated: A
SINCE its fifteen minutes of fame back around ‘OB Day’ on 13 January, when excited media reports promised the dawn of a new era of high-tech banking, Open Banking has slipped back into the fintech background, accompanied from some quarters by accusations of having been something of a damp squib.
But such claims misunderstand the nature of the beast, says Imran Gulamhuseinwala, implementation trustee of the snappily-named Open Banking Implementation Entity (OBIE) which develops and tests the APIs on which the system is built.
LendInvest’s Buy to Let Product Propels Boom in Hiring as Demand Surges (Crowdfund Insider) Rated: B
Online mortgage lender LendInvest reports it is scrambling to hire new employees due to the demand of its Buy-to-Let (BTL) product. The LendInvest team has now grown to 15 people in the short period since the BTL product was launched in November 2017.
Pike, joined the team from Fleet Mortgages.
LendInvest has also hired field-based Business Development Manager, Shane Wallace to cover the East of England. Shane brings over 10 years’ experience from Aldermore, where he was most recently employed as a Commercial Mortgage Manager.
Jack Ma’s Ant Financial Valued Around $ 150 Billion After Funding Round (Wall Street Journal) Rated: AAA
China’s Ant Small and Micro Financial Services Group Co. on Friday said it raised around $14 billion from domestic and global investors in one of the largest private-capital raises on record.
Standard Chartered says it will apply to operate a virtual bank in Hong Kong (SCMP), Rated: AAA
Hong Kong and London-listed Standard Chartered plans to apply for a virtual bank licence, making it the first traditional bank seeking a licence locally to operate purely online without physical branches.
The race to build Europe’s Robinhood: Invstr, Freetrade, Revolut, Dabbl and more (Business Insider) Rated: AAA
Startups across Europe are racing to try and replicate the success of Robinhood, the hot US stock trading app. San Francisco-based Robinhood offers a zero-fee trading app that has taken off with young Americans. Founded in 2013, it claims to have 4 million customers and in May hit a valuation of $5.6 billion. This success has not gone unnoticed. Fast-growing UK fintech startup Revolut on Thursday announced plans to build a commission-free stock trading platform, similar to the way Robinhood works.
Brokers are charging people as much as £5.00 ($6.70) per trade and the user interfaces are typically clunky, slow and confusing for consumers. The pain points are clear for us and the room for improvement is massive. We’ve just done some research and found 94% of millennials don’t actually invest but do want to, Ackred said. There are 16 million millennials just in the UK and 100 million more in Europe who are new to investing and have no good options to start.
The Center for Financial Inclusion Digs Into the Global Findex 2017 Numbers (Lend Academy) Rated: AAA
The Center for Financial Inclusion, part of Accion, have released a follow up report digging into the Findex data and the picture is less rosy than what was highlighted in the World Bank’s initial report.
On the surface it looks like the world is making good progress towards financial inclusion with the Findex report showing that 68% of adults globally having some kind of bank account versus 61% in 2014 and 51% in 2011. That is rapid progress.
But CFI found a different story when just focusing on active accounts, those accounts that had some kind of transaction in the past 12 months. This takes the percentage down to 55% and what is worse the gap is widening between total accounts and active accounts indicating a growing number of people who open an account but never use it. This is true for both developing and high income countries but the gap is getting much wider in developing countries as shown in the graphic below.
SuperMoney Launches No-fee Financing Platform (DeBanked) Rated: A
At the Finovate Spring 2018 conference, CEO Miron Lulic and CFO Jesse Stockwell presented the company’s new SuperMoney No-fee Financing platform, which allows merchants to obtain point of sale financing from online lenders and banks.
The new platform allows a small business merchant, like a furniture store, to create a free profile that is co-branded with SuperMoney. With the profile, the merchant can easily see when a customer has applied for financing and follow up.
According to a Forrester Consulting study on SuperMoney’s website, businesses that offer point of sale financing enjoy an average increase in sales of 17 percent and an average increase in order value of 15 percent.
Spotting a Scamcoin: Ethconnect (Coin Clarity) Rated: B
While the term “lending platform” might sound harmless and even beneficial to society, it was never disclosed outright to whom the coins were being lent or for what exact purpose they were being lent (though they did have the courtesy to mention “volatility software” – a trading bot concept directly plagiarized from Bitconnect). They were in fact being “lent” to Ethconnect themselves. This lack of detail did not stop hundreds of people, blinded by the prospects of huge profits, from throwing thousands of dollars at the project. But also unlike Bitconnect, none of them would ever see another penny of it again.
Prospa founders admit float lost ‘vital momentum’ (Sidney Morning Herald) Rated: AAA
The co-founders of small business lender Prospa maintain the company can return to the public markets for a future float, after a last-minute regulatory query this week created “confusion” that sapped the listing of vital “momentum.”
Digital SME Lenders Bank On Co-Lending To Make Their Presence Felt (Bloomberg Quint), Rated: AAA
If corporate lending was the flavour of the season at the turn of the decade, then retail lending has captured the attention of financiers over the last few years. Now, it is lending to the country’s small and medium enterprises, which is attracting increased focus from both traditional and new-age financial sector entities.
Capital Float, ranked among the country’s largest digital lending platforms, disbursed Rs 1,500 crore to MSMEs in 2017-18 out of a total portfolio of Rs 2,500 crore, according to information provided by the company. The ticket size of loans ranged from Rs 50,000 given to small local businesses to Rs 8-10 lakh loaned to larger SMEs.
Fintech Regulation Promotes Invocation In Brazil (Mondaq) Rated: AAA
Resolution no. 4.656/2.018 published by the Brazilian Central Bank on 26 April, which regulated credit fintechs in Brazil, opens the door of the highly concentrated banking sector in Brazil, so that financial technology companies can offer products and financial services in the credit market. Today, credit fintechs already operate in the financial market, but always through a financial institution duly regulated by the Brazilian Central Bank (CB).
