- Today’s main news: Ant Financial bans high-interest consumer loan products. Lending Club boosts MPL credit metrics in 3rd self-sponsored ABS. Funding Circle to launch Isa next week. Zopa reforms how returns are displayed. Robo-advisors in China must be licensed. CreditEase to pioneer fund of funds for direct real estate purchases. New Zealand publishes first P2P/crowdfunding statistical returns.
- Today’s main analysis: TransUnion study on fintech market.
- Today’s thought-provoking articles: Who is the real Consumer Financial Protection Bureau acting director? If Europe paid tech employees better, could it lead fintech? 2 investment trusts for income investors looking for high yields. Why SocietyOne needs more than just its billionaire backers. If you’re considering an ICO in Asia.
- Lending Club boosts MPL credit metrics with 3rd self-sponsored ABS. AT: “This is a natural progression as the company matures.”
- TransUnion study on fintech market. AT: “Fintechs are overcoming banks and credit unions in many ways, and this is why banks are clamoring for partnerships.”
- Lend Academy interview with Brian Dally of Groundfloor.
- There are two acting directors of the Consumer Financial Protection Bureau (CFPB). AT: “Some fights are worth fighting. Others are just drama for drama’s sake. This is one of them.”
- Nobody knows who the CFPB’s new boss is. AT: “This highlights one of the biggest problems with our entire federal bureaucracy. Not only do we have competing interests and values, but now the political parties have competing legislation.”
- 3 trends powering the rise of robo-advice.
- Millennials want student debt relief more than retirement benefits.
- The most well-funded fintech startup in each state.
- Borrowers take take out bridge loan as they pursue graduate degrees.
- Funding Circle to launch Isa next week.
- P2P lenders plan to raise millions from ISAs. AT: “Of course.”
- Zopa to reform how refunds are displayed.
- Welendus launches 150K GBP Seedrs campaign.
- NatWest to offer a robo-advisor.
- 57% of SMEs support European Free Trade Agreement.
- Was the budget a boom or bust for personal finance?
- Alternatives for property investors.
- RateSetter appoints Midlands regional manager.
- Robo-advisors in China need a license. AT: “China is cracking down on legislation everywhere possible. Also, Tencent intros credit scoring, and Sesame Credit ceases cooperation with Cash Loan Platforms.”
- CreditEase to pioneer fund of funds for direct real estate purchases.
- Qudian’s stock plunge knocks CEO off of billionaire list.
- Ant Financial bars high-interest consumer loans from platform. AT: “Most likely an attempt to make regulators happy.”
- LexinFintech Holdings mulling over $500M IPO plans. AT: “This may not be the best time to go public. Companies in China should let the regulatory dust settle first.”
- Yirendai awarded ISO 27001 certification.
- Tencent to set up fintech lab in Xiongan.
- How to make European fintech bigger.
- Why Revolut is a hot ticket.
- Flender closes 2M GBP funding round.
- Credit Suisse invests in Tradeplus24.
- 2 investment trusts for income investors seeking a high yield.
- ETHLend token sale.
- Celsius token sale.
- Why SocietyOne needs more than is billionaire backers.
- Fortress backs MoneyMe.
- New Zealand Financial Markets Authority publishes P2P/crowdfunding statistical returns.
- Tic:Toc to offer white label.
- Regulator shines light on P2P lending.
- Why banks, fintechs need each other.
