Thursday January 25 2018, Daily News Digest

blockchain equity rounds

News Comments Today’s main news: SoFi to roll out checking accounts. Zopa re-opens to new customers. Roostify integrates with LendingTree. China regulator says credit market should adopt blockchain. ETHLend hits 1M GBP in P2P crypto loans. Borrowell launches free Equifax credit report monitoring. Brazilian payments company sets post-Snap IPO record. Today’s main analysis: Blockchain equity funding vs. ICOs. Today’s thought-provoking articles: […]

blockchain equity rounds

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News Summary

United States

SoFi will roll out checking accounts this spring (Tearsheet), Rated: AAA

SoFi is rolling out checking accounts without a banking license, demonstrating the new reality that a company doesn’t have to be a bank in order to bank customers.

By partnering with the Wilmington, Delaware-based WSFS Financial, SoFi will roll out a fee-free checking account and debit card this spring in a bundle it’s calling SoFi Money, designed to address the pain points customers have with day-to-day banking products, like high fees and clunky digital interfaces, executives said at a media gathering in New York Tuesday morning. SoFi Money will include peer-to-peer transfers between SoFi customers, mobile check deposit and high yield interest rates on deposits (0.75 to 0.85 percent). It will be available first to current SoFi members before the broader rollout.

Five challenges facing SoFi’s new CEO (American Banker), Rated: A

Reforming SoFi’s culture.

Determining when to go public. SoFi has a number of key shareholders who might like to access wealth that is tied up in the company’s shares. That list includes the Japanese conglomerate SoftBank, which led a $1 billion equity financing round in 2015, and the venture capital firm Silver Lake Partners, which led last year’s $500 million round. That round reportedly valued the privately held company at more than $4 billion.

Deciding how to grow. But while student loan refinancing proved to be an excellent way to find new customers during a period of low interest rates, that opportunity is now shrinking, as rising interest rates reduce the spread between what borrowers pay the federal government and what SoFi can offer.

Yes or no on a bank charter? 

Proving that he has the right background. Noto does not appear to have any experience in consumer financial services, which could be viewed as a weakness.

Roostify Announces Integration With LendingTree (BusinessWire), Rated: AAA

Roostify, a provider of automated mortgage transaction technology, today announced that it has integrated its online mortgage platform with LendingTree (NASDAQ: TREE), the online loan marketplace. The new integration makes it easier than ever for consumers to locate and apply with the right lender.

Lenders can utilize the new integration to create a seamless path for consumers to search, select, apply for, and close a loan online. Consumers selecting an offer on LendingTree from a lender using Roostify will be able to authenticate into the lender’s Roostify-powered online experience, with all information securely pre-populated. The consumer can move from shopping around to getting their loan in just a few clicks, streamlining the experience and improving lead quality for lenders.

The integration will enter general availability in Q1 2018 for all joint clients of Roostify and LendingTree.

2018’s Best Online Checking Accounts (WalletHub), Rated: AAA

More than 6 in 10 people don’t realize that online-only banks offer better rates and lower fees than their counterparts with branch access, according to WalletHub’s 2018 Banking Survey. But it’s true. What online-only accounts lack in terms of face-to-face interaction, they make up for with superior terms. For example, the average online checking account costs 47% less than its branch-based counterpart, according to WalletHub’s latest Banking Landscape Report. And the average online savings account pays 457% more interest than the branch alternative.

Best Online Checking Accounts – Editors’ Picks

Best For… Online Checking Account Best Feature
Overall Aspiration Summit Account APY up to 1.00%
Highest APY Consumers Credit Union Free Rewards Checking APY up to 4.59%
Debit-Card Rewards Bank5 Connect High-Interest Checking Account 1 point per $2 spent
No Monthly Fee BofI X Checking


Capital One 360 Checking Account

No ATM fees


No ATM fees

International Travel Charles Schwab High Yield Investor Checking No foreign fee
Money Management Tools PNC Bank Virtual Wallet Spending analysis

RealtyMogul Boosts REIT Cred with Hire of Industry Veteran Aaron Halfacre as President (Crowdfund Insider), Rated: A

RealtyMogul, a leading real estate crowdfunding platform offering Reg D (accredited) and Reg A+ (both accreds and non-accreds) investment opportunities in commercial and residential property, has hired a new President to help lead the firm. Aaron Halfacre, a 20 year real estate executive, has joined RealtyMogul bringing in institutional expertise including in the hot REIT sector.

Aaron Halfacre Becomes RealtyMogul’s First President (Bisnow), Rated: A

A former Campus Crest president and chief investment officer, Halfacre took a year and a half break after the publicly traded student housing REIT was acquired by Harrison Street Real Estate Capital in a $1.9B deal.

As president of RealtyMogul, Halfacre will be responsible for creating a strategy, growing assets and augmenting business growth. He will serve as a voting member of the firm’s investment committee, which has invested in more than $1.4B of real estate since 2013, the company reports.

Juvo Receives Investment from Samsung to Boost Smartphone Usage Among Underbanked (Finovate), Rated: A

Mobile identity company Juvo has received an investment from Samsung NEXT, an off-shoot of Samsung that launched in 2013 to create new software and foster a startup culture at Samsung. The amount of the investment was undisclosed and adds to the San Francisco-based company’s $54 million in equity funding.

The bigger story here is that the investment is a strategic one. Samsung will bring Juvo access to billions of underbanked prepaid users across the globe. This will help Juvo enable MNOs to increase smartphone adoption among prepaid mobile subscribers.

The challenger bank Chime says it has 750,000 millennial customers (American Banker), Rated: A

Chime, a mobile-only neobank for millennials, said Tuesday that it has opened 750,000 accounts to date and is signing up users at a brisk pace this month.

The growth is extraordinary. While there are many other mobile-only challenger banks in the U.S. — including Qapital, Digit and, more recently, Varo and Douugh — few have racked up large numbers yet. Chime touts a low-fee checking and savings account with a debit card and an app that provides automated savings and real-time notifications; there are no monthly or overdraft fees nor minimum-balance requirements. The Bancorp Bank holds the federally-insured accounts.

The reason why most people get rejected for a personal loan (Yahoo! Finance), Rated: A

LendEDU, a marketplace for loans and financial products, just released data showing that 76% of people who apply for a personal loan are declined. One of the main reasons for rejection? A low credit score. The average American has a credit score of 687. Meanwhile, the average FICO credit score of an approved applicant was 741.

Of those who do get approved, LendEDU predicts that just 35% went on to accept the personal loan.

