- Today’s main news: Funding Circle sets new high on loans under management. SoFi partners with Lemonade, Root. Salary Finance hires SoFi co-founder, raises $32.8M. Dianrong to raise $100M. Klarna may be headed to the stock market. Linked Finance sees record quarter.
- Today’s main analysis: European online alternative finance grows 36%. (A MUST-READ REPORT FROM THE CAMBRIDGE CENTRE FOR ALTERNATIVE FINANCE)
- Today’s thought-provoking articles: LendIt Fintech USA 2019 slide presentations. Are crypto-tracking stocks a viable alternative to a Bitcoin ETF? Nearly 1 in 4 millennial homebuyers want to buy a home before getting married. Challenger banks overtake traditional banks in customer satisfaction.
- SoFi partners with Lemonade, Root. SoFi is moving aggressively into insurance products.
- LendIt Fintech USA 2019 slide presentations. Everyone should be able to find something of interest here. Start with the keynote speaker addresses: Mike Cagney of Figure, Renaud Laplanche of Upgrade, and Rob Frohwein of Kabbage.
- Are crypto-tracking stocks viable alternatives to a Bitcoin ETF? A super-interesting read, with a little nugget about crypto lending.
- Nearly 1 in 4 millennial homebuyers want a home before marriage. Interesting study from LendingTree.
- Groundfloor doubles year-over-year revenue. Groundfloor is one of the few opportunities for non-accredited investors. They are looking better every day. Disclosure: I own stock in and have an account with Groundfloor.
- Reali acquires Lenda, opens a mortgage lending platform.
- Avant to settle with Federal Trade Commission for $3.85 million.
- Returnly raises $19 million for online returns.
- Small businesses turn more often to online lenders.
- Mastercard acquires Vyze. This looks like a move to compete directly with Affirm.
- Earnest launches private student loans.
- Banks to turn to Avant, Amount to jump start digital lending.
- Digital lenders consider stricter credit approvals.
- Smart ways to invest $1,000.
- Nearly 60% of millennials consider lottery a viable retirement plan.
- Direct Lending Investments had more than 950 investors.
- 360 Mortgage launches no-income, no-asset mortgage program.
- Virginians are suing online lenders who charge 900% interest.
- Lendio opens franchise in Phoenix.
- BlueVine, Ocrolus partner.
- Funding Circle sets record high on loans under management. Congratulations.
- Salary Finance hires SoFi co-founder, raises $32.8 million. The plan is to expand into the U.S.
- Welendus closes funding round, plans to expand into India.
- New rules coming for P2P lending, crypto.
- Klarna is preparing for a stock market listing. No other details at this time.
- Klarna expands relationship with Acne Studios.
- Linked Finance has a record quarter. Congratulations.
- Online alternative finance in Europe grows 36% to 10 billion euros. This report from the Cambridge Centre for Alternative Finance is a must-read.
- Top 5 real estate crowdfunding platforms to invest in.
- Dianrong raising $100 million.
- Rules for online lending still aways off.
- Large P2P lenders ordered to get disclosures ready.
- International: Challenger banks overtake traditional banks in customer satisfaction. This is an awesome read. Challenger banks in many countries have had an uphill battle, but the tide is turning. People are now realizing that it is not only convenient to bank online, but the service is good too.
- Asia: The Korean fintech opportunity.
- MENA: A roadmap for fintech firms entering fast-growing emerging markets. A LendIt Fintech report.
- Canada: Lendified raises $15 million.
- Australia: April holidays will impact 1 in 4 SMEs.
- Brazil: Sky-high interest rates are choking economic growth.
- India: P2P lenders seek limit on lending relaxation.
- Brazil: More on credit card interest rates.
- India: Fintechs see a lucrative opportunity in open banking.
- Asia: Singapore, Cambodia partner on cross-border fintech.
- Australia: Talking about the big banks.
