- Today’s main news: Texas regulator sends cease & desist order to BitConnect. UK wins race for tech investment. Tencent licensed to sell mutual funds to WeChat users. Wishfin to raise $50M. FINTQ goes beyond lending.
- Today’s main analysis: Strategies banks, credit unions must implement this year (a must-read).
- Today’s thought-provoking articles: How the tech giants are going after bank customers. The year of digital. Europe’s hottest fintech startups in 2018.
- Texas issues cease and desist order to BitConnect over ICO. AT: “This could set a nasty precedent with more states to follow. Is the U.S. heading for a China-like crackdown on ICOs? If so, it’s likely an effort to protect Wall Street traditional IPO issuers more than individual investors.”
- How the tech giants are going after bank customers. AT: “The fact that this is published by American Banker and not Forbes, Business Insider, WSJ, or one of the other top-tier generic news sources makes this analysis worth a read. Bankers indeed feel threatened by Amazon, Google, Facebook, and Apple. This article makes it clear they are far more threatened by them that SoFi, Prosper, or OnDeck. Should online lenders feel threatened?”
- The year of digital. AT: “This is an interesting read for investors, with some very interesting insights on everything from data to the blockchain.”
- Rosemary Kelley of KBRA. AT: “Lend Academy podcast interview. A great subject.”
- Roostify says its first quarter for online mortgages. AT: “No kidding. This is a sector ripe for innovation.”
- YieldStreet offers new opportunities for small investors.
- Wells Fargo’s Consumer Financial Protection Bureau’s complaints drop.
- 10 answers to questions about personal loans. AT: “Very basic.”
- Making real estate agents look like rock stars.
- FormFree’s AccountCheck Asset Report meets underwriting guidelines for VA loans.
- 4 best investments for 2018.
- Payday loan shark/pro race driver gets 17-year sentence.
- Valorem Foundation offers niche investing products.
- OnDeck spotlights Marine Corps vet.
- UK wins race for tech investment.
- Brexit cynics were wrong.
- Is Ranger Direct Lending a risky investment?
- Tencent gets license to sell mutual funds on WeChat.
- Renren’s stock jumps 47% after cryptocurrency announcement.
- WeiyangX Fintech Review.
- 20 hottest fintech startups to watch in 2018. AT: “Some you’ll recognize, some you won’t.”
- 33 strategies banks, credit unions should implement. AT: “Great analysis, and lots here for alternative lenders to learn from too.”
- MPL news roundup.
- Finastra adds to global capital markets team.
- United States
- Securities Regulator Issues C&D to UK Based Cryptocurrency Marketplace BitConnect & Planned ICO (Crowdfund Insider), Rated: AAA
- The tech giants are coming for your customers (American Banker), Rated: AAA
- The year of digital is upon us (Business Insider), Rated: AAA
- Podcast 133: Rosemary Kelley of Kroll Bond Rating Agency (Lend Academy), Rated: A
- Roostify’s Rajesh Bhat: ‘We’re still in the first quarter of the online mortgage game’ (Tearsheet), Rated: A
- YieldStreet brings new opportunities to smaller investors (Bankless Times), Rated: A
- Wells Fargo’s 2017 Silver Lining Is Drop in CFPB Complaints (Bloomberg), Rated: A
- 10 Answers to Frequently Asked Questions About Personal Loans (Quicken Loans), Rated: A
- Chord of Confidence: Making Real Estate Agents Look Like Rock Stars (RISMedia), Rated: A
- FormFree’s AccountChek Asset Report Meets Underwriting Guidelines for VA Loans (PR Newswire), Rated: A
- 4 Best Investments To Make In 2018 (Forbes), Rated: A
- Payday Loan Mogul Trades Ferrari-Racing Life for Prison Term (Bloomberg), Rated: A
- Ad Valorem! The Future of Niche Reserve Based Value Investing and Lending is Here (Huffington Post), Rated: A
- Marine Corps Vet Earns OnDeck Small Business Spotlight (Guru Focus), Rated: B
