Tuesday August 15 2017, Daily News Digest

corporate bond credit spreads

News Comments Today’s main news: Prosper reports strong Q2, closes $500M securitization. Zopa to refund investors affected by IT glitch. RateSetter in final stages of FCA authorization. Funding Societies joins international association of credit portfolio managers. Goldmoney reports Q1 profits, plans to open physical branch. Today’s main analysis: Third largest corporate note offering easily digested by bond market. Today’s thought-provoking […]

corporate bond credit spreads

News Comments

United States

United Kingdom

China

European Union

International

India

Asia

Canada

Africa

News Summary

United States

Prosper Progress: Online Lender Reports Strong Q2 Growth, Closes $ 500 Million Securitization (Crowdfund Insider), Rated: AAA

Summary of Key Financial Highlights for Prosper during the quarter:

  • Prosper facilitated $775 million in loan originations through its platform, up 32% quarter-over-quarter and 74% year-over-year driven by strong demand for its personal loan product.
  • Transaction fee revenue rose to $35.4 million, up 32% quarter-over-quarter and 84% year-over-year.
  • The company reported a Net Loss of $41.4 million in the second quarter of 2017, which included $39.3 million in non-cash charges related to warrants to purchase preferred stock that were issued to a consortium of investors, and a third party in connection with a settlement agreement.
  • Prosper generated $8.6 million of Net Cash from Operating Activities and Adjusted EBITDA of $6.7 million in the second quarter of 2017, driven by an increase in origination volume, improved marketing efficiencies and lower general and administrative expenses.

Third-largest corporate note offering easily digested by bond market (Morningstar), Rated: AAA

From a microeconomic perspective, second-quarter earnings reports have generally been in line, with the usual amount of hits and misses. Thus far, our corporate credit analysts have not discerned any significant change to their sector outlooks. From a macroeconomic perspective, second-quarter real GDP was reported to have expanded an annualized 2.6%, and as widely expected by the market, the Federal Reserve did not make any change to monetary policy.

In the corporate bond market, the average spread of the Morningstar Corporate Bond Index (our proxy for the investment-grade bond market) continued its tightening trend but declined only 1 basis point to end the week at +106. In the high-yield market, the BofA Merrill Lynch High Yield Master Index tightened 5 bps to +359. In equities, the S&P 500 was unchanged and volatility sank to new lows.

Fund flows in the high-yield market came to a near standstill last week, as the amount of redemptions from high-yield exchange-traded funds more than offset inflows into open-end funds, resulting in a net outflow of $0.1 billion.

Chatter Increases that Earnest is Up for Sale. Again. (Crowdfund Insider), Rated: A

Back in May, Crowdfund Insider reported that Earnest, an online lender providing personal loans, was up for sale. Referencing a report in Bloomberg, the rumor was quickly squashed by Earnest representatives who told this publication they were absolutely not for sale.

But now the chatter is increasing that Earnest is, in fact, on the auction block.  Apparently management is attempting to sell itself for $200 million. Alternatively, Earnest needs a quick equity injection of $50 million. Otherwise, things don’t look so good.

Millennials are financing everything from bed sheets to concert tickets (MarketWatch), Rated: A

In recent years, payment companies including PayPal PYPL, +1.76% Affirm and Bread have created installment plans for retailers that give consumers the option to finance the weirdest purchases over time.

These payment methods have taken hold at a time when millennials have been more reluctant than their parents to use credit cards. Millennials had about two credit cards each on average last year, according to the credit reporting company Experian. That’s compared with about three for boomers and an average of 2.5 for members of Generation X.

Brooklinen partnered with the payment company Affirm in June to offer a payment plan spread over three, six or 12 months. Financing doesn’t come cheap: Rates range from 0% to 30% APR, after Affirm checks the buyers’ credit and approves them. That compares to an average APR of almost 17% for credit cards — or zero if you’re paying with cash.