- United States
- SoFi announces partnerships to expand insurance offering (Insurance Business Mag), Rated: A
- LendIt Fintech USA 2019 Slide Presentations Now Live (LendIt Fintech), Rated: AAA
- Are Crypto-Tracking Stocks Viable Alternatives to a Bitcoin ETF? (Finance Magnates), Rated: AAA
- Nearly 1 in 4 Millennial Homebuyers Want to Buy a Home Before They’re Married (LendingTree), Rated: AAA
- GROUNDFLOOR Doubles Year Over Year Revenue (PR Newswire), Rated: A
- Real estate startup Reali acquires online lender Lenda, expands into mortgages (Housingwire), Rated: A
- Avant to pay $ 3.85M to settle allegations of deceiving borrowers (American Banker), Rated: A
- A Max Levchin-Backed Startup Raises $ 19 Million To Tackle Online Returns (Forbes), Rated: A
- Small businesses turning far more often to online lenders (American Banker), Rated: A
- Mastercard Redefines Choice at Checkout with Acquisition of Vyze (Business Wire), Rated: A
- Earnest Launches Private Student Loans (PR Newswire), Rated: A
- Banks turn to a former rival to jump-start digital platforms (American Banker), Rated: A
- Digital Lending Companies Considering Stricter Credit Approvals (Investing News), Rated: A
- 7 Smart Ways To Invest $ 1,000 (Forbes), Rated: A
- Nearly 60% Of Millennials Look To Lottery For Retirement, Survey Says (FA-Mag), Rated: A
- Direct Lending Investments Had Over 950 Investors (deBanked), Rated: A
- No-income, no-asset mortgages are back (at one lender, at least) (Housingwire), Rated: A
- Some online lenders charge 900% interest and ignore Virginia law. So borrowers are suing. (Pilot Online), Rated: A
- Lendio Franchise Opens in Phoenix to Expand Access to Capital for Local Businesses (Lendio), Rated: B
- BlueVine Partners with Ocrolus for Faster Processing of Financing Applications (Ocrolus), Rated: B
- United Kingdom
- Peer-to-peer lender Funding Circle’s loans under management soar to record highs (City A.M.), Rated: AAA
- Salary Finance raises $ 32.8m, hires SoFi co-founder for US push (Finextra), Rated: AAA
- Welendus closes funding round as it prepares for India expansion (P2P Finance News), Rated: A
- City watchdog readies new rules for cryptoassets and P2P (FN London), Rated: B
- China’s P2P lending platform Dianrong raising $ 100m (Deal Street Asia), Rated: AAA
- National Rules on Online Lending Still Far From Sight (Caixin Global), Rated: A
- Large P2P lenders ordered to ready disclosures for regulators (technode), Rated: A
- European Union
- Tech unicorn Klarna could quickly be prepared to contemplate bourse itemizing (Infosurhoy), Rated: AAA
- Klarna Expands Relationship with Acne Studios (Business Wire), Rated: B
- Linked Finance marks record quarter (Tech Central), Rated: AAA
- Total Online Alternative Finance Grows 36% Topping €10 Billion (Crowdfund Insider), Rated: AAA
- Top 5 Real Estate Stocks To Invest In (Prague Post), Rated: A
- Challenger banks overtake traditional banks in customer satisfaction, in 4 charts (Tearsheet), Rated: AAA
- April holidays to negatively impact 1 in 4 SMEs (My Business), Rated: AAA
- LET’S TALK: THE BIG 4 BANKS (Dynamic Business), Rated: A
- P2P firms seek RBI relaxation on lending limit (Business Standard), Rated: AAA
- Fintech startups spot a lucrative space in ‘open banking’ (Economic Times), Rated: A
- Riding the Korea FinTech Wave (Finextra), Rated: AAA
- Cambodia, Singapore In X-Border FinTech Pact (Cambodia Daily), Rated: A
- A ROADMAP FOR FINTECH FIRMS ENTERING FAST-GROWING EMERGING MARKETS (LendIt Fintech), Rated: AAA
- TORONTO FINTECH, LENDIFIED, RAISES $ 15 MILLION CAD SERIES A (Betakit), Rated: AAA
- Latin America
- How sky-high interest rates are choking economic growth in Brazil (The Brazilian Report), Rated: AAA
- Brazilian Credit Card Interest Rates: Enough to Choke a Horse or Risk Based Pricing? (Payments Journal), Rated: A
SoFi announces partnerships to expand insurance offering (Insurance Business Mag), Rated: A
SoFi has announced two new partnerships in the insurance space. The partnerships expand SoFi’s portfolio of offerings to include homeowners’ and renters’ insurance through Lemonade and auto insurance through Root.