- United States
- Lending Club boosts MPL credit metrics in 3rd self-sponsored ABS (Asset Securitization Report), Rated: AAA
- TransUnion Study On FinTech Market; PayPal Enters Robo Advice Market (PeerIQ), Rated: AAA
- Brian Dally of Groundfloor (Lend Academy), Rated: A
- Online lenders pull out the popcorn, as the Trump administration fights to control the CFPB (TechCrunch), Rated: AAA
- Nobody Knows Who the Consumer Financial Protection Bureau’s New Boss Is (New York Magazine), Rated: A
- 3 trends powering the rise of financial robo-advice (VentureBeat), Rated: A
- Student debt relief trumps other benefits (Employee Benefit Adviser), Rated: A
- The Most Well-Funded Fintech Startup In Each State (CB Insights), Rated: A
- Bridge loan helps borrowers as they pursue graduate degrees (SFGate), Rated: B
- United Kingdom
- Funding Circle Isa to launch next week (Bridging&Commercial), Rated: AAA
- UK peer-to-peer lenders plan to raise millions from ISAs (Financial Times), Rated: A
- Zopa addresses default concerns by reforming how returns are displayed (P2P Finance News), Rated: AAA
- Welendus launches new £150,000 crowdfunding campaign (P2P Finance News), Rated: A
- NatWest joins the robo-advisers (This is Money), Rated: A
- 57% of SMEs support European Free Trade Agreement (Bridging&Commercial), Rated: A
- Was the Budget boom or bust for personal finance? (P2P Finance News), Rated: A
- Rethinking bricks and mortar: alternatives for property investors (Your Money), Rated: B
- RateSetter Appoints Richard Steele Regional Manager of Midlands (Crowdfund Insider), Rated: B
- WeiyangX Fintech Review (Crowdfund Insider), Rated: AAA
- Chinese fintech firm CreditEase to pioneer funds of funds as alternative to direct real estate purchases (SCMP), Rated: AAA
- China Online Lender Qudian’s Latest Plunge Knocks CEO From Billionaire Ranks (Forbes), Rated: A
- Alibaba Affiliate Bans High-interest Consumers Loan Products (ValueWalk), Rated: AAA
- China Fintech Firm Is Said to Mull Fate of $ 500 Million IPO (Bloomberg), Rated: A
- Yirendai Awarded ISO 27001 Certification (Business Insider), Rated: A
- Tencent to set up fintech lab in Xiongan (ECNS.cn), Rated: B
- European Union
- One Idea to Make Europe Bigger in Tech Is to Pay Employees More (Bloomberg), Rated: AAA
- A tech VC explains why Revolut is such a hot ticket as the fintech app hits 1 million users (Business Insider), Rated: A
- Flender closes in on £2m funding round (Independent), Rated: A
- CS Invests in Swiss Fintech (finews), Rated: B
- 2 investment trusts for income investors seeking reliable high yields (The Motley Fool), Rated: AAA
- ETHLend – A Fully Decentralized & Democratized P2P Lending Platform On The Ethereum Blockchain (Chipin), Rated: A
- Celsius – The P2P Decentralized Credit Protocol Built On Smart Contract Technology (Chipin), Rated: A
- Australia/New Zealand
- Why SocietyOne needs more than its billionaire backers (Financial Review), Rated: AAA
- Fortress backs $ 120m capital raising by MoneyMe (Financial Review), Rated: AAA
- New Zealand’s Financial Markets Authority Publishes First Peer-To-Peer/Crowdfunding Statistical Returns (MondoVisione), Rated: AAA
- Tic:Toc to undercut broker distribution in white label play (TheAdviser), Rated: A
- Financial regulator shines light on P2P lending, crowdfunding (Stuff), Rated: A
- Why banks and fin-techs need each other (NZ Herald), Rated: B
- The quick and safe way to build a credit score (livemint), Rated: A
- Considering an ICO… then read this (The Star), Rated: AAA
- Asian regulators should focus on light touch for ICOs (Asian Review), Rated: A
- A Digital Transactions Takeover right under our nose – Cassava Fintech (Newsday), Rated: AAA
- Fintech SMEs to drive 72% of bank innovation (The Star), Rated: A
Lending Club boosts MPL credit metrics in 3rd self-sponsored ABS (Asset Securitization Report), Rated: AAA
LendingClub’s third self-sponsored securitization of online marketplace loans is benefiting from the company’s recent tightening of credit standards.
The loans backing the $330 million Consumer Loan Underlying Bond (CLUB) Credit Trust 2017-P2 involve borrowers with higher FICO scores that have allowed LendingClub to reduce its credit enhancement levels on the deal.