- United Kingdom
- UK shrugs off Brexit worries by winning race for technology investment (Express.co.uk), Rated: AAA
- Brexit cynics were wrong about London’s fintech companies (Quartz), Rated: A
- A risky P2P opportunity for 2018 (MoneyWeek), Rated: A
- Tencent gets a licence to sell mutual funds to WeChat’s 1 billion users in China (SCMP), Rated: AAA
- Chinese social network’s stock jumps 47% after it says it’s raising money through cryptocurrency (CNBC), Rated: A
- WeiyangX Fintech Review (Crowdfund Insider), Rated: A
- European Union
- 20 of Europe’s hottest fintech start-ups to watch in 2018 (The Finanser), Rated: AAA
- 33 Strategies Banks and Credit Unions Must Implement in 2018 (The Financial Brand), Rated: AAA
- Marketplace Lending News Roundup – January 6 (Lend Academy), Rated: A
- Finastra bolsters global capital markets team (Asset Servicing Times), Rated: B
- Australia/New Zealand
- Would you take money advice from a computer? (NZ Herald), Rated: A
- Consumer loans marketplace Wishfin looks to raise up to $ 50m (Deal Street Asia), Rated: AAA
- Plan to save in 2018? Refer to these new age investment options (siasat.com), Rated: B
- PLDT’s fintech unit going beyond lending (Inquirer.net), Rated: AAA
- With Fintech, Pakistan set to dismantle barriers to branchless banking (Tribune), Rated: A
- Fintech firm Avaloq’s chairman streamlines his role to focus on China expansion and possible listing (SCMP), Rated: B
Securities Regulator Issues C&D to UK Based Cryptocurrency Marketplace BitConnect & Planned ICO (Crowdfund Insider), Rated: AAA
The Texas State Securities Boardhas issued an Emergency Cease and Desist Order targeting BiConnect, a UK based cryptocurrency platform. BitConnect is planning a new initial coin offering (ICO) later this month and Texas is stating the tokens are unregistered securities.
The Texas regulators say BitConnecthas placed 9.4 million of the coins into the online cryptocurrency marketplace, representing a market value of $4.1 billion as of Jan. 3 and expects to issue a maximum of 28 million coins.
The tech giants are coming for your customers (American Banker), Rated: AAA
Lost in all this was an inescapable fact: Big tech firms like Amazon don’t need a charter to disrupt the banking industry. Indeed, they are already changing it.
Amazon has done more than $1 billion in small-business lending since it first started offering loans. In 2017, it launched Amazon Cash, which effectively allows it to take cash deposits from customers via ubiquitous convenience stores like 7-Eleven and Sheetz. Other tech firms, including Apple and Samsung, offer their own payment apps.
If banks effectively end up as utilities to larger tech firms, they will lose out. McKinsey forecasts manufacturing will produce only 35% of profits in finance, a return on equity of 4.4%. Distribution, meanwhile, will produce 65% of profits, with a return on equity of 20%.
It’s not clear what tech giants have in store next, but they will likely push the limits of traditional finance. It’s not hard to imagine the Bank of Alexa, enabling customers to move money and pay bills just by shouting at the Amazon Echo in their living rooms.
The year of digital is upon us (Business Insider), Rated: AAA
With that, these are our top 10 market structure trends to watch in 2018:
MiFID II soft launches
You’re probably thinking, “It’s not a soft launch—MiFID II is the law of the land now!” That is technically true, of course. And for better or worse, even though the SEC has provided U.S. firms with “no-action relief” from some European rules, Europe’s regulators don’t have the no-action relief lever that U.S. regulators became so fond of using as they implemented Dodd-Frank. However, MiFID II is so wide-reaching and impactful, it is unreasonable to think European regulators can or will crack down on imperfect compliance as the year gets underway.