LendIt Fintech USA 2019 Slide Presentations Now Live (LendIt Fintech), Rated: AAA
- Beyond the Hype: How Blockchain Changes Everything | Mike Cagney, Figure
- Three Fintech Questions that Matter in 2019 | Renaud Laplanche, Upgrade
- You Might Need Glasses, Your Vision Sucks | Rob Frohwein, Kabbage
Advancements in Credit, Underwriting and Identity
- Go with the flow? What cash flow data has to say about thin file borrowers | Melissa Koide, FinRegLab
- What are the data points telling us about the current credit market | Joseph Breeden, Prescient Models, Ram Ahluwalia, PeerIQ, Jason Laky, TransUnion Ashish Gupta, Prosper, Moderator: Julian Hebron, The Basis Point
Small Business Lending Innovation
- Evolving the SMB Toolkit to Meet New Demands in Lending | Omri Dahan, Marqeta
Niche Lending: Looking for Yield
- An In Depth Look at the Patient Lending Market | John Dwight, Simplee, Rob Seidman, HCS, Camilo Concha, LendingUSA, Howard Michalski, Sortis Holdings Moderator: Mike Sobek, medZero
- Wealth Tech : Uncorrelated Returns from Alternative Assets | Milind Mehere, Yieldstreet
- Understanding Chinese Auto Backed Assets | Richard Yi, Wangjin Financial
Are Crypto-Tracking Stocks Viable Alternatives to a Bitcoin ETF? (Finance Magnates), Rated: AAA
As the world continues to wait for the US SEC’s decision on the Bitcoin ETF applications that are still being processed months after a decision was expected, some investors may find themselves seeking alternative methods of entering into the Bitcoin market without actually having to do the dirty deed of investing in Bitcoin itself.
Crypto lending serviceshave recently reported record profits; crypto futures exchanges are also reporting higher-than-ever trading volumes.
Nearly 1 in 4 Millennial Homebuyers Want to Buy a Home Before They’re Married (LendingTree), Rated: AAA
Young adults are getting married later than previous generations. In 1980, the median age for men and women at their first marriage was 24.7 and 22, respectively. In 2018, the ages increased to 29.8 and 27.8, for men and women, respectively.
Millennials make up the largest share of homebuyers at 37%, according to a report from the National Association of Realtors.
Nearly a quarter (24%) of millennial first-time homebuyers want to own a home before getting married.
On the flip side, this means just over 3 in 4 millennial buyers (76%) want a marriage before a mortgage. Additionally, 27% of millennial buyers are postponing parenthood until they’ve achieved homeownership. Among homebuyers of all ages, nearly 2 in 5 are waiting to get a pet until after purchasing a house.
More than a quarter (26%) of first-time buyers have poor credit.
Just 15% of first-time buyers have a score of 740 or higher. Nearly 2 in 5 (38%) aren’t satisfied with their credit score, yet more than a quarter of those who are dissatisfied haven’t taken steps to improve their score. By contrast, more than 70% of repeat homebuyers are satisfied with their credit score.
