Monday June 12 2017, Daily News Digest

Philippine banking

News Comments Today’s main news: Zopa’s  6.1% return IFISA to launch June 15. CFPB’s Corday extends small biz lending RFI comment period. Zopa looking for 40 tech whizzes.  WeChat Pay available globally through Paymentwall. Today’s main analysis: Lending Club and the rise of securtization club deals. Today’s thought-provoking articles: China urges banks to devolve loan approval responsibility. How Thailand could […]

Philippine banking

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United States

United Kingdom

China

International

Australia

India

Asia

Philippines

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United States

Weekly Industry Update: Lending Club and The Rise of Club Deals (PeerIQ Email), Rated: AAA

A club deal program enables Lending Club to drive standardization – in offering docs, covenants, structure, servicing, collateral consistency, and offering cadence. As a sponsor, Lending Club is able control its brand in the public ABS markets and manage competing interests amongst issuers, placement agents, and investors. (See this week’s

Corday announces extension of comment period for small business lending RFI (Ballard Spahr), Rated: AAA

Last month, in conjunction with a field hearing, the CFPB issued the RFI, together with a white paper on small business lending.  In his remarks, Director Cordray revealed that, in response to requests for additional time to respond to the RFI (which currently has a July 14, 2017 comment deadline), the CFPB is extending the comment period by 60 days.

With regard to the CFPB’s debt collection rulemaking, Director Cordray discussed thedebt collection proposals under consideration by the CFPB which it released last July in anticipation of convening a SBREFA panel.

Elevate Launches Elevate Labs (News Channel 10), Rated: AAA

Elevate Credit, Inc., a leading tech-enabled provider of innovative and responsible online credit solutions for non-prime consumers, today announced the launch of Elevate Labs at its new San Diego-based Advanced Analytics center. The center of excellence underscores the company’s commitment to innovation in the non-prime credit market.

Elevate’s industry-leading technology and proprietary risk analytics are optimized to help non-prime consumers meet their immediate financial needs while improving their financial futures. The company annually invests $40 million in its technology and analytics capabilities, including substantial investments in its proprietary IQ and DORA risk technology and analytics platforms, to support rapid scaling and innovation, robust regulatory compliance and ongoing improvements in underwriting.

DORA, Elevate’s proprietary risk analytics platform, utilizes a terabyte-scale Hadoop database composed of thousands of elements, 1.5 million customer records and other wide-ranging data inputs including credit bureau data, web behavioral and performance data, bank account data and other non-traditional data, to accurately assign risk to customers.

Elevate’s cutting edge technology and analytics team, worldwide, consists of the most advanced thinkers in risk analytics with more than 35 data scientists in our Risk Management department including over 25 staff members with advanced degrees and eight with PhDs. While the San Diego location is the company’s most concentrated and fastest growing analytics center, the team is spread across offices in Texas and the United Kingdom.

Here Are All The Financial Reforms That Will Disappear With Dodd-Frank (Forbes), Rated: A

The U.S. House of Representatives on Thursday passed the Financial CHOICE Act.

The Act has seven principals:

1. Taxpayer bailouts of financial institutions must end and no company can remain too big to fail.

2. Both Wall St. & Washington must be accountable

3. Simplicity must replace complexity

4. Economic growth must be revitalized

5. Every American must be able to achieve financial independence

6. Consumers must be protected

7. Systemic risk must be managed via profit & loss

The Act proposes to restructure the Consumer Financial Protection Bureau, an agency that monitors financial products from loans to high-fee investment products.

Stress tests for America’s big banks, another Dodd Frank invention, are also contentious. The CHOICE Act proposes major changes.

In mortgages, the CHOICE Act will aim to allow smaller banks to increase lending by minimizing a rule about qualified mortgages. The rule increases costs of lending to higher risk borrowers and often precludes banks from holding mortgages on their books. Modifying the rules may allow local banks to increase lending.

The Death of Basis Points? (ETF Trends), Rated: A

The Financial Services industry is in the middle innings of a multi-phased and disruptive process that began in 1993 with the first ETF, and jump-started in 2008 with the first “robo advisor.” These two disruptive events continue to put enormous downward pressure on the fees charged by mutual fund companies and individual Advisors.

I do not believe financial services is racing toward a flat-fee model. However, the pace of fee compression will accelerate as clients have more low-priced options from which to choose. The end-result is enormous pressure on traditional Advisors to justify their higher prices and deliver an asset management solution more sophisticated than buy-hold-rebalance.

There are six key steps to becoming a Quant Advisor:

1. Develop a small but powerful set of investment models that are both unique and compelling. As an example, we only work with a small number of Advisors in an area to create and keep a competitive edge.

2. Have discretion on client accounts. The real value of using models is the ability to affect many client accounts at the same time to create efficiency and scalability. Building scale is the only sustainable way to overcome fee compression.

3. Communicate. Most clients simply don’t need or want to meet with their Advisor four times a year, but they want regular access to bite-sized information about what their Advisor thinks. Creating valuable, but short-and-sweet communications keep a client happy and informed. Generic newsletters do not count (because no one reads them).

4. Create multiple channels for a client to engage. Most traditional Advisors have a simple fee grid based on assets. A Quant Advisor will have a service menu that provides options from super low-cost investment-only relationships all the way to complex financial planning solutions. Due to scale and efficiency, any of these service levels can be highly profitable. Maybe one of the options is aflat fee only service level?

5. Sell more than advice. A Quant Advisor sells financial advice/planning and asset management services. Traditional Advisors only sell advice/planning and pay someone else to provide asset management (such as managed accounts, SMA’s, mutual funds, etc.). By having a unique and compelling asset management capability in-house, Quant Advisors do not have to pay someone to do it for them. That creates a new revenue source and the ability to capture a higher percentage of the total fees paid by the client. As fee compression continues to eat away at advice/planning prices, having multiple services to sell a client creates a more stable revenue stream.

6. Be hyper-transparent. Clients are more afraid of what they do not know than what they do. By proactively talking about and disclosing fees (including the hidden ones), risk and performance the relationship can blossom based on a new level of trust and understanding.

Industry Power Players Join RealtyShares (RealtyShares Email), Rated: A

We recently had the honor of welcoming

U.S. business schools embrace ‘fintech’ as students clamor for courses (Reuters), Rated: A

Stanford University and Georgetown University business schools are planning to offer “fintech” courses for business school students for the first time this fall. New York University is planning a new course for undergraduates after launching a fintech specialization in its business school last year.

They join the University of Pennsylvania’s Wharton School, Columbia University’s business school and the Massachusetts Institute of Technology’s (MIT) Sloan School of Management, which all launched similar programs in recent years.