Active investing is still huge, but passive keeps growing
However, Greenwich Associates research in 2017 found that most portfolio managers see 40% of assets in passive as the limit, compared to today’s 22%—that is a huge opportunity for growth.
Alternative data becomes less alternative
Ninety percent of investors using alternative data today tell Greenwich Associates they’ve see a positive return on their investment.
And while the alpha to be captured via alternative data is set to grow, the sheer quantity of data available to drive investment decisions is growing exponentially faster.
Data matters more than trading
But even in these and other cases where some data is made public, individual market participants can only find real value when also examining trades that failed, RFQs that were lost and orders that never left the blotter. Even equity exchanges will need to up their game, as the Consolidated Audit Trail (CAT) reporting requirements finally become a reality and MiFID II makes the market more transparent than ever before. Selling data is great, but helping clients to understand what it really means to them is even better. Inject the growing focus on indices (following several notable acquisitions in 2017) as passive investing grows, and things really start to get interesting.
Wealth management comes out of retirement
Robo-advisors are an opportunity, not a threat.
The move to fee-based accounts couldn’t have come at a better time, with this never-ending bull market generating wealth for investors that, in turn, generate fees for their managers. However, if the market decides to correct, as baby boomers pull out more money than millennials put in, this party might not last forever.
Podcast 133: Rosemary Kelley of Kroll Bond Rating Agency (Lend Academy), Rated: A
In this podcast you will learn:
- How KBRA got started and how their focus has evolved.
- When marketplace lending first got on Rosemary’s radar.
- What made KBRA comfortable enough to be able to provide their first rating in the space.
- How KBRA has become the leader in rating unsecured consumer lending deals.
- What has been driving the growth of securitization in marketplace lending.
- What does the tightening of spreads tell us about investor appetite.
- How platforms creating their own shelf has changed how these deals get done.
- Why the deals that have breached their triggers have not tempered investor demand.
- Some best practices for a platform doing their first securitization.
- What leads to KBRA deciding to upgrade a deal.
- Rosemary’s thoughts on the macro environment and how it will impact consumer credit.
- What platforms can do to mitigate a slow down in securitization markets.
- What Rosemary thinks about the competitive environment in marketplace lending.
Roostify’s Rajesh Bhat: ‘We’re still in the first quarter of the online mortgage game’ (Tearsheet), Rated: A
Why did you enter the digital mortgage space?
That first year, we spent the entire year looking for a home to buy and it was an entirely painful and traumatic experience. Born out of that was the idea behind Roostify. That’s where we began building out the solution we have today.
Why are mortgages so hard to digitize?
The eligibility aspect is complex. Once eligibility is determined, the fulfillment process is equally complex — if not more. Those two things coupled with the fact that on a normal year over half the mortgages issued have a real estate transaction integrally tied to the mortgage transaction make it very complex.
Where are we in the evolution of the digital mortgage?
If this is a four quarter game, we’re still in the first quarter. The evolution has been, and will continue to be, driven by the consumer. Banks recognize that consumers are willing to do certain tasks themselves to drive this process. Companies are launching now that really understand the consumer pain points and they’re delivering to that as opposed to banks’ pain points.
YieldStreet brings new opportunities to smaller investors (Bankless Times), Rated: A
Rather than cut a $20,000 check to access one opportunity, what if you could use that amount to diversify across 30 deals? Mr. Mehere asked himself that question back in 2014 when consumer P2Ps, small business financing platforms and real estate companies were gaining footholds online.
YieldStreet launched in April 2015 with 80 investments across various asset classes. The idea has proven attractive to retail investors, from whom they have raised $240 million.
They have returned more than 100,000 individual payments and in excess of $80 million in principal and interest to investors. 15 of the original 80 investments have fully matured without a loss.