CLUB Credit Trust 2017-P2 has a collateral pool of 22,062 prime, consumer loans with a cumulative net balance of $368 million, or an average balance of $16,681.
TransUnion Study On FinTech Market; PayPal Enters Robo Advice Market (PeerIQ), Rated: AAA
The Federal Reserve Bank of New York reports that household debt totaled $12.95 Tn last quarter – the 13th straight quarterly increase. As a share of GDP however, household debt stands at 66% below a peak of 87% in early 2009.
PayPal continues to expand the range of its consumer offerings. PayPal started with payments initially, moved to personal and small business loans, and is now delivering asset management solutions. The partnership will offer Acorns a unique channel for customer acquisition and allow Acorns to compete with Betterment and Wealthfront. Paypal led a $30 Mn investment round in Acorns Grow in April 2016.
FinTechs are Growing and Taking Market Share
FinTech’s market share has grown from virtually zero in 2012 to 30% in 2016. The outstanding balances on personal loans have doubled to over $100 Bn in 2017 from late 2013, with 128 lenders making more than 10,000 personal loans annually. FinTechs compete with banks to originate loans to prime consumers, and FinTech’s originate 30% of their loans to non-prime consumers where there is less competition from banks.
FinTechs Have The Most Robust, Risk-Based Pricing
Brian Dally of Groundfloor (Lend Academy), Rated: A
In this podcast you will learn:
- Where the idea for Groundfloor come from.
- Why Brian decided to start in the real estate asset class.
- How many states they are operating in today for both borrowers and investors.
- How they go about sourcing real estate deals.
- Why they decided to focus on non-accredited investors.
- How their securities offering is structured.
- The minimum investment allowed per deal.
- How returns have been for investors.
- Which side of the marketplace is constraining growth today.
- How they differentiate themselves from their competition.
- The performance of their loan book to date.
- Their business model and how they make money.
- Details of their first institutional investor and why this is good for retail investors.
- Their goal for an institutional/retail investor mix.
- What the future holds for Groundfloor.
Online lenders pull out the popcorn, as the Trump administration fights to control the CFPB (TechCrunch), Rated: AAA
Republican lawmakers have long sought to reduce the CFPB’s oversight. Now dueling appointments put its immediate future in question. Last night, President Trump named his budget director, Mick Mulvaney, as acting director of the agency hours after its current leader, Obama-appointed Richard Cordray, announced he would leave the job.
To counter the administration’s plans, on his way out the door, Cordray named his chief of staff, Leandra English, as the agency’s deputy director.
Under the law, the appointment should make English the agency’s acting director, though the White House says that Mulvaney plans to show up at the CFSB Monday morning anyway. The White House further says Mulvaney will keep his current job as head of the Office of Management and Budget.
If the Trump administration follows through on its threats, Mulvaney will lead both agencies until a permanent head of CFPB is chosen and confirmed by the Senate.
Nobody Knows Who the Consumer Financial Protection Bureau’s New Boss Is (New York Magazine), Rated: A
On his way out, he appointed his chief of staff, Leandra English, to take over the CFPB, citing the Dodd-Frank Act, which states that the agency’s deputy director will take over the agency if the director leaves. Trump responded by naming Mulvaney as expected, pointing to the Federal Vacancies Reform Act as justification for his move.
The eventual director must be confirmed by the Senate; Trump’s pick is expected within weeks.
3 trends powering the rise of financial robo-advice (VentureBeat), Rated: A
1. Availability of data
We generate more than 2.5 billion GB of data every day.
In one notable example, JP Morgan and Intuit earlier this year announced their companies will make data available via the Open Financial Exchange API. Their goal is to make it easier and more secure for consumers to use their data across various financial apps and websites.
2. Increased power and storage
- Google Tensor Processing Unit.
- Nvidia Volta.
- Huawei Kirin.
3. Advancements in AI
In particular, deep learning and boosting models enable significant leaps forward in the application of machine learning. These include design concepts such as Google’s Capsule Network, which offers an alternative to traditional neural nets, and replicative and transfer learning, which enable pattern discoveries and accuracies impossible by human counterparts.