With this new regulation, two types of financial institutions with different business models were created. They are: the “Sociedade de Crédito Direto” (SCD) (“Direct Credit Company”), which will carry out credit operations only using its own financial resources, and the “Sociedade de Emprésimo entre Pessoas” (SEP), (Peer-to-Peer Loan Company), which will carry out credit operations only as a financial intermediary without retaining risks or using their own resources, known in the market as “peer-to-peer lending”. Both institutions, after approval by the Central Bank (CB), will be authorized to operate, only, through an electronic platform.
China’s fintech companies are exporting AI and big data to Asia’s ‘laggard’ banking markets (SCMP), Rated: AAA
Chinese fintech companies have made headway in expanding their business to Southeast Asian markets, as they increasingly find their know-how in big data and artificial intelligence being sought after by Asian financial institutions in risk management and compliance.
Online consumer finance platform Weshare, which offers consumer loans through its mobile app, says it is applying for a P2P licence from Indonesia’s central bank.
Korean web harvesting giant is ready to scrape data around the world (Korea Joongang Daily) Rated: A
We also have smaller fintech start-ups as our clients. One of them is Bomapp, an insurance service application that is designed to offer insurance advice and find redundant coverage of registered insurance. For a start-up like Bomapp, we don’t charge per piece of data because we acknowledge that start-ups lack funds. Instead, we agreed to take equity from Bomapp.
As P2P start-ups become more active, we also provide user data for them. Among our clients are Lendit and 8percent. They use the data to assess credit ratings and get information about individual asset size. They try to use the online data because the P2P companies pursue a different credit rating approach to banks. We see there is a great opportunity in the fintech industry because they are keen to venture into new businesses.
News Comments Today’s main news: N26 reaches 1 million customers. Prospa postpones float. Transferwise could be working with Monzo. Ant Financial shifts away from finance. Goldman Sachs backs Marqeta. BlueVine raises $60M. Today’s main analysis: Capitalists invest in Chinese companies. Today’s thought-provoking articles: Goldman shares its vision for Marcus. 10x Banking founder discusses the future of fintech. Indonesia’s looming digital disruption. United […]
- Today’s main news: N26 reaches 1 million customers. Prospa postpones float. Transferwise could be working with Monzo. Ant Financial shifts away from finance. Goldman Sachs backs Marqeta. BlueVine raises $60M.
- Today’s main analysis: Capitalists invest in Chinese companies.
- Today’s thought-provoking articles: Goldman shares its vision for Marcus. 10x Banking founder discusses the future of fintech. Indonesia’s looming digital disruption.
- Goldman backs Marqeta. Goldman continues to make smart decisions in its fintech, lending holdings. This is a good investment.
- Goldman’s plans for Marcus. There can’t be enough good said about the Marcus platform. It’s always good to see the vision behind it.
- Digital banking can be a lifeline when disaster strikes.
- Fifth Third’s Tim Spence named Digital Banker of the Year.
- Apex Clearing branches out.
- Steve Wozniak says blockchain could be in a bubble.
- FlyHomes raises $17 million.
- IDology study shows consumer insights on digital identity.
- Small businesses bullish on economy.
- Cross River Bank hires veteran banker for SBA lending lead.
- Transferwise could be working with Monzo. All the best news today is from outside of the U.S. This rumor leads the way. If Transferwise is working with Monzo, or intends to, this will be a powerful partnership.
- 10x Banking founder discusses the future of fintech. A video, approx. half an hour in length. Worth listening to, especially regarding digital banking.
- Sphonic to partner with Paysafe on digital wallet services.
- Multiply raises 1.75 million GBP.
- Ant Financial shifts focus from finance to tech services. This has to be a clue that the clampdown in China might be too tight.
- Mao is laughing because capitalists are backing Chinese companies. I think this is likely tickling Thomas Jefferson too.
- Caogen Touzi secures $358 million.
- Pintec raises $103 million.
- N26 passes 1 million customer mark. Congratulations. Great news for the entire industry.
- ING launches SME financing platform on open banking principles.
- FinCompare raises 10 million Euros.
- Banco BNI Europa partners with Alterest.
- Marketplace lending is growing, but securitization is way off.
- Australia: Prospa postpones float.
- Israel: BlueVine raises $60 million.
- Indonesia’s coming digital disruption.
- Australia: Southern Cross gets a boost.
- Australia: HashChing puts up “mortgage hell” bilboard.
- Indonesia: Mekar’s Thierry Sanders.
- St. Lucia: ECCB advises caution on non-traditional finance.