If the consumer does not pay within 120 days, Affirm no longer lends to that person, and writes off the debt. Affirm then sends the remaining balance to a third-party debt collector, which Affirm supervises, but Affirm does not package and sell the balances, Metcalf said. Affirm makes its money from simple interest consumers pay, Metcalf said.

PayPal offers two types of credit, both as part of a program called PayPal Credit. One option is to wait six months without paying anything, and no interest on purchases over $99 from select retailers. The other option is an installment payment plan called Easy Payments: Consumers pay interest at an APR of 19.99% if they don’t first pay off their balance within the term they select.

DiversyFund Announces First Ever ‘No Fee’ Real Estate Income Fund (Digital Journal), Rated: A

DiversyFund, Inc., a fast growing, online real estate investment platform, announced the first ever “no fee” real estate debt fund to investors today. With the Fund, investors gain the ability to invest in a diversified portfolio of real estate debt investments that target risk-adjusted returns and generate passive income.

The Fund already has an impressive four-year track record since its launch in March 2013, posting an average annualized net return of 11.4% since inception through Q1 2017, a track record that few Wall Street funds have been able to match. The Fund targets passive income by making real estate-backed debt investments in assets featured on DiversyFund’s platform. The Fund makes quarterly distributions of interest income to its investors and has never lost any investor principal.  The minimum investment amount is $10,000.

How Some Savvy FAs are Overtaking ‘Basic’ Robos (Financial Advisor IQ), Rated: A

Robo advice for mass-affluent investors keeps evolving. But brick-and-mortar advisors aren’t standing still. In fact, some traditional FAs are taking into their own hands ways to automate more sophisticated types of holistic planning – from philanthropy to tax strategies and healthcare issues.

For instance, Heron Financial uses a mobile app, Mobile Assistant, that helps Edwards turn client meetings into easy-to-disseminate notes in Redtail, the firm’s CRM system.

Savant Capital says it’s licensing new off-the-shelf software suites to create their own robo-like experience for clients.

By year’s end, Savant expects to start beta testing its own robo-style package that automatically plucks key data from a family’s tax returns.

Savant is also working on a similar tool to automate estate planning. It’s designed to automatically sort through internal client reporting software, CRM data and core financial planning databases to identify an appropriate estate planning strategy from 120 different scenarios, according to Brodeski.

Advisor Jonathan Swanburg in Houston isn’t writing special algorithms. But his employer, Tri-Star Advisors, finds it can achieve similar results automating more areas of clients’ comprehensive plans by taking advantage of new algorithms being embedded in core prepackaged financial planning suites.

Behalf Inc. Partners with FinWise Bank to Offer Small Business Loans (LendIt), Rated: A

Behalf, a rapidly growing on-demand commercial credit platform, today announced its partnership with FinWise Bank.

Operating since 2013, Behalf is an alternative financing provider that facilitates commerce between business buyers and sellers. Driven by data and technology, Behalf allows merchant partners to offer business customers instant credit and flexible payment terms at the point of sale. Once approved, Behalf customers can use their credit line to fund purchases with virtually any vendor, including MasterCard accepting businesses.

LendingTree Announces Finalists for $ 25,000 Startup Innovation Spotlight (Markets Insider), Rated: A

LendingTree®, the nation’s leading online loan marketplace, today announced the five finalists for its new initiative to showcase the top startup companies in financial technology (fintech) lead generation at LeadsCon this summer.

  • Traaqr
    Brian Handrigan, Co-Founder & Co-CEO

This SaaS disruptor is bringing click level analytics to companies of all sizes while providing automated data capture at a precision never believed possible before.

ForeverCar works with consumers to find and compare quotes for the right vehicle protection plan, and offers concierge support when a vehicle needs service or repairs, keeping you up-to-speed throughout the repair process.

  • Outleads
    Dorin Rosenshine, Founder and CEO

Outleads integrates with leading contact center software, including Genesys, Five9, and more, and onboards CRM data directly into Adobe Analytics, Google Analytics™ & AdWords™ for conversion attribution and real-time retargeting.