Currently, 16 million consumers have an unsecured personal loan. According to a TransUnion, personal lending balances grew a steady 10.8% in the second quarter of 2017, totaling $108 billion.

Back in 2010, fintech only made up 3% of personal loan lenders. In 2015, Transunion says that number jumped to 30%.

Why fintech is still a way off disrupting lending (Financial News), Rated: A

But of the many things that banks do, lending to small and medium sized companies (‘SME’ lending) is one of the more complex areas to emulate. It is also politically charged. As such, there is some evidence that the disruption attempted in the area of lending is itself being disrupted by the practicalities of a complex area of finance.

Citi’s mobile app is lagging behind its peers (Tearsheet), Rated: A

The fourth-largest bank by assets grew its total active mobile users 21 percent year over year to nine million, the bank reported last week in its fourth-quarter earnings.

By contrast, Chase reported 30.1 million users, Bank of America 24.2 million and Wells Fargo 21.2 million.

Citi’s growth rate for 2017 was stronger though, at 21 percent year over year, than its peers’. Chase reported 13 percent growth, Bank of America 12 percent and Wells Fargo 8 percent.

Mulvaney outlines new CFPB governing philosophy (The National Law Review), Rated: A

In a memorandum to CFPB staff and a Wall Street Journal article, Mr. Mulvaney described his governing philosophy for the CFPB’s exercise of its authority.

  • While observing that there will be times when “dramatic action” is needed to protect consumers and that, at such times, he expected the CFPB “to be vigorous in [its] enforcement of the law,” Mr. Mulvaney stated that “bringing the full weight of the federal government down on the necks of the people we serve should be something that we do only reluctantly, and only when all other attempts at resolution have failed.”
  • In using its enforcement authority, the CFPB will focus on “quantifiable and unavoidable harm to the consumer” and when such harm does not exist, the CFPB “won’t go looking for excuses to bring lawsuits.”  In addition, there will be “more formal rule making and less regulation by enforcement”  because “the people we regulate should have the right to know what the rules are before being charged with breaking them.”
  • CFPB priorities should be guided by data such as 2016 complaint data which showed that “almost a third of the complaints” received by the CFPB related to debt collection and “[o]nly 0.9% related to prepaid cards and 2% to payday lending.”
  • In light of the Dodd-Frank Act requirement for the CFPB to “consider the potential costs and benefits to consumers and covered persons,” CFPB decisions should be driven by quantitative analysis.  Although qualitative analysis can play a role, it should not be to the exclusion of measurable “costs and benefits.”

Read the memo for yourself here.

What you thought you knew about millennials is wrong (American Banker), Rated: A

Sixty-three percent say they are saving money. This is very close to the rate of Gen Xers (64%) and baby boomers (75%).

Fifty-four percent of millennials say they are on a budget, the same level as Gen X and only slightly below the rate of boomers (57%).

They are diligent about savings and budgeting: 67% of millennials who have a savings goal stick to it. And 73% of millennials on a budget adhere to it regularly.

And 59% say they feel financially secure, compared with 54% of Gen Xers and 63% of baby boomers.

Making it in GR: Lessons in crowdfunding (Rapid Growth), Rated: A

Last month’s “Making it in Grand Rapids” article focused on the ever-expanding alternative financing options for entrepreneurs, such as: impact investment funds, peer-to-peer lending solutions and crowdfunding platforms. Grand Rapids entrepreneur Don Rhoads is Owner/Inventor of At Last Industries (At Last), which created the BedBud Alarm. He is also Head of Development at Cut Through Creative. Rhoads shares his progression from having an idea through the development and launch of his Kickstarter campaign—and the insights he learned along the way.

RG: A recent Small Business Credit Survey reported that “70 percent of startup applicants are in need of funding to support [their growth]” and that “52 percent of startups [have] applied for financing.” Did you pursue any avenues before deciding on crowdfunding?

DR: Yes. I actually applied for and presented at a 5×5 Night. Unfortunately, I didn’t win that one, but as much as I was disheartened, I was still [determined to] fulfill the product. Also, through traditional bank loans, I applied through my current bank. It was a little bit difficult. In a startup, it is difficult to put a value on a business. [Banks] want capital behind it because most startups fail anyway, so they want some substance behind you so they can get their money back. I was told I would need to be a little bit further down the line to get additional funding.

Technology and the Future of Financial Advice (Janus Henderson), Rated: A

Technology arrives in waves and is embraced over an adoption curve. These waves are growing stronger – in large part because technology is becoming ever more powerful. Over time, we have seen these waves play out in financial planning, too.

It is worth looking at two of the challenges faced by the industry now. The first is demographics. Clients have grown older and wealthier, but they are not being replaced within the market for traditional advice services. This is creating an advice gap for firms who need to replenish their client bases.

The second big issue is that consumer engagement is challenging. Long-term thinking hurts. As Daniel Kahneman articulated in Thinking, Fast and Slow, human beings do not easily think about the future in an analytical way and there remains room for improvement in financial literacy among the public. Add to that the low levels of customer trust for the industry and many consumers are not switched on to the benefits of financial advice.

Source: National Financial Literacy Test Results.
United Kingdom

P2P platform Zopa re-opens to new customers (Financial Times), Rated: AAA

Zopa, the UK’s first peer-to-peer lender, has reopened its platform to new customers after having to close to new money last year amid high demand for its new Innovative finance Isa (Ifisa) product and a long-running imbalance between lenders and borrowers.

Fintechs impatient as British banks seek extra time to open up (NASDAQ), Rated: A

Financial technology firms were supposed to start breaking into mainstream banking this month when new rules forced Britain’s nine big banks to loosen their grip on the industry.

But many fintech companies are still waiting with frustration on the sidelines after the banks delayed making the changes.

Financial technology firms were supposed to start breaking into mainstream banking this month when new rules forced Britain’s nine big banks to loosen their grip on the industry.

But six of the nine banks have asked Britain’s regulator for an extension to the January 13 deadline for putting in place the ‘open banking’ regulation, which overlaps with a new European Union directive known as PSD2.

UK fintech takes the lead in the Forbes 30 under 30 (AltFi), Rated: A

The gender balance has been particularly notable in the finance sector this year, as Forbes named Starling Bank’s Chief Platform Officer, Megan Caywood, and Lendable co-founder Victoria van Lennep alongside her business partner Martin Kissinger, as ones to watch.

In the technology category, Monzo co-founder Jonas Huckestein and the co-founders of digital receipts startup Flux all found themselves highlighted by Forbes.