- United States
- Goldman Sachs backs card issuing, processing startup Marqeta (Reuters) Rated: AAA
- Goldman Sachs Shares Their Vision for the Future of the Marcus Platform (Lend Academy) Rated: AAA
- When disaster strikes, digital banking can become a lifeline (American Banker) Rated: A
- Digital Banker of the Year: Fifth Third’s Tim Spence (American Banker) Rated: A
- The plumber to US fintechs branches out (Financial Times) Rated: A
- The Woz: Blockchain might be a bubble, but it’s on the right track (AltFi News) Rated: A
- Real Estate Startup FlyHomes Raises $ 17m in Series A Funding (Finsmes) Rated: A
- IDology Study Reveals Consumer Insights on Digital Identity Fraud (IDology) Rated: B
- Despite worries, America’s small business owners bullish on economy (Bankless Times) Rated: A
- Cross River Hires Veteran Banker To Lead SBA Loan Practice (PR Newswire) Rated: B
- United Kingdom
- TransferWise’s next partnership could be with U.K. challenger bank Monzo (Tech Crunch) Rated: AAA
- 10x Banking Founder on Why FinTech Is the Future (Bloomberg) Rated: AAA
- Sphonic to partner with Paysafe on digital wallet services (Peer2Peer Finance) Rated: A
- Automated financial advisor Multiply raises £1.75 million (Finextra) Rated: A
- Ant Financial is shifting its focus from finance to tech services (CNBC) Rated: AAA
- Mao is Laughing: Capitalists Pour Money into Chinese Companies (Nasdaq) Rated: AAA
- China’s fintech startup Caogen Touzi secures $ 358m Series D round (Deal Street Asia) Rated: A
- Fintech Company Pintec Raises $ 103M in Equity Funding (Finsmes) Rated: A
- European Union
- N26 passes million customer milestone (Finextra) Rated: AAA
- ING pushes for open banking with SME financing platform and Yolt expansion (Fintech Futures) Rated: AAA
- Fintech Company FinCompare Raises €10M in Series A Funding (Finsmes) Rated: A
- Challenger bank Banco BNI Europa selects Alterestfor effortless loan data management (Banco BNI Europa Email) Rated: B
- Euro MPLs growing, but securitization a ways off (GlobalCapital) Rated: A
- FusionFabric.cloud platform changes the way software is developed, deployed and consumed in the financial world (Finastra) Rated: A
- The AI and robo-advice questions you should be asking (Professional Adviser) Rated: A
- Prospa float postponed as ASIC queries small business loan terms (Australian Financial Review) Rated: AAA
- New build financing gap boosts Southern Cross (Good Returns) Rated: AAA
- Mortgage group’s “mortgage hell” billboard above CBA (Australian Broker) Rated: A
- Israeli fintech co BlueVine Raises $ 60m (Globes) Rated: AAA
- Indonesia’s coming digital disruption (The Business Times) Rated: AAA
- Thierry Sanders, CEO Of Mekar (Indonesia Expat) Rated: A
- ECCB advises caution regarding non-traditional financial services (St. Lucia Times) Rated: AAA
Goldman Sachs backs card issuing, processing startup Marqeta (Reuters) Rated: AAA
Goldman Sachs Group Inc (GS.N) has joined a $45 million investment round in Marqeta, a U.S. fintech company offering technology businesses can use to issue payment cards, the startup said on Tuesday.
The round, which brings Marqeta’s total funding raised to $116 million, was led by venture capital firm ICONIQ Capital, according to a statement from the companies. Marqeta is also backed by Visa Inc (V.N).
Goldman Sachs Shares Their Vision for the Future of the Marcus Platform (Lend Academy) Rated: AAA
In the presentation Solomon did not address everything on this slide directly but much of it is self-explanatory. First, Goldman is breaking down their vision for their consumer platform into four key areas: Borrow, Spend, Save, Protect with 12 separate products listed. It is also interesting that Clarity Money is front and center on this slide. They clearly view the personal financial management app as a critical piece of the puzzle.
Let’s look at the future products in the Borrow space beyond personal loans:
- Credit Cards – we have already heard about their deal with Apple but there will likely be a Marcus branded credit card at some point.
- Mortgage – This is a huge market and one that still has plenty of room for disruption. While it won’t be easy to displace the banks or large non-bank lenders like Quicken Loans and loanDepot there is a huge market to go after.
- Auto – Another big market with no clear fintech leader. The banks still dominate auto lending, particularly for new cars. LendingClub has started in the auto space focused on auto refinancing and I expect that will be the area Marcus would go to first.
When disaster strikes, digital banking can become a lifeline (American Banker) Rated: A
As chief information and digital officer at Popular Inc., Burckhart’s role is mostly in the office and boardroom. But in the aftermath of the Category 4 storm, she and her team spent days in the field, figuring out how to get banking services to those who needed them.
Their efforts cannot be overstated, since the company occupies a key role in the island’s economy: Its Banco Popular claims to have 56% of the deposits in Puerto Rico and 49% of the net loans, as of year-end.
A week after Hurricane Maria, despite islandwide communication and electrical outages, Popular had 53 of 168 branches and 150 of 635 ATMs in service, as well as all digital channels.
Digital Banker of the Year: Fifth Third’s Tim Spence (American Banker) Rated: A
Last year, Spence oversaw the configuration of so-called Agile teams to work on Fifth Third’s online banking channels and mobile apps. This resulted in a revamped bill pay experience, along with the addition of online branch appointment scheduling and the ability to withdraw cash at ATMs using the bank’s mobile app. In months, it was also able to launch Zelle peer-to-peer payments and Momentum, a proprietary app that helps millennials pay off student loans faster through micro payments from rounding up purchases.
The plumber to US fintechs branches out (Financial Times) Rated: A
Apex Clearing helps to power leading fintech firms like Robinhood, Betterment and Stash, acting as the plumbing and operating in the background; as these digital platforms begin to slow their growth Apex has started to look beyond the startups for bigger clients; Bill Capuzzi, CEO of Apex Clearing, says there is more than $500bn of addressable market with larger firms who want to digitize; the effort is not easy as some traditional players still use fax machine technology; making progress slow but firms know they need to digitize and Apex is hoping to take a big share of those making the shift.
The Woz: Blockchain might be a bubble, but it’s on the right track (AltFi News) Rated: A
The ‘Woz’ also offered thoughts on digital banking and artificial intelligence.
He said that online banks ‘just aren’t as secure’ as their incumbent rivals, referencing a time that his own crypto-currency holdings, or a portion of them, were stolen from a digital bank.
Real Estate Startup FlyHomes Raises $ 17m in Series A Funding (Finsmes) Rated: A
FlyHomes, a Seattle, WA-based real estate startup, raised $17m in Series A funding.
The round was led by Andreessen Horowitz, with participation from Mark Vadon and Shasta Ventures, among others.
The company intends to use the funds to increase deployment of its Cash Offers program, accelerate hiring, invest in further product development, and drive new market expansion in Seattle, San Francisco, Chicago and Boston.
IDology Study Reveals Consumer Insights on Digital Identity Fraud (IDology) Rated: B
Key consumer behavior trends and other major findings identified in the IDology Consumer Digital Identity Studyinclude:
- Fraud concerns are impacting consumer choices online, with 83 percent surveyed having extreme to moderate concern that their identities will be used to fraudulently open accounts.
- Consumers view biometrics, knowledge-based authentication and one-time passcodes as the most secure methods of authentication. Overall, 90 percent of consumers are comfortable answering knowledge-based authentication questions to verify their identities but prefer demographic-based questions over credit-based questions two to one.