LeadCrunch solves the problem of finding optimal B2B targets by analyzing a company’s best customers to identify “Smart Personas”, and then engages look-alike personas with relevant content to generate permission-based leads.

Starbutter AI is a voice and chat app development company focusing on chatbots and AI agents, giving consumers high quality information so that they can pick the best financial products and helps financial companies match the right products to their customers.

The age of e-mortgages finally arrives (Scotsman Guide), Rated: A

The Michigan-based lender United Wholesale Mortgage recently received much media attention for rolling out what it claimed to be the first-ever truly digital mortgage after a Chicago couple in late July completed the entire process of refinancing their mortgage from a computer.

What was supposedly newsworthy about this event — worthy to be featured in an Aug. 9 article in the Wall Street Journal — was that a notary was remotely patched in for the e-signing, and didn’t have to be present in the couple’s home.

A male employee claims he was fired after reporting sexual harassment at a $ 4 billion startup (Business Insider), Rated: A

But a lawsuit filed on Friday against hot fintech startup Social Finance, better known as SoFi, is strikingly different.

This suit has been filed by a male employee who claims that he saw sexual harassment of his female coworkers and was fired after he reported it, according to a report by The New York Times’ Nathaniel Popper.

SoFi Harassment Suit (Fortune), Rated: A

Charles’ lawyer says he will file another lawsuit this week claiming broader employee mistreatment and seeking class-action status.

Fintech Startup SoFi Faces Wage, Retaliation Suits (Law360), Rated: A

Social Finance Inc. was hit with a wage-and-hour putative class action in California court Monday, just days after a former worker sued the financial startup, alleging it fired him for reporting the harassment of a female coworker and for reporting managers who fraudulently canceled loan applications to reap bonuses.

Five employees — Sean Pullen, Christina Cane, Michael Carrera, Matthew Taylor and Yulia Zamaora — allege that San Francisco-based SoFi failed to provide them with meal and rest breaks, failed to pay them for overtime and all….

Income& Selected for Highly Competitive Plug and Play Fintech Accelerator (LendIt), Rated: A

Income&, a real estate investment platform based in San Francisco, announced today that it was one of 24 startups selected for the sixth class of the Plug and Play Fintech Accelerator. The company will participate in a 12-week accelerator program geared toward financial technology startups, during which time it will gain access to Plug and Play’s extensive network of leading banks and financial institutions. Income& was among 3% of startup company applicants selected from a highly competitive pool for the fall 2017 Plug and Play Fintech Accelerator class.

How One Lawyer is Making Real Estate Investing Safer (Markets Insider), Rated: A

Last year, attorney Amy Wan, received a call from a real estate developer client who was trying to raise $300,000 from investors to acquire an investment property. When he asked how much the legal services would be, she gave him a flat fee of $10,000.

While working as a Partner in Crowdfunding Lawyers, a boutique real estate securities law firm, Wan says she began to come face-to-face with the reality that clients doing small raises could not afford her services.

She was named one of “Ten Women to Watch in LegalTech” by the American Bar Association Journal, and pivoted to a career in securities law when she became General Counsel of Patch of Land, a real estate crowdfunding startup. At Patch of Land, Wan works to help democratize investment opportunity. Now, she hopes to democratize access to counsel for small businesses.

Bootstrap Legal is a legaltech/fintech startup based in Los Angeles.

E-Signatures & Digital Lending: How to Move 99% of Customers off Paper (Bright Talk), Rated: A

In the sub-prime lending market, speed-to-close determines market share. Join us to learn how an end-to-end digital process with e-signatures transformed OneMain’s lending business – positioning the lender as the largest personal loan company in the U.S. Today,99% of OneMain’s loans are e-signed, enabling them to be closed and funded significantly faster than on paper.

In this 60-minute presentation, you’ll learn how the company took a phased approach and implemented e-signatures in the call center and online channels, then expanded to the branch network. This year, OneMain will complete its e-signature roll-out to 1,700 branches, where the majority of its loans are transacted.

