Friday November 29 2019, Weekly News Digest

Beehive SME Infographic

News Comments Today’s main news: Funding Circle US launches Small Business Choice. LendingPoint closes $175.6M direct-to-consumer securitization. Chinese P2P lenders have 2 years to change business model. Klarna starts new merchant partnership every 8 minutes. Today’s main analysis: Cities where millennials have the highest credit card balances. Today’s thought-provoking articles: Schwab to acquire TD Ameritrade, […]

The post Friday November 29 2019, Weekly News Digest appeared first on Lending Times.

Beehive SME Infographic

News Comments

United States

United Kingdom

European Union

China

Other

News Summary

United States

Funding Circle US Launches Small Business Choice, Providing Interest Rate and Loan Term Options to Small Business Owners (BusinessWire), Rated: AAA

Funding Circle US today announced Small Business Choice. The newest feature of the Funding Circle US loan platform provides borrowers with three fully approved loan options with different terms and rates to give small business owners the flexibility to find the loan that best fits their needs.

Under Small Business Choice:

  • Loan options are suggested after being completely underwritten by Funding Circle. Borrowers are fully approved for all three options.
  • In line with Funding Circle’s global commitment to transparency, offers are presented in a straightforward way over the phone and in emails that directly outline the total loan amount, term, rate and monthly payment.
  • The feature applies to all small business owner applicants, including existing borrowers, at Funding Circle US.

LendingPoint Closes $ 175.6 Million Direct-to-Consumer Loan Securitization and Inaugural, $ 61.7 Million Point-of-Sale Loan Securitization (BusinessWire), Rated: AAA

Data and technology platform LendingPoint today announced that it has closed two additional securitizations of loans originated on the LendingPoint platform: LendingPoint Receivables Trust 2019-2 (“LDPT 2019-2”) issued $175.65 million of KBRA-rated notes backed by a pool of direct-to-consumer loans and LP LMS 2019-1 Asset Securitization Trust (“LPMS 2019-1”) issued $61.7 million of unrated notes backed by a pool of point-of-sale loans. Guggenheim Securities was sole structuring advisor and sole manager of both transactions.

Cities Where Millennials Carry the Highest Credit Card Balances (Experian), Rated: AAA

Millennials accounted for about 20% of all credit card debt in Q2 2019, an increase of 2 percentage points year over year. Their generation was the only one to see a marked increase in overall credit card balances in Q2 2019. Since 2015, millennials have seen their average FICO Scores*  increase 17 points and their average credit card balance increase by $1,390.

Cities With Highest Millennial Credit Card Balances in Each State

Schwab is the 800 lb Gorilla Now; Future of FinTech; Madden Fix (PeerIQ), Rated: AAA

Charles Schwab Corp. is in negotiation to acquire TD Ameritrade. The deal would combine two of the largest online brokerages with strong banking capabilities. Shares of both companies were up significantly in the news.

Source: PeerIQ, Bain Capital Ventures LP

Full interview with Max Levchin, co-founder of Paypal (CNBC), Rated: A

PeerStreet Continues Rapid Growth With New Milestone: $ 3 Billion in Loan Transactions (BusinessWire), Rated: A

PeerStreet, a platform for investing in real estate backed loans, today announced that as of last month, more than $3 billion in loans have been transacted through the PeerStreet marketplace. This milestone comes on the heels of the company announcing the close of its $60 million Series C funding round coupled with $4.25 billion in new capital commitments.

Entera Raises $ 7.5M in Funding (FinSMEs), Rated: A

Entera, a San Francisco, New York and Houston-based real estate technology platform that enables investors to access, make data driven decisions and purchase residential real estate, raised $7.5m in funding.

An internet banking pioneer’s view from the catbird seat (American Banker), Rated: A

If David Becker’s career were put to country song, the title might be “I was internet banking when internet banking wasn’t cool.”

Becker founded the online-only First Internet Bank in 1998, well before the term digital platform was thrown around. Online banking long had promise, but to hear Becker tell it, it’s really coming into its own — and he has a front-row seat to change.