The results of studies using these ideas are impressive. In one example, University of Mannheim researchers showed how ontologies help some machine learning models validate data 50 times faster. And Google’s AutoAI demonstrated it can create better machine learning code than the researchers who made it.
Student debt relief trumps other benefits (Employee Benefit Adviser), Rated: A
Student loan repayment programs are climbing the pantheon of employee benefits, suggests a recent survey of full-time workers with student loan debt.
Pollfish found that 23% would gladly give up healthcare benefits for a student loan repayment benefit. In addition, 46% would relinquish paid time off and 33% would do the same for retirement benefits in exchange for a repayment benefit. Also, 53% said they’d consider a salary cut in exchange for a student loan repayment benefit.
Of 1,000 college graduates polled by SoFi, an online personal finance company, 90% were more willing to accept a job offer at a new company if their employer offered a student loan contribution benefit. In the Pollfish survey, 84% gave the same response.
The Most Well-Funded Fintech Startup In Each State (CB Insights), Rated: A
|State||Company||Total Equity Funding ($M)|
|Colorado||IP Commerce||$ 54.7|
|Delaware||College Avenue Student Loans||$ 50.0|
|Indiana||Allied Payment Network||$ 2.6|
|Kentucky||Inked Brands||$ 4.0|
|Maryland||Regent Education||$ 39.7|
|Minnesota||Bright Health||$ 240.0|
|Nebraska||D3 Technology||$ 35.6|
|New Jersey||Billtrust||$ 104.5|
|New York||Oscar Insurance Corporation||$ 727.5|
|North Carolina||AvidXchange||$ 558.2|
|Oklahoma||CreditPoint Software||$ 1.1|
|Pennsylvania||InstaMed Communications||$ 101.9|
|Rhode Island||Upserve||$ 191.5|
|South Carolina||Ceterus||$ 10.2|
|South Dakota||ReliaMax||$ 3.9|
|Tennessee||Digital Reasoning Systems||$ 75.6|
|Wisconsin||Dynamis Software Corporation||$ 4.3|
Bridge loan helps borrowers as they pursue graduate degrees (SFGate), Rated: B
The sellers wanted to accept the offer but were concerned about the VA financing with an online lender who was unresponsive to the listing agent’s calls. The Realtor advised the couple that if they could find a local lender who could preapprove them with conventional financing, their offer would be accepted.
Wyatt held a video conference with the couple to clarify the structure of the file and learned that both clients were pursuing their graduate degrees and took time off work to attend classes. In addition, the co-borrower had recently received an employment offer for a salaried position.
Funding Circle Isa to launch next week (Bridging&Commercial), Rated: AAA
UK peer-to-peer lenders plan to raise millions from ISAs (Financial Times), Rated: A
Britain’s largest peer-to-peer lenders plan to raise hundreds of millions of pounds from savers in the coming weeks even as many of them say they will reduce higher risk lending in case there is a downturn.
“We expect a lot of demand,” Samir Desai, chief executive of Funding Circle, told the Financial Times. “We have done lots of surveys and a huge proportion of the base told us they would like to put all of the money they invest with us through the ISA.”
Zopa addresses default concerns by reforming how returns are displayed (P2P Finance News), Rated: AAA
ZOPA is working on improving the way long-term returns are displayed so investors do not become overly concerned with monthly defaults in their portfolio.
The peer-to-peer lender said it is working on a prototype that would show investors their current portfolio performance, a range of what their returns will be and what their target rate is.
The display, currently in testing, includes a graph showing portfolio growth, and the net cash earnings after losses, a range of what the returns will be that narrows closer to maturity and what the target rate is in comparison to what was advertised.
Welendus launches new £150,000 crowdfunding campaign (P2P Finance News), Rated: A
PEER-TO-PEER payday loan platform Welendus has launched a new crowdfunding round on Seedrs this morning to raise an additional £150,000.
The lender, which raised £100,000 from investors during a Seedrs fundraise in March, has already reached 92 per cent of its target by attracting funding from the existing crowdfunding backers.