Presenters

David Smith, Vice President, Application Systems, OneMain
Philip Hannah, Director of IT, OneMain
Mary Ellen Power, VP Marketing, eSignLive by VASCO

Live online Aug 31 11:00 am United States – Los Angeles  or after on demand

SEC Suspends OTC-Traded Emerging Markets Investor Over ICO Concerns (Coindesk), Rated: A

Issued August 9, the order was made against a firm called CIAO Group (now rebranded as NuMelo Technology), which trades on markets operated by OTC Markets Group. NuMelo first announced plans for an ICO on July 6, at the time indicating a desire to bring a “digital financial products marketplace” based on blockchain tech to the African market.

ETHLend announces date of LEND token presale and ICO (CryptoNinjas), Rated: B

ETHLend token pre-sale details:

Starting: 25.09.2017 at 12.00 GMT

Ending: 25.10.2017 at 23.59 GMT or when the cap is reached

AMOUNT TO RAISE: 2,000 ETH

TOKENS FOR SALE: 60,000,000,LEND (6% of total sold tokens)

LEND TOKEN PRICE: 30,000 LEND = 1 ETH

(price includes 20% bonus tokens for all pre-sale participants)

Minimum amount to participate: 1 ETH

ETHLend token pre-sale details:

Starting: 25.09.2017 at 12.00 GMT

Ending: 25.10.2017 at 23.59 GMT or when the cap is reached

AMOUNT TO RAISE: 2,000 ETH

TOKENS FOR SALE: 60,000,000,LEND (6% of total sold tokens)

LEND TOKEN PRICE: 30,000 LEND = 1 ETH

(price includes 20% bonus tokens for all pre-sale participants)

Minimum amount to participate: 1 ETH

3 Stocks That Doubled So Far in 2017 (Madison), Rated: B

LendingTree’s efforts have proven immensely successful. In its most recent quarter, the online loan marketplace reported record results both from mortgages and other types of loans, and the number of loan requests jumped by nearly half to 5.4 million. In particular, efforts to expand beyond the mortgage realm have been extremely lucrative, as non-mortgage product revenue more than doubled in just the past 12 months.

United Kingdom

Zopa to refund investors affected by technical glitch (Bridging&Commercial), Rated: AAA

The technical issue has now been fixed and Zopa will be refunding impacted investors the difference between the amount paid and the true value of the loans purchased.

RateSetter in “final stages” of FCA authorisation process (P2P Finance News), Rated: AAA

RATESETTER believes it is in the “final stages” of reaching full authorisation after becoming the last of the main peer-to-peer lenders to be trading on interim permissions.

The platform is the last of the Peer2Peer Finance Association (P2PFA) members still awaiting full permission after ThinCats announced it had received Financial Conduct Authority (FCA) authorisation last week.

Invesco sells £9.6m Ranger Direct Lending fund stake (AltFi), Rated: A

Invesco Perpetual, the asset management giant, has been trimming its exposure to the £243m Ranger Direct Lending fund amid a testing period for the alternative credit investment trust.

The firm is one of Ranger’s largest investors with, until this week, just under a third of total shares in the fund.  This, however, has been trimmed in the past seven days, according to regulatory documents, with Invesco Perpetual’s current holding now down at 27.9 per cent.

Invesco Perpetual, who owns the fund as an income play within their fleet of top equity income portfolios, sold £9.6m worth of Ranger’s stock last week.

London fintech Tail is a cashback platform built on the promise of Open Banking (TechCrunch), Rated: A

London-based Tail is a new fintech startup that offers a glimpse into the promise of Open Banking. This is seeing upcoming legislation in the EU and U.K. force banks to offer third-party developer access to your bank account data — with your permission, of course.

The app, initially available for iOS and serving London only, offers heavy discounts at local places to eat and drink, all linked to the card you pay with and delivered each week in the form of cashback. However, the draw is how seamlessly it all takes place, by being built on top of digital-only challenger bank Starling‘s API, with Monzo integration also in the works.