A number of prominent startups have exploded onto the fintech scene in recent years, fostering interest in mobile payment apps like Venmo, digital loan platforms like SoFi and robotic wealth managers like Betterment.

Lending Club Shareholders Approve Election of Directors (Crowdfund Insider), Rated: A

Present at the Annual Meeting in person or by proxy were holders of 313,460,225 shares of common stock, representing 77.7% of the shares of common stock outstanding.

The vote tallies were as follows:

Nominees
 
For
 
Withheld
 
Broker Non-Votes
Scott Sanborn
231,733,112
2,464,510
79,262,603
Lawrence Summers
189,603,973
44,593,649
79,262,603
Simon Williams
192,466,148
41,731,474
79,262,603

Approach alternative investments with care (Business-Standard.com), Rated: A

Unlike the wealthy, retail (individual) investors have limited options to invest in high-risk, high-return alternative instruments. The ticket size of such products — private equity, exclusive wines and paintings — are too high for small investors. But, in recent times, more avenues have opened that allow retail investors to make risky bets in assets other than stocks. For example, bitcoins is one such asset that younger investors are looking at. The price of this virtual currency has gone up from $579.13 a year back to $2,825.03 — a return of 488 per cent.

Marketplace Lending News Roundup – June 10 (Lend Academy), Rated: A

Fintech’s ultimate value: Making sense of the data explosion from American Banker – Interesting piece what the true role of fintech should be: making sense of the masses of data.

U.S. business schools embrace ‘fintech’ as students clamor for courses from Reuters – Today fintech is one of the hottest courses at MBA schools, driven by student demand.

Peer-to-peer lender calls hung parliament “the worst of all outcomes” from AltFi – Commentary on yesterday’s UK election from an online lending perspective.

Marketplace Lending: The Next 10 Years from deBanked – Interesting thoughts on where marketplace lending may be heading.

LendingTree, Inc. to Present at RBC Financial Technology Investor Day (PR Newswire), Rated: B

LendingTree, Inc. (NASDAQ: TREE), operator of LendingTree.com, the nation’s leading online loan marketplace, today announced that it will participate in RBC Financial Technology Investor Day at The Westin New York Grand Central in New York, NY.

Doug Lebda, LendingTree Founder and CEO, is scheduled to present on Wednesday, June 14 at 8:55am ET. The presentation will be webcast live and archived at

Additionally, the company’s latest investor presentation will be available on its investor relations site at investors.lendingtree.com.

The week in real estate industry deals: June 5-9, 2017 (Inman), Rated: B

RealtyeVest lowered its required minimum investment amount to $5,000 for all offerings on their real estate crowdfunding platform for accredited investors. Previous minimum investment amounts ranged from $15,000 to $50,000, depending on the real estate project. The new $5,000 threshold is intended to draw first-time investors to experience RealtyeVest’s high-caliber performance with a nominal financial commitment. “We are seeing significant activity on our platform, however we feel there is a corner of the market we are not appealing to,” said Daniel Summers, RealtyeVest CEO, in a statement. “So we are offering investors a taste of our service with a new lowered investment amount for all projects. Once they see the quick return on their investments, they will no doubt want to increase their contribution amounts.”

United Kingdom

Zopa hunts for 40 tech whizzes as it narrows focus on bank launch (The Telegraph), Rated: AAA

Britain’s largest peer-to-peer lender has heightened its focus on building a bank, firing the starting gun on a recruitment push that will see it hire at least 40 developers for the project.

However its tune changed late last year, when it emerged that the technology firm wanted to challenge high-street lenders by offering deposit accounts and overdrafts.

Having raised £32m from investors eager to support the project earlier this month, the group is now looking to bulk out its workforce by at least 16pc – bringing in tech experts able to build a digital bank from scratch.

The hires will come from London and Barcelona, where Zopa opened a technology hub last week.

Zopa clarifies coverage ratios ahead of Core account launch (P2P Finance News), Rated: AAA

ZOPA has clarified the expected implications of phasing out of its provision fund as it prepares to launch Zopa Core on Thursday, a new account which will not be backed by the fund.

On 15 June, the peer-to-peer platform’s target date for unveiling its Innovative Finance ISA, the new account will formally take over from the firms’ existing Access and Classic products, whose safeguard fund will be phased out by December this year.

Existing safeguarded loans and new loans purchased before that deadline will continue to be covered by the fund until they reach maturity.

Zopa’s innovative finance Isa, paying projected 6.1%, to launch on 15 June (Which), Rated: AAA

Zopa’s long-awaited innovative finance Isa (Ifisa) will be made available to existing customers on Thursday 15 June, but it won’t be protected by the company’s Safeguard scheme.

The Isa, offering projected returns of up to 6.1%, will initially be made available to existing Zopa customers wanting to invest new money. It will then be possible to move existing Zopa loans into an Isa wrapper from 1 July, and transfer funds from third-party Isas from 17 August.

It is expected that new customers will have to wait two months or longer before being invited to open a Zopa Ifisa, due to expected high demand.

Zopa’s Safeguard scheme is a central compensation fund that aims to pay out to lenders whenever a borrower defaults on a loan. This fund is limited, so it could run out if lots of borrowers fail to repay, but it has covered 100% of eligible loans to date.

However, this scheme won’t be offered to Isa customers, nor will it be available to any new investors after December 2017.

It will offer two savings products in an Isa wrapper.

  • Zopa Core, in which your money will only be lent to lower-risk borrowers, offers expected returns of 3.9%.
  • Zopa Plus lends your money to a wider range of borrowers, offering expected returns of 6.1%.

LandlordInvest reports high demand for secondary market loans (P2P Finance News), Rated: AAA

ACTIVITY on LandlordInvest’s newly-launched secondary market has been better than expected, with investors shrugging off political uncertainty to snap up loan parts in record time.

The peer-to-peer lender, which specialises in buy-to-let finance, launched its secondary market in the middle of May.

Filip Karadaghi, the firm’s co-founder and chief executive, told Peer2Peer Finance News that uptake had been higher than expected, with no signs of a slowdown ahead of Thursday’s UK General Election.

Peer-to-peer comes of age as alternative asset class for investors (Financial Times), Rated: A

More than a decade after the first peer-to-peer sites launched in the UK, the sector that allows investors to lend directly to individuals and small businesses is coming of age. Two of the largest sites in the UK — Zopa and Funding Circle — were last month authorised by the City watchdog, marking a seal of approval for the lenders and providing a boost to the broader sector.

Institutional investors are already piling in. High-profile fund managers including Neil Woodford and Artemis invested more equity capital into RateSetter in recent weeks, valuing the company at more than £200m. Zopa completed a £32m funding round, led by Wadhawan Global Capital, an Indian financial services company.