Wells Fargo’s 2017 Silver Lining Is Drop in CFPB Complaints (Bloomberg), Rated: A
Complaints lodged against the lender with the Consumer Financial Protection Bureau through Dec. 15 dropped 18 percent from the same period of 2016, the steepest decline among major banks, federal figures show. Still, it remained first among that group in total complaints.
Seven of the 10 biggest banks by U.S. deposits experienced a drop in CFPB complaints compared with the 2016 period, including Citigroup Inc., JPMorgan Chase & Co., and Bank of America Corp.
10 Answers to Frequently Asked Questions About Personal Loans (Quicken Loans), Rated: A
You might have a million questions running through your head. Luckily, we reached out to the experts at RocketLoans to answer these 10 frequently asked questions about personal loans.
What Is a Personal Loan?
Also known as an “unsecured loan,” a personal loan isn’t backed by collateral like a mortgage or car loan.
What Is a Personal Loan with Collateral?
If you don’t have a credit score that’s between the 600 and 700+ range that most personal lenders look for, some lenders might offer you a secured personal loan, also known as a collateral loan.
How Much Can I Borrow and How Long Can I Borrow?
Depending on the lender and your personal financial situation, personal loans can average between $5,000 and $15,000, with a maximum of $35,000 and terms between 24 and 60 months.
What Is an Origination Fee, and How Much Is It?
An origination fee can range from 1% to 6% depending on the lender and, like your interest rate, is based on your credit and length of the loan. Like the interest rate, the higher the credit score, the lower the origination fee.
Chord of Confidence: Making Real Estate Agents Look Like Rock Stars (RISMedia), Rated: A
Quicken Loans is the largest online mortgage lender and the second-largest retail mortgage lender in the United States, according to Inside Mortgage Finance.
Putting Agents at the Center of the Transaction
To make the mortgage process better for consumers, Quicken Loans executives turned their attention to working hand-in-hand with real estate agents, their most powerful ally, says Tom Dempsey, divisional vice president of Business Development with Quicken Loans.
The centerpiece of this effort: MyQL Agent Insight, a custom back-end platform that increases loan visibility by letting agents see exactly where their client stands in the loan approval process.
Service, Technology Part of a Broader Culture
What exactly makes Quicken Loans different from its competitors? It starts with the company’s culture of service and the many “ISMs,” or ideals, the company strives to work and live by, Dempsey says.
Some of the standout ISMs include “Do the right thing,” “Every second counts,” and “Simplicity is genius.”
A texting service that allows agents to receive text updates on the status of their clients’ loans, keeping agents up-to-date on each step in the process while they’re on-the-go.
Elevating the Consumer Experience
Quicken Loans has evolved in its 33-year history as a direct lender.
In its first full year of operation, Rocket Mortgage funded more than $7 billion of the record $96 billion in total closed loan volume in 2016 for Quicken Loans.
Rocket Mortgage clients have gone from application to closing in as little as eight days on refinance loans, and 16 days on the purchase side, according to internal data. In contrast, the industry’s average closing time on new purchase loans is about 45 days.
President of the Jason Mitchell Group at My Home Group Real Estate in Scottsdale, Ariz., Mitchell has closed more than 900 transactions and over $215 million in sales volume since 2012. More than 65 percent of that business came from clients who used Quicken Loans, Mitchell says.
FormFree’s AccountChek Asset Report Meets Underwriting Guidelines for VA Loans (PR Newswire), Rated: A
FormFree today announced that asset reports generated by its AccountChek® automated asset verification service meet all underwriting guidelines established by the U.S. Department of Veterans Affairs (VA) for loans guaranteed by its Loan Guaranty Service. The announcement follows the VA’s December 29, 2017 release of Circular 26-17-43, which was issued in response to increasing lender interest in automated verification of borrower assets for VA loans.