- Fifty-six percent of consumers report that they are more likely to choose a financial institution if they know it offers advanced identity verification methods.
- When opening an account online, consumers place a premium on security (88 percent) and ease (72 percent), with 31 percent reporting they have abandoned signing up because it was too difficult or took too long. This reveals that more than ever, consumers are looking to do business with companies and financial institutions that have minimal friction as part of their overall service experience, along with assurance that their transactions and identities are secure.
Despite worries, America’s small business owners bullish on economy (Bankless Times) Rated: A
According to the survey, 53 per cent and 52 per cent respectively of small business owners named (1) the cost of providing health insurance for employees and (2) the effect of changes in the new tax law as key business considerations. What’s more, 35 per cent of respondents report the new tax plan has already caused them to make changes in their business, with 10 per cent reporting that they are actively investing in new equipment or staffing.
Cross River Hires Veteran Banker To Lead SBA Loan Practice (PR Newswire) Rated: B
Cross River, a leader in the emerging Fintech industry, has hired Kevin Gallagher, an accomplished small business lending specialist, to head its Small Business Administration loan division.
Gallagher joins Cross River from Empire State CDC: The 504 Company, where he led business development efforts around various SBA loan products and community lending products. Prior to that, he served as national sales director for SBA-related programs at Customers Bank and Citibank.
TransferWise’s next partnership could be with U.K. challenger bank Monzo (Tech Crunch) Rated: AAA
According to sources, the international money transfer service and European unicorn is working with the fast-growing U.K. challenger bank Monzo.
The tie-in will likely see TransferWise functionality offered within Monzo’s mobile banking app, courtesy of the TransferWise API. It will give Monzo’s 700,000 customers the ability to send money in various supported currencies at the ‘mid market’ rate in addition to TransferWise’s low and transparent fees.
A partnership with U.K. challenger bank Starling was also announced last year, but integration with the bank’s app never materialised and TechCrunch learned last week that the partnership has now dissolved entirely. That is particularly noteworthy given that Monzo and Starling are direct competitors with an interesting shared history, shall we say.
10x Banking Founder on Why FinTech Is the Future (Bloomberg) Rated: AAA
Sphonic to partner with Paysafe on digital wallet services (Peer2Peer Finance) Rated: A
DATA and risk management specialist Sphonic has been chosen to provide digital wallet services to global payments provider Paysafe Group.
Sphonic, which works with peer-to-peer lenders including Funding Circle and Zopa, supplies data networking services.
These include customer on-boarding, anti-money laundering, know your customer, fraud detection and monitoring as well as authentication.
Automated financial advisor Multiply raises £1.75 million (Finextra) Rated: A
Multiply, the UK’s first fully-automated independent financial advice service, has secured investments totaling £1.75 million, led by Octopus Ventures.
Octopus Ventures, the early stage investor, invested £1 million, and was joined by Portag3 Ventures LP and Entrepreneur First to support Multiply’s development and roll-out of their beta consumer facing product. Angel investors include Nick Hungerford, former CEO of Nutmeg, Taavet Hinrikus, CEO and co-founder of TransferWise, Peter Rading, Michael Orland and Toby Moore.
Ant Financial is shifting its focus from finance to tech services (CNBC) Rated: AAA
Ant Financial Services, the dominant Chinese fintech company, is shifting its main focus to technology services and away from payments and consumer finance as Beijing’s crackdown on financial risk deepens, four sources with knowledge of the matter said.
But in five years, technology services will make up 65 percent of Ant Financial’s revenue, compared with an estimated 34 percent in 2017, according to confidential company projections viewed by Reuters. That would involve helping banks and other institutions with services like online risk management and fraud prevention.
Mao is Laughing: Capitalists Pour Money into Chinese Companies (Nasdaq) Rated: AAA
Over the past week, two private Chinese technology unicorns, Xiaohongshu (“Little Red Book”) and Sensetime, announced that they had raised nearly $1 billion, adding to the ranks of large Chinese enterprises thinking about going public. Another Chinese company is scheduled to IPO in June, 3 recently selected bankers (a key step for launching an IPO) and 11 have already gone public for a total of 15 year to date, compared to 15 in all of 2017.
Year to date, the 11 Chinese companies are up 39%, compared to only 3% for last year’s vintage. HUYA, a leading live streaming platform for video games, is up 147% since its May 10, 2018 IPO, followed by another video streamer, IQIYI, up 62%. Last year’s big winner was tiny filter maker Newater, up 177%, followed by online lender Lexin Fintech, up 73%, while more than half of its 2017 comrades are under water.
China’s fintech startup Caogen Touzi secures $ 358m Series D round (Deal Street Asia) Rated: A
Hangzhou-based fintech platform Caogen Touzi has closed an RMB 2.3 billion ($357.8 million) Series D round led by Shanghai-listed Geo-Jade Petroleum, a property development and oil and gas firm, and other investors.
In a security filing, Geo-Jade Petroleum said it will invest no more than RMB 500 million ($78 million) in Caogen Touzi.
Caogen Touzi told Kr36 that the firm will focus on tapping the rural finance market in the future and use the funds for business development.
Fintech Company Pintec Raises $ 103M in Equity Funding (Finsmes) Rated: A
Pintec, a Beijing, China-baased independent technology platform enabling financial services, raised US$103m in financing.
The round was led by Mandra Capital and SINA Corp., with participation from STI Financial Group, Shunwei Capital Partners and ZHONG Capital Holding Group, among others.
The company intends to use the funds to increase investment in R&D, traffic integration, risk management and operations.
N26 passes million customer milestone (Finextra) Rated: AAA
We are very excited to announce that N26, that’s us, now has over a million customers.
To celebrate we put together a look at how customers help us transact €1 billion a month. Before continuing though, we’d like to mention that while we do look at aggregated data, we never look at individual data unless explicitly asked to do so.
ING pushes for open banking with SME financing platform and Yolt expansion (Fintech Futures) Rated: AAA
ING is launching a marketplace for SME financing in the Netherlands, which will open to other external financing providers, becoming the first Dutch bank in doing so.ING is keen to maximise the possibilities of open banking and is working with Yolt and Funding Options on bringing new features to customers across Europe.