China

China’s Banking Regulator Pushes Blockchain Adoption for Credit Market (CoinDesk), Rated: AAA

Blockchain technology should be adopted as part of a plan to boost development of China’s secondary loan market, according to a paper by the China Banking Regulatory Commission (CBRC).

Published on Jan. 19, the paper, drafted by a special committee, covers a variety of topics around developing and regulating financial technologies. In a section on the future development of China’s credit market, it suggests the country should double down its adoption of blockchain technology.

Download and read the report yourself here (in Chinese).

Ant Financial and the Greening of Fintech (The Diplomat), Rated: A

Ant Financial, an affiliate of Alibaba, is one clear example of a company using fintech to encourage a greener world.

Ant Forest is the world’s first largescale, bottom-up pilot in greening citizens’ consumption behavior through the use digital technology and social media. It is an app that Ant users can voluntarily engage with to reduce their carbon footprint and encourage their social networks to do the same. Users that perform carbon-reducing activities, such as paying bills online or walking to work, relative to a predetermined benchmark, are rewarded “green energy” points. As users accumulate enough points virtually, a real tree is planted. To date, Ant Forest has planted saxauls, willows, and Scots pine trees in Inner Mongolia and Gansu.

Ponzi scheme sparks protests (The Standard), Rated: B

Chinese authorities are struggling to quell protests after the collapse of an investment scheme that took about 30 billion yuan (HK$36.7 billion) from millions of depositors.

Hundreds of people marched on Monday in Nanjing, where Qianbao started in 2012, shouting for officials to act. But a video shows police grabbing investors as others yelled about being beaten up.

European Union

Ten User’s Pain Points Digital Banking and FinTech Should Care Of (Finextra), Rated: AAA

Studies have shown that users tend to quickly switch products and services. This also concerns banks as the competition and the number of Open Banking services increase due to the implementation of the European Directive PSD2.

1. Onboarding

Onboarding becomes particularly important in digital era. It can be a productive introduction to a new service or a challenging obstacle that deters customers. The banks of the future should provide a full digital onboarding.

2. Authentication

Log in difficulties or problems shouldn’t create obstacles for the customer. After all, no one would go to a restaurant with a locked door.

5. Transactions

Users should be able to fully control their banking. It is crucial for them to find a certain transaction and download a payment slip. View transaction history is among the TOP 3 customer scenarios. This function should be simple and understandable. Users want to filter their transactions to find specific items, view detailed information, report a violation, check payment status, export and save them, etc.

6. Payments

We are pleased to see that bank payment interfaces are becoming simpler each year. Digital technologies allow us to move complex banking procedures to the background. Challenger Banks ar a good example here.

The purpose of payment limits is to ensure the user’s security. The user should have online access to a flexible configuration of any financial transaction.

8. Notifications

There shouldn’t be too many notifications, only relevant ones.

Conclusion

Being in the users’ shoes and finding pain points in products and services will be a crucial competitive advantage. Companies recognising this issue will take a leading position in the future financial market.

International

ETHLend hits £1m crypto-P2P loans milestone (P2P Finance News), Rated: AAA

CRYPTO-BACKED peer-to-peer lending platform ETHLend has funded $2m (£1.4m) of loans in just over a month since launching.

The platform, which lets investors back business and personal loans worldwide n the Ethereum (ETH) digital currency, only went live in December but says it has already facilitated 438 loans.

Its biggest loan so far was for 83ETH, equivalent to £58,681.

Blockchain Startups Absorbed 5X More Capital Via ICOs Than Equity Financings In 2017 (CB Insights), Rated: AAA

In Q1’17, 19 ICOs closed for about $21M. Three quarters later, in Q4’17, over 500 ICOs closed for almost $3B. According to CB Insights, 2017 saw over 5x more capital deployed in ICOs than in equity financings to blockchain startups. Q4’17 alone saw that number jump to 7x.

In total, ICOs raised over $5B across nearly 800 deals in 2017. To put those numbers into context, equity investors deployed $1B in 215 deals to the sector.

GDS Link Acquires Fraudscreen, the UK’s Leading Provider of Analytics to Predict Payment Intent (GDS Link Email), Rated: A

GDS Link, a global provider of risk management solutions and consulting for multiple verticals within the financial services industry including marketplace lending, retail finance, alternative financial services, credit card, auto, and business lending and leasing, today announced that it has finalized the acquisition of 

Finastra sees accelerating FusionFabric.cloud adoption (Finastra Email), Rated: A

At its regional flagship thought leadership event, Finastra Universe Paris,Finastra today welcomed new companies to the FusionFabric.cloud open architecture. Among the early adopter Fintechs, consultants, banks and academics using the platform to develop and deploy innovative apps are Efficiency MC, Conpend and BankBI. In addition, Thomson Reuters joins Finastra’s innovation ecosystem as a data provider.

Thomson Reuters is currently embedding its instrument reference data into FusionFabric.cloud.

Paris-based system integrator, Efficiency MC, is using the platform to develop an interest rate derivatives pricing model app.

European Fintech, Conpend, is using FusionFabric.cloud to develop apps for corporate banking.

Cloud focused Fintech, BankBI, has a Performance Management and Analytics application for FusionFabric.cloud to complement the Finastra retail banking solutions, including C-suite dashboards.

Australia

The everyday Aussie is increasingly choosing a peer to peer personal loan – here’s why (mozo), Rated: AAA

ASIC’s second marketplace lending survey revealed that $300 million worth of personal and business loans were written by peer to peer lenders during the last financial year – almost double the amount commissioned during the 2015/2016 financial year.

The snowballing popularity of these types of loans is measured by the fact that, as of June 2017, the industry had 7,768 investors and a further 18,746 borrowers – numbers that had doubled over the preceding 12 months and are only set to grow in the new year.
Comparatively, at the lowest peer to peer rate in the Mozo database of 6.99% (on offer from Harmoney), the average Aussie borrower would pay just $5,634 in interest on the same loan – saving more than $4,000 in the process.

Stuart Stoyan is FinTech Australia’s new chair (Business Insider), Rated: B

Stuart Stoyan, the founder and CEO of Melbourne-based fintech MoneyPlace, which in 2015 became Australia’s second fully licensed marketplace lending platform, has become FinTech Australia’s new chair.