Hargreaves Lansdown cashes in on (not too much) excitement (FT Alphaville), Rated: A

Back on August 4, the Financial Conduct Authority said it needed to “reassess” the broker’s capital requirements, because of its plans to do things a little more interesting than selling investment funds – such as offering an online cash deposit service, and lifetime individual savings accounts.

That meant Hargreaves had to retain another £50m, scrap its planned special dividend, and reassure the market of its profitability ahead of schedule.

Hence, this morning’s results contain no real surprises. Its 21 per cent rise in pre-tax profit, to to £265m, for the year ending June 30 had been rushed out with the capital announcement 11 days ago, “to allow investors to assess its strong financial and trading performance”.

P2P lenders offering rates up to five times better than mainstream best buys (P2P Finance News), Rated: A

THE MAIN peer-to-peer lenders are currently offering rates five times higher than the best offerings on the mainstream savings market.

It comes as a new challenger bank launched last week called PCF, offering a fixed savings rate of 2.6 per cent.

This may come with Financial Services Compensation Scheme (FSCS) protection, but seven years is a long time to lock up your money for and savers could do better by taking a bit more risk with a P2P platform.

P2P investors can earn up to 6.1 per cent a year for backing consumer loans, even while using an Innovative Finance ISA (IFISA).

End of Line for iFunding? Real Estate Crowdfunding Site May Be Done (Crowdfund Insider), Rated: A

The chatter on Bigger Pockets regarding iFunding has taken a new twist. In a series of public posts investors are referencing a possible bankruptcy for the real estate crowdfunding platform.

According to the posts, a company named Jazco has offered to take over the remaining deals that have funded on the iFunding site.

Fewer Advisors View Robos as a Threat (Financial Advisor IQ), Rated: A

Sixty-six percent of advisors are undecided about whether robos are a positive or negative force for their practice, according to a survey of 102 advisors by U.K.-based Panacea Adviser cited by FT Adviser. Just last year, when Panacea Adviser last conducted the survey, a whopping 89% of respondents said robo-advisors were a threat, according to the paper. The rate of incorporating robos into traditional advice practices is also picking up. While only 2% of advice firms surveyed this year currently offer a robo platform, 8% are in the process of integrating one and 12% are considering doing so, FT Adviser reports.

Buy to Let mortgages and peer to peer lending explored (AXA), Rated: A

Zoopla research from May 2017 discovered that it’s now cheaper to rent than to buy in 54% of UK cities.

Those with good credit ratings could be offered interest rates as low as 3%. If your credit rating is not so great, however, rates can rise to as high as 30%.

Is this the end of fintech as we know it? (Banking Technology), Rated: A

In the age of the internet, fintech dominates finance. In the UK, the sector is currently worth £7 billion, employing around 60,000 people with figures set to increase.

With unseen levels of growth in fintech, it’s important for companies to make sure that they don’t fall prey to the same mistakes their predecessors did. The easiest way to do so is by sticking to regulation standards.

As online banking slowly becomes the norm for managing money, it’s only natural that online banks emerge. Usage of online banking has more than doubled since 2007, kindling a banking revolution through which the UK has lost 40% of its banks and building societies since 1989. Online banks offer two key services: better banking deals and superior user experience.

Challenger banks like MonzoAtom and Starling have been making a lot of noise in this new banking arena. In 2016, Monzo raised £1 million in just 96 seconds in the fastest crowdfunding campaign ever. Atom Bank established its base outside of London, and Starling is now expanding outside the UK.

LendInvest signs up former Interbay BDM (Mortgage Strategy), Rated: B

Specialist lender LendInvest has appointed Andy Virgo (pictured) as its first BDM for the South of England.

Virgo will be responsible for sourcing deals across the South of England and joins LendInvest from Interbay Commercial, the commercial mortgage lending arm of OneSavings Bank, where he was a senior BDM.

