- Today’s main news: LexinFintech relaxes on IPO funding goal. Welendus exceeds Seedrs funding target. LendingTree provides 2018 guidance prior to Investor Day. Yirendai invests in Lion Rock. Mercer delivers financial advice with AI through Facebook Messenger.
- Today’s main analysis: Online lenders test the faith of investors.
- Today’s thought-provoking articles: Why Google, Amazon scare BlackRock, Fidelity. A new chapter in real estate crowdfunding. The rise of the ICO. Chinese regulators plan to oust noncompliant P2P lenders by mid-2018. The culture of P2P investing across the EU.
- Google, Amazon scare the bejeezus out of Fidelity and BlackRock. AT: “While I certainly see the concern, I’m still not entirely convinced Google has any interest in rolling out financial services, and I’m pretty sure they wouldn’t be as good at it as search. Amazon, that’s a different story, but I don’t see them getting too far afield of their core competency — e-commerce — either.”
- Online lending platforms test investor faith. AT: “Worth a read.”
- LendingTree intros 2018 guidance ahead of Investor Day.
- Is the ICO a new chapter in real estate crowdfunding?
- The rise of the ICO. AT: “An infographic worth considering, but take it with a grain of salt. The ICO is not as unregulated as this infographic suggests, and I think it will become even more so.”
- Zeus Crowdfunding recognized by Real Estate Crowdfunding Review.
- Open banking comes to the U.S.
- LendingUSA closes $60M credit facility. AT: “Congrats.”
- Simility grabs $17.5M funding.
- First National Bank to launch SMB lending portal.
- Aspiration raises $47M for conscientious banking.
- 2018 predictions on lending, payments, mergers, and more.
- Braviant Holdings to launch Chorus Credit for personal loans.
- Wunder Capital reviews 2017.
- Vanguard to use blockchain for mutual funds.
- Unopposed Motion for Leave to File Amicus Curiae Brief in English v. Trump.
- Indiegogo to open to ICOs.
- Mastercard to offer digital money management services to millennials.
- Longfin to list on NASDAQ under Reg A+.
- LendingPoint named best personal loan company of 2017 by U.S. News & World Report.
- Goalsetter, LENDonate win top awards in Female Founders in Tech.
- Welendus exceeds Seedrs target. AT: “Congratulations.”
- Investec to provide $67M for MarketInvoice loans.
- Payday-style business loans.
- The increase in demand for alternative finance.
- LendInvest’s Buy-to-Let Index names Hull biggest climber.
- Half of financial advisers drop clients with less than 50K GBP.
- InReach Ventures uses AI to guide investors to the right startups.
- Tifosy aims at sports franchises.
- LexinFintech rolls back fundraising goal for IPO. AT: “And wouldn’t it be something if they exceeded their original target anyway?”
- Scales back by 70%.
- Noncompliant P2P lenders will be out by mid-2018.
- Yirendai invests strategically in Lion Rock.
- Lion Rock raises $6.4M.
- P2P investor culture. AT: “Some interesting data about P2P lending in Europe.”
- iZettle gets $47M for market expansion.
- Mercer launches AI bot for financial advice service through Facebook Messenger.
- Nonbank lenders raises profit 10%. AT: “In New Zealand.”
- High-Net Worth Individuals use financial advice less.
- CCR to help business financing.
- FinBucket receives funding from Impanix Capital.
- Fintechs can help assess credit scores.
- CapitaWorld gets funded.