ING is also expanding its money management capabilities offered to consumers with the launch of Yolt in France and Italy.
Fintech Company FinCompare Raises €10M in Series A Funding (Finsmes) Rated: A
FinCompare, a Berlin, Germany-based fintech company, raised €10m in Series A funding.
The round was led by ING Ventures with participation from Speedinvest and Uniaq Ventures.
The company intends to use the funds for the expansion of the team, investment in IT and further growth.
Challenger bank Banco BNI Europa selects Alterestfor effortless loan data management (Banco BNI Europa Email) Rated: B
Banco BNI Europa and Alterest, an innovative loan data and intelligence platform, publicly announced today their partnership to streamline investment analytics and risk management between the bank and its credit originating partners. Initiated in Oct, 2017, the partnership comprised of data-feeds integration with tech-enabled lending platforms, implementation of a reconciliation process between operations and nostro accounts, and configuration of an IFRS9-compliant impairment calculation model.
Euro MPLs growing, but securitization a ways off (GlobalCapital) Rated: A
The marketplace lending sector in Europe is growing, with a sharp focus on the small to medium sized enterprise segment, but it is still lagging UK and the US markets and lenders will need to ramp up scale and educate investors before a meaningful pipeline of securitization can build
A panel on focused on European marketplace lenders on day one highlighted the risks and the challenges facing the sector. Speakers hit on some well tread talking points, such as the availability of data on underlying loan portfolios and the lack of performance history.
FusionFabric.cloud platform changes the way software is developed, deployed and consumed in the financial world (Finastra) Rated: A
- FusionCreator – A rapid development environment for financial applications with low-code capabilities and integrated API management tools
- FusionOperate – A management system to deploy and operate applications in a secure cloud infrastructure
- FusionStore – An online marketplace for banks to search, try and buy applications
FusionFabric.cloud already has over 60 Fintechs and providers signed up.
The AI and robo-advice questions you should be asking (Professional Adviser) Rated: A
Automated advice, robo-adviser, machine learning, AI-enabled expert advice, robo-advice digital journey, hybrid machine/adviser solution … in a very short space of time the advisory sector has coined a significant amount of terminology for robo-advice.
Being properly informed about these issues and asking the right questions of a provider can make an enormous difference in levels of investment.
Prospa float postponed as ASIC queries small business loan terms (Australian Financial Review) Rated: AAA
Small business lender Prospa says it has taken a conservative approach in delaying its $576 million ASX float by two days, in order to respond to renewed concerns from the corporate regulator that its standard form contracts may contain unfair clauses in breach of consumer laws.
New build financing gap boosts Southern Cross (Good Returns) Rated: AAA
Peer to peer lender Southern Cross Partners has seen an increase in investor demand as first time buyers struggle to finance new-build properties.
The lender says it experienced a 10-20% increase in investor demand last year amid a lack of available funding for the construction and sale of new homes.
Mortgage group’s “mortgage hell” billboard above CBA (Australian Broker) Rated: A
Online mortgage startup HashChing is advertising with a billboard above a Commonwealth Bank of Australia (CBA) branch.
The home loan marketplace has launched a campaign against the big banks, which includes this billboard in the Melbourne CBD. The slogan reads, “Our brokers will go to mortgage hell, so you don’t have to”.
Israeli fintech co BlueVine Raises $ 60m (Globes) Rated: AAA
Israeli alternative business lending company BlueVine today announced that it has closed $60 million iSeries E financing round led by Menlo Ventures, and including new investors, such as SVB Capital. All major existing investors also participated. Including this financing round, the company has raised $533 million to date including $128 million in equity financing and $405 million in debt financing. This latter figure included $200 million raised from Credit Suisse two months ago.
The new financing will support BlueVine’s plan to expand its highly-successful invoice factoring and business line of credit products, and to explore new products catering to small and medium-sized businesses. BlueVine also plans to use the funding to accelerate R&D hiring.
Indonesia’s coming digital disruption (The Business Times) Rated: AAA
INDONESIA’S digital economy is set to boom, helping its overall economy expand from US$1 trillion in 2017 to US$2.7 trillion by 2027.
Over the next 10 years, we expect online retail in Indonesia to increase 14-fold from just US$4.4 billion in 2017 to US$63.2 billion, or 19 per cent of total retail sales versus 3 per cent currently.
To support this growth, as well as the rise in e-services such as ride hailing, travel bookings and food delivery, we expect an equally rapid adoption of e-money from just 2 per cent of nation-wide transactions in 2017 to 24 per cent by 2027.
We are also seeing the emergence of fintech solutions such as peer-to-peer lending targeting the 44 per cent of the population who do not have access to banking services today.
Thierry Sanders, CEO Of Mekar (Indonesia Expat) Rated: A
We’ve shifted our activities and are now mainly financing women’s businesses. Lending to women is safer in Indonesia. Statistics show that five percent of male borrowers, on average, will not pay back. With our female borrowers, it’s only 0.5 percent. Which is why we chose to focus on women. They also have a harder time getting financed. Now, 95 percent of the businesses we finance are women’s businesses.
ECCB advises caution regarding non-traditional financial services (St. Lucia Times) Rated: AAA
The Eastern Caribbean Central Bank (ECCB) is aware of the emergence of several initiatives which compete directly with traditional financial services. These include but are not limited to: peer to peer lending, digital wallets, crowd funding ventures, crypto-assets and initial coin offerings (ICOs) in the Eastern Caribbean Currency Union (ECCU).
News Comments Today’s main news: One student saved $20K on a SoFi student loan. PayPal, Google deepen partnership. Zopa to hire a social media strategist. Ant Financial is a top 10 global bank. Today’s main analysis: Improved MPL pools are no guarantee of ABS performance. Today’s thought-provoking articles: A deeper look at GreenSky. Quants and fundamentalists. Ways to impress a lead investor. Helping […]
- Today’s main news: One student saved $20K on a SoFi student loan. PayPal, Google deepen partnership. Zopa to hire a social media strategist. Ant Financial is a top 10 global bank.