The rise of peer-to-peer sites means that lending, which as an asset class has been a monopoly for the banks, is opening up to ordinary investors.

Othera and Credit Crowd strike a blockchain partnership (AltFi), Rated: A

Credit Crowd gets on Othera’s blockchain, citing transparency as the key issue.

Blockchain provider Othera has linked up with Australian fintech lender Credit Crowd, allowing the Sydney fintech to digitise its loans on blockchain.

The partnership will allow Credit Crowd’s loans to be tokenised and traded on digital asset token exchanges—in effect, a kind of securitisation.

Credit Crowd is a P2P marketplace that specialises in short-term loans, secured by first mortgage properties. The company claims to have facilitated more than A$100 million worth of loans since its founding in 2012 and managed over A$50 million in their retail fund.

P2P lenders stay away from apps (P2P Finance News), Rated: A

APPS may be seen by some as a vital tool for any fintech business but peer-to-peer lenders have largely avoided this area so far.

Of the biggest UK P2P players, only Funding Circle has an app for investors, while Zopa has one in development.

Instead, others such as RateSetter, MarketInvoice and Landbay have focused on the overall web, desktop and mobile user experience.

Julian Cork, chief operating officer at buy-to-let lender Landbay, said the platform had considered making an app but decided against it.

Will robo-advice mean checkmate for human financial advisers? (Lexology), Rated: A

To date, robo-advice offerings have tended to focus more on the less complex end of the financial advice spectrum. The FCA’s enthusiasm for robo-advisers stemmed largely from concerns about an ‘advice gap’, situations where consumers (particularly those with limited assets) are unable to get advice and guidance on a need they have at a price they are willing to pay. The FCA has therefore seen robo-advisers as a way of providing quick and inexpensive advice primarily in relation to lower value or less complex scenarios. Robo-advice is still in its infancy and is generally not yet at the stage where it can provide sophisticated advice in relation to complex circumstances. Certain external factors are also slowing the spread of robo-advice. For example, recent research sponsored by ING suggests that the majority of the public remains uncomfortable with the idea of automated advice and this attitude will take time to change. In addition, PI Insurers may feel, by necessity, that they need to take a relatively cautious view in relation to new and untested technology. Firms implementing robo-advice solutions may therefore face increased insurance premiums, which is a further potential brake on innovation.

For the foreseeable future then, it appears that human advisers have no need to be concerned. Robo-advice is in the process of automating only one part of the wider industry and even then at a relatively restricted pace. But what about the longer term? If we make the reasonable assumption that advances in robo-adviser technology are inevitable does that mean that robo-advisers will one day become so sophisticated and accepted as to render human input redundant?

Meet the next generation of fintech startups set to revolutionise the world of finance (Wired), Rated: A

Winner of the startup stage Curve, started out in 2015 to cut out the noise and disconnection in the banking landscape. The digital wallet platform is designed to connect all of a person’s financial services into a single go-to place online, which is accessed with a Mastercard.

Finimize has grown an online community of 100,000 people. Each day, members receive a newsletter that digests the biggest finance stories of the day and why they should matter to them.

AgentCASH is an enterprise grade omnichannel platform that enables SMEs to sell and manage their products on multiple channels in real time.

Crowdsurfer brings big-data engineering expertise to crowd and peer finance to help the world understand where funds are flowing to.

Reposit was developed by its CEO Curran McKay as a faster, more affordable alternative to the £3.5 billion tenancy deposit system.

Lendr uses artificial intelligence to act as a reverse auction platform for mortgages.

Co-founder of Capitalise Paul Surtees has built technology that enables SMEs and their advisors to find, compare and select the best lenders available to them – allowing them to access the funding available. The platform matches SMEs with lenders, who are ranked based on their past successes.

London-based Paybase rolls an end-to-end solution for payments, compliance and risk into one unified API. The platform is designed for marketplaces such as the sharing economy or crowdfunding sites, as well as fintech apps and products that have complex payment processes.

China

China urges banks to devolve loan approval responsibility to boost lending (BusinessLine), Rated: AAA

China’s banking regulator has urged lenders to devolve responsibility for loan approvals to boost credit to small and micro businesses, but also emphasised that risks need to be kept under control.

Guo’s comments were made at a forum on Friday, according to a statement on the website of China Banking Regulatory Commission.

P2P Industry News (Xing Ping She Email), Rated: A

Internet Investment Fund has been Subscribed in Down Payment of ¥30bn

The Chinese Internet Investment Fund was founded jointly by the Cyberspace Administration of China and the Ministry of Finance. The total size of the fund is around $14.9billion. The initial subscription (almost $4.4 billion) has been finished with $300million was acquired by central government as guiding fund, and the rest was raised from strategic investors. Thus, the driven coefficient of the government funds reached to 1:14.

After a new round of share price increasing, Alibaba’s market value has reached to $360bn.

On 9th June, shares of Alibaba jumped by 13.29% and closed at $142.34 per share, the companies’ total market value reached to $362.3 billion. Exceeding Tencent for the second time and become Aisa’s most valuable company.

Previously, Alibaba issued its annual report of 2017 fiscal year, showing that Alibaba has surpassed Tencent on core metrics such as revenue, net earnings and cash flow.

According a report released by Deutsche Bank, Alibaba's estimated revenue for 2018 fiscal year will be far higher than expected, and the disclosed information will drive its stock price up further.

Ping An Launches Fintech Fund (Crowdfund Insider), Rated: A

Sepaking at the recent WSJ D.Live Asia event in Hong Kong, Ping An CIO Jonathan Larsen said Ping An is launching a new fund to invest in early stage Fintech ranging from $10 million to $30 million, according to a report from Dow Jones (here).

NYSE-listed P2P firm confident on its business model (ShanghaiDaily), Rated: A

CHINA Rapid Finance will follow the strategy of “low and grow” to realize a stable and sustainable growth after its debut on the New York Stock Exchange on April 28,  Wang Zhengyu, founder and CEO of the Shanghai-based peer-to-peer lender, said in Shanghai yesterday.

CreditEase’s CEO Tang Shares Insights on FinTech in China at The Asian Banker Summit (PR Newswire), Rated: A

CreditEase’s founder and CEO Ning Tang was invited to deliver a keynote speech today at The Asian Banker’s 18th flagship Summit “The Future of Finance” in Singapore. The Summit gathered leading industry, government and academic speakers such as Barney Frank, former US Congressman and a leading co-sponsor of the 2010 Dodd–Frank Act, David Shrier, Managing Director, MIT Connection Science and Engineering, and representatives from: ANZ, Bank of the Philippine Islands, DBS Bank, the Federal Reserve Bank of Chicago, Prosper Marketplace, Prudential, and Uber.