Wolters Kluwer Launches Consumer Lending Online Applications Offering for Community Banks, Credit Unions (BusinessWire), Rated: A

Wolters Kluwer’s Compliance Solutions business has launched Online Applications for Consumer Lending (CLA), a digital offering that enhances the online loan origination capabilities of U.S. community banks and credit unions. CLA allows consumers to begin a loan application from any digital device, at any time. It integrates seamlessly with Wolters Kluwer’s ComplianceOne solution, an industry-leading loan documentation and processing system that helps lenders optimize their lending and document preparation processes in a secure, fast and cost-effective manner.

Why small businesses need regulators’ proposed ‘Madden’ fix (American Banker), Rated: A

Just recently, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. proposed an important clarification to the “valid when made” doctrine, which provides that if a loan’s interest rate is valid in the state of origination, that loan continues to be valid when transferred to a party in another state. That long-standing doctrine was overturned by the so-called Madden case in 2015.

MoneyLion : Names Samantha Roady Chief Operating Officer (MarketScreener), Rated: B

MoneyLion, the digital bank and financial membership platform, today announced the appointment of fintech and global finance industry veteran Samantha Roady as Chief Operating Officer, a new position within the company. She has served as a MoneyLion board member since September 2016.

Supreme Court to hear CFPB constitutionality case in March (American Banker), Rated: B

The Supreme Court on Tuesday said it will hear arguments March 3 in a case challenging the constitutionality of the Consumer Financial Protection Bureau’s leadership structure.

United Kingdom

Zopa is running out of time in bid to become bank (Evening Standard), Rated: AAA

PEER-to-peer lending giant Zopa faces a race against time to raise up to £150 million and satisfy regulators it is financially strong enough to become a bank.

Zopa rival Funding Circle has seen its shares crash from 400p a year ago to 99p today.

Zopa nears crunch time as investor woes worsen (Financial News), Rated: A

One of the UK’s best-known and oldest fintech companies is running up against a tight deadline to secure funding needed to maintain its banking licence, as a major investor is sidetracked by a funding crunch of its own.

Marketplace lending expected to top £6bn this year, says report (AltFi), Rated: A

Marketplace lending is expected to top £6bn this year but lenders will face a significant test of their risk management procedures, loan servicing and recovery practices should the economy worsen, a new report warns.

The report says that gross marketplace lending is likely to grow 16 percent from £5.3bn to £6.2bn from 2018 to 2019.

Wonga‘s legacy of nearly 400,000 mis-sold loans (Wellston Journal), Rated: A

Administrators for the lender, which collapsed in August 2018, have revealed that 389,621 eligible claims have been made since Wonga‘s demise.

So far, the compensation bill is £460m, with the average claim £1,181.

The administrators said they had received 560,982 claims by the end of August.

Britain’s RBS launches digital bank Bó to take on start-ups (Reuters), Rated: A

Royal Bank of Scotland has launched its standalone digital bank Bó in a plan to fend off competition from fast-growing online start-ups including Monzo and Starling.

Funding and technology: the foundations of building a great product  (Mortgage Introducer), Rated: A

Disrupting the traditional mortgage process has always been our goal at LendInvest.

From the way you apply for a loan, to case management to how that loan is funded, we believe the experience can be better at every stage of that journey.

LendInvest Promotes Andy Virgo to Key Role (Crowdfund Insider), Rated: B

LendInvest, the Fintech marketplace for property finance, has promoted Andy Virgo from Business Development Manager to Head of Key Accounts for LendInvest.

Lisa Fiondella Joins Finastra as Chief Data Officer (Markets Insider), Rated: B

Finastra has hired Lisa Fiondella as Chief Data Officer to lead its comprehensive data strategy, including how data collected through the FusionFabric.cloud platform and various cloud-based solutions, can be best utilized. She will be responsible for developing a data product roadmap and manage the process of bringing new data products to market.

China

P2P: China’s once-booming lending industry must close within two years, government notice says (SCMP), Rated: AAA

All existing peer-to-peer lending platforms in China must become small loan providers within two years, a notice seen by Reuters on Wednesday showed, the latest official edict aimed at curbing the once-booming industry.