India

RBI Directions On Peer To Peer Lending Platforms: Frequenly Asked Questions (Mondaq), Rated: AAA

2.2  Electronic platforms connecting banks and NBFCs to borrowers

The RBI has clarified that electronic platforms that assist only banks, non-banking financial  companies (“NBFCs”) and other regulated All India Financial Institutions (“AIFls”) to identify  borrowers will not be considered peer to peer lending platforms  (“P2P Lending  Platforms”).   However, in cases where,  apart from banks, NBFCs and AIFls, or other retail lenders use the  electronic platform for lending, the platform will have to register separately as a non-banking  financial platform –  peer to peer lending platform (an “NBFC-P2P”).

2.3  Leverage ratio and investible funds for an NBFC-P2P

The RBI has clarified that for an NBFC-P2P, customers’ funds lent or borrowed by using the platform  is not reckoned as an outside liability of the NBFC-P2P, for the purpose of determining the  leverage ratio of the NBFC-P2P.

(a)  Do the P2P Lending Platforms have to fulfil the 50-50 test issued by the RBI to fall  within the purview of the P2P Directions?

The RBI, with its clarification that an existing NBFC cannot operate as an NBFC-P2P, has clarified  that the 50-50 test set out by the RBI to qualify as a non-banking financial company is not  applicable to an NBFC-P2P.

VC Firm 3one4 Capital Announces Second Fund With An Initial Corpus Of $ 39 Mn (Inc42), Rated: A

With closed commitments for $39 Mn, the 3one4 Capital team will look to enhance its deep involvement model across its investment domains. The fund will invest early stage startups with ticket sizes of $250K to $2 Mn.

Asia

Tryb Group raises $ 30M to develop fintech platforms for Southeast Asia (TechCrunch), Rated: A

Tryb Group, a Singapore-based organization focused on fintech services in Southeast Asia, has landed a $30 million investmentfrom Makara Capital.

For a Western comparison, Tryb aspires to be like LendingClub with a focus on digitizing the predominantly analog systems of financial services and banking in Southeast Asia, a region of over 600 million consumers.

“There’s strong demand to start buying ASEAN credit, with Japanese, Chinese, American and other investors looking to buy up $50-100 million worth. But they don’t know where to start since it’s all on paper,” he said.

Currently, the Tryb business doesn’t make direct revenue. It holds stakes in a number of businesses — including MC Payment which is in the process of going public in Singapore — but Gnirck said it has two acquisitions that he expects to finalize in the coming months.

Genie ICO Adds Cryptocurrency Heavyweight David Drake and Other Experts to Its Advisory Board (CoinTelegraph), Rated: B

Joining the Crowd Genie advisory board is David Drake, Founder and Chairman of LDJ Capital, who is also a global pioneer in the cryptocurrency industry and has written for more than 100 publications on innovative investing. Also joining the board is serial entrepreneur Petter Sehlin, who is a Founding Partner of global angel fund True Global Ventures and founder of the Polarchain blockchain. The founders of one of the world’s most comprehensive online cryptocurrency databases and information resources, AllCoinWiki, Anders Larsson and Joakim Holmer have also joined the board.

MENA

Egypt’s fintech startups are growing in number, value, and specialization (wamda), Rated: AAA

Financial inclusion is critical in reducing poverty and achieving shared economic growth, as mentioned The Global Findex Database 2014: Measuring Financial Inclusion around the World’: When people can participate in the financial system, they are better able to start and expand businesses, invest in their children’s education, and absorb financial shocks.

According to figures shared with Wamda by the World Bank Global Findex database, only 14 percent of adults in Egypt have an account as of 2014, and eight percent use an account to make digital financial payments. The Findex said that about 86 percent of adults in the country do not have an account and are therefore considered unbanked.

The model of Fawry, has demonstrated the validity of such business models, and has driven several concepts to launch.” Fawry, which was launched in 2008, provides payment solutions through ATM machines, mobile wallets, and retail points.

Egypt-based fintech startup Moneyfellows raised $600,000 from a group of investors led by Dubai Angel Investors and 500 Startups. This web and mobile-based platform founded in December 2014, allows users to create, manage, and track money circles (group money lending) online with members of their social networks. The startup makes money by charging users a small fee when they withdraw their payout from their money circle. So far, the startup has around 2,600 paying users and about 240 active circles.

Vapulus, which launched in December 2017, partners so far with 400 retail and F&B merchants in the country, and aims to reach 16,000 within one year of operation. The startup is a mobile app and mobile POS service for both individuals and sellers.

Canada

Borrowell launches free Equifax credit report monitoring, a Canadian first (GlobeNewswire), Rated: AAA

Borrowell today announced that it is providing Canadians with free access to their Equifax credit reports. For the first time, Canadians will be able to monitor important information in their Equifax credit report on a monthly basis, including credit utilization, inquiries and credit account history, for free online.

To date, Borrowell has provided credit information to nearly half a million Canadians.

Canada Venture Capital 2017 (CB Insights), Rated: A

Annual funding to Canada hits high in 2017

  • Total annual funding reached $2.7B, distributed across 333 deals in full-year 2017.
  • Total funding increased 7%, while deal activity decreased by 12%.
Source: CB Insights
South America

NYSE’s Biggest IPO Since Snap Is $ 2.3 Billion for Brazil Fintech (Bloomberg), Rated: AAA

PagSeguro Digital LTD, a payments company owned by Brazilian media group Universo Online SA, raised about $2.27 billion in an initial public offering on the New York Stock Exchange, according to Bloomberg data.

The company, which has a similar model to Jack Dorsey’s Square, sold shares at $21.50 each, above the top of the price range of $17.50 to $20.50 in the offering prospectus, with demand higher than underwriters expected. The equity offering is the largest on the New York Stock Exchange since Snap Inc in March 2017. Investors warmed to the stock, which rose as much as 36 percent to $29.25 in early trading.

Authors:

George Popescu
Allen Taylor

Thursday August 24 2017, Daily News Digest

corporate bond credit spreads

News Comments Today’s main news: Walmart getting closer to a deal with Afffirm. AutoFi raises $10M. Zopa reports diminishing losses, rising revenues for 2016. Landbay closes 2.4M GBP round on Seedrs. USAmeriBank goes live on Finastra. Today’s main analysis: After shallow sell-off, corporate credit spreads stabilize. Today’s thought-provoking articles: A call for more considered critiques of P2P lending. What’s behind […]

corporate bond credit spreads

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United States

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News Summary

United States

Walmart reportedly closes in on pilot deal to offer Affirm loans (Retail Dive), Rated: AAA

Walmart reportedly is closing in on an agreement with loan services startup Affirm for a pilot program under which Affirm would offer the retailer’s customers installment loans for purchases, sources familiar with the matter told The Wall Street Journal.The pilot could start as early as this fall.