Future Life, Future Finance

The theme of this year’s Summit shares the same vision as CreditEase at its 11th anniversary – “Future Life, Future Finance”.

In his keynote speech, Tang shared his insights as a pioneer and thought leader in the FinTech industry, giving an overview of the current landscape, and anticipating where opportunities will be against the backdrop of potential or inevitable changes.

Going Global

After 10 years of successful domestic growth, at its 11th anniversary, CreditEase is ready to accelerate its global expansion. The opening of the new Singapore office and Tang’s delivery of the keynote speech at one of world’s renowned financial summits is just part of the global voyage.  In addition to Singapore, CreditEase Wealth Management operates overseas offices and affiliate offices in Hong Kong, New York, and Tel Aviv and its domestic mainland China network covers over 40 cities. Its resources are also spread across the US west coast, Germany, UK, and Australia.

China: WeiyangX Fintech Review (Crowdfund Insider), Rated: A

On June 3, 2017 Tsinghua PBCSF Global Finance Forum, which was hosted by Tsinghua University, and organized jointly by the Tsinghua University PBC School of Finance (PBCSF) and Tsinghua University National Institute of Financial Research (NIFR), convened in Beijing.

The highlights of the forum include:

Digital Financial Inclusion: LI Dongrong, President of National Internet Finance Association of China, pointed out in his speech that China and the world had the potential to drive the growth of inclusive economies by promoting digital financial services. While tremendous gains in financial inclusion have already been achieved, digital financial services, together with effective supervision, are essential to close the remaining gaps in financial inclusion.

InsurTech Innovation: JIANG Bo, Director-General of the International Department of China Insurance Regulatory Commission and Member of the strategic Council of PBCSF, said that Insurance technology (InsurTech) is a burgeoning phenomenon that has the potential to help the insurance industry reconnect with its customers following a period of increasing alienation and disengagement.

Three Chinese Fintech Companies Join Slate of Overseas Listing in 2017

  • Zhong An Online Property and Casualty Insurance, China’s first online-only insurer, has resumed a plan to raise $1 billion or more in a Hong Kong initial public offering (IPO) in the second half of this year.
  • Rong360, an online platform for financial product search, comparison and recommendation, has announced to raise at least $400 million in an initial public offering in the U.S. as soon as 2017.
  • With its rapid expansion, Chinese online lending platform Neo Capital has revealed its IPO plan in the U.S. last year.

On June 5, Chinese company Xiaomi, perhaps best known for its smartphones, announced that its affiliate Xiaomi Loan would partner with CITIC Securities to list CNY600 million asset backed securities (ABS) under a shelf registration on Shanghai Stock Exchange.

The ABS product was split into three tranches: AAA, AA and the subprime:

Rating level

Volume

Interest rate

AAA

CNY426 million

5.7%

AA

CNY78 million

6.3%

The subprime

CNY96 million

8%

International

WeChat Pay is now available globally via Paymentwall (Payment Wall), Rated: AAA

Paymentwall has partnered with Tencent to bring WeChat Pay (Weixin Pay) to every online and retail store. The partnership allows every business owner around the world to get instant access to 600 million Chinese shoppers in China and abroad.

With over 600 million active users, WeChat Pay is now one of the most popular payment methods in the world. WeChat Pay processed over $1.5 trillion in Chinese digital payments, representing over 30% of all online transactions made in 2016.

Human-robo combo has greatest chance of success (International-Adviser.com), Rated: A

A combination of human and robo could be the answer for underserved Asian investors seeking low-cost technology-driven financial advice, a market that pure robo-advice providers have found hard to crack.

Inexpensive, automated robo-advisors could be a solution, but unlike in the large markets of US and Europe, in Asia they face difficulties stemming from regulatory fragmentation, lack of scale and investors’ preference for human contact.

The hybrid approach uses automated financial advice systems, but provides a layer of personal contact when dealing with the institution. Some call this approach “cyborg-advisor”, others “bionic advisor”.

Due to low profit margins of robo-advisory services and the necessity to achieve scale in order to be profitable, independent robo-advisors are not likely to succeed in the region under current regulations, according to Aldcroft.

Australia

NAB Ventures provides seed funding to Australian start-up Basiq (Banking Business Review), Rated: A

NAB Ventures, a venture capital arm of National Australia Bank, along with Reinventure have provided seed funding to Basiq, an Australian-based start-up that offers open banking API platform.

India

Lending startup Loanmeet raises seed funding (VC Circle), Rated: AAA

Online peer-to-peer lending platform LoanMeet, which is run by Strivers Solutions Pvt. Ltd, has raised an undisclosed amount of seed funding from a clutch of investors.

Chinese entrepreneur-turned-investors Cao Yibin and Huang Wei, along with KrazyBee.com co-founder and CEO Madhusudan E, participated in this round.

LoanMeet provides short-term working capital loans to retailers for inventory financing. The company claims to be growing at 50% month-on-month.

Flipkart to Add Online Loans to its Marketplace (Crowdfund Insider), Rated: A

Flipkart, one of the largest e-commerce platforms in India sales topping $2 billion each year, is getting into Fintech. Flipkart states that with the creation of a new focused team for financial services and products, Flipkart will be providing the public the option of obtaining loans from e-lending firms.

Flipkart is also expected to start offering other financial services such as access to funds.

Lendingkart gets Rs 50 crore loan from Yes Bank (Medianama), Rated: A

Lendingkart, an online platform for lending to small businesses and entrepreneurs, has raised debt funding worth Rs 50 crore from Yes Bank Ltd. The company said that this is the first step towards eventually shifting from non-banking financial companies (NBFCs), who provide loans at a higher rate, to banks.

In June last year, Lendingkart had raised Rs 205 crore ($32 million) in a series B round of funding led by Bertelsmann India Investments (BII) and Darrin Capital Management, with participation from existing investors Mayfield India, Saama Capital and India Quotient. Of this, $20 million was raised through equity sale and remaining $12 million  through debt financing.

How the rise of P2P lending presents several opportunities to banks (India Times), Rated: A

Peer to peer lending is hardly new. But it has risen to commercial prominence in the past few years, thanks to technology. The emergence of marketplace lending platforms connecting individual borrowers and lenders is disrupting the business of lending.

Peer to peer lending is hardly new. But it has risen to commercial prominence in the past few years, thanks to technology. The emergence of marketplace lending platforms connecting individual borrowers and lenders is disrupting the business of lending.