All Chinese peer-to-peer (P2P) lending firms need to clear outstanding loans in less than one year before switching to small loans, according to a notice issued by China’s Internet Financial Risk Special Rectification Work Leadership Team Office, which was launched by Beijing to mitigate risks in the online lending sector.
  • Only 427 existing peer-to-peer (P2P) firms were still operating by the end of October, down from 6,000 at their 2015 peak

China Bids Farewell to P2P Lending (Finews.Asia), Rated: A

In order to transition, firms must meet a minimum capital requirement of 50 million yuan ($7.1 million) to become a small regional lender and 1 billion yuan ($142 million) to become a small national lender.

Ping An to fold P2P lender Lufax into new consumer finance arm (Technode), Rated: AAA

Ping An Insurance has received approval from regulators to set up a consumer finance arm, a representative from its peer-to-peer (P2P) loan affiliate Lufax confirmed on Friday, in a move that is reportedly the beginning of its transition away from P2P lending amid increasingly stringent regulations.

Lufax Prepares for Life After P2P Lending (Caixin), Rated: A

European Union

Flender Makes BIG Mark in Ireland’s SME Lending Market (deBanked), Rated: AAA

The following month Flender would reveal remarkable news, a new €75 million funding line, bringing their total to €109 million raised since the company’s founding in 2015. The company is backed by Eiffel Investment Group, Enterprise Ireland, entrepreneur Mark Roden and former Ireland rugby player Jamie Heaslip.

Meawnwhile, CEO Kristjan Koik told the Irish Times that the top 3 banks in Ireland have 92 percent of the SME lending marketshare so there is still a ton of opportunity for non-banks like Flender to grab hold of.

Alternative Lending Marketplace October Reveals New $ 110 Million Commitment from European Investment Fund and Others to Finance European SMEs (Crowdfund Insider), Rated: A

A new €100 million (appr. $110 million) agreement was finalized by the EIF, CNP Assurances, Bpifrance, Zencap, and various other entities in order to fund European SMEs via marketplace lending platform October. These companies are part of the recent institutional fund launched last year.

Half of European P2P investors have more than 25pc of portfolio in P2P loans (P2P Finance News), Rated: A

MORE than half (52.3 per cent) of European peer-to-peer investors surveyed by Robo.cash have more than a quarter of their portfolio in P2P loans.

Irish Consumers Still Don’t Trust New Technology, Including Digital Challenger Banks (Crowdfund Insider), Rated: A

Three quarters, or 75%, of Ireland’s consumers, are only using a “high street” bank, which makes the country the most traditional in Europe.

Only around 10%, or one in ten, Irish consumers are banking only with a challenger bank. Around 11% of Millennials and 12% of Gen Z consumers in Ireland are using (only) challenger banks, the report revealed.

When looking five years ahead:

  • 17% of Ireland’s consumers are expected to bank solely with a challenger bank (up from around 14% in 2019).
  • 35% of Ireland’s citizens will be banking with some combination of challenger and traditional financial institutions (up from about 21% in 2019).
  • 48% will be banking solely with a legacy bank (down significantly from 68% in 2019).

This, according to Fujitsu’s latest “From Demanding to Discerning: Tech and the New Banking Customer” report.

Investor confidence in P2P lending is growing in Europe (Wealth Adviser), Rated: A

According to a new survey by Robo.cash, 64.9 per cent of the European P2P investors have full confidence in P2P lending. Remarkably, 52.3 per cent of respondents mentioned that P2P loans take a considerable share of their investment portfolio – over 25 per cent.

Citadele Bank to invest in consumer loans through Fellow Finance P2P platform (Finextra), Rated: B

Citadele Bank is launching a partnership with Europe’s most advanced lending platform, Fellow Finance, which brings together individuals, businesses and investors.

International

Klarna partners with a new merchant every 8 minutes in 2019 (PR Newswire), Rated: AAA

During 2019, Klarna has once again seen stellar growth with 60,000 new merchants globally including River Island, Boohoo, Made.com, Michael Kors, Expedia, H&M, Abercrombie & Fitch, Timberland, Marchesa, Agent Provocateur, Rue 21, TOMS, WayFair, Microsoft, and Shein. Now over 190,00 merchants partner with Klarna.

– Consumer growth and preference builds, adding 16 million new consumers globally.

OakNorth and N26 Have Received the Most Funding Out of All US and European Digital Banks (Crowdfund Insider), Rated: A

According to Crunchbase data, OakNorth ($1 billion) and N26 ($670 million) have received the most funding out of all other major US and European neobanks.