- Today’s main analysis: Improved MPL pools are no guarantee of ABS performance.
- Today’s thought-provoking articles: A deeper look at GreenSky. Quants and fundamentalists. Ways to impress a lead investor. Helping SMEs with P2P financing. Millennials lead an investment revolution.
- How one student saved $20K on a SoFi loan. These types of stories are SoFi’s best marketing, and it didn’t come from SoFi.
- Is it clear skies ahead for GreenSky? GreenSky is exiting the gate looking good. To raise this kind of money on an IPO and be profitable for the past five years is a startup’s dream, and they’re living it.
- PayPal, Google deepen partnership. This sets PayPal up nicely to use Google as a customer acquisition point for lending products.
- Improved MPL pools no guarantee of ABS performance. This is an important read for companies looking at issuing securitizations, a growing trend in marketplace lending. Don’t miss this read.
- Quants and fundamentalists unite. A decent read.
- Millennials are leading an investment revolution. I’m all for making an impact and being socially responsible, but if it isn’t profitable, then don’t count on retirement. That said, the millennial generation is definitely a different generation, and it’s quite refreshing to keep reading about them.
- The impact of online lenders on small businesses.
- Why foreign investors love U.S. commercial real estate.
- Better get your artificial intelligence game on.
- Former American Express chief backs immigrant credit score provider.
- OnDeck, Kabbage, Lendio drive up their share of business lending.
- Emerging alternative finance.
- Layered Insight snags top advisors.
- Renew Financial recruits veteran Prosper exec as CEO.
- Zopa to hire first social media executive.
- LendInvest debuts first official buy-to-let legal panel.
- Allianz leads funding round for Moneyfarm.
- Swoop partners with Hiscox.
- Ashley Finance appoints bridging regional sales director.
- Ant Financial a top 10 bank globally. And I think there’s good reason to see them move up the ranks fairly quickly.
- Dianrong to use R3’s Corda ledger.
- United States
- ‘I’m saving over $ 20,000’: Why you should consider refinancing your student loans through SoFi (Business Insider) Rated: AAA
- GreenSky: Clear Skies Ahead (Seeking Alpha) Rated: AAA
- PayPal and Google are deepening their partnership (Business Insider) Rated: AAA
- Improved MPL pools no guarantee of ABS performance, says Fitch (Asset Securitization Report) Rated: AAA
- QUANTS AND FUNDAMENTALISTS UNITE! (All About Alpha) Rated: AAA
- Millennials are leading an investment revolution — here’s what makes their generation different (Business Insider) Rated:AAA
- New Report on the Impact of Online Lenders on Small Businesses (Lend Academy) Rated: A
- Why Foreign Investors Love U.S. Commercial Real Estate, And Why More Will Follow (Forbes) Rated: A
- Better Get Your AI Game On (Prime Meridian Capital Management) Rated: A
- Former Amex chief backs immigrant credit score provider (Financial Times) Rated: A
- OnDeck, Kabbage, Lendio Continue to Drive Up Their Share of Small Business Lending (Bank Innovation) Rated: A
- Emerge With An Alternative (Scotsman Guide) Rated: A
- Layered Insight Snags Top CISOs As Advisors (PR Newswire) Rated: B
- Renew Financial Elevates Financial Services Veteran Kirk Inglis to CEO (PR Newswire) Rated: B
- United Kingdom
- Zopa to hire first social media executive to broaden customer focus (Peer2Peer Finance) Rated: AAA
- LendInvest Debuts First Official BTL Legal Panel Six Months After Product Launch (Crowdfund Insider) Rated: A
- Allianz leads £40m funding round in Moneyfarm (Fintech Futures) Rated: A
- SME funding platform partners with Hiscox (Peer2Peer Finance) Rated: B
- Ashley Finance appoints bridging regional sales director (Bridging & Commercial) Rated: B
- Ant Financial is Now a Top 10 “Bank” Globally (Lend Academy) Rated: AAA
- Dianrong to land on distributed ledger Corda (Tech Node) Rated: A
- Neo lender increases loan limits (Australian Broker) Rated: AAA
- Analysis of new mortgage lending shows the slump in Auckland home sales has affected all types of buyers (Interest) Rated: A
- Ways to Impress a Leading Investor for Your First Venture Capital Fund (Entrepreneur) Rated: AAA
- Mobikwik plans to turn around biz with UPI and loans: But is it too late? (EnTrackr) Rated: A
- Helping SMEs build their business with P2P financing (Tech Wire) Rated: AAA
- Meet Piggybank.ng, The Nigerian FinTech Startup That Just Raised $ 1.1million (Forbes) Rated: AAA
- SA’s Crossfin, Investec to back early-stage fintech startups (Disrupt Africa) Rated: A
- Fundbox Wins The Prestigious Israeli Atlas Award For Best Fintech Startup (The Virginian Pilot) Rated: A
‘I’m saving over $ 20,000’: Why you should consider refinancing your student loans through SoFi (Business Insider) Rated: AAA
Student debt is growing in the US and looming as a major ongoing issue. With a total of $1.48 trillion in student loan debt in the US, spread among 44 million borrowers, Americans now have more student loan debt than credit card debt, according to Student Loan Hero.
Interest rates, meanwhile, are punishing, even more so depending on the type of loan you get, and the level of education you’re paying for. According to data from the Department of Education, rates range from around 3.5% to as high as 8.5% — with most types of loans floating in the 5-7% range. That’s extraordinarily high when you consider that many auto loan rates and even mortgages are lower.
GreenSky: Clear Skies Ahead (Seeking Alpha) Rated: AAA
The company offered 38.0 million shares to the public that priced at the upper end of the range at $23. The over allotment grant added another 5.7 million shares to the total offering. Selling shareholders offered all of the shares with gross proceeds of $1 billion.
GreenSky ended the day virtually unchanged at $23.26 at a time when most IPOs trade in more volatile ranges. The stock only had a range of $22.05 to $23.36 suggesting minimal initial interest by traders.