A 2015 survey shows that 25% of U.S. millennials have used a P2P lending platform. According to recent research, the cumulative amount of loans that originated via marketplace lending platforms in China was over $150 billion in 2015. In US and UK, it was close to $30 billion and $10 billion respectively.

While the Indian P2P market is much smaller, the scene is heating up. Last year alone, 20 lending firms cropped up to take the total to about 30. What does this imply for our banking industry?

Asia

How Thailand Could Become Southeast Asia’s Next Fintech Hub (Forbes), Rated: AAA

Omise, a payment management platform founded by Jun Hasegawa and Ezra Don Harinsut, is Thai fintech’s greatest success story to date. In 2016, it raised a $17.5 million Series B round and currently operates in Thailand, Japan, Indonesia and Singapore.

The Thai Fintech Association formed in 2016 as a networking club that would facilitate connections among fintech startups, big banks and investors, according to Disyadej. But the organization filed as an association with the Ministry of the Interior this year so it could take a more hands-on role in the industry’s development.

Although TechGrind operates in six countries in the region, it has relocated several of its startups to Bangkok so they can make use of TechGrind’s network and resources there. But TechGrind approaches opportunities in fintech — and in all startup sectors — from a cross-border perspective.

One such company is Pymlo, which creates accounting software for small businesses in Thailand and the broader region.

Hong Kong, Singapore rivalry hobbling Asia in $ 100 billion fintech race (Reuters), Rated: A

Governments across Asia – most notably Hong Kong and Singapore – have launched a raft of initiatives to grab a slice of the $100 billion invested in financial technology globally but the regulatory hotchpotch is making it tough for firms to scale up, the Asia Securities Industry and Financial Markets Association (ASIFMA) said in a report on Friday.

Investors poured $19 billion worldwide into fintech – including P2P lenders, distributed ledger technology and crowdfunding platforms – in 2016 alone and thousands of fintech start-ups continue to proliferate, according to a February report by global regulatory body the International Organization of Securities Commissions (IOSCO).

Hong Kong, Singapore, Australia, Japan, South Korea and Malaysia have launched a range of special programs to attract and foster fintech ventures, from incubators and grants, to temporary license waiver schemes, with competition fiercest between Hong Kong and Singapore.

Philippines

Consolidated credit database likely to improve lending in the Philippines in 2018 (ASEAN Today), Rated: A

The Philippines will launch a credit consumer database in 2018 in a bid to bolster retail lending.

Bulk of lending in the Philippines have been corporate loan, forming more than 80% of loan books. Consumer lending business have been secondary to corporate lending – analysts explained that the lack of consumer level data can explain this.

The gap between corporate and retail lending is the lack of a credible database.

The government’s Credit Information Corporate collects data from banks in the Philippines. This will be extended to rural financial institutions to build a credible database by 2018.

Authors:

George Popescu
Allen Taylor

Thursday June 8 2017, Daily News Digest

Funding Circle loans

News Comments Today’s main news: Goldman Sachs now highest-interest paying bank for savers. Zopa to build challenger bank in Barcelona.  KBRA releases comprehensive surveillance report for American credit acceptance receivables trusts. CreditEase Wealth Management expands to Singapore. Today’s main analysis: Funding Circle June review. Today’s thought-provoking articles: OCC posts FAQ on fintech questions. Addepar raises $140M in quiet […]

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United States

KBRA Releases Comprehensive Surveillance Report for American Credit Acceptance Receivables Trusts (KBRA), Rated: AAA

Kroll Bond Rating Agency (KBRA) takes rating actions on 8 American Credit Acceptance Receivables Trust.  In total, 15 notes were affirmed and 15 were upgraded. The data used are as of the April 31, 2017 collection period. No rating actions were taken on American Credit Acceptance Receivables Trusts 2017-1 and 2017-2, since these transactions have less than 6 months of seasoning. The rating actions reflect the fact that losses are in-line with KBRA’s initial loss expectations and credit enhancement has built for each class of notes. The breakeven loss multiples for each class of notes were sufficient for their respective affirmations and upgrades.

Credit enhancement for each transaction consists of overcollateralization (“OC”), subordination of junior notes, cash reserves, and excess spread. Each transaction has either met or is building to their respective target OC. The collateral for all the transactions has amortized from their initial pool balance since closing.

OCC Posts FAQ That Addresses Fintech Questions (Crowdfund Insider), Rated: AAA

The Office of the Comptroller of the Currency (OCC) is out with an FAQ to supplement a Bulletin (2013-29). Several of the items address Fintech specifically, as well as marketplace lending.

9. How can a bank offer products or services to underbanked or underserved segments of the population through a third-party relationship with a Fintech company?

Banks may partner with Fintech companies to offer savings, credit, financial planning, or payments in an effort to increase consumer access. In some instances, banks serve only as facilitators for the Fintech companies’ products or services with one of the products or services coming from the banks.

10. What should a bank consider when entering a marketplace lending arrangement with nonbank entities?

When engaging in marketplace lending activities, a bank’s board and management should understand the relationships among the bank, the marketplace lender, and the borrowers; fully understand the legal, strategic, reputation, operational, and other risks that these arrangements pose; and evaluate the marketplace lender’s practices for compliance with applicable laws and regulations. As with any third-party relationship, management at banks involved with marketplace lenders should ensure the risk exposure is consistent with their boards’ strategic goals, risk appetite, and safety and soundness objectives. In addition, boards should adopt appropriate policies, inclusive of concentration limitations, before beginning business relationships with marketplace lenders.

Read the full FAQ here.

THE REAL ESTATE START-UP JARED KUSHNER CO-FOUNDED IS NOW WORTH $ 800 MILLION (Vanity Fair), Rated: A

In May, real-estate investing start-up Cadre found itself in the limelight when The Wall Street Journal reported that Jared Kushner, President Donald Trump’s son-in-law, had failed to disclose his investment in the three-year-old company when he became a senior adviser to Trump. Jared and his younger brother, Josh, are both listed as the company’s co-founders, along with Ryan Williams, who met Josh Kushner at Harvard. Before Trump’s inauguration, Jared Kushner stepped down from Cadre’s board and sold some of his stake in the company, Bloomberg reports.

Now, the company has raised $65 million in funding, valuing Cadre at $800 million. The biggest firm to invest in the new round of funding is Silicon Valley heavyweight Andreessen Horowitz, which joins a number of institutional investors, including Vinod Khosla, David Yu, George Soros, and Trump adviser Peter Thiel in backing the real-estate tech start-up.

Cadre is just one Kushner-connected start-up in the tech world. Before he divested from his assets, Kushner had a $30 million stake in Thrive, his brother’s venture-capital firm, which invests in companies that include Slack, Glossier, Juicero, and, of course, Cadre.