ONLINE LENDER QUIDIE UNVEILS NEW MARKETING PUSH (ResponseSource), Rated: B

Croydon based online lending company, Quidie has launched a new digital marketing campaign to support sales of its new low rate short term loan products (of up to £1,000 with a fixed interest rate of 180%*) which are available to qualifying UK consumers exclusively online via the website.

The new campaign includes a 40 second video ad starring up and coming rapper and actor Craige Middleburgh.

London-based Integrated Marketing Agency Brandnation was responsible for all campaign creative and production. Brandnation is also handling all supporting PR and Social Media activity for the campaign.

China

The Score On Tencent’s Credit Scoring (PYMNTS), Rated: AAA

Hong Kong Stock Exchange to Launch Blockchain-Powered Market in 2018 (Coindesk), Rated: A

The Hong Kong Stock Exchange (HKEX) is planning to launch a blockchain-powered private market aimed at helping smaller firms obtain financing.

HKEX chief executive Charles Li detailed the plan, which would play out through a separate venture dubbed HKEX Private Market, in an August 1 note.

China’s biggest unicorns are a different breed (NASDAQ), Rated: A

China boasts 695 million mobile web users and shops more online than anywhere else in the world, with e-commerce sales likely to top $1.1 trillion this year, according to eMarketer, or more than twice the outlay in the United States.

China’s startups confront a particular set of regulatory risks. A crackdown on peer-to-peer lending and online “wealth management products” has probably delayed flotations by both Ant and Lufax, for example.

And Didi, which now has no serious local rivals, recently took in more than $5 billion from Japan’s SoftBank and others.

Overall, VC and private equity funds ploughed 384 billion yuan ($57.5 billion) into startups in the first half, according to Zero2IPO, not much changed from the previous year’s frantic pace. Local giants Baidu, Alibaba, and Tencent have deep pockets and want to keep emerging threats under control. They boast stakes in or ties to more than half of the top ten. SoftBank is also eyeing China as it invests a $93 billion mega-fund.

European Union

Fintech CEO says tech giants like IBM may go on M&A ‘shopping spree’ for start-ups in 2018 (CNBC), Rated: A

Tech giants like IBM and Capgemini could go on a mergers and acquisitions “shopping spree” for financial technology (fintech) start-ups next year, the chief of one such start-up has told CNBC.

new European directive, which becomes effective in January 2018, would enable third party businesses to monopolize on banks’ software and customer data to build new products – something referred to in the fintech world as “open banking”.

Döderlein, whose company helps develop mobile payments products for 17 banks, said that this would result in big, mainstream tech companies snapping up smaller fintechs to harness the newer technologies they have on offer.

International

Visa’s Latest Big Bets in Fintech (The Motley Fool), Rated: AAA

When extolling the virtues of long term, buy-and-hold investing, it’s hard to think of a better example than Visa Inc. (NYSE:V). Since going public in March 2008, Visa’s shares have returned well over 600%, crushing the market in the process.

Broadening its partnership with a Pal

Was it really just a little over a year ago when, after a frosty and testy co-existence as business frenemies, that Visa and PayPal Holdings Inc (NASDAQ:PYPL) first struck a deal covering their North American business?

For starters, in Europe, Visa Checkout will automatically be enabled at any merchant utilizing PayPal’s Braintree payment processing. More impressively, however, is that, since PayPal holds a banking license in Europe, Visa will be issuing PayPal debit cards in Europe.

Kleaning up with Klarna

Visa also recently announced a strategic investment in and a new partnership with Klarna, a European online payments company that offers credit and flexible payments during the checkout process at online merchants.

Going to the market with Marqeta

Finally, in its most recent fintech deal, Visa announced a multiyear partnership and strategic investment in Marqeta, an open API (application programming interface) card issuer platform. Marqeta offers a number of payment solutions for issuers for on-demand delivery, alternative lending, the disbursement of earnings and rewards to card holders, advance cost controls, and on-demand virtual and tokenized cards.