Why are retailers so enamored with Affirm? Giving customers the option to take out an installment loan to finance a purchase gives customers more choices, making it more likely that they actually will make the purchase. Millenials and other younger demographioc consumers are often loathe to carry mountains of personal debt that way previous generations have.

However, it also has to do with the inflexible and sometimes excessive terms of store credit cards, which generally charge higher interest rates than the lowest portion of Affirm’s rate range. Still interest revenue and late fees from store cred cards contribute a significant amount of money to retailers’ bottom lines, making it difficult for them to commit to giving their customers more financing choices.

Overall though, retailers, banks and credit card companies are all starting to understand that at a time of massive change in how and where people shop, they need to make it easier for shoppers to close the deal. Mastercard may recognize this as well as Walmart does. The card network aligned with Verifone late last year to begin offering instant installment financing at the point of sale.

You can now buy 0 pants with a subprime loan (The Outline), Rated: A

Affirm may be a relatively new company, but the service it offers isn’t particularly innovative: It’s taking the concept of layaway, a type of no-interest payment plan that became popular during the Great Depression that lets you pay for things in fixed installments and take them home once you’ve paid for it in full, and twisting it for millennials.  Unlike layaway, Affirm delivers your purchases instantly — but the cost of instant gratification is interest rates as high as 30 percent.  The service is basically a cross between credit cards and layaway, combining the worst aspects of both.

Once your Affirm loan is approved, you can choose to pay it off in 3, 6, or 12 months, and interest rates range from 10 to 30 percent. The average customer takes out a $750 loan with a 21-percent interest rate and pays it back in nine months. Compared to credit cards, which have an average APR of 17 percent, and personal loans that typically have interest rates ranging from 5 to 36 percent, Affirm isn’t a particularly good deal.


Wal-Mart Stores To Exacerbate Synchrony Financial Woes With Affirm Deal (Baystreet), Rated: A

Affirm and Walmart have been in discussion about the possibility of teaming up since last year. Talks appear to have picked pace this year as the retailer continues to explore ways of giving customers access to a wide range of financing options to boost sales and shrug off competition posed by e-commerce platforms.

However, the move would also spell trouble for Synchrony Financial (NYSE:SYF) which is the retailer’s exclusive U.S card issuer.

The fact that Affirm offers loans could significantly reduce the number of people who apply for Synchrony credit cards.

After shallow sell-off, corporate credit spreads stabilize (Morningstar), Rated: AAA

Credit spreads in the corporate bond market stabilized last week after a brief sell-off the prior week pushed spreads higher. The average spread of the Morningstar Corporate Bond Index (our proxy for the investment-grade bond market) tightened 2 basis points to +113, and the average credit spread of the BankAmerica Merrill Lynch High Yield Master Index tightened 2 basis points to +398.

Earlier this month, British American Tobacco (BBB, stable) decided to issue $17.25 billion worth of bonds to fund its acquisition of Reynolds Tobacco. This transaction is the second-largest corporate bond deal Page 3 of 22 Morningstar Corporate Credit Research Highlights | 21 August 2017 | See Important Disclosures at the end of this report. Page 3 of 22 Page 3 of 22 Page 3 of 22 Page 3 of 22 Page 3 of 22 Page 3 of 22 Page 3 of 22 issued this year, surpassed only by AT&T’s (BBB/UR-) $22.5 billion transaction, which itself was the third-largest corporate bond deal in history. The proceeds from the AT&T transaction will be used as the final installment for the permanent financing of its pending acquisition of Time Warner (rating: BBB+/UR-). In addition, McCormick & Co. (A+/UR-) had issued $2.5 billion of new bonds two weeks ago to finance its acquisition of Reckitt Benckiser’s food division.

Through the week ended Wednesday, Aug. 16, investors pulled $2.3 billion of assets out of the highyield market. Among the open-end funds, investors withdrew $1.0 billion of funds, and across the highyield exchange-traded funds, there was $1.3 billion of net units redeemed.

AutoFi Raises $ 10 Million Series A To Make It Easier To Get A Car Loan (Forbes), Rated: AAA

AutoFi has raised $10 million in its quest to make it easier to take out a car loan.

The San Francisco-based financial technology company said on Thursday it has completed a Series A funding round, with investors including Crosslink Capital, Ford Motor Credit Company and Lerer Hippeau Ventures.

AutoFi makes a white-label technology platform that allows car dealers to offer faster, online financing to customers. It recently partnered with Ford Motor Credit and is in the midst of launching at select Ford and Lincoln dealerships.

How TD Ameritrade tackles security in Facebook Messenger chatbot (Financial-Planning), Rated: A

A common refrain in financial services these days is that companies need to go where customers are, not wait for people to come to a banking app or brokerage website.

TD Ameritrade is following that advice with a Facebook Messenger chatbot that will give customers instant updates on their portfolios and trades. The bot, unveiled Tuesday, will require the unit of Toronto-Dominion Bank to work through the privacy and security issues financial firms face whenever they communicate with customers via third-party platforms such as Messenger and Amazon’s Alexa.

The Future of Simple (Simple.com), Rated: A

Over the last few years, we have been focused on rebuilding Simple’s technology on our new partner bank, Compass. Our focus on infrastructure and supporting customer growth means we haven’t been fully invested in building new technology that helps people feel confident that they’re doing money right. We have not made good on our promise to change an industry that is failing them.

We have been focused on growth instead of innovation. We have been acting like a bank instead of a technology company. And that changes today.

Today, we are recommitting to being a technology company that is completely focused on product. We are re-designing our team so that everything we do is in support of this focus. We will be ruthlessly dedicated to identifying customer problems and building products that solve them.

SuperMoney’s Auto Loan Offer Engine Will Change the Way You Buy A Car (Supermoney), Rated: A

After debuting its personal loan offer engine at Finovate in April 2017, SuperMoney today unveiled an automotive focused loan offer engine where its lending partners compete in real-time with customized auto loan offers.

The new auto loan offer engine allows borrowers to submit a single, easy, online application and receive multiple auto loan offers back. The tool makes apples to apples comparisons easy when shopping for the best auto financing rates, fees, and terms.

Only 31.6% of car buyers negotiate the interest rate on their loan

A recent survey by the Federal Reserve reported that 76.1% of car buyers negotiated the purchase price with the seller, but only 31.6% negotiated the interest rate on their loan. It gets worse. 27.1% of car buyers considered the monthly payment on their auto loan as the most important factor, but only 6.1% considered the interest rate on the loan as the most important factor (source).