Statement by Con Hurley, Executive Director, Online Lending Policy Institute (OLPI) (OLPI Email), Rated: A

“At a time when some are calling to reimpose the strictures of the Glass-Steagall Act on banks, no one is calling for a return to the days on interstate restrictions on banking activities. Yet, this is precisely what the misguided federal court decision in the Madden case would achieve.

The U.S. House of Representatives is expected to ratify the longstanding law and custom of banking in the U.S. that a loan, once made, is valid regardless of subsequent buyers or assignees of that loan. The Online Lending Policy Institute salutes this action. Further, OLPI urges the Senate to make this part of its reform legislation.”

Summary:
The CHOICE Act 2.0 introduces amendments to the National Bank Act, Federal Deposit Insurance Act, Home Owners’ Loan Act, and Federal Credit Union Act to clarify that the interest rate of a loan that is valid when made by a national bank, state-chartered insured depository institution, federal savings association, or federal credit union shall remain valid regardless of whether the loan is subsequently sold, assigned, or otherwise transferred to a third party. These amendments would overturn the 2015 decision of the Second Circuit Court of Appeals in Madden v. Midland Funding, which suggested that loans held by non-bank entities may be subject to state usury laws even where the loans were originated by national banks for which such laws are preempted. The Madden decision has created some uncertainty in the secondary markets for bank-originated loans.

InstaLend expands to three new states (PR Newswire), Rated: A

Today, InstaLend announced successful growth of its real estate crowdfunding platform, expanding to Pennsylvania, Illinois, and Georgia. As of June 1, 2017, investors in these three states, as well as New Jersey, will be able to participate in passive residential real estate investments through InstaLend’s online crowdfunding platform.

For any given project, InstaLend funds between 80 and 90 percent of the total project’s cost (acquisition + renovation) in the form of a senior debt loan. The capital provided by InstaLend is sourced through its network of crowd investors, and borrowers commit between 10 and 20 percent of total project cost as common equity.

RealtyeVest Lowers Minimum Investment Requirement for All Real Estate Offerings (PR Newswire), Rated: A

RealtyeVest lowered their required minimum investment amount today to just $5,000 for all offerings on their real estate crowdfunding platform for accredited investors. Previous minimum investment amounts ranged from $15,000 to $50,000, depending on the real estate project. The new $5,000 threshold is intended to draw first-time investors to experience RealtyeVest’s high-caliber performance with a nominal financial commitment.

RealtyeVest connects commercial and residential real estate owner-operators with investors. Their one-stop platform, realtyevest.com, provides a simple, secure, and transparent digital dashboard for accredited investors to partake in exclusive high-yield investment opportunities. New investors can complete the simple accreditation process right on the RealtyeVest website and become accredited within approximately 24 hours.

Payscape CEO Jeremy Wing On The Fintech Company’s Expansion and Move To Midtown (Hypepotamus), Rated: A

Payments to the people — it’s the motto and guiding principle behind Payscape, an Atlanta-based Fintech company that provides small to mid-size business owners with technologies that help them accept payments, streamline business, and increase cash flow. Payscape has grown exponentially since its inception in 2004 — their commitment to consistently developing and iterating new products that serve their customer base has allowed them to expand to 14 offices. They’ve processed 125 million transactions to the tune of $7 billion.

CEO Jeremy Wing and his team have had a busy 2017 thus far. The company invested $50 million to expand their operations, add 200+ jobs, and relocate to Midtown for access to talent and strategic partners. Most recently the team launched a new software product — Payscape Registration, an online registration management system with integrated payments. It’s already on the wish list of a few major universities, including Cornell University.

Q2 2017 was big for Payscape. Tell me more about your product launch and how it will add to Payscape’s current features.

Our new product includes a mobile app for event registration and payments, enhanced communication features such as text and an integration marketplace that will make it easier to connect other SaaS technologies with our platform.

You’re investing $50 million on an expansion and relocation to Midtown. What prompted your decision?

Midtown is the center of the Atlanta Fintech hub. It’s near Tech Square and Georgia Tech, and strategic partners like NCR, ParkMobile, Equifax, TTV, TechSquare Labs and Flashpoint. We not only look to partners to grow businesses, but as a major talent acquisition tool.

We also love the infrastructure for live/work/play. Most of our team will be using alternative transportation to get to our new headquarters.

With Fintech Changing Financial Services, Where Does Regulation Fit In? (San Francisco Fed), Rated: B

Which rules and regulations apply to products that use new financial technologies? The Federal Reserve is taking steps to make answers easier to find.

Take last fall’s Consumer Compliance Outlook. The Fed included a list of existing laws, regulations, and supervisory guidance that fintech firms and their depository institution partners might find relevant.

That’s why San Francisco Fed fintech advisors are available for in-person and virtual consultations with fintech firms and their depository partners.

6 Tips for Getting the Best Deal on a Mortgage (The Fiscal Times), Rated: B

Here’s what you need to know to score a mortgage in today’s market:

  1. Start the process early. You can make the process easier by having your financial documents — including tax returns, bank statements and pay stubs — in order and ready to share with your lender. More than half of borrowers recently surveyed by FreeandClear.com said that the paperwork was the most challenging part of the mortgage process. Pull your credit report, too, to make sure that there aren’t any errors or surprises that could haunt you.
  2. Shop around. Get quotes from at least three lenders, including a national bank, a local bank or credit union and an online lender.
  3. Understand private mortgage insurance. Any time you have a down payment of less than 20 percent, you’ll need to pay mortgage insurance on the loan, which will push up your monthly bill.
  4. Ask about all your loan options.
  5. Consider locking in your rate. On a median-priced home, an increase in mortgage rates from 4 percent to 5 percent would add $100 to the monthly bill, according to Zillow.
  6. Remember you don’t need to borrow the max.
United Kingdom

Your June Review – Insight and Analysis (Funding Circle), Rated: AAA

Summer has arrived, and it’s been another exciting month. We’ve been given full authorisation from the UK regulator, the Financial Conduct Authority – another step forward to offering industry-leading, tax-free returns with the Funding Circle ISA, which we plan to launch later this year. You can read the full story in this article.

You’ve helped more than 8,500 small businesses access finance in the last 6 months…

Source: Funding Circle

Totalling over £610 million lent

To see a breakdown of the loans defaulted last week simply click on loans defaulted 1st June 2017.

Assetz Capital Launches Property Secured Investment Account (P2P-Banking), Rated: A

P2P Lending marketplace Assetz Capital today announced the launch of another account type. The Property Secured Investment Account (PSIA) is marketed as a way to invest exclusively in property backed loans with automatic diversification intended to help investors spread their risk across a diverse range of lending.