Regulators in Dubai and Luxembourg sign fintech pact (Finextra), Rated: B

The Dubai Financial Services Authority (DFSA) and the Commission de Surveillance du Secteur Financier (CSSF) Luxembourg, entered into an agreement to cooperate in the development of FinTech.

Australia

Almost 50% of Australians Have Not Heard of Neobanks or Digital-Only Banks (Crowdfund Insider), Rated: AAA

The number of users that may consider changing their primary banking institution during the coming six-month period is currently 12% or 2.5 million Australian residents, which is reportedly 9% greater than the previous year.

The Nielsen surveys revealed that around 50% of Australia’s consumers noted that they had not heard of a neobank. Only a third, or about 33%, of the nation’s consumers said they’d be willing to use a neobank as one of their financial services providers, even after the benefits of using digital-only banks were explained to them.

A quarter, or 25%, of consumers who became aware of neobanks stated they would most likely use them as one of their primary financial services providers.

Asia

Indonesian P2P lender Amartha bags series B money from Line, others (Tech in Asia), Rated: AAA

Indonesian peer-to-peer lending startup Amartha has raised an undisclosed amount of series B funding in a round led by Line Ventures, the venture capital arm of global messaging app Line.

MENA

Dubai-based Fintech, Beehive, Releases State of the SME Ecosystem Report (PR Newswire), Rated: AAA

Key findings from the report include:

  • Surveyed MENA SMEs have more women in senior positions than the global average.
  • 28% of respondents see innovation as a priority for growth, yet only 2% of business owners are currently trying to access finance to fund it.
  • SMEs offer young people a great opportunity for development. 48% of SMEs would hire someone under 25 with no experience.
Source: Beehive

See the full report here.

Authors:

George Popescu
Allen Taylor

The post Friday November 29 2019, Weekly News Digest appeared first on Lending Times.

Thursday April 4 2019, Weekly News Digest

soft spending

News Comments Today’s main news: Affirm raises $300M. LendingClub charged with privacy violation. Funding Circle issues 187M GBP securitization. Zopa legacy portfolio drags. Fellow Finance facilitates 18.2M euros in March loans. Today’s main analysis: March 2019 debt report from LendingTree (A MUST-READ). Today’s thought-provoking articles: Interview with SoFi CEO Anthony Noto. The slowing U.S. economy. […]

The post Thursday April 4 2019, Weekly News Digest appeared first on Lending Times.

soft spending

News Comments

United States

United Kingdom

European Union

International

Other

News Summary

United States

Max Levchin’s Affirm raises $ 300 million (Axios), Rated: AAA

Affirm, the consumer credit startup led by PayPal co-founder Max Levchin, has raised around $300 million in Series F funding at a $2.9 billion post-money valuation, Axios has learned from multiple sources.

PayPal co-founder’s fintech company scores $ 300 million, plans massive hiring in S.F. (Biz Journals), Rated: A

Flush with a monstrous funding round, this San Francisco-based fintech company plans to ramp up its hiring from 580 employees to 850 by the end of the year – and the bulk will be in the Bay Area.

FTC Privacy and Data Security Report for 2018 (JDSupra), Rated: AAA

  • LendingClub, a peer-to-peer lending company, was charged with failing to deliver adequate privacy notices to consumers required by the Gramm-Leach-Bliley Act’s Privacy Rule and Regulation P. The FTC’s complaint alleged that “LendingClub violated these rules by failing to provide its customers with clear and conspicuous notice before collecting consumers’ financial data and by failing to deliver the notice in a way that ensured that consumers received it.” Customers were instead forced to follow a series of links before being able to review the privacy policy, a method the FTC deemed to be improper.

Anthony Noto of SoFi (Lend Academy), Rated: AAA

The CEO of SoFi talks priorities, innovation, company culture, competition and what it will take to build a world class financial services firm

Read the full transcript of the interview here. Interview by Peter Renton.