GROUNDFLOOR Doubles Year Over Year Revenue (PR Newswire), Rated: A
GROUNDFLOOR, an investing and lending platform that allows anyone to invest fractionally in real estate, is today announcing its Q1 results and momentum. Despite the government shutdown of the U.S. Securities and Exchange Commission for 35 days, GROUNDFLOOR still experienced 123% percent non-GAAP Q1 revenue growth compared to the prior year Q1.
Additional Q1 momentum for GROUNDFLOOR includes:
- Achieving a 166% increase in unit volume for loans closed in Q1 ’19 vs. Q1 ’18
- More than doubling loan application volume for Q1 ’19 vs. Q1 ’18 (121% increase)
- Selling more than $14.5M in real estate investments to retail investors on the platform
- Surpassing more than 60,000 registered users
- Eclipsing $100MM in loans to real estate developers to-date in more than two dozen states
- Expanding product offerings, such as new construction loans and a fixed annualized notes product returning 5 percent on a 90-day term
- Launching a second online public offering to purchase stock in GROUNDFLOOR directly
Real estate startup Reali acquires online lender Lenda, expands into mortgages (Housingwire), Rated: A
Reali announced Wednesday that it acquired Lenda, an online mortgage lender that launched in 2013 and currently operates in 12 states.
And with the acquisition, Reali is launching Reali Loans, a mortgage lending operation of its own.
Avant to pay $ 3.85M to settle allegations of deceiving borrowers (American Banker), Rated: A
The online lender Avant will pay $3.85 million to settle Federal Trade Commission allegations that it misled customers who were seeking to repay their loans.
The FTC said Monday that its commissioners approved the settlement by a 5-0 vote.
A Max Levchin-Backed Startup Raises $ 19 Million To Tackle Online Returns (Forbes), Rated: A
A San Francisco-based startup called Returnly is seeking to solve at least a portion of the headache—namely, the payment delay—by issuing instant store credit when you decide you don’t want an item. The company says that by assessing a shopper’s risk, it can offer store credit to 85% of customers on the spot, without first requiring that the item has been received or even put in the mail.
Returnly announced on Wednesday that it has raised $19 million in a Series B funding round, led by venture capital firm Craft Ventures and with participation from Max Levchin, the PayPal cofounder who currently runs Affirm.
Small businesses turning far more often to online lenders (American Banker), Rated: A
Last year 32% of credit-seeking small businesses applied to an online lender, up from 19% in 2016, according to the survey, which was released Tuesday. Over the same period, large banks, small banks and credit unions all saw either steady application rates or a slight decline in interest from those same small businesses, which typically had fewer than 10 employees.
Mastercard Redefines Choice at Checkout with Acquisition of Vyze (Business Wire), Rated: A
Mastercard (NYSE: MA) today announced it has acquired Vyze, a technology platform that delivers more choice – and purchasing power – to people who want their point-of-sale payment options to match the flexibility and convenience of today’s shopping experiences.
Increasingly, consumers are seeking alternative financing options,1 leaving merchants and financial institutions with a need to deliver these services at the point of sale. In the U.S. alone, these solutions represent a more than $1.8 trillion opportunity, according to Accenture.
Earnest Launches Private Student Loans (PR Newswire), Rated: A
Earnest today announced that it’s modernizing student loans with a new in-school student lending offering.
Built based on feedback from students and people with student debt, an Earnest student loan incorporates four unique differentiators:
- Innovative eligibility check – A quick two-minute eligibility check requires only basic personal information, school details, and an estimated credit score.
- Cosigner invite – Earnest’s application makes it simple and easy to invite a cosigner to the process.
- Checkout – Clients can customize their loan according to their individual financial needs with easy-to-understand terms and a clear understanding of their monthly payments after graduation.
- 9-Month grace period – Earnest found through talking with recent graduates that they wanted the flexibility of a longer grace period after graduation to get settled. Earnest offers a 9-month grace period after graduation compared to the 6-month industry standard.