AccountChek eliminates the burden of gathering asset documents for loans by letting consumers easily and securely transmit their online banking, retirement and investment account data for automated analysis. In just minutes, AccountChek delivers asset data to lenders in a standardized report along with a ReIssueKey that enables secure and streamlined sharing with the secondary market. The result is an easier, safer and more accurate process that closes loans up to 20 days faster, provides a better borrower experience and circumvents a host of common “hiccups” that plague manual asset verification.
4 Best Investments To Make In 2018 (Forbes), Rated: A
#1: The Stock Market
One company I always suggest is Betterment. With Betterment, your money can be invested in ETFs and they don’t charge a fee for managing these for you. Plus, they actually pick the ETFs you invest in based on your appetite for risk, investing goals, and other factors.
Plus, there are a multitude of other “robo-advisors” to choose from.
#2: Peer-to-Peer Lending
A second place to stash some of your excess cash this year is in peer-to-peer lending platforms like Lending Club and Prosper. With these companies, you’re able to loan money to individuals in small increments as if you were the bank. The best part is, you get to earn a pretty decent rate of return – usually upward of 6% or more.
#3: Real Estate
One option I’m really excited about is a company called Fundrise. Fundriseoffers an investing scenario similar to the one above. They buy commercial properties and allow investors to invest small sums of money. Obviously, this is yet another hands-off investment. You may own part of a commercial real estate project, but you don’t even see or deal with the property itself.
Like Lending Club, Fundrise requires an upfront sum of around $1,000 to get started.
Fundrise claims its returns have averaged between 8.76% up to 12.42% over the last five years.
Payday Loan Mogul Trades Ferrari-Racing Life for Prison Term (Bloomberg), Rated: A
Scott Tucker says he’s a pioneering self-made man who, without a college degree, founded successful businesses in a variety of fields and contributed billions of dollars to the U.S. economy. A judge says he’s an unrepentant fraud and sentenced him to almost 17 years in prison.
Jurors found the men guilty of collecting unlawful debts, using misleading contracts and falsely stating that the businesses were owned and operated by Native American tribes. That bogus claim helped them get around state laws that prohibited the business practices, the U.S. said. The scam ran from 1997 to 2013, Castel said.
From 2008 to 2012 alone, Tucker victimized 4.65 million people, according to prosecutors, collecting $1.3 billion in illegal interest payments as some people paid a total of almost $1,000 to settle a $300 loan.
Ad Valorem! The Future of Niche Reserve Based Value Investing and Lending is Here (Huffington Post), Rated: A
Valorem Foundation, the community peer-to-peer platform for multi-party transactions, is launching soon. It is a new blockchain-based platform that allows users to exchange value via smart contracts. Once on the platform, users can borrow, lend, invest, transfer, and exchange money between each other, creating a trust-based platform that removes the need for 3rd-party services or external vendors.
One of Valorem’s products, the Microloan, has been quite successful because of the platform’s risk distribution system and foundation on smart contract-based functionality. Its feature of spreading loan default risk over multiple people forces people in the Valorem community to make smarter choices about buying products like cars, student loans, and insurance.
Marine Corps Vet Earns OnDeck Small Business Spotlight (Guru Focus), Rated: B
OnDeck (NYSE: ONDK), the leader in online lending to small business, today announced that digital agency Majestyk Apps, led by Marine Corps veteran Donald Coolidge, has been selected as the OnDeck Small Business of the Month for January 2018.
UK shrugs off Brexit worries by winning race for technology investment (Express.co.uk), Rated: AAA
Venture capital funding in UK technology firms was nearly £3billion, more than double the amount invested in Germany and France combined.
London technology drew the most. Its £2.45billion was more than the other top 10 cities put together, according to funding database Pitchbook for London & Partners figures.
Fintech, or financial technology, attracted £1.34billion in venture capital funding, with TransferWise and Funding Circle investment, while artificial intelligence companies raised a record £488million, more than double 2016.