- United States
- Why Google and Amazon Keep Fidelity and BlackRock Up at Night (Bloomberg), Rated: AAA
- Online lending platforms test investors’ faith (Financial Times), Rated: AAA
- LendingTree Introduces 2018 Guidance Ahead Of Investor Day (Business Insider), Rated: AAA
- Does the ICO Open a New Chapter for RE Crowdfunding? (Lexology), Rated: AAA
- The Rise of the ICO (Coinlist), Rated: AAA
- Zeus CrowdFunding Earns Top-Ten Ranking in Real Estate Crowdfunding Industry (PR.com), Rated: B
- Open Banking Trends Shift to US Market (Lend Academy), Rated: A
- LendingUSA Secures $ 60m Credit Facility (Finsmes), Rated: A
- U.S. Fintech Simility Secures $ 17.5 Million During Latest Funding Round Led By Accel With Participation From PayPal (Crowdfund Insider), Rated: A
- First National Bank Plans Online SMB Lending Portal (PYMNTS), Rated: A
- Aspiration Taps $ 47 Million for Conscientious Banking (WSJ), Rated: A
- Will 2018 Be the Year of the Bank of Amazon? Experts Weigh In (Fortune), Rated: A
- Braviant Holdings Announces Launch of Chorus Credit Personal Loans (PR Newswire), Rated: A
- 2017 YEAR-IN-REVIEW (Wunder Capital), Rated: A
- Not “ripe,” says judge dismissing N.Y. fintech charter challenge (Banking Exchange), Rated: A
- Vanguard, the fund giant with nearly $ 5 trillion in assets, is using blockchain to underpin its mutual funds (Business Insider), Rated: A
- UNOPPOSED MOTION FOR LEAVE TO FILE AMICIUS CURIAE BRIEF (U.S. District Court, D.C.), Rated: A
- Crowdfunding Giant Indiegogo Opens to ICOs (Coindesk), Rated: A
- Mastercard targets millennial clients with digital money management service (American Banker), Rated: B
- Longfin Corp. Becomes the First Public-listed FinTech Company Under Reg A+ on Nasdaq (GlobeNewswire), Rated: B
- U.S. News & World Report Names LendingPoint One of 2017’s Best Personal Loan Companies (BusinessWire), Rated: B
- Quesnay’s Female Founders in Tech Program Awards Goalsetter First Place (PR Newswire), Rated: B
- United Kingdom
- Welendus exceeds Seedrs fundraising target (P2P Finance News), Rated: AAA
- Investec Provides U.K. Fintech With $ 67 Million for Online Loans (Bloomberg), Rated: A
- The rise of the payday-style business loan (City A.M.), Rated: A
- Data shows increase in demand for alternative finance services (Londons School of Business Finance), Rated: A
- LendInvest’s Latest Buy-to-Let Index Reveals: Manchester Tops Charts & Hull is Named Biggest Climber (Crowdfund Insider), Rated: A
- One in two advisers ‘fire’ clients with less than £50,000 (Money Observer), Rated: A
- Artificial intelligence is guiding venture capital to start-ups (Financial Times), Rated: A
- Tifosy: The sports crowdfunding platform that wants to help small teams grow and big teams reconnect with fans (City A.M.), Rated: B
- Chinese Online Lender LexinFintech Shrinks U.S. IPO Fundraising Goal (WSJ), Rated: AAA
- JD.com-backed micro lender slashes IPO by 70pc after China’s internet finance crackdown (SCMP), Rated: A
- Noncompliant P2P Lenders to Be Out by Mid-2018 (Caixin), Rated: AAA
- Yirendai Announces Strategic Investment in Lion Rock (Business Insider), Rated: AAA
- Hong Kong Fintech Start-Up Lion Rock Raises $ 6.4M Led By Marathon Venture (China Money Network), Rated: A
- European Union
- The Culture of p2p Investors Across the EU (FastInvest), Rated: AAA
- iZettle Grabs $ 47M Additional Funding, Eyes Market Expansion (PYMNTS), Rated: A
- Disruptive Startup, Etherecash, Concludes ICO Ahead Of Schedule (Coinidol), Rated: B
- Australia/New Zealand
- MERCER LAUNCHES SUPERBOT, ARTIFICIAL INTELLIGENCE DELIVERING FINANCIAL ADVICE VIA FACEBOOK MESSENGER (Mercer), Rated: AAA
- Non-bank lenders lift profit 10% in 2017 (NBR), Rated: A
- HNWI financial advice demand falls (Financial Standard), Rated: A
- CCR to help business financing (InvestorDaily), Rated: B
- Online loans marketplace FinBucket gets funding from Impanix Capital (VC Circle), Rated: A
- ‘Fintech can help assess credit score ’ (The Hindu), Rated: A
- Fintech startup CapitaWorld raises funding (VC Circle), Rated: B
- BHSI Launches Financial Institution Professional Indemnity Insurance in Asia (Insurance Journal), Rated: A
- South America
- Brazilian fintech Nubank starts international tech talent hunt (ZDNet), Rated: B
Why Google and Amazon Keep Fidelity and BlackRock Up at Night (Bloomberg), Rated: AAA
“Alexa…will I meet my retirement goal?”
“You are not on track to meet your retirement goal,” replies Amazon.com Inc.’s voice-activated digital assistant, with not a bit of sugar-coating. Then she suggests turning over $76 a month to Fidelity Investments and its advisers.