US Economy Slowing (PeerIQ), Rated: AAA

US 4th quarter GDP growth slowed to 2.2%, as what is shaping up to be the largest expansion in US economic history starts to lose steam. Consumer spending also slowed in January, rising by just 0.1% MoM. The Fed’s preferred inflation gauge, PCE, rose by just 1.4% YoY, justifying the Fed’s decision to keep rates on hold. Overall signs point to a slowing economy in the late stages of an expansion.

Source: Bloomberg, PeerIQ

LendingTree Debt Report – March 2019 (LendingTree), Rated: AAA

After a brief respite in mid-2018, the debt-to-income ratio for consumer debt rose once more, reaching 25.41% by the end of 2018. That falls just shy of the all-time high of 25.49% set one year earlier.

Household wealth saw a $5 trillion decline last quarter

Losing $5 trillion of wealth may sound disastrous, but that’s what happened to American households last quarter. According to the Federal Reserve, total net worth of U.S. households fell from $108 trillion to $104.3 trillion in the last quarter of 2018. The loss was the biggest quarterly drop since the depths of the great recession of 2008.

PayPal Makes Its First-Ever Investment in a Blockchain Startup (CoinDesk), Rated: A

Announced today, PayPal has joined the extension of a Series A funding round in Cambridge Blockchain, a startup that helps financial institutions and other companies manage sensitive data using shared ledgers.

Neither PayPal nor Cambridge Blockchain disclosed the investment amount, but recent filings with the SEC indicate that Cambridge Blockchain has raised a total of $3.5 million in new equity from several investors over the past nine months. That follows the $7 million close of its Series A in May of 2018, and brings the total capital raised to $10.5 million.

Zillow is now a mortgage lender, launches Zillow Home Loans (HousingWire), Rated: A

Zillow announced Tuesday that it is launching its own mortgage lending operation, which it is calling Zillow Home Loans.

A payday lender in disguise? New York investigates the Earnin app (American Banker), Rated: A

As early wage access programs such as Even, PayActiv, FlexWage, ZayZoon and DailyPay gain traction, some other apps are copying their style while using a more traditional payday-loan model — sparking attention from law enforcement agencies in the process.

That’s what happened to Earnin, which is often referred to and bills itself as an early wage access provider, which give employees access to their paychecks before they are deposited. The New York Department of Financial Services launched an investigation of the firm over concerns it may be skirting state lending laws by, among other things, requiring tips from users in lieu of disclosing fees.

Crypto Lending Platform BlockFi’s Interest Account Customers Receive Their First Interest Payments (Bitcoin Exchange Guide), Rated: A

Leading crypto lending platform BlockFi recently announced that their Interest Account customers received their first interest payment for their Bitcoin [BTC] and Ethereum [ETH] deposits.

Since their public launch on March 5, BIA has grown by over 400% and counting. Approximately 75% of BIA clients have a balance of less than 5 BTC or 150 ETH. Their median account balance is $7,000 USD.

Crypto lenders push no-tax perk of leveraging bitcoin for cash (American Banker), Rated: A

Former Wall Street trader Edgar Fernandez used some of his bitcoin as collateral to borrow nearly $100,000, a move that let him keep his cryptocurrency and avert a tax bill on the newly acquired cash.

Genesis Capital, a cryptocurrencies lender in Jersey City, New Jersey, an affiliate of Genesis Trading, says it handed out more than $1.1 billion in cash loans and borrowed virtual cryptocurrencies in 2018. That total volume doubled in the last quarter of 2018 from the volume of the previous two quarters. Other lenders have also said they are doing more transactions, including Nexo, a cryptocurrencies lender that says it has loaned $330 million since launching last April.

Atomic Capital Goes On The Attack With New Crypto Loan Offer In The Market (Bitcoin Exchange Guide), Rated: A

The asset tokenization company, Atomic Capital, is making a very aggressive loan offer in the crypto lending field. Back on Wednesday, the firm will be giving USD loans for 85% of the value of the Bitcoin (BTC) or Ethereum (ETH) used as collateral. In this way, the firm will be offering the most generous loan-to-value (LTV) in the space.

Just to put it into comparison, BlockFi offers a maximum LTV of 50%. Celsius Network, meanwhile, is giving customers 25%, 33% or 50% LTV.

Atomic will be charging interest rates of 11% and 13%. This is much more than the 4.5% or 8.95% that other competitors offer.