Brexit cynics were wrong about London’s fintech companies (Quartz), Rated: A
Below the surface there are reasons to be concerned, but the data so far looks positive. UK companies raised $7.7 billion last year, more than double that of 2016, according to Dealroom. Fintech companies raked in $2.9 billion, the biggest share. TransferWise raised £211 million ($286 million) while Funding Circle took in £81.9 million, according to lobby group London & Partners.
Attitudes across Europe are diverging. While the UK is the No. 1 destination for investment, entrepreneurs in France, Belgium, the Netherlands, and Luxembourg (Benelux) are substantially more positive about the future of Europe’s tech scene than their peers in Britain: 70% of the former are more optimistic than they were 12 months ago, compared with 42% in the UK and Ireland, according to a survey by venture capital firm Atomico.
Olivier Goy, founder of crowd-lending platform Lendix, says he’s even more positive about France’s potential than he was after the poll.
A risky P2P opportunity for 2018 (MoneyWeek), Rated: A
Returns from investing directly in the biggest platforms, including Zopa, Ratesetter and Funding Circle, averaged 5.4% including losses from defaults, according to analytics firm AltFi Data.
For example, P2PGI moved from a premium of 15% to a discount of 15% – ie, the share price now trades at 15% below the net asset value (NAV) of the fund’s investments.
Funding Circle’s SME Income fund trades at a small premium (around 2%) to NAV, and has delivered returns equivalent to a 5.6% yield on the current share price.
As for bonds, Lendinvest – a property lending platform – issued the first listed retail bond from a P2P platform, raising £50m at a yield of 5.25%. This was well received and is now trading at a small premium of 2%.
The Shenzhen Bureau of the China Securities Regulatory Commission, the nation’s top securities watchdog, has given Tencent subsidiary Tengan Funds Sales (Shenzhen) the licence to sell funds directly.
Before gaining the licence, the tech giant was only able to act as a platform for fund houses and third-party fund sales companies to sell their products through qian.qq.com, its online wealth managing platform and its popular instant messaging tool, WeChat. Qian.qq.com is for users to access the service on PC, while a similar service on WeChat is for mobile users.
Also on Thursday, the tech giant launched the promotion of a new service that will allow users to pay their credit card bills via using the money-market funds available on Licaitong, or WeChat’s wealth management app.
Users will avoid having to pay a 0.1 per cent charge on a credit card payment of more than 5,000 yuan (US$770) monthly. Tencent is also offering users cash incentives, capped at 88.88 yuan, for those who use the promotal service until February.
Chinese social network’s stock jumps 47% after it says it’s raising money through cryptocurrency (CNBC), Rated: A
The share price of Chinese social network Renren has almost doubled after the company said it was raising money through a digital currency sale.
The company, headquartered in China and listed on the New York Stock Exchange, saw its stock climb 47.39 percent to $18.32 a share by the close of the U.S. trading session Wednesday.
WeiyangX Fintech Review (Crowdfund Insider), Rated: A
On January 2, 2018, the Shenzhen Securities Regulatory Bureau issued this year’s first fund sales license to internet giant Tencent Holdings, or more specifically Teng An Information Technology (Shenzhen) Co., Ltd.
The Nansha District Government Affairs Service Center in Guangzhou introduced “WeChat Police Certified” face recognition technology and issued China’s first WeChat ID card on December 26, 2017.
According to Bloomberg News, insiders said some loans on HNA’s P2P platform Jbh.com have been faced with deferred payment since last November. Jbh.com offers products like fixed income, P2P lending, insurance and funds on its app.
20 of Europe’s hottest fintech start-ups to watch in 2018 (The Finanser), Rated: AAA
Advanon is an online platform for invoice-financing SMEs. The platform enables SMEs to better manage their cash flows and focus on their core business. Founded in 2015 by Philip Kornmann, Phil Lojacono and Stijn Pieper, Advanon has raised $3.9m in funding so far, including a $3.5m Series A round from Btov Partners, VI Partners and Swisscom Ventures.