This won’t actually happen if you try it on your Amazon Alexa device at home. It’s a demonstration put on by EMoney Advisor LLC, a company owned by Fidelity, in its offices in Radnor, Pa. Amazon provides software for third-party developers to experiment with new functions. Fidelity is trying to find ways to apply artificial intelligence, computer algorithms, and voice-recognition software to the hidebound world of money management and investing.
Earlier this year, Boston-based Acadian Asset Management LLC struck a deal so its portfolio managers could use Microsoft Corp.’s Bing Predicts, which makes forecasts using search and social media data, to help pick stocks; that agreement later ended.
BlackRock, led by chief executive officer Larry Fink, in recent years has been buying stakes in other companies, particularly technology firms. Through these purchases, the company is pushing into new lines of business.
Fidelity bought EMoney in 2015. It sells software to investment advisers that’s designed to make it easier to interact with their customers on budgeting for weddings, college, or retirement.
Online lending platforms test investors’ faith (Financial Times), Rated: AAA
Tianqiao Chen still wants to be part of Lending Club. Last week, while shares in America’s biggest listed online lender were tumbling after another cut to profit forecasts, the chief executive of Shanda Group bought 4m more of them, further cementing his position as the company’s biggest shareholder.
Many operators are feeling the effects of a big push for market share in the latter half of 2015 and early months of 2016, says David Snitkof, chief analytics officer at Orchard. As the platforms rushed to offer new loans, credit quality suffered, and loans originated during that period are among the worst performers, with loss rates well ahead of projections.
Across the sector, valuations have fallen. Earnest, a San Francisco-based student loans specialist, sold itself in October to Navient, the loan-servicing company, for $155m, or about 40 per cent of its peak valuation. Personal lender Prosper, once a “unicorn”, saw its pricetag drop from a peak $1.9bn to $550m in a fundraising last month.
That meant platforms had to spend heavily to bring compliance and controls systems up to scratch. Lending Club’s latest quarterly filing, for example, shows it had $1.21 of operating expenses for every dollar of fee income over the first nine months — up from $1.03 at the same point two years ago.
LendingTree Introduces 2018 Guidance Ahead Of Investor Day (Business Insider), Rated: AAA
Business Outlook – 2018
- Revenue is anticipated to be in the range of $770 – $790 million, representing growth of 27% – 30% over the high-end of full-year 2017 guidance of $608 million.
- Variable Marketing Margin is anticipated to be $270 – $280 million.
- Adjusted EBITDA is anticipated to be in the range of $145 – $150 million, up 28% – 33% over the high-end of full-year 2017 guidance of $113 million.
The Analyst and Investor event is being hosted in New York at the Nasdaq MarketSite in Times Square. The presentation will begin promptly at 10:30 a.m. ET. A live audiocast with accompanying slides will be made available on the company’s investor relations website at .
Does the ICO Open a New Chapter for RE Crowdfunding? (Lexology), Rated: AAA
An ICO is simply the initial public sale of a new type of digital “coins”, or “cryptocurrency”.
Judging from the prolific way these new cryptocurrency ICOs are popping up, like mushrooms after a spring rain, one might imagine any clever techie could spin one up at the kitchen table with little more than an internet connection and some well-caffeinated daring-do. Yes, ICOs are easier than crowdfunding, they have that special “blockchain” cachet going for them, and the “regulators talons” have not yet sunk deep.
In a real-life example, on September 29, 2017, the SEC filed a civil complaint in federal district court against ICO promoter Maksim Zaslavskiy and two companies run by Mr. Zaslavskiy. According to the complaint, between July and October Mr. Zaslavskiy and his companies raised at least $300,000 in an ICO touting a new cryptocurrency called “REcoin” — “the first ever cryptocurrency backed by real estate.” According to the SEC complaint, Mr. Zaslavskiy and his companies have been peddling unregistered securities. Furthermore, the complaint alleges, the companies never had any real operations even though Mr. Zaslavskiy told investors in REcoin they could expect sizeable returns from those company’s operations; the securities he sold weren’t backed by any real estate or other assets as he claimed they were; and no “REcoin” digital tokens ever actually existed.
ICOs and Crowdfunding
Circling back to the original crowdfunding thesis, we should also expect this disruptive new technology to begin surfacing in even more impactful nextgen “killer apps” for commercial real estate investment. That’s right, real estate crowdfunding may actually make a comeback by dint of being co-opted into the blockspace. New-age real estate crowdfunding ecosystems are already forming; for instance, the Real Estate Asset Ledger (“REAL”) is one application currently being talked up as a real estate crowdfunding network built on blockchain infrastructure.