The target rate for the Assetz PSIA account is 5.5%.

Alternative lender Liberis announces fintech integration with Xero (AltFi), Rated: A

Leading UK-based merchant cash advancer Liberis has partnered with accounting software firm Xero. The deep integration will open up seamless access to Liberis‘ funding products for Xero users.

A specialist in small business accounting, Xero has over one million subscribers in more than 180 countries. Those users will now be able to access Liberis’ merchant cash advances in-app or on-site.

These advances can be managed in real-time using the Xero technology platform, giving businesses an accurate overview of their cash-flows.

Folk2Folk Announces Multiple New Hires as Part of National Expansion Plans (Crowdfund Insider), Rated: B

Specialist business peer to peer lending platform Folk2Folk has hired a new Chief Marketing Officer (CMO) and four Business Development Managers (BDM). Folk2Folk specializes in secured loans for businesses across the UK. The platform matches local businesses looking for finance with investors looking for a great return.

China

CreditEase Wealth Management Expanded in Singapore to Poise for Fintech-driven Globalization (PR Newswire), Rated: AAA

Leading Chinese Fintech and wealth management company, CreditEase announced today the opening of its new Singapore office in the Asia Square Tower. The new office opening was hosted by CreditEase Founder and CEO Ning Tang, CreditEase senior executives, distinguished guests from Blackstone, KKR and Tishman Speyers and other strategic partners.

Tang forecast an explosive development in crowdfunding, robo-advisor, insurance tech and blockchain innovations in the coming decade, while reiterating the company’s willingness to share its Fintech achievements and the “development dividend” to continuously create value for clients.

CreditEase Wealth Management opened its Singapore office in October 2014 with a focus on global real estate finance and investment. Its global property FoF products have been very popular among high-net-worth Chinese clients. When it obtained an asset management license from the Monetary Authority of Singapore (MAS) in 2016, it marked the cornerstone for further business expansion in the country.

In addition to Singapore, CreditEase operates overseas offices and affiliate offices in Hong Kong, New York, and Tel Aviv. Domestically, the CreditEase wealth management network covers over 40 mainland cities, and in in 2016 the company was awarded “Best Non-Bank Private Wealth Product” by The Asian Banker.

Hong Kong’s Central Bank Inks FinTech Pact with Shenzen in China (Cryptocoins News), Rated: A

The Hong Kong Monetary Authority (HKMA), the defacto central bank, is co-operating with the neighboring city of Shenzhen in China over developments in financial technologies or FinTech.

Given the geographical proximity between the two cities, the bilateral co-operation is certain to promote FinTech activity and adoption in two of the most prosperous cities in the region. Shenzhen is among the largest and the wealthiest cities in China, one that links Hong Kong to the Mainland.

P2P Lenders Disclosing Financial Data in NIFA’s Information Disclosure System (Xing Ping She Email), Rated: A

National Internet Finance Association (NIFA) launched the Information Disclosure System on June 5th, and the first 10 P2P lenders were known to disclose financial data in the system, including Wei Dai Network, Lufax, Souyidai.com, etc.

Now, we can search for basic and operating information of the above P2P lenders on the website of NIFA. And 8 of them have disclosed financial information as follows.

European Union

Zopa to build new challenger bank from development centre in Barcelona (Finextra), Rated: AAA

Zopa, the innovative finance company, today announces the opening of a development centre in Barcelona, Spain.

The new hub will initially focus on building the technology to support the launch of Zopa’s next generation bank and developers will work on developing payment gateways, credit card processing, and deposit systems.

Swiss Fintech Giant Cuts a Third of its Jobs (finews.com), Rated: A

Martin Saidler has built Centralway Numbrs with a considerable personal financial investment, achieving a most respectable response from investors. The firm is a global distribution platform for banking products, a super market for customers of retail banking services ranging from loans to car insurance and funds.

Centralway Numbrs in the final week of May abruptly terminated the contracts of about 50 of its staff. The people affected are programmers and other technical staff. Reason for the cuts are high development and personnel costs.

The company still doesn’t generate significant revenues with its banking app and the platform. Therefore, the fintech has to cut costs, eliminating jobs in Zurich or moving them elsewhere.

Centralway Numbrs says the reduction of jobs in Zurich is part of a restructuring process. Jobs will go in Zurich, but the company continues to hire programmers across the world who work from home – so-called remote workers, the company told finews.com.

Centralway Numbrs says the reduction of jobs in Zurich is part of a restructuring process. Jobs will go in Zurich, but the company continues to hire programmers across the world who work from home – so-called remote workers, the company told finews.com.

Centralway Numbrs has reached its first agreements with three companies this year, generating an initial return: Postbank, Norisbank and SWK Bank, three German companies which make their products available via the platform. These contracts aren’t enough to make the platform viable though.

Fashion magnate takes $ 225M+ stake in Swedish payment unicorn Klarna (TechCrunch), Rated: A

Payments startup Klarna is ramping up its valuation again as it picks up a new, strategic investor. Last valued at $2.25 billion in 2015, the company today announced that Brightfolk, controlled by fashion tycoon Anders Holch Povlsen, is becoming a “qualified owner” of Klarna — that is, buying up at least 10 percent of the company.

At Klarna’s $2.25 billion valuation, Brightfolk’s 10 percent+ stake is valued at $225 million or more. But while the company is not commenting on any of the financial terms of today’s deal, TechCrunch understands that this is an “up” round, with the valuation now higher than $2.25 billion.

Banks’ homegrown efforts dominate Poland’s fintech scene (Financial Times), Rated: A

Poland’s most popular mobile payments service was not created in a garage or innovation lab. It was designed around a conference table by the heads of country’s six biggest banks, who had decided the market needed a new service.

Poland’s most popular mobile payments service was not created in a garage or innovation lab. It was designed around a conference table by the heads of country’s six biggest banks, who had decided the market needed a new service.

In 1989, when communist rule ended, the country had just two retail banks, both of which were state-controlled. International banking groups and new private Polish banks quickly joined the fray.

Today, services such as free real-time online payments are standard, contactless payment is available in almost every shop throughout the country and customers have a choice of apps for organising their finances.

International

Suretly, a Crowdvouching Alternative to Peer-2-Peer Lending Announces ICO (Coinspeaker), Rated: A

Suretly is a unique crowdvouching platform that offers an alternative to conventional P2P lending practice. The crowdvouching model followed by Suretly works in conjunction with microfinancing organizations where investors can vouch for a borrower by offering assurance to repay a portion of the loan amount in case of default. In return for their guarantee, they will receive compensation based on the borrower’s credit rating.