 

 

Lending as a service (LaaS) and why it matters (CIO), Rated: A

Banks today are turning away more loan applicants than in recent memory thanks to stricter regulations and lingering memories of the recent financial crisis. Younger entrepreneurs who have little or no credit history often find themselves rejected from these financing options.

Even when they are accepted, the loan process can be arduous and needlessly complicated, taking longer than business owners can afford. Applications take several visits to the bank, credit checks, records requests and weeks’ worth of back-and-forth communications just to reach the underwriting phase.

The major catalyst for this new lending paradigm has been the rapid pace of online technology innovation over the last decade. Improvements in cloud infrastructure and artificial intelligence systems enable fintech companies to create reliable evaluation and matching systems for loans. Companies can now examine a potential borrower’s financial records in minutes instead of weeks. Thanks to this compressed timeline, approval can now happen in as little as one day.

Instead of multiple meetings with bank lenders over the course of many weeks to compare options, users can often be approved in under a day by a reputable LaaS company.

LaaS platforms such as Ezbob promise to approve a business loan for companies and deliver funds in under thirty minutes. The company’s algorithm examines more than credit scores, evaluating company financials and records to quickly distribute capital to those that require it most.

New Report on Fintech from the World Economic Forum (Lend Academy), Rated: A

Today, the World Economic Forum released a report titled, Beyond Fintech: A Pragmatic Assessment Of Disruptive Potential In Financial Services, that was the result of those and many other discussions they had with leaders from around the world. The report aims to answer the question about whether fintech companies will really change the financial landscape.

Below are some of the key findings from the report:

  • Fintech start-ups have so far fallen short of their ambitions to upend the competitive landscape in finance, driving innovation but struggling to capture market share in mature markets.
  • What fintechs have done is define the direction and speed of innovation across most areas of financial services; they have also set new and higher bars for user experience.
  • Large technology firms like Amazon and Google may represent the largest competitive threat to financial institutions, as their AI and cloud computing services become more central to the sector, and customer data rises in importance.
  • Models of financial services innovation around the world are diverging, benefitting local firms and making it harder to co-ordinate a regulatory response.

Douugh Rises to Challenge with AI-Powered Banking (Paybefore), Rated: A

Banking challenger Douugh has unveiled its artificial intelligence (AI)-powered financial platform, guided by “Sophie”—a 24/7 personal assistant for finances, reports Paybefore sister publication Banking Technology.

Douugh plans to use Sophie to help consumers make better financial decisions by:

  • Connecting a user’s existing bank accounts and credit cards, Sophie will collate, organize and inform on spending habits all in one place;
  • Using Sophie as their own personal banker to perform transactional tasks—such as paying and splitting bills, requesting money, saving, tracking and management of spending and savings goals;
  • Integrating with Alexa and Siri for voice activation.

Rebundling financial services is aspiration of startup Douugh (American Banker), Rated: A

“You are 0% of the way to your retirement goal! You have plenty of time, keep up the good work.”

This message I recently received from the Wela app reminded me to kick my retirement saving efforts into gear. It’s an example of the kind of personalized financial advice many banks and fintechs are trying to provide right now, often with artificial intelligence engines analyzing customers’ account data, predicting future trends and making recommendations.

Based in San Francisco, Douugh strives to use artificial intelligence to help the 25-to-35-year-old set reduce their credit card and student loan debt and make better spending and saving decisions.

Ripple- Just As Good If Not Better (Investing.com), Rated: A

If you could buy a wristwatch that is the same quality as a Rolex or a Cartier for $350, would you wear it?

A company called Filippo Loreti aims to deliver just that. The level of support that the young company is receiving from alternative investors is truly inspiring.

Thanks to the power of the Internet this watchmaker has already raised $6 million in two rounds of funding making it one of the most successful crowdfunding projects in history.

Smart Solutions for Smart Cities (JD Supra), Rated: B

Property “consumers” will be able to compare real-time information on a wide range of variables affecting property assets – for example, energy efficiency, connectivity and traffic noise.  Banks will no longer be the only source of funds, with fast availability of internet peer-to-peer lending speeding up the time taken to put a deal together.

Blockchain or distributed ledger technology raises a number of opportunities in this field, from mortgage valuations, to rental and service charge payment systems. Smart contracts will replace the traditional approach to conveyancing – the main incentives being that the technology will expedite the process, reduce fraud and offer total transparency.

SCORE: Dos and don’ts for crowdfunding small businesses (PostBulletin), Rated: B

To help make a rewards-based crowdfunding effort successful, Dargie offers these dos and don’ts:

Do:

  • Understand the differences between rewards-based crowdfunding, equity crowdfunding and peer-to-peer lending.
  • Pick the right platform for your rewards-based campaign.
  • Follow through on your promises. Watchdog groups and state and federal consumer protection bureaus have begun to shift their attention to deceptive crowdfunding campaigns.

Don’t:

  • Fail to manage the expectations of your campaign’s backers.
  • Launch a campaign without the liability protection of a properly formed business entity.
  • Forget about taxes.

“When We Decided to Sell the Company, it Became Apparent that RealtyShares Was the Right Choice” (Crowdfund Insider), Rated: B

Last month, Real estate crowdfunding platform RealtyShares announced it acquired technology-first, marketplace platform Acquire Real Estate.

Now, less than 30-days later, Director of Business Development at RealtyShares and former CEO of Acquire, Josh Klimkiewicz, is sharing more details about the acquisition.

“The mission doesn’t end here. I will join the RealtyShares team as the director of commercial business development to lead that channel as RealtyShares continues to scale. In my new role, I will concentrate on building long-term relationships between RealtyShares and real estate owners across the country.”

Wealth Management vs. Financial Advice: They’re Not the Same (Kiplinger), Rated: B

Wealth management is one of the terms that is most overused, and it’s often misunderstood. But it’s actually pretty straightforward. Wealth management takes things up a notch, with an adviser or advisory team providing a full range of services for the client in three distinct ways.