The Rise of the ICO (Coinlist), Rated: AAA
Zeus CrowdFunding Earns Top-Ten Ranking in Real Estate Crowdfunding Industry (PR.com), Rated: B
Zeus CrowdFunding earned high marks recently from an independent ranking and reviews portal. The Real-Estate Crowdfunding Review named Zeus CrowdFunding the #7 real estate crowdfunding site on the Web based on its “incredible volume” and other impressive advantages.
The ranking also lauded Zeus CrowdFunding’s low default rate and semi-liquidity option and guarantee and called the company “one of the few platforms offering conservative loans below 65% LTV.”
Open Banking Trends Shift to US Market (Lend Academy), Rated: A
Open Banking is set to launch in Europe next month. As banks and fintech firms rush to ensure compliance we wanted to explore the effects on the US fintech market. Recently the CFPB set forth data sharing guidelines for banks and fintech firms to share information. There has since been a number of articles in the news pointing to frustration among fintech companies as banks have not been forthcoming with data sharing.
The current process is clumsy and requires consumers to login many times across many different services. This has also been something banks have complained about to agencies like the CFPB. Services such as Personal Capital and Mint constantly ping bank accounts for information that users have open access to. Setting up a similar initiative in the US could not only allow for a better experience but will undoubtedly be safer for the banks and fintech firms.
LendingUSA Secures $ 60m Credit Facility (Finsmes), Rated: A
LendingUSA, a Sherman Oaks, CA-based point-of-need financing company, secured a $60m credit facility.
The funding was provided by CapitalSource, a division of Pacific Western Bank, and a provider of commercial lending and banking solutions.
U.S. Fintech Simility Secures $ 17.5 Million During Latest Funding Round Led By Accel With Participation From PayPal (Crowdfund Insider), Rated: A
Simility, a provider of machine learning–powered adaptive fraud prevention solution, today announced it has secured $17.5 million during its latest funding round. PayPal, Inc. also participated in the round as a new strategic investor along with existing investors The Valley Fund and Trinity Ventures.
First National Bank Plans Online SMB Lending Portal (PYMNTS), Rated: A
First National Bank and Trust Company is planning the launch of a digital small business lending portal and has tapped a partner to create the solution.
The financial institution (FI) said Tuesday (Dec. 12) that it is working with FinTech firm RCGILTNER Services to deploy the digital platform, which will launch in the first quarter of 2018.
Aspiration Taps $ 47 Million for Conscientious Banking (WSJ), Rated: A
Conscientious consumption and online banking services don’t typically go hand in hand. Andrei Cherny, co-founder and chief executive of Aspiration, aims to change that.
Aspiration, which offers online banking with optional fees and no penalties, provides its customers insights on how companies treat the environment and their employees, informing spending decisions.
Aspiration now boasts more than 200,000 account holders since launching in February 2015. On Tuesday, the Los Angeles company said it raised a $47 million Series B to further fuel its ambitions.
Will 2018 Be the Year of the Bank of Amazon? Experts Weigh In (Fortune), Rated: A
Matt Harris, Bain Capital Ventures: “SoftBank buys 20 percent of Stripe for $3 billion. PayPal continues to push itself down the path of being the leading financial services company for millennials and the mass market.” Dion Lisle, Capgemini SA: “‘Alexa, buy this’ or ‘Siri, I need an Uber, pay for it with my AmEx.’ Payments are going to be activated by that voice because that’s a great security method.”
Spencer Lazar, General Catalyst Partners: “Potential changes to the Consumer Financial Protection Bureau (CFPB) under the Trump Administration will likely turn back the clock on Obama-era regulations on non-bank lenders. This will be a boon to startup lenders, making it far easier to dole out capital. The fear is that rates could potentially become predatory.”
Amazon vs. JPMorgan
Tyler Sosin, Menlo Ventures: “Stripe and Adyen will merge, forming a $20 billion plus enterprise-value business and API-driven merchant processor.”
Charles Birnbaum, Bessemer Venture Partners: “Valuations in the alternative-lending space were overly optimistic in our opinion over the prior five years, but we do feel that the pendulum has likely swung back too far in the other direction following the recent pullback” leaving the sector ripe for potential funding or M&A.