NatWest joins the robo-advisers (This is Money), Rated: A
High-street bank NatWest has launched a fully regulated robo-advice proposition charging £10 for customers seeking to invest sums as low as £500.
Unlike some rival robo-advisers that offer guidance based on responses to just a few questions, or simplified advice that doesn’t factor in your complete financial position, NatWest said its process will offer full-fat advice akin to the traditional face-to-face process but online.
57% of SMEs support European Free Trade Agreement (Bridging&Commercial), Rated: A
Was the Budget boom or bust for personal finance? (P2P Finance News), Rated: A
PEER-TO-PEER lenders are split about the outcome of the Budget for people’s finances.
RateSetter said there was “a notable absence of measures to help people put away more for the future” in Wednesday’s fiscal event, but Lending Works called it “a boost for personal finance”.
Rethinking bricks and mortar: alternatives for property investors (Your Money), Rated: B
A mismatch of supply and demand has made UK property more unaffordable than ever for would be buyers. Property investors pursuing the buy-to-let route are also facing challenges due to a recent crackdown in tax legislation. Against this backdrop, peer to peer (P2P) and equity crowdfunding have grown in popularity as alternative ways to access the property market.
Key considerations before picking an investment route
- Investment risk
- Debt or equity
- Who’s the provider
RateSetter Appoints Richard Steele Regional Manager of Midlands (Crowdfund Insider), Rated: B
UK-based peer-to-peer lending platform RateSetter announced on Friday it has appointed Richard Steele as its regional manager for the Midlands. According to the online lender, Steele has more than 15 years of business lending experience and prior to joining RateSetter, he held the relationship manager position at Barclays and business development manager at BCRS Business Loans.
WeiyangX Fintech Review (Crowdfund Insider), Rated: AAA
On November 17th, top financial regulators in mainland China (including PBOC, CBRC, CSRC, CIRC and SAFE) released a new set of rules covering the country’s asset management market. It is the first time that the regulators designated one of the articles to Robo-advisors.
According to the article, financial institutions that conduct Robo-advisory services or AI-driven investment programs should be granted license from financial regulator before carrying out any operations.
Here Comes Tencent Credit
Two years ago, Ant Financial, the financial affiliate of Alibaba, launched its own credit scoring system Sesame Credit. This week, Tencent, Alibaba’s main rival in China, finally followed suit by launching a similar and competitive product, Tencent Credit. The credit score ranges between 300 and 850.
Sesame Credit Ceases Cooperation with Cash Loan Platforms
On November 21st, a cash loan platform told the media that they had received a notification from Sesame Credit, the credit scoring services of Ant Financial. According to the notification, Sesame Credit will cease to cooperate with cash loans from December 12th of 2017 due to some of its illegal behavior regarding interest rate setting and debt collection.
Chinese fintech firm CreditEase to pioneer funds of funds as alternative to direct real estate purchases (SCMP), Rated: AAA
CreditEase, one of China’s largest financial technology companies, has set its sights on funds of funds focusing on real estate projects as founder and chief executive Tang Ning anticipates a new property investment scenario.
At present, high-net-worth individuals in China seeking returns from property investment often directly buy and own residential or commercial units, betting on the appreciation of assets.
CreditEase, which specialises in lending to small businesses and consumers as well as wealth management for affluent investors, plans to set up a clutch of funds of funds that will allocate capital to leading global real estate funds managed by big names such as Blackstone and KKR.
China Online Lender Qudian’s Latest Plunge Knocks CEO From Billionaire Ranks (Forbes), Rated: A
Qudian lost 24.3% on Friday to end at $12.22, the worst close since it listed at $24 on Oct. 18. Friday’s decline left Luo’s fortune at $776 million.
Luo, 34, ranked No. 255 on the 2017 Forbes China Rich List published on Nov. 16 with an estimated fortune of $1.48 billion.
Shares in Qudian, which is 11% owned by Alibaba Group affiliate Ant Financial, and other Chinese online lenders have been falling on reports that regulators plan to tighten restrictions on microlenders. On Friday, Qudian said it would cap charges and costs to customers linked to Alipay at an annual interest rate of 24% (see announcement and details here). Qudian also said it is working to extend credit through its own app where it can charge up to an annual rate of 36%.