At the current price of $26.70, GreenSky has a market value of over $5.1 billion on 190 million shares outstanding (including the 5.7 million over-allotment option) with sales on pace to likely top $400 million this year.
The numbers though suggest anything but a boring company. Transaction volume jumped 47% to $1.0 billion during the March quarter and active merchants grew equally impressive at 52%. The fintech is even profitable.
PayPal and Google are deepening their partnership (Business Insider) Rated: AAA
PayPal and Google are extending their payments relationship across Google’s entire ecosystem, according to Finextra and TechCrunch. The two firms have worked together for awhile, as customers are able to integrate their PayPal accounts directly into Google Pay, Google’s mobile wallet.
But now, they’re taking the partnership a step further, allowing customers to enter their PayPal credentials once and then have them available for various types of payments, including bill pay and peer-to-peer (P2P) payments, across Google offerings such as Gmail, Google Play, Google Store, and YouTube. The partnership is expected to roll out in full later this year.
Improved MPL pools no guarantee of ABS performance, says Fitch (Asset Securitization Report) Rated: AAA
Marketplace lenders such as LendingClub and Prosper have made strides in improving underwriting standards in the past year.
In a report issued Thursday, Fitch said investors should still be wary of assuming new-issue MPL securitizations are a step up in quality over previous ABS deals, even though firms such as LendingClub and Prosper have taken steps to tighten lending standards as well as pool greater concentrations of borrowers with higher credit scores into their recent ABS deals.
LendingClub (NYSE:LC), for instance, boosted the weighted average FICO of its most recent prime/near-prime consumer-loan securitizations in December to 703, compared with 692 in its first asset-backed transaction of 2017.
LendingClub’s most recent self-sponsored transaction, Consumer Loan Underlying Bond (CLUB) Credit Trust 2018-NP1, had its base-case loss range tightened to 13.25%-15.25% by Kroll Bond Rating Agency, compared with 14%-16% in its CLUB 2017-P2 transaction. (In December, LendingClub pooled a collection of subprime loans with credit scores below 660, with a base-case loss range of 19.65%-21.65%.)
QUANTS AND FUNDAMENTALISTS UNITE! (All About Alpha) Rated: AAA
But the Bloomberg Professional Services Blog has run a piece recently on “quantamental” investing, indicating that a merger of the two approaches is underway. Darwinian pressures aren’t kind to presuppositions or to the purity of paradigms. And it is survival of the fittest that is at work here, because fitness requires on the one hand that the quants use good (human) judgment to monitor and adjust the investment process to the prevailing market conditions, while it also requires that any workable fundamental approach employ “promising aspects of technology … to reduce bias and random noise.”
“Alternative data” means what it sounds like it means: every sort of datum that one would not traditionally have expected to come up in a discussion of trades, investments, or portfolio allocations.
These sources can include (Bloomberg’s list), “social media posts, credit card accounts, online browsing activity, foot traffic and weather patterns.” Any and all of these can include clues to ongoing and future trends. The use of any such source, or any cross-referencing of sources that can produce patterns, may be novel this week, customary next week, and a bare minimum for survival in the trading jungle the week after that.
Millennials are leading an investment revolution — here’s what makes their generation different (Business Insider) Rated:AAA
Nuveen’s “Third Annual Responsible Investing Survey” of over 1,000 affluent investors found there was increased interest in working for, buying from, and investing in socially responsible companies. This is even more true among the millennials surveyed.
Some 92% of millennials agreed with the statement “I care more about having a positive impact on society than doing well financially” compared to 52% of nonmillennials.
We interviewed a handful of millennials, asking them what makes their generation different. They answered: access to information, aligning themselves with brands on social media, and growing up in more comfortable economic circumstances than their parents and grandparents.
New Report on the Impact of Online Lenders on Small Businesses (Lend Academy) Rated: A
Most of us are aware of the importance of small businesses in the US economy. Small businesses employ over half of private-sector workers in the US, so access to capital for small businesses is critical to their success. Fortunately, online lenders such as the ones mentioned in the report have focused on serving the needs of businesses and activity has picked up over the last few years. Both awareness of these alternative options and the amount lent on these platforms is increasing. Originations at five leading online small business lenders increased by 50% in three years, from $2.6 billion in 2015 to $3.9 billion in 2017.
Nearly $10 billion of funding was provided to 180,000 small businesses from 2015 to 2017 according to data which included leading platforms OnDeck, Kabbage and Lendio. This activity has generated $37.7 billion in gross output, created 358,911 jobs and $12.6 billion in wages.
Despite fears of trade wars and increased protectionism, foreign investment in the United States remains robust. In fact, the U.S. continues to be the single largest recipient of foreign direct investment (FDI) in the world: more than
Better Get Your AI Game On (Prime Meridian Capital Management) Rated: A
The AI and algo game is nothing new really. A couple decades ago many called it neural networks and neural computing, and that has evolved into today’s version of AI. But what is different today and so disruptive are three elements that were not there in the early days of machine learning: computing power and cloud-based systems, a growing and global population of computer and data scientists and data. Lots of lots of data.
Those three are increasingly working together in the alternative investments markets space, enabling firms to make much more accurate, and potentially, more profitable investments. The AI topic, discussed at Lendit Fintech USA 2018 conference in San Francisco in April, revealed just how integrated it is already and where it is going in the coming months and years. Listen to the full recording HERE.
Former Amex chief backs immigrant credit score provider (Financial Times) Rated: A
The former American Express chief Ken Chenault is backing a start-up company that provides credit scores for immigrants who struggle to rent apartments and access other basic services upon their arrival in the US.
Workers on overseas postings, international students and other newcomers have long struggled to secure credit cards and other loans because American institutions hold no records on them.
Nova Credit, which is among a new breed of Silicon Valley companies seeking to shake up the financial system, aims to address the problem. It has secured funding from General Catalyst, the venture capital group that has stood behind companies including Snap, Stripe and Warby Parker.