Circle is a P2P payments platform founded by Sean Neville and Jeremy Allaire. Using the technology – available as an app on iOS and Android devices or even through a Circle app for iMessage – users can send and receive P2P payments with native euro support. Circle also claims to be the first and only cross-border payments platform in the world to make it possible to beam cash from an app into a US bank account at no cost.
Founded by Marc Murphy, Fenergo offers solutions for client life-cycle management, anti-money laundering, regulatory compliance and client data management.
A fast-growing fintech company, ID Finance specialises in online lending in emerging and growing markets.
Regarded as one of Europe’s most valuable fintech firms, Klarnaprovides online payment services for e-commerce sites in order to eliminate the risk for buyer and seller.
Monzo has more than 20,000 current-account holders and the start-up bank has amassed something of a cult-like following in the UK, with almost 500,000 people using its distinctive hot coral cards and thousands more on the waiting list. It was founded in 2015 by Gary Dolman, Tom Blomfield, Jason Bates, Jonas Huckestein and Paul Rippon. Stripe, the payments company founded by Irish brothers Patrick and John Collison in San Francisco, joined Goodwater Capital and investor Michael Moritz (through his charitable investment vehicles) in a recent £71m investment round, joining existing investors Eileen Burbidge’s Passion Capital as well as Orange Digital Ventures and Joshua Kushner’s Thrive Capital in the round.
Founded in 2015 by Nikolay Storonsky and Vlad Yatsenko, Revolut is an app-based banking alternative with a multi-currency card.
TransferMate was founded in 2010 to reduce international payments costs for business customers and has since developed a wide regulatory footprint in Europe. So far, more than $10bn has been sent to more than 100 countries over the TransferMate platform.
TransferWise was founded in 2011 by Taavet Hinrikus and Kristo Käärmann, and provides international money transfer.
Wefox, also known as FinanceFox, is a next-generation insurance app built entirely on the Salesforce platform.
Younited Credit wants to build the biggest crowd-lending platform in continental Europe. Currently live in Spain, France and Italy, consumers can borrow between $1,200 and $48,000 without the need to talk to a bank. So far, it has managed more than $600m in loans. Founded by Charles Egly, Geoffroy Guigou and Thomas Beylot, Younited recently raised $47.8m in a Series F funding round led by Zencap Asset Management.
33 Strategies Banks and Credit Unions Must Implement in 2018 (The Financial Brand), Rated: AAA
Below are the top 10 trends identified in the Digital Banking Report entitled, “2018 Retail Banking Trends and Predictions,” sponsored by Kony, Inc.. The comprehensive 106-page report is now available here.
1. Improve the Consumer Experience
2. Expand Use of Data and Analytics
- Break down the barriers within your organization that perpetuate data silos. Only after silos are eliminated can advanced analytics be the most effective.
- Establish a data analytics function or partner with an outside organization to provide help in improving the actionability of your data.
- Replace timed marketing ‘programs’ with ongoing marketing ‘processes,’ leveraging real-time data to take advantage of immediate opportunities.
- Test the use of artificial intelligence (AI) and machine learning (ML) beyond risk and fraud analysis, including offer generation and bundling of services.
4. Embrace Open Banking
- Review existing data privacy mandates and potential changes, determining the risk/benefit appetite for new marketplace opportunities.
- Explore data-sharing possibility with fintech and non-financial services firms to be prepared for imminent changes.
- Build an API strategy for both third-party data access and potential service offerings outside traditional banking ecosystem.
5. Build Fintech Partnerships
- Foster a top-down culture of innovation, testing and understanding the digital consumer.
- Investigate partnerships and/or collaboration with fintech firms for products and processes not currently possible within the banking organization.
- Replace all or a portion of legacy systems, integrating new technologies while embracing an agile IT culture. This action step has been put on the back burner for years which is hurting many organizations.
- Consider having an online lender power the organization’s online loan application, to using an online lender’s credit model to better underwrite and service bank loan applications.