Alibaba Affiliate Bans High-interest Consumers Loan Products (ValueWalk), Rated: AAA
Ant Financial, the financial arm of Alibaba, has barred consumer loanswith an annual interest rate above 24% on its Alipay platform.
Ant Financial stated that it has increased monitoring of the financial service providers on Alipay and its credit platform, Sesame Credit, and found some inappropriate collection methods and interest rates above legal limits, according to Reuters. Further, Alibaba’s Ant Financial stated that it would withdraw cooperation with some cash loan providers. Sesame Credit is a proprietary credit scoring system, which gives Alipay e-wallet users a credit score.
China Fintech Firm Is Said to Mull Fate of $ 500 Million IPO (Bloomberg), Rated: A
LexinFintech Holdings Ltd., owner of Chinese online lending platform Fenqile, plans to meet advisers this weekend to discuss the fate of its proposed U.S. initial public offering, people with knowledge of the matter said.
The company aims to decide whether to imminently start its IPO roadshow or wait for a later date when market sentiment may be better, according to the people.
Yirendai Awarded ISO 27001 Certification (Business Insider), Rated: A
Yirendai Ltd. (NYSE: YRD) (“Yirendai” or the “Company”) announced today that it has been awarded certification to the international standard for Information Security Management (ISO 27001) from British Standards Institution.
The ISO 27001 certification is an internationally recognized best practice framework for an information security management system (“ISMS”) and specifies the requirements for establishing, implementing, maintaining and improving information security management within an organization. It also takes into account risk assessment and risk treatment with regards to security of information.
Tencent to set up fintech lab in Xiongan (ECNS.cn), Rated: B
Tencent Holdings Ltd, Asia’s most valuable firm, is planning to set up a financial technology lab and digitize public medical services in the Xiongan New Area, as part of a broader push to gain a foothold in China’s latest economic zone.
One Idea to Make Europe Bigger in Tech Is to Pay Employees More (Bloomberg), Rated: AAA
Europe isn’t producing the kind of large, globally-influential technology companies like those coming out of the U.S. and China. A perennial question is why?
One reason might be that European startups don’t give employees as much of a chance to strike it rich, according to a new study by the European venture capital firm Index Ventures. While startup employees in the U.S. are often rewarded with stock options — allowing them to cash out handsomely if a company is sold or goes public — young firms in Europe don’t offer the same scale of incentives.
In an analysis of 73 companies, Index found that European employees own on average about 10 percent of the startup where they work, compared to 20 percent for U.S. workers. European companies often skew stock options to executives rather than rank-and-file employees.
A tech VC explains why Revolut is such a hot ticket as the fintech app hits 1 million users (Business Insider), Rated: A
Revolut announced the milestone on Friday, saying that customers have now completed 42 million transactions on its app worth a combined $6 billion (£4.5 billion). The company began as a foreign exchange app linked to a pre-paid card but has since branched out into broader financial services, such as current accounts, insurance, and investments.
Revolut, which is applying for a full European banking license, said that 42% of its customers are aged 25-35, “a clear indication that traditional banks are no longer meeting the needs of younger, tech-savvy generations.”
Flender closes in on £2m funding round (Independent), Rated: A
Dublin-based peer-to-peer lending business Flender is close to raising more than €2m in its latest funding round.
Some €400,000 of the money has been raised from its own platform – the first peer-to-peer equity investment on an Irish platform. Terms are close to being agreed for the remaining balance of a £2m (€2.25m) round.
CS Invests in Swiss Fintech (finews), Rated: B
Credit Suisse has bought a majority stake in Tradeplus24, a Zurich-based fintech firm specialized in small- and mid-sized business loans. The Swiss bank bought into a series A1 financing through its subsidiary, SVC, the bank said in a statement.
2 investment trusts for income investors seeking reliable high yields (The Motley Fool), Rated: AAA
With interest rates still near historic lows, it can be hard to find mainstream investments that will pay out a significant yield.