New $ 4.8m funding for SME bank Novo (Fintech Futures), Rated: A

Novo has raised $4.8 million in venture seed financing to make banking accessible for small businesses by launching no-fee FDIC-insured digital banking.

Blend seeks to deepen bank ties with account opening product (American Banker), Rated: A

Blend is aiming to expand its customer base of banks and credit unions with a digital account opening product that it says takes some customers as little as two minutes to complete.

The account comes in addition to the mortgage products the digital loan origination fintech already offers and can stand on its own or be integrated as a package, the company said Tuesday.

Will Millennials Bring Non-banks into Their Finances? (deBanked), Rated: A

According to an Accenture surveyfrom five years ago, 34% of millennials said they would bank with Apple if such a product were available.

Best low cost franchises to get into (BM Magazine), Rated: A

Business Services Franchise

Success Member Inc.: It is the leading online loan marketplace that connects consumers with banks, credit partners and multiple lenders both nationally and internationally. They offer training with an expert to this industry of 33 years, along with a lifetime one-on-one dedicated support.

Minimum Cash Required:$25,000

  • Training and Support: Yes
  • Financing: Yes
  • SBA Approved: Yes
  • Home-Based: Yes

Goldman Sachs’ Marcus Loses Product Head (PYMNTS), Rated: A

Marcus, the consumer bank operated by Goldman Sachs, has seen its head of product Michael Cerda quit his job.

Tradeweb Raises $ 1.1 Billion in Year’s No. 2 IPO in U.S. (Bloomberg), Rated: A

Tradeweb Markets Inc. raised $1.1 billion in the second-largest U.S. initial public offering this year, after again increasing the number of shares it was selling and then pricing them above the marketed range.

Tradeweb’s IPO is also the biggest for a financial services company in the U.S. since online lender GreenSky Inc. raised $874 million in May.

Class Action Lawsuit Filed Against Brendan Ross, Direct Lending Investments, and Others (deBanked), Rated: A

A class action lawsuit has been filed in California against Direct Lending Investments, LLC (DLI), Brendan Ross, Bryce Mason, Frank Turner, Rodney Omanoff, and Quarterspot Inc. alleging breach of contract, breaches of fiduciary duty, aiding and abetting breaches of fiduciary duty, and fraudulent inducement.

Read the full complaint here.

AI-Powered Asset Manager Pagaya Goes
After Real Estate (Institutional Investor), Rated: A

Pagaya, which manages money using algorithms created with artificial intelligence, has raised $25 million in a series-C financing round led by Oak HC/FT, a health care and financial technology venture firm.

The fund raise will support the company’s move into real estate, corporate credit, mortgages, and other asset classes.

White Oak Commercial Finance Adds Origination Talent in Texas (AP News), Rated: B

White Oak Commercial Finance (“White Oak”), an affiliate of White Oak Global Advisors, today announced the appointment of Andrew Bae to Director of ABL Originations, concentrating on Texas and the Southwestern U.S. region. Mr. Bae brings nearly 20 years of experience in commercial finance, most recently leading the establishment of the Dallas office for ExWorks Capital, a senior secured debt fund.

Charles Schwab Now Offers Investment Advice Digitally via Subscription (Subscription Insider), Rated: A

Clients pay a one-time fee of $300 and then $90 a quarter.

United Kingdom

Funding Circle back in securitisation market with £187m deal (P2P Finance News), Rated: AAA

FUNDING Circle has entered the securitisation market for the third time, with a £187m portfolio of UK loans originated by the peer-to-peer business lender.

Alternative asset manager Pollen Street Capital is the equity sponsor of the deal, having backed Funding Circle’s last securitisation eleven months ago.

While Funding Circle operates in the UK, the US, Germany and the Netherlands, the loans included in the securitisation are just from the UK.

Zopa legacy portfolio drags on P2PGI performance (P2P Finance News), Rated: AAA

P2P GLOBAL Investments (P2PGI) has blamed its poorly-performing legacy Zopa portfolio for its latest net asset value (NAV) dip.

The alternative finance-focused investment trust generated a NAV of just 0.31 per cent in February 2019, down from 0.45 per cent in January, and 0.75 per cent in December. This brings the trust’s annualised NAV to 3.7 per cent.