Marketplace Lending News Roundup – January 6 (Lend Academy), Rated: A
Funding Circle poised for £1bn float from Peer2Peer Finance News – We begin the year with news that Funding Circle is preparing to go public, possibly in Q3.
The Tech Majors are coming? Really? from AltFi – Interesting take from David Stevenson on why Amazon and Google may not come to dominate finance.
How Blockchain Will Revolutionize Invoice-Backed Financing from Let’s Talk Payments – We’re going to hear a lot about blockchain disrupting industries in 2018, here is a take on invoice finance.
Can blockchain technology revive peer-to-peer lending? from American Banker – Blockchain has given rise to a new breed of online lending platforms. Penny Crosman delves into this phenomenon.
VPC continues shift away from P2P with sale of Prosper loans from P2P Finance News – The publicly traded Victory Park fund in the UK has divested its portfolio of Prosper loans.
Finastra bolsters global capital markets team (Asset Servicing Times), Rated: B
Finastra has appointed Pedro Porfirio as global head of capital markets.
Pedro will be responsible for driving the growth of Finastra’s capital markets business line, focusing on treasury, capital markets, and investment management.
Would you take money advice from a computer? (NZ Herald), Rated: A
Kiwis are set to start getting financial “robo-advice” this year — a move tipped to help those on lower incomes but which some are warning comes with risks.
Investment watchdog the Financial Markets Authority is expected to open applications for exemptions to provide digital advice around KiwiSaver, insurance and mortgages early this year.
Research by the FMA has found most of those who get financial advice in New Zealand have assets of more than $200,000, raising concerns that people with lower incomes and assets are missing out.
Consumer loans marketplace Wishfin looks to raise up to $ 50m (Deal Street Asia), Rated: AAA
Online marketplace for consumer loans and other financial products Wishfin will raise up to $50 million in its next round of funding as it looks to make acquisitions in niche segments, a top company official said.
The company claims to have 9 million customers and $3 billion worth of disbursals to date.
Plan to save in 2018? Refer to these new age investment options (siasat.com), Rated: B
The quick returns that one gets through investments in cryptocurrencies have caught everyone’s attention.
Peer-to-peer (P2P) lending in India currently gives a net return of 18-22 percent to lenders.
People are becoming investors and expanding investment portfolio by investing small ticket size in different startups. Venture Catalysts, India’s first integrated incubator, emerging as largest investor of the year with closing 33 investment in this year.
PLDT’s fintech unit going beyond lending (Inquirer.net), Rated: AAA
FINTQ, the financial technology (fintech) arm of PLDT and Smart’s Voyager Innovations, disbursed more than P12 billion in new loans through its digital lending platform, Lendr, last year or nearly a third higher than the year-ago level.
With more than the P12 billion disbursed last year, total disbursement has reached about P27 billion since Lendr came to market in 2015, Villanueva said.
With Fintech, Pakistan set to dismantle barriers to branchless banking (Tribune), Rated: A
In an effort to promote fintech, the Pakistan Telecommunication Authority (PTA) – the telecom regulator – has decided to award Third Party Service Providers’ licences by June or July 2018, which will pave way for inter-operability between cellular mobile operators and ramp up financial inclusion all over the country.
At present, Telenor’s Easypaisa, Jazz’s Mobicash and United Bank Limited’s Omni are providing mobile-based branchless banking services. However, their customers cannot transfer money from one service to another.
The new platform will help dismantle existing barriers that prevent digital wallets (branchless bank account-holders) from sending money to different bank accounts. Users will be able to make transactions from wallet to wallet or wallet to the bank account.
Fintech firm Avaloq’s chairman streamlines his role to focus on China expansion and possible listing (SCMP), Rated: B
The chairman of Switzerland-based financial technology company Avaloq will focus on expanding business in China and Asia as well as preparing for a possible stock exchange listing, after handing over his chief executive duties.