Suretly mainly targets short-term loans and the platform is already dubbed as the “Tinder for Microloans.”

Suretly’s crowdfunding campaign is set for July 2017 launch, and it will be managed by the platform’s Singapore fund. The ICO follows a highly successful Pre-ICO round that raised over $350,000 in less than 48 hours.

The company has already set up its operations in Russia and has plans to enter the US market in Q4 2017.

SUR Token ICO

Suretly is planning to raise between $1.5 – $8 million USD in the next round of financing by selling 15% of its existing shares. Funds raised through the crowdsale will be used to accelerate integration into new markets and countries, spearheaded by a new, soon to be set up legal entity in Singapore.

Going Beyond Payments at the Point of Sale: AEVI and Moroku Partner to Mobilize Small Merchants (PR Newswire), Rated: A

AEVI and Moroku today announced a partnership to bring their all-in-one small merchant POS software Marrakash to AEVIs Global Marketplace; a B2B app store for smart Point of Sale (SmartPOS) devices. Marrakash is designed with the next generation of banks in mind, delivering a single solution for their small retail and hospitality merchants that seamlessly integrates their business, products, customers and payment systems into one easy-to-use platform. The partnership will leverage AEVIs open solutions and global support infrastructure to target multiple vertical markets including the hospitality, food and drink, retail andfinancial service industries.

Based in Sydney, Australia, Moroku is a pioneering Fintech firm that is providing the finance industry with engaging banking and payment experiences through gamification. AEVI’s Global Marketplace will now also feature Moroku’s Marrakash, POS software that enables small mobile merchants to grow and run their business entirely from a single SmartPOS device.

Marrakash is already in operation today with merchants in Australia, India, North America and the UK. Voted runner-up at the New Zealand Payment Innovation awards, Marrakash enables businesses to display a full product catalogue, create bespoke customer loyalty schemes and take secure card payments on the go. This gives merchants the control and freedom to run their business and take payments however, and wherever, they need. Having Marrakash available on AEVI’s Marketplace will allow vendors across the globe using AEVI-enabled POS hardware to download and add the app directly to their SmartPOS device. The strategic partnership will increase Marrakash’s speed to market in key US and European territories where AEVI already have a strong, and ever-growing, presence.

GLI Finance Owned Sancus Finance Launches New Financing Platform (Crowdfund Insider), Rated: A

Sancus Finance, a specialist financial services provider, has launched a new funding platform for businesses looking to participate in financing on their site. The new platform is part of a series of developments designed to improve the overall service offered to both funders and businesses. Sancus is part of AIM listed GLI Finance. Sancus BMS Group, the parent of Sancus Finance, has provided in excess of £578 million of funding to SME’s and their owners and has operations in the UK, Ireland, Jersey, Guernsey, Gibraltar & the Isle of Man.

Australia

Australian P2P Lender Credit Crowd Joins Blockchain Lending Platform Othera (Crowdfund Insider), Rated: A

It was announced recently that Australia-based P2P lender, Credit Crowd, has joined Othera’s Blockchain Lending Platform and Digital Asset Trading Exchange. By joining Othera’s platform, Credit Crowd is seeking to evolve its P2P lending market by digitizing the trading of P2P loans on the block chain.

Founded in 2012, Credit Crowd provides short-term mortgages to borrowers as well as a marketplace for retail and institutional investors. The company claims to have originated over $100 million in loans to finance over 50 projects for its borrowers since being founded.

India

Addepar raises $ 140M amid relatively quiet year for fintech funding (PitchBook), Rated: AAA

Addepar, a B2B fintech company that offers a data-driven operating system for wealth advisors and other financial professionals, has raised $140 million in a VC round led by Valor Equity Partners, 8VC and Harry McPike. Valor Equity Partners is an existing backer, and 8VC, the venture firm led by Addepar co-founder Joe Lonsdale, previously invested in the company through its predecessor firm, Formation 8. Addepar had raised about $67 million prior to this round and was most recently valued at $292 million in 2014.

Much of the new funding will go toward research and development.

Among the other companies in the financial services industry that have raised significant equity funding in 2017 are online lender SoFi ($453 million in March) and Robinhood, the provider of a mobile stock-trading app ($110 million in April).

Overall, funding in the fintech industry is on pace for a

Canada

Crowdfunding real estate projects in the GTA (Mississauga), Rated: B

NexusCrowd, a Canadian real estate crowdfunding platform, has a number of projects on the go through crowdfunding, including a $12 million real estate redevelopment project announced in 2015 boasting three properties — one in Mississauga.

Asia

Thailand’s Kasikorn Bank launches $ 30M ‘Beacon’ fund for fintech (TechCrunch), Rated: AAA

Roll up, roll up, there’s a new fintech VC fund in Southeast Asia town. Today, Thailand-based Kasikorn Bank announced its inaugural tech fund which is 1 billion THB, just shy of $30 million, in size.

Kasikorn, which was founded in 1945 and is one of Thailand’s major banks, is calling the fund Beacon — think lights on top of lighthouses — and it is aimed at giving the firm first-mover advantage on global tech through startups based in Thailand and overseas. Thanapong Na Ranong, formerly with InVent, a VC affiliated with mobile operator AIS, will lead Beacon VC.

The capital, which is 100 percent from the bank, will go towards direct investments in startups and also contributions into VC funds as an LP. Kasikorn said today that it has already backed Dymon Asia, a fintech fund headquartered in Singapore that is targeting a $50 million final close, and put money into Bangkok-based FlowAccount, its first direct investment in a startup.

Going forward, it is targeting three to five deals per year ranging from seed-plus to Series A stage with a target across all aspects of fintech. The firm aims to lead or co-lead investments with a typical check size of $500,000 to $3 million. It did not disclose what portion of the fund is reserved for follow-on deals, but the capital itself is anticipated to last between four and six years.

Eight Indonesian fintech startups officially registered under OJK (Deal Street Asia), Rated: A

Peer-to-peer lending startups Investree, Amartha, and KoinWorks are among eight Indonesian fintech startups that have been officially registered under the Financial Services Authority (OJK) in May 2017.

As of June 5, 2017, Investree claims to have successfully disbursed Rp 148 billion unfunded loan with 592 total loans, 17.5 per cent average rate of return, and zero default.

Amartha started in 2010 as a micro-finance institution. Six years later, it changed into a P2P lending marketplace. Today, Amartha claims to have facilitated over $6 million in loans to over 30,000 women micro-entrepreneurs while maintaining a 7-year long 0% default rate.

Indonesia’s fintech sector is currently the second biggest in the region after Singapore.

Authors:

George Popescu
Allen Taylor