Will more challenger banks evolve as banking as a service providers? (Tearsheet), Rated: A

Starling Bank recently raised £75 million to fund a European expansion. As part of that announcement, the UK-based challenger said it had signed on three new clients to its banking as a service.

According to Starling, it has 20 institutional clients on its BaaS platform, which it launched in August 2018. Payment volume through the service is doubling month over month.

Monzo, following Revolut and N26, mulls new £11 per month premium offering (AltFi), Rated: A

Digital challenger bank Monzo crowned a bumper year in 2018 by coming first for customer service in an independent survey, stealing the title from regular winner First Direct. But will its growing legion of coral card-carriers ever pay for its expanding array of services?

The bank, which is now testing a new paid-for premium offering, thinks they might just do so. ‘Monzo Plus’ – as it is being called – even allows users paying a monthly fee to have Monzo cards in colours other than its famous ‘hot coral’ colour.

How to join the rush for a last‑minute Isa (The Times), Rated: A

There are now just over 48 hours left to make the most of the annual tax breaks on offer in an individual savings account (Isa). This year’s £20,000 allowance expires at midnight on April 5 and you can’t carry it over so it’s a case of use it or lose it.

Monevo Review – An Excellent Place to Begin Your Loan Search (DoughRoller), Rated: A

Through Monevo, you’ll be matched with loans of up to $100,000 with interest rates ranging from 3.99% to 35.99% APR; finding this many competitive options could take you hours to do individually. With Monevo, you can do it in about 60 seconds.

FCA warns that P2P Isas are ‘high risk’ (Money Observer), Rated: A

The Financial Conduct Authority (FCA) has warned that mini-bonds and peer-to-peer loans held within the Isa wrapper are “high risk”.

Payday lending isn’t over yet – and now its victims are being shortchanged yet again (Independent), Rated: A

The administrators of WageDay Advance, which went under in February, have started contacting thousands of former customers owed compensation through being mis-sold loans by the company to urge them to join a growing list of creditors.

Compared with Wonga, WageDay was more of a piranha fish than a shark – but the problems it has created aren’t all that different.

Five ways to add IFISA diversity (P2P Finance News), Rated: A

THIS WEEK is the busiest of the year for ISA providers and ISA savers alike. As the end of the tax year approaches, investors and savers are rushing to make the most of their annual ISA allowance, while ISA managers scramble to convince them that theirs is the right product.

I trust bricks and mortar and want to invest but what’s the best way to create an income from property? (This is Money), Rated: A

People are still making money from property and always will, sometimes lowering their exposure by jointly investing with friends and family, or looking at peer-to-peer lending. Investing locally can give first time investors more confidence as they know their own postcodes, and can keep an eye on what’s going on.

Finastra welcomes Sharon Doherty as Chief People Officer (Techapeek), Rated: B

Finastra today announced the appointment of Sharon Doherty, as Chief People Officer. Doherty joins from Vodafone, where she held the position of Global Organization and People Development Director. In her new role at Finastra she will have global responsibility for making Finastra the most loved and inclusive employer in the Fintech industry.

China

Regulators to pilot P2P lender registration program in back half of 2019 (technode), Rated: AAA

China is expected to start piloting a registration program for online peer-to-peer (P2P) lending platforms in the second half of this year. Regulators plan to start requiring P2P lenders in pilot cities, located in more developed regions, to register with the monitoring system. Regional and national players will have to meet certain requirements on registered capital, risk reserves, and lender risk compensation in order to be registered in the system. Regulators aim to roll out the national registration system by 2020.

European Union

Fellow Finance’s platform facilitated 18,2 million euros of loans in March (GlobeNewswire), Rated: AAA

In March Fellow Finance investors funded business and peer-to-peer loans worth around 18,2 million euros. Cumulative loan volume grew over 415 million euros and the total number of investors grew to 12 031. You can always check the real-time peer-to-peer lending statistics on our website: www.fellowfinance.com/for-investor/statistics.

Finleap acquires German challenger bank Penta (Fintech Futures), Rated: A

European fintech ecosystem Finleap has acquired Berlin-based digital sector banking solution Penta, reports Jane Connolly.