  1. Investment consulting
  2. Advanced planning
    • Wealth enhancement: This is the use of strategies to deal with cash-flow issues and liquidity concerns, mitigate taxes and maximize growth.
    • Wealth transfer: Advisers look for the most efficient ways to pass your wealth on to your heirs in a way that lets your beneficiaries keep most or all of the money.
    • Wealth protection: For those who are subject to a lot of liabilities, there are strategies that can help protect hard-earned savings and avoid any blind spots.
    • Charitable giving: With proper planning, donating to a charity or charities can be a win-win, maximizing support for a favorite cause while making the most of certain tax advantages.
  3. Relationship management

How to Win an Argument (Mental Floss), Rated: B

To persuasively drive your point home, follow the tips below, provided by online lender CashNetUSA’s SavingSpot blog and spotted by Entrepreneur.

United Kingdom

Zopa Reports Diminishing Loss as Revenues Rise for 2016 (Crowdfund Insider), Rated: AAA

Zopa, the first peer to peer lender to set up shop in the UK, has filed its annual accounts for 2016, and according to their numbers business is looking better.

Top line revenue improved by 61% jumping to £33.2 million for 2016. The operating loss stood at £5.9 million for the year, an improvement over the £8.9 million from year prior.

A call for more considered critiques of P2P lending (AltFi), Rated: AAA

Between RateSetter’s wholesale lending saga and subsequent withdrawal from the Peer-to-Peer Finance Association, Zopa’s heightened loss expectations, and Funding Circlesignalling an end to manual investment, industry detractors are hardly short of fuel for their fires.

And yet we continue to endure spurious headlines that seem to be born of a broad desire to bash P2P, on the basis of seemingly anything.

Anyway. The latest episode of this kind comes courtesy of The Financial Times, which reported on Monday that peer-to-peer lending websites are “struggling to attract UK customers who want to borrow money”.

Source: AltFi

Landbay Closes £2.4M Crowdfunding Round on Seedrs (Finsmes), Rated: AAA

Landbay, a London, UK-based buy-to-let mortgage lender, has closed a £2.4m crowdfunding round.

The funds were raised via Seedrs.

The company, which has raised approx. £7m to date via the crowdfunding platform, intends to use the funds to continue to expand operations and launch new products.

IFAs still most influential source of financial advice (P2P Finance News), Rated: A

INDEPENDENT financial advisers (IFAs) are the most trusted source of external investment advice, but investors are still more likely to trust their own judgement, new research claims.

A survey by property finance firm Minerva Lending found that almost three quarters (72 per cent) of active investors prefer to take the advice of an IFA. However, the vast majority of active investors (77 per cent) said that they would rather trust their own judgement. Three in five (60 per cent) said that they would be more likely to trust word of mouth.

The survey also found that investors still prefer traditional investment advice over newer fintech solutions. Only 12 per cent of the investors surveyed said that they would trust a robo-adviser to offer financial guidance, and just 22 per cent would trust a standalone piece of software.

Should more banks form partnerships with alternative lenders? (Bridging and Commercial), Rated: A

More banks should be forming partnerships with alternative lenders, one business finance provider has stated.

In the bank referral scheme, the UK’s biggest banks pass on the details of SMEs that have been turned down for loans to three SME finance platforms, which then share their details with alternative finance providers.

Almost £4m of funding was accessed by 230 SMEs under the matchmaking scheme.

Chirag Shah, CEO of Nucleus Commercial Finance, felt there were clear benefits to the collaboration between banks and alternative lenders, but also urged for transparency.

Debunking the peer-to-peer lending myths (City A.M.), Rated: A

So let’s look at some of the common arguments raised and try to filter out the fact from the fiction.

P2P will suffer in an economic downturn

Yet the oldest UK platform Zopa – which launched in 2005 – managed to survive during the financial collapse of 2008.

Admittedly the default rates jumped to 4.2 per cent from 0.4 per cent the year before, but figures from Zopa show that investors were still able to earn a four per cent annual return during the financial crash, compared to six per cent in 2007.

P2P platform Landbay commissioned an independent report in 2015 to find out how it would perform in poor economic conditions.

While the loss rate on Landbay’s loans is 0.03 per cent in normal economic conditions, the loss rate was estimated to hit 0.48 per cent if times got tough – that is, if GDP was down 3.5 per cent, unemployment rose to nine per cent, and UK house prices fell by 20 per cent. So even if the economy shrinks, investors would not have lost money.

An interest rate rise will kill the P2P industry

But Lucy Bott, head of customer operations at RateSetter, points out that interest rates on P2P platforms are not set by the banks, but by the supply of and demand for money.

P2P is for young people

He points to a report from Nesta, which found that more than half of P2P lending investors are aged 55 and over, while a third of lenders are aged 35 to 54, and just 12 per cent of investors are under 35.

P2P Lending Sites Not Quite Wooing UK Customers (PYMNTS), Rated: A

Among 1,100 British consumers polled by consultancy firm EY, only 7 percent indicated they had used such a service to borrow money this year. A separate poll of 1,050 Brits by Blumberg Capital revealed just 4 percent of them had utilized alternative lending platforms over the previous year, according to the Financial Times.

Where FinTech firms worldwide attracted $20 billion in investments over the first half of 2016, that number dropped to just $12 billion during the first six months of 2017.

The lower funding amounts could be attributed to banks having joined the peer-to-peer lending landscape, creating their own technologies or joining forces with startups to stay current, thus broadening the competitive field.

China

Fintech in China: What’s Behind the Boom? (Brink News), Rated: AAA

The country makes some of the world’s largest investments in the sector, and it has adopted fintech technologies faster than anywhere else. Companies such as Alipay, Lufax and ZhongAn Insurance have made their names across the globe by using fintech to develop some of the most disruptive business models. These players have enjoyed the fruits of fintech’s unprecedented growth by filling the gaps in China’s structurally imbalanced financial system in an open regulatory environment.

We believe the development of fintech in China has reached an inflection point. From this point, technology will be the key driver of value-chain disruption in an increasingly data-driven industry.

For example, it took four years for peer-to-peer transaction volume to exceed $5 billion in the U.S., while it took only two years in China. Lufax, a Chinese peer-to-peer lending platform founded in 2011, reached an annual loan origination amount of 9 billion yuan in just two years, compared to five years for Lending Club, the biggest peer-to-peer lending company in the U.S.

A global block chain summit was spot inspected, caused shock on ICO market (Xing Ping She), Rated: A

Recently, the Market Supervision Bureau of Shanghai Pudong New District has raided a global block chain summit that is suspected of false propaganda. According to the investigation, 35 companies set up booth to promote technology and financial products on the spot, and nearly 2,000 people attended the summit. The organizer is a Shanghai-based software technology company. The company referred to “bitcoin” technology and has developed a digital cryptocurrency ETP (entropy) on its own, which was traded on its platform.