Braviant Holdings Announces Launch of Chorus Credit Personal Loans (PR Newswire), Rated: A
Braviant Holdings, a leading fintech startup that offers analytics and technology-driven credit solutions for underserved Americans, is now offering personal loans up to $10,000 in Californiathrough its Chorus Credit online lending platform. Chorus will complement Braviant’s existing installment lending business, Balance Credit, by offering higher loan amounts at lower rates to the estimated 26% of California consumers who are underserved by traditional banks.
2017 YEAR-IN-REVIEW (Wunder Capital), Rated: A
In 2017, we increased our solar project pipeline by an order of magnitude. This is due in large part to more resources dedicated to pipeline development, advancements in our lending practice, and – at a macro level – a rapidly growing solar market and commercial sector.
See the full report here.
Not “ripe,” says judge dismissing N.Y. fintech charter challenge (Banking Exchange), Rated: A
Yesterday U.S. District Judge Naomi Reice Buchwald of the Southern District of New York dismissed one of those lawsuits, Vullo v. Office of the Comptroller of the Currency. The judge dismissed the suit of the New York State Department of Financial Services, headed by Maria Vullo, against OCC on the grounds that the matter is not “ripe” for a decision on the legal ability of the Comptroller’s Office to issue such specialized charters.
Indeed, at the recent RegTech Enable conference in late November, OCC’s Beth Knickerbocker, chief innovation officer, characterized the proposal as “on hold.”
Why New York’s claim isn’t ripe
Judge Buchwald’s decision recapped the history of the proposal at length. Her decision came down to this sentence: “Claims are not ripe if they depend on the occurrence of contingent future event that may never occur at all.”
She pointed out that no injury would occur if OCC never issues such a charter to a fintech company.
Vanguard, the fund giant with nearly $ 5 trillion in assets, is using blockchain to underpin its mutual funds (Business Insider), Rated: A
Vanguard is moving to use blockchain to simplify how it updates index data underlying mutual funds, executives said on Monday, an important sign of confidence for the new financial technology.
Closely-held Vanguard, the top mutual fund firm with nearly $5 trillion under management, has successfully tested blockchain to automatically update data like the names and share prices of companies in index funds, processes that must currently be closely overseen by individuals, said Warren Pennington, a principal in Vanguard’s investment management group, in Pennsylvania.
UNOPPOSED MOTION FOR LEAVE TO FILE AMICIUS CURIAE BRIEF (U.S. District Court, D.C.), Rated: A
Further, to date, the parties have not raised an important argument that this Court should consider, namely, that restricting the President’s authority over the CFPB Director’s replacement only exacerbates the serious constitutional questions currently before the D.C. Circuit with respect to the CFPB’s structure. As CUNA explains, such questions could be avoided by adopting Defendants’ position in this case. Thus, CUNA’s perspective on the central issues in this case is invaluable and unrepresented by the parties.
Read the motion in full here.
The startup revealed today that, through an existing partnership with MicroVentures, it will begin offering services to projects seek to use the blockchain funding model.
Specifically, accredited investors purchase Simple Agreements for Future Tokens (SAFTs), with the tokens set to be delivered at a later date. The mode has been used by a number of ICOs in recent months, and according to the page on MicroVentures, $915,000 has been raised from nine investors thus far in the new ICO.
Mastercard targets millennial clients with digital money management service (American Banker), Rated: B
The payments company today announced it is launching a new service called Assemble, which it calls a “prepaid innovation hub” designed to allow Mastercard partners or issuers to provide checking, budgeting, and payment features, as well as additional money management tools.
Longfin Corp. Becomes the First Public-listed FinTech Company Under Reg A+ on Nasdaq (GlobeNewswire), Rated: B
Longfin Corp. (NASDAQ: LFIN) announces that it will be traded on the Nasdaq market for the first day after its initial public offering (IPO) under Reg A+ closing on December 8, 2017.
U.S. News & World Report Names LendingPoint One of 2017’s Best Personal Loan Companies (BusinessWire), Rated: B
The media company evaluated personal loan companies in five key areas, reviewing data on eligibility, loan terms, fees, repayment methods and additional features. LendingPoint was cited as 2017’s top lender for people with fair to good credit, who have merit-based qualifications beyond FICO scores that make them worthy loan candidates.
Quesnay’s Female Founders in Tech Program Awards Goalsetter First Place (PR Newswire), Rated: B
Quesnay is pleased to announce that Goalsetter is the winner of the inaugural Female Founders in Tech, spotlighting female founders that positively impact the financial services and/or insurance technology industries.