But for investors who don’t want to go through the trouble of setting up their own account with a peer-to-peer lending platform, P2P Global Investments (LSE: P2P) offers an alternative route to gain access to the sector. It’s an investment trust that offers investors a ready-made and diversified portfolio of peer-to-peer loans, saving time from building a portfolio from scratch and enabling investors to earn income straight away. At its current share price, it has a trailing 12-month dividend yield of 6%.
ETHLend – A Fully Decentralized & Democratized P2P Lending Platform On The Ethereum Blockchain (Chipin), Rated: A
The main feature of ETHLend is the financing options available in ETH, which allows users to borrow or lend ETH using ETHLend’s digital tokens in an efficient manner or by using ENS domains as a collateral.
The ETHLend platform can be also used as a tool for both B2B and B2C transactions.
An interesting aspect of ETHLend is that both borrowers and lenders will receive 0.1 credit tokens (equal to 1 ETH) each for every loan that is repaid successfully.
These credit tokens can then be used as collateral for loans on the platform or sold for profit.
Token name: LEND
Token base: Ethereum (ERC-20)
Token supply: 1,000,000,000
Token sale duration: 25th November, 2017 – 27th December, 2017
Token sale target: 37,600 ETH (hard cap)
Token exchange rate: 1 ETH = 25,000-27,500 LEND (depending on period of sale)
Celsius – The P2P Decentralized Credit Protocol Built On Smart Contract Technology (Chipin), Rated: A
The modern credit system is a mess, particularly for millennials and the Generation X youths.
Celsius is a P2P and blockchain-powered global credit network designed to improve the efficiency of modern credit and financing systems.
There are 4 types of loans in the Celsius platform:
- The platform will enable millennials to establish a digital credit score and be issued a credit line; the credit can then be accessed by a sponsored credit card from Celsius.
- Celsius will also allow the platform’s users to expand their credit limit against their own cryptocurrency asset holdings they have at Celsius. The extended credit can be easily accessed through several options.
- Members can also choose to lend any cryptocurrencies they own and earn up to 5x the normal interest rates they get from banks. Finally, members can borrow cryptocurrencies in a secure and transparent manner
- To safeguard the platform’s ecosystem, both lenders and borrowers on Celsius are verified and carefully selected to prevent fraud.
Here are the details of the upcoming DEG token sale:
Token name: DEG
Token base: Ethereum (ERC-20)
Token supply: 1,000,000,000
Token sale duration: 25th of January, 2018 – TBA (pre-sale is currently LIVE)
Token sale target: $100,000,000 (hard cap)
Token exchange rate: $0.20 = 1 DEG
Why SocietyOne needs more than its billionaire backers (Financial Review), Rated: AAA
The other is it’s in the midst of what is expected to be its last funding round before listing the business, raising up to $20 million in equity based on a valuation of up to $200 million, which is based on a multiple of one times its loan book.
The raising, managed by Venture Advisory and due to close late this month, is part of a long-term, highly anticipated plan to target a sharemarket listing in 2018.
SocietyOne is expected to need a book worth $500 million or so before it starts breaking even.
Chief executive Jason Yetton has said previously the company is eyeing a 2 per cent to 3 per cent share of the $105 billion consumer finance market in the long term, of which credit card debt comprises $42 billion.
Fortress backs $ 120m capital raising by MoneyMe (Financial Review), Rated: AAA
Global credit investor Fortress Investment Group will invest $100 million in debt capital to support MoneyMe’s consumer lending growth as the fintech considers an initial public offering in early 2019.
Fortress’s investment is part of a $120 million asset-backed securitisation deal, which also includes a $20 million bond, issued by Evans & Partners, which was oversubscribed.
MoneyMe, which has made $150 million in personal loans to 70,000 customers in the past four years, is both cash flow positive and profitable, very rare for an Australian fintech.
Of its $150 million in lending, $80 million has been advanced in the past 12 months.