On the spot, Law enforcement officials ordered the meeting to be halted immediately and interviewed with the parties involved. And in the same day, this news triggered a nearly 200% shock in the value of related tokens on some trading platforms, reflecting the growing risk of the ICO market. Now the company is still under investigation for alleged violations.

European Union

Klarna co-founder seeks to spur European tech giving (Financial Times), Rated: AAA

In the US, technology magnates from Microsoft’s Bill Gates to Facebook’s Mark Zuckerberg have started a long line of high-profile, high-minded initiatives often aimed at combating disease and helping the poor.

But in Europe, where many of the unicorns — start-ups valued at more than $1bn — are of a more recent vintage, many founders are still thinking of how to make money rather than spend it.

Two years ago, Mr Adalberth had become bored with what he describes as “the constant chasing of the next goal or achievement” at Klarna. So he stepped aside from the group and its relentless attempt to conquer the digital payment world by becoming a bank and attracting Visa in as an investor.

Instead, Mr Adalberth became one of the first of the recent crop of European tech founders to think about giving away money. The result is Norrsken Foundation, which has a triple-pronged approach aimed at encouraging social entrepreneurship. His venture is risky but is likely to be closely watched by the growing ranks of multi-millionaire European founders to see if it can provide some kind of blueprint. “There is a trend in the US to give something back. This trend has come to Sweden and maybe Europe as well,” he says.

Rabobank constructs physical model to understand IT architecture (Finextra), Rated: A

Rabobank has built a 3D model of its own organisation and supporting IT systems to help visualise improvements that can be made as it embarks on its digital transformation programme.

As a banking co-operative operating at both local and regional levels, the Dutch bank runs a complex network of independent IT platforms often performing the same functions depending on local practices.

International

USAmeriBank live on Finastra hosted payments hub (Finextra), Rated: AAA

USAmeriBank selected Finastra’s hosted solution in order to have the flexibility to quickly add new payments rails and services, future-proofing its technology investment, while improving customer service and increasing straight-through processing.

In addition to quick time-to-market and ease of implementation, another benefit of using a hosted solution is a reduction of maintenance effort and total cost of ownership, as the technology and business services are maintained by Finastra.

In the coming months, the bank plans to add US ACH, and eventually real-time payments components, completing the bank’s journey to a fully-outsourced payment processing model.

AI Is the New UI – Exclusive Interview With Jake Tyler, CEO of Finn.AI (Let’s Talk Payments), Rated: A

 

LTP: Give us a high-level paragraph pitch for your company.

JT: The Finn Virtual Banking Assistant is a personal banking and financial management assistant, powered by artificial intelligence.

Finn delivers a personal banker within a customer’s favorite channels, including Facebook Messenger, Amazon Alexa, Google Assistant, SMS, iOS and Android apps, and web chat. We believe that AI is the new UI.

LTP: In a sentence or two, what specific problems are you solving today?

JT: We help banks connect with customers where they already are (in major instant messaging and voice platforms), adapt to a new paradigm of consumer expectations set by Apple, Amazon, Google and Facebook where deep personalization and simple conversational interfaces are the norm, and reduce costs by augmenting human customer care agents with AI.

LTP: What are the biggest challenges you face when building with AI and ML, being nascent technologies? How have you overcome, or are you overcoming, those challenges?

JT: The biggest challenge is data, both quantity and quality. We address this by going deep in one core vertical – banking. We have a large, pre-existing data model in this domain that grows daily as consumers use our assistant. As new banks adopt Finn they are able to leverage this data model to deploy a high-quality assistant with proven features much faster than they would otherwise be able to do.

India

RBI to harmonise NBFC regulations (India Times), Rated: AAA

There is scope for harmonisation of regulations covering non-banking financial companies (NBFCs) and the Reserve Bank is moving in that direction, Deputy Governor N S Vishwanathan said today.

He also said there is a need to create some new types of NBFCs to cater to the needs of the growing economy.

Guernsey consultation to update regs governing ‘non-regulated’ financial businesses (International Investment), Rated: A

The 103-page Lending, Credit & Finance Consultation Paper  is aimed jointly at enabling Guernsey to accommodate the growing number of “innovative, often digitally-enabled, financial services which don’t neatly fit into the boxes marked banking, insurance, investment or fiduciary covered by current laws”, as well as to better protect Guernsey consumers and investors, “particularly those who are less financially able, from unscrupulous lending practises”, the GFSC says, in a summary of the LC&FCP‘s contents.

The proposed legislation would replace this existing NRFSB Law.

To read and download the consultation paper, click here.

Asia

He also said there is a need to create some new types of NBFCs to cater to the needs of the growing economy.

Read more at:

The future of banking in Southeast Asia is in Cryptocurrency (Hero Email), Rated: B

There are an estimated two (2) billion people in the world who remain unbanked and underbanked. That’s roughly a quarter of the entire planet’s population who have little to no direct access to financial services most commonly found in banks and formal lending institutions.

In Southeast Asia, approximately only twenty-seven (27%) of the entire region are financially included, leaving the rest with little to no defense in times of economic crises.

Hero will build a blockchain-based credit algorithm and lending platform. Hero will be launching its own cryptocurrency coin called Hero Token through an upcoming token sale.

The majority of populations who suffer from financial exclusion live in emerging countries such as the Philippines, Indonesia and their neighbors in Southeast Asia. A notable fact about this region [SEA] is that it is the fastest growing Internet region in the world and is also the fourth largest.

Backed by an award winning group of experts, the organization started operating in the Philippines in 2015 as PawnHero, offering collateralized loans using an online platform, and since then has been helping thousands of Filipinos obtain access to affordable credit.

There will also be a ‘pre-sale’ wherein people can buy tokens prior to the actual token sale and get bonuses. During the pre-sale, Hero will offer 80% of all tokens to be created for purchase by the public in the Hero Initial Coin Offering under the ticker symbol Hero. The remaining 20% of all Hero tokens will be distributed to early believers, advisors and founders.

To participate in the Hero token sale people can send the following currencies – Ethereum (ETH), ETH Classic, BitCoin (BTC), Ripple, LiteCoin, and Waves from a wallet they directly control to the Hero wallet. Aside from these, extra tokens will be offered to those who commit early. Bounties are provided when the crowdsale ends. All payments received for Hero tokens in connection with this token sale will be held in escrow in a multi-signature address, with a multi-key structure.

For more information go to .

Authors:

George Popescu
Allen Taylor