The winners represented cutting-edge businesses that were also socially conscious:
– Goalsetter – Goalsetter is a goal-based savings and gifting platform, targeting millennials.
– Marinus Analytics – Marinus uses technologies to help identify and fight crimes like human trafficking and money laundering associated with it and other illicit activities
– LENDonate – LENDonate provides a marketplace lending platform for non-profits and supporters.
Approximately 100 women-led startups registered for the program with solutions ranging from artificial intelligence to blockchain to creative financial literacy and savings solutions. Seven finalists presented in New York to a panel of judges which included industry leaders from the sponsoring organizations: John Hancock, MassMutual, RGAx, Sterling National Bank, TD Bank and Thomson Reuters.
Welendus exceeds Seedrs fundraising target (P2P Finance News), Rated: AAA
WELENDUS, the peer-to-peer payday loan provider, has announced that its latest crowdfunding round on Seedrs has reached over 130 per cent of its target.
The firm had been seeking £150,000 but has already raised £197,991, according to Seedrs’ website.
Welendus said on Thursday that the funding round had attracted more than 250 investors.
Investec Provides U.K. Fintech With $ 67 Million for Online Loans (Bloomberg), Rated: A
London-based MarketInvoice, which arranges loans for small companies secured by accounts receivable, will handle the underwriting for Investec customers in the partnership, according to the bank’s website. Investec will provide 50 million pounds ($67 million) in the first year to fund the loans, Anil Stocker, the startup’s co-founder and chief executive officer, said in an interview.
The rise of the payday-style business loan (City A.M.), Rated: A
British banks have been mired in criticism for not lending as much as they could.
Many businesses have meanwhile found that alternative lenders lack the data to provide products that are tailored to their needs.
Rate hikes typically result in an increase in lending profitability, and so the increase often stimulates the appetite to lend.
But an increased appetite to lend doesn’t always follow an increased ability to price risks on all loan applicants, and herein lays the risk: lenders become creative with the ways in which they entice borrowers and mitigate their risks.
These loans from mainstream lenders look like the payday loans that flooded the market in the height of the recession. They take minutes to apply for, turnaround is within one day, and command interest rates of up to 23 per cent APR – five times more than some personal loans.
Data shows increase in demand for alternative finance services (Londons School of Business Finance), Rated: A
The figures showed growth across the UK’s alternative finance market, including crowdfunding, invoice trading, and marketplace lending. The date found a year-on-year rise of 43 per cent in 2016 from £3.2 billion to £4.58 billion.
Business marketplace lending grew by 28.5 per cent from £881 million in 2015 to £1,232 million in 2016, placing it ahead of consumer marketplace lending, which previously had the biggest share.
LendInvest’s Latest Buy-to-Let Index Reveals: Manchester Tops Charts & Hull is Named Biggest Climber (Crowdfund Insider), Rated: A
On Wednesday, specialist property lender LendInvest released its latest LendInvest Buy-to-Let Index report, which ranks all 105 postcode areas around England and Wales based ona combination of four metrics, which are capital gains, transaction volumes, rental yields, and rental price growth.
The Index report’s key findings include:
- Manchester, leader of the Northern Powerhouse, takes top spot
- Leicester breaks into the Top 10 and Birmingham climbs 8 places from #18 to #11, signaling upward mobility in the Midlands markets
- Hull marks itself as biggest climber for 2017, rising 93 places to #6
- Enfield tumbles from Top 10 in February to Bottom 10 in December
Download the full report here.
One in two advisers ‘fire’ clients with less than £50,000 (Money Observer), Rated: A
Those with pot sizes of less than £50,000 are increasingly being turned away by their financial adviser. In 2014 just under a quarter of clients were shown the door, whereas in 2017 this figure rose to 50 per cent.
Artificial intelligence is guiding venture capital to start-ups (Financial Times), Rated: A
Mr Bonanzinga thought he could combine internet data and machine learning to do a better job of ferreting out prospects. It took two years and £5m in investment for InReach Ventures to create the software, which has so far trawled through 95,000 European start-ups, picking out 2,000 that Mr Bonanzinga might be interested in.
The software determines this based on the people they are hiring, the products they are developing and the traffic on their website, among other things.
Tifosy: The sports crowdfunding platform that wants to help small teams grow and big teams reconnect with fans (City A.M.), Rated: B
The company has already partnered with 15 clubs in England and Italy, raising £2.9m from “fanfunders” for a variety of different projects.