CoinLoan Enables Borrowers to Obtain Fiat Currency Using Cryptoassets as Collateral (Cardrates), Rated: A

In a Nutshell: In the wake of the 2008 financial crisis, peer-to-peer (P2P) lending arose as an alternative to credit offered by traditional banks. At the same time, blockchain-based cryptocurrencies like Bitcoin also emerged. Now, CoinLoan is bringing the two together through its P2P lending platform that lets borrowers use cryptoassets as collateral for obtaining fiat (or traditional) currency. Lenders provide capital with a guarantee from CoinLoan that they will be repaid in full. Borrowers gain access to funds without needing to dispose of their cryptoassets or prove their creditworthiness.

International

Women in Fintech Demolish Glass Ceiling (Lend Academy), Rated: AAA

Valerie Kay, Chief Capital Officer at LendingClub, is responsible for overseeing LendingClub’s Investor Group. She addresses the need for diversity, inclusion, mutual respect and collaboration. She emphasizes the vital importance of diversity to drive better workplaces, happier customers and more profits.

Andrea Gellert, Chief Revenue Officer and Chief Marketing Officer of online small business lender OnDeck, says she sees good progress being made by Fintechs in finding female candidates at all levels including C-Suite and board positions. She points out, “There are more female founders than there used to be. We are moving at a much more accelerated pace than previous industries did in terms of female management.”

Onfido scores $ 50 million investment (Finextra), Rated: A

Onfido, the global identity verification provider, today announced it has raised $50M in funding, bringing the total investment in the company to over $100M.

Australia

Australian neobanks target scale of UK rivals without growing pains (AltFi), Rated: AAA

Sydney-based digital bank Volt promises to offer a faster more personalised service than the country’s big four incumbents – National Australia Bank, Commonwealth Bank, Australia and New Zealand Banking Group and Westpac.

Melbourne-based small business bank Judo launched last June lends between A$250,000 to A$5,000,000, and is process of applying for a banking license from the Australian Prudential Regulation Authority.

Brokers urged to seize opportunities in SME space (TheAdviser), Rated: A

According to research from small business lender OnDeck Australia, which involved a survey of 331 business with an annual turnover of less than $5 million, 25 per cent of SMEs plan to seek additional finance over the next 12 months.

India

P2P lending (Invest in India), Rated: AAA

India currently has about 30 online P2P lending platforms. Some of these are Faircent, i2ifunding, Lendbox etc. In 2018, as many as 11 P2P players received the RBI licence to operate as an NBFC – P2P company. RBI in its master directions has defined NBFC – P2P as a non – banking institution which carries on the business of a peer – to – peer lending platform. The estimated P2P lending to be generated in India over the next 5 years is pegged at around $ 4 bn. Whereas in China, the P2P lending book currently is around $ 100 bn.

Southeast Asia

SINGAPORE-based  leading SME lending platform Validus Capital (Validus) and Lighthouse Canton, an independent asset management and family office advisory services firm, jointly announce the reopening of the LCV Trade Finance Fund (the Fund) with additional capacity of US$14.8 million (S$20 million; RM60 million).

Canada

OnDeck merges Canadian ops with Evolocity (Finextra), Rated: AAA

OnDeck (NYSE: ONDK), the leader in online lending to small business, today announced it has completed the transaction combining its Canadian operations with Evolocity Financial Group (Evolocity), a Montréal-based online small business lender. The combined companies are majority owned by OnDeck.

South Africa

For South Africa’s first challenger bank, conversational AI isn’t just a nice-to-have (Tearsheet), Rated: AAA

South Africa’s TymeBank has launched Max, an AI-powered conversational assistant designed to help consumers learn about personal finance.

For South Africa’s first challenger bank, conversational AI is an important piece of its product roadmap.

Latin America

Why Fintech Startups Are Rapidly Becoming Unicorns in Latin America (Next Billion), Rated: AAA

Fintech was the #1 sector of venture capital investments in Latin America last year, and experts are estimating that the LatAm fintech market will exceed $150 billion by 2021.

In the past few years, over 300 fintech startups have been born in Mexico alone, coming in just second to Brazil, which boasts nearly 400 startups in its own fintech sector.

Authors:

George Popescu
Allen Taylor

The post Thursday April 4 2019, Weekly News Digest appeared first on Lending Times.