New Zealand’s Financial Markets Authority Publishes First Peer-To-Peer/Crowdfunding Statistical Returns (MondoVisione), Rated: AAA
The Financial Markets Authority (FMA) today published its first statistical reporton peer-to-peer lending and crowdfunding in New Zealand.
The data shows $259.9 million is currently loaned to individuals and $29.5 million loaned to businesses through peer-to-peer lending in the year ending 30 June 2017.
A total of $74.2 million was raised from investors through crowdfunding, including wholesale investors, in the same period.
Tic:Toc to undercut broker distribution in white label play (TheAdviser), Rated: A
Mortgage brokers are facing a double threat from online lender Tic:Toc, which is seeing a surge in demand from consumers and interest from banks and non-bank lenders looking for cheaper distribution.
The fintech started lending four months ago and has received approximately $330 million of applications in that time, with conversions hovering around 17 per cent this month.
Financial regulator shines light on P2P lending, crowdfunding (Stuff), Rated: A
Kiwis have nearly 17,000 loans through “peer-to-peer” lending platforms, but more than one in 12 borrowers were behind on repayments, according to the Financial Markets Authority.
There were 16,977 loans outstanding with P2P lenders at the end of June, it said, of which 1469 were in arrears. The average size of loans being taken out was $8771.
During the year, 833 loans with a total value of $8.5 million were written off.
Why banks and fin-techs need each other (NZ Herald), Rated: B
Chris Russell, HSBC New Zealand chief executive, said history was littered with banks who had spent large sums of money on developing new technology, only to find it had gone in another direction while it was working on it.
Globally Russell said HSBC was setting up innovation labs to work with financial technology firms and it was China and India where it saw the biggest sources of development.
In New Zealand it is also partnering with a local fin-tech, although Russell won’t name who yet.
The quick and safe way to build a credit score (livemint), Rated: A
If you are new in the workforce, you can start by getting a low-limit credit card from the bank where you have a salary account, said Sumit Bali, senior executive vice president and head-personal assets, Kotak Mahindra Bank Ltd.
Alternative credit scoring
While the RBI-regulated credit bureaus are currently not allowed to use alternative data for credit scoring; in other developed markets parameters like utility bill payments, insurance premium payments have been used for credit scoring (read more on it here.
However, financial institutions including top public and private sector banks and NBFCs in India, have started using alternative data in multiple verifications and validations across the credit value chain, Agarwal said.
Considering an ICO… then read this (The Star), Rated: AAA
The ICO euphoria is likely being fuelled by the fact that despite all the negative news surrounding ICOs and cryptocurrencies, the price of bitcoin has generally kept soaring, despite the many mini crashes it tends to suffer.
For sober markets like Malaysia and Singapore, the regulators’ stance is clear. They are not outlawing ICOs but making a simple statement: if fund-raising is your main objective, then please take note of existing securities laws, which have been built and refined over a very long time.
Malaysia should not become a hotbed for dodgy ICOs.
Asian regulators should focus on light touch for ICOs (Asian Review), Rated: A
China banned initial coin offerings in September as “a form of unapproved illegal public financing behavior.” South Korea followed suit a few weeks later. Regulators in Hong Kong, Singapore, the U.S. and other countries have also expressed concerns. What is it that has them so worried?
A Digital Transactions Takeover right under our nose – Cassava Fintech (Newsday), Rated: AAA
Cassava Fintech is a specialized Pan-African Fintech company that delivers innovative digital transaction solutions across the mobile ecosystem. Sounds fancy right? Not quite. Simply put Econet’s vision has expanded beyond Telecoms and our Zimbabwean borders. Econet’s premise sits within an inclusive connected future that leaves no African behind.
Fintech SMEs to drive 72% of bank innovation (The Star), Rated: A
Financial technology startups, commonly known as fintechs, will be responsible for 72 per cent of financial innovations in the next three years, a new industry report shows.
Financial technology startups, commonly known as fintechs, will be responsible for 72 per cent of financial innovations in the next three years, a new industry report shows.
81 per cent of financial institutions said they are currently partnering with start-ups or intend to in the next 12 months.