So rather than owners selling equity stakes to unfamiliar outside investors, crowdfunding solutions such as mini-bonds or equity shares have emerged as alternative solutions to many sports franchises.
Top-flight rugby clubs Harlequins and Wasps raised £15m and £35m respectively by issuing their own bonds, while Surrey County Cricket club raised £5m in seven days in 2015.
Chinese Online Lender LexinFintech Shrinks U.S. IPO Fundraising Goal (WSJ), Rated: AAA
LexinFintech Holdings Ltd., a Chinese online lender that is planning to go public in the U.S., scaled back its fundraising ambitions after regulatory changes in China sparked a rout in shares of similar companies.
Lexin, a four-year-old company whose backers include Chinese online-retail giant JD.com Inc., is planning to raise $120 million in an initial public offering, according to a Wednesday filing with the Securities and Exchange Commission.
JD.com-backed micro lender slashes IPO by 70pc after China’s internet finance crackdown (SCMP), Rated: A
Lexin Fintech plans to offer 12 million American depositary shares at an indicative price range of US$9 to US$11 a share, raising as much as US$132 million, the company said in an updated filing on Thursday to the US Securities and Exchange Commission.
The fundraising value is sharply down from an originally planned US$500 million, as mentioned in the IPO prospectus issued last month.
Noncompliant P2P Lenders to Be Out by Mid-2018 (Caixin), Rated: AAA
Local banking regulators have until the end of June to weed out noncompliant peer-to-peer (P2P) lenders, according to a circular issued by a special working group led by the China Banking Regulatory Commission (CBRC).
Yirendai Announces Strategic Investment in Lion Rock (Business Insider), Rated: AAA
Yirendai Ltd. (NYSE: YRD) (“Yirendai” or the “Company”), a leading fintech company in China, announced today that it has made a strategic investment in Lion Rock, a comprehensive financial services platform that is focused on global asset allocation, through Lion Rock’s Series A financing of HK$50 million.
Lion Rock is headquartered in Hong Kong and offers a wide-variety of high-quality financial products, financial news, robo-advisory services as well as asset allocation services through its online platform.
Hong Kong Fintech Start-Up Lion Rock Raises $ 6.4M Led By Marathon Venture (China Money Network), Rated: A
Lion Rock FinTech Ltd., a Hong Kong-based fintech company, has raised HK$50 million (US$6.4 million) in an equity financing led by Marathon Venture Partners.
In addition, 9F Inc., the strategic investor who backed Lion Rock’s last round of financing, continued to invest in this round.
The Culture of p2p Investors Across the EU (FastInvest), Rated: AAA
FastInvest, a p2p fintech platform, recently studied data from over 8500 EU investors daily and came across a really unexpected finding. Highly specific traits and behaviors were driven by nationality over and above other individual factors when looking at big data.
From traditional investment metrics like risk aversion, to outside the box items like nationalistic tendencies and compulsive behaviors. Across numerous areas, national cultural traits could be seen solely based on country to country locales.
Even with the EU offering a bit of a more stable currency, only 1.76% of residents prefer to invest in Euro based currency loans.
Only 2.20% of Belgian investors choose PLN (Polish) currency based loans as opposed to their own Euro.
Germans appear to be the most open minded of EU countries, with 15.73% making investments in PLN currency.
The Netherlands followed behind Germany in diverting from the euro, with 9.08% of investors choosing PLN based loans.
Download the full report here.
iZettle Grabs $ 47M Additional Funding, Eyes Market Expansion (PYMNTS), Rated: A
iZettle has grabbed €40 million in funding (the equivalent of $47 million) that the Stockholm-based payments firm will use to expand into new markets.
Disruptive Startup, Etherecash, Concludes ICO Ahead Of Schedule (Coinidol), Rated: B
Etherecash is one step closer to actualizing its vision of bridging the financial divide between the banked and the unbanked with the successful conclusion of its ICO ahead of schedule. The ICO is now scheduled to finish on 12th Dec 6:29 PM (GMT) after four impressive bonus rounds that outperformed expectations.
With over $30 million raised and 45000 registered participants, Etherecashcan now set its sight on eliminating traditional borders, intermediaries and prejudices in the way money is lent, spent, and sent.