Foolish takeaway

The payments industry is changing rapidly, with fintech start-ups and larger financial institutions all wanting a bigger piece of the pie. That is why Visa shareholders should take heart that the company is making constant investments to ensure it gives its clients and card holders the best payment experience possible.

The 10 largest P2P and marketplace lending deals of Q2 2017 (AltFi), Rated: AAA

The three months of this year, from April to the end of June, was a particularly active period for fundraising in the space. The top ten deals to marketplace lending companies received a combined investment total of $658m in the second quarter of the year, which represents 84 per cent of the total capital committed to deals in the sector, according to data provider Fintech Global.

The largest deal in Q2 went to Chinese P2P lender Tuandaiwang which raised a whopping $262.6m of private equity funding in May. This was the only marketplace lending company in Asia to feature in the top ten deals.

Fintech: Why It Matters So Much to Your Investment (FX Daily Report), Rated: A

In their latest report, Accenture established that international investment in fintech blast through the roof in just a couple of years. From $ 800 million in 2008, the figure has moved up to $ 12 billion by the onset of 2015. In Europe, the growth rate rose by 215% to $1.48 billion between 2008 and 2014. This figure is expected to continue going up and having a huge impact on individual businesses and institutions.

Transferring cash within and outside the country had made the traditional methods complicated, expensive, and unrealistic. However, latest technologies have made international cash transfer easy, transparent, reliable, and highly secure. Using online wallets such as Skrill, GOOG, and others, money is transferred within seconds and accounts maintained in top conditions.

India

Fin-tech startup DigiLend raises funds from InCred, Fullerton (VC Circle), Rated: AAA

Mumbai-based fin-tech firm DigiLend Analytics & Technology Pvt Ltd has raised nearly Rs 2 crore ($311,939) from two non-banking financial services companies, filings with the Registrar of Companies show.

Mumbai-based InCred Finance and Temasek-owned Fullerton India Credit Company Ltd have made the investment, the filings indicate.

DigiLend will use the funds to pilot its product in the personal loan segment, Dattani said.

Asia

Funding Societies Joins Prestigious IACPM and Welcomes Risk Expert Terry Tse to Board of Directors (Markets Insider), Rated: AAA

Funding Societies has become the first and the only peer-to-peer (P2P) lending company to attain membership at the International Association of Credit Portfolio Managers (IACPM), a prestigious forum for credit risk management. In addition, risk expert Terry Tse joins Funding Societies’ Board of Directors. Mr. Tse is the former Chief Risk Officer of Dianrong — one of China’s leading P2P lending platforms.

Together with sister platform Modalku, Funding Societies is currently the biggest SME loan crowdfunding platform in Southeast Asia, with operations in SingaporeIndonesia, and Malaysia. Recently, Funding Societies has also become the only Southeast Asian digital lender to be selected by CB Insights to the Fintech 250, a list of 250 top private companies changing the face of financial services around the world.

Canada

GOLDMONEY REPORTS FIRST QUARTERLY PROFIT OF $ 3.3 MILLION, PLANS TO OPEN PHYSICAL BRANCH IN TORONTO (Betakit), Rated: AAA

Toronto-based Goldmoney, a gold-based payments and savings platform that allows users to acquire, store, and spend gold that is stored in a secure vault, has released the financial results for its first quarter of 2018, which ended on June 30, 2017.

Goldmoney reported an adjusted profit of $3.3 million and an IFRS profit of $2 million. The company said this is the first time it’s reported a quarterly profit in Goldmoney history.

Goldmoney also reported a quarterly revenue of $125 million, suggesting improvement from $112 million year-over-year (YoY).

Canadian Small Business Growth Continues (Lessors), Rated: A

PayNet, the premier provider of credit assessments on private companies reports that the PayNet Canadian Small Business Lending Index (CSBLI) increased 1% to 123.8 in June 2017 from 122 in May, the third month in a row of year-over-year increases. Compared to May 2016 the CSBLI is up 5%.

The Construction sector investment increased