OnDeck, Kabbage, Lendio Continue to Drive Up Their Share of Small Business Lending (Bank Innovation) Rated: A
Layered Insight Snags Top CISOs As Advisors (PR Newswire) Rated: B
Layered Insight announced today that Tim McKnight, EVP & Chief Information Security Officer at Thomson Reuters, and Richard Seiersen, SVP & Chief Information Security Officer at Lending Club, have joined Layered Insight’s Advisory Board.
Renew Financial Elevates Financial Services Veteran Kirk Inglis to CEO (PR Newswire) Rated: B
Renew Financial, the inventor of Property Assessed Clean Energy (PACE) financing and a leading provider of financing for home improvements, today announced that Kirk Inglis, currently Renew Financial’s Chief Financial Officer (CFO), will succeed Cisco DeVries as Chief Executive Officer (CEO) of the company. Mr. Inglis brings more than 20 years of experience in financial services and technology with a deep expertise in consumer lending. His career includes senior finance and operating roles with Calypso Technology, Prosper Marketplace and Providian Financial Corporation. Mr. DeVries will become the company’s Chief Innovation Officer to focus on key growth opportunities and to help innovate new financing tools for clean energy. DeVries will continue to serve on Renew Financial’s board of directors.
Ant Financial is Now a Top 10 “Bank” Globally (Lend Academy) Rated: AAA
It had been rumored for some time now. Ant Financial, the Chinese financial behemoth, was raising a very large funding round that would value the company at $150 billion. It has been reported extensively today that this funding round has in fact closed. Ant Financial has raised $10 billion at a $150 billion valuation.
For a brief primer on Ant Financial there is a decent summary on their English language websitebut for a deeper understanding I recommend you read Chris Skinner’s new book, Digital Human (the Kindle version is available now). This has a 30,000 word case study that not only shares the history of Ant Financial but also why they are one of the world’s most forward thinking companies. And if you think they are just a Chinese story, think again. Ant Financial embodies the future of financial services and they will, in my opinion, shape the future of financial services more than any other fintech company on the planet.
Dianrong to land on distributed ledger Corda (Tech Node) Rated: A
Dianrong (点融), a leading Chinese online P2P lending service provider today announced cooperation with R3, a global platform specializing in distributed data technology. The Chinese fintech company’s supply chain finance solutions will land on Corda, R3’s open-source distributed ledger.
Dianrong hopes the cooperation will enable the company’s end-to-end service through a comprehensive supply chain and increase efficiency by ensuring transparency. The company’s initiative is to allow micro and small businesses to access credit and financial services.
Neo lender increases loan limits (Australian Broker) Rated: AAA
As of this week, Wisr will increase its personal loan limit from $35,000 up to $50,000, with a comparative interest rate up to 5% p.a. lower than the four major banks.
Loans will be available for any worthwhile purpose over three or five years, with a comparison rate of 9.36% p.a. for borrowers with a strong credit rating. The neo-lender also offers no early repayment or exit fees.
Analysis of new mortgage lending shows the slump in Auckland home sales has affected all types of buyers (Interest) Rated: A
The report analyses the number of mortgages taken out in the 12 month periods to the end of March from 2014 to March 2018, and breaks them into borrower types – first home buyers, investors, people moving house, those staying put but refinancing and those buying a second home.
According to Real Estate Institute of New Zealand figures, Auckland property sales peaked in their current cycle in the 12 months to March 2016, when 30,631 homes were sold.
That number has steadily declined and in the 12 months to March this year had slumped to 21,628, a decline of 29.4%.
Ways to Impress a Leading Investor for Your First Venture Capital Fund (Entrepreneur) Rated: AAA
Today’s investors are undoubtedly looking at technology-driven startups with a difference. The best illustration here is Flipkart which managed to introduce the right technology-driven models at a time when people had to wait endlessly to buy products of their choice. With Walmart now having acquired majority stakes in Flipkart, more technology-driven models could potentially come to the fore.
Mobikwik plans to turn around biz with UPI and loans: But is it too late? (EnTrackr) Rated: A
The digital wallet company finally integrated its platform with government-owned unified payment interface (UPI) last week. A week later, numbers related to UPI have popped up that has reached a 5 million mark via @ikwik handles, a VPA (Virtual payment address) handle for UPI, according to an ET report.
The platform is also planning to partner with NBFCs to disburse loans to small businesses in the range of Rs 20,000 up to Rs 5 lakh.
Helping SMEs build their business with P2P financing (Tech Wire) Rated: AAA
In Malaysia, regional P2P digital financing platform Funding Societies has announced an alliance with United Overseas Bank (UOB), to provide P2P lending to small businesses.
Using the Funding Societies platform, small businesses banking with UOB Malaysia can raise up to MYR500,000 (US$125,720) in capital directly from investors.
Funding Societies is the first P2P financing service introduced in Malaysia. Based in Singapore, the company also has a presence in Indonesia, where it’s known as Modalku.
Meet Piggybank.ng, The Nigerian FinTech Startup That Just Raised $ 1.1million (Forbes) Rated: AAA
SA’s Crossfin, Investec to back early-stage fintech startups (Disrupt Africa) Rated: A
South African investment fund Crossfin has concluded a deal with banking and asset management group Investec that will see the two companies identify early-stage fintech startups in which to invest through Crossfin’s angel funding arm Blue Garnet Investments.
The Crossfin fund, which has a particular focus on fintech startups, was formed in June of last year after South Africa-based private equity and venture capital firm Capital Eye and the Multiply Group signed a strategic investment partnership.
Fundbox Wins The Prestigious Israeli Atlas Award For Best Fintech Startup (The Virginian Pilot) Rated: A
Today, Fundbox, the small business growth company, announced that the company has won the coveted Israeli Atlas Award for Best Fintech Start-Up. For a third year in a row, the 2018 Israeli Atlas Award event was held in cooperation with the Ayn Rand Center, The Marker and such leading partners as, BDI, IVC, Bank Hapoalim and Israel Aerospace Industries. The prize is awarded to those Israeli startups that have created a technology, idea or product of exceptional value in Israel over the past year.