MERCER LAUNCHES SUPERBOT, ARTIFICIAL INTELLIGENCE DELIVERING FINANCIAL ADVICE VIA FACEBOOK MESSENGER (Mercer), Rated: AAA
Australia’s 17 million active Facebook users spend on average 1.4 hours a day liking, commenting and sharing stories with family and friends. Moreover, with roughly 17% of the earth’s population being active users of Facebook Messenger, there is irony in the fact that the smartphone generation is spending more time engaging on Facebook rather than thinking about their future financial readiness.
Accessed through Facebook Messenger, SuperBot represents the ultimate opportunity to scale financial advice across a very large proportion of the population.
Non-bank lenders lift profit 10% in 2017 (NBR), Rated: A
Eighteen of the 25 participants in the KPMG non-bank financial institutions performance survey posted increased earnings in 2017, generating a total net profit of $216.7 million, up from $196.6 million a year earlier. Total assets grew 12 percent to $10.96 billion, with lending boosted by the nation’s strong demand for new vehicles and several non-bank institutions testing the waters in the mortgage space as the major banks become more reticent in some of their credit criteria.
HNWI financial advice demand falls (Financial Standard), Rated: A
The use of financial advice among high-net-worth investors (HNWI) has fallen to a five-year low, according to the insights, which show 435,000 millionaires own more than $1 million of investable assets.
Almost 75% of HNWIs relied on the expertise of a financial advice professional in 2013 – but this has declined to 68% in 2017.
Credit Suisse found the number of Australian millionaires rose by 200,000 in the year to June, marking the third-largest increase after the US and Germany in its global wealth ranking.
CCR to help business financing (InvestorDaily), Rated: B
Indeed, interest rates on small business loans have “remained relatively high” due to a lack of competition – leaving banks as the major provider of lending to small businesses (80 per cent).
But a CCR regime would offer lenders more information about potential borrowers’ credit history than just negative credit information, as per the current standard.
The Australian government has determined a mandatory credit reporting regime to come into effect in July 2018, but a number of financial institutions such as NAB have already announced it will roll out such a regime.
Other forms of accessing finance for smaller firms or entrepreneur were large technology firms and alternative financing platforms, such as marketplace lending and crowdfunding, he added.
Online loans marketplace FinBucket gets funding from Impanix Capital (VC Circle), Rated: A
FinBucket Pvt. Ltd, which runs an eponymous online marketplace for loans and investments, has raised Rs 12 crore ($1.8 million) from Delhi-based early-stage venture capital firm Impanix Capital.
The startup plans to use the funds to increase its staff strength to 200 and expand operations.
‘Fintech can help assess credit score ’ (The Hindu), Rated: A
Financial technology firms that generate credit scores based on digital footprints of individuals will have a major role to play as banks begin to focus on lending to first generation customers who do not have credit history, former Deputy Governor of Reserve Bank of India H.R. Khan said here on Wednesday.
Fintech startup CapitaWorld raises funding (VC Circle), Rated: B
Mumbai-based fintech startup CapitaWorld Platform Pvt. Ltd has raised an undisclosed amount through convertible equity from high-net-worth individuals, corporate honchos and investors from Hong Kong and the Middle East.
The investors who participated in the latest round include former chief executive of Indian Banks’ Association Mohan Tanksale, Swift India CEO Kiran Shetty, Madhu Silica’s managing director Darshak Shah and former JP Morgan executive Mandar Mhatre, the startup said in a statement.
BHSI Launches Financial Institution Professional Indemnity Insurance in Asia (Insurance Journal), Rated: A
Berkshire Hathaway Specialty Insurance Co. (BHSI) announced it has introduced Financial Institution Professional Indemnity (FIPI) insurance in Asia.
The new BHSI policy is designed to cover a range of claims, from allegations of failure to disclose information, to misleading financial advice and breach of contracts, the company said in a statement. The policy combines coverage for civil liability, pre-investigations, mitigation expenses, bail bond costs, court attendance, loss of documents, and more.
The policy is designed for medium to large financial institutions, including securities dealers, regional banks, insurance companies, reinsurance companies, diversified institutions, and financial technology (fintech) and corporate advisory firms.
Brazilian fintech Nubank starts international tech talent hunt (ZDNet), Rated: B
Brazilian fintech Nubank has launched an engineering center in Berlin as part of a plan to boost its software engineering function internationally.
Nubank has expatriated four of its engineers to Berlin to kickstart the European operations. It has also already started to hire local experts such as Gavin Bell, a senior engineer who previously managed the core data infrastructure platform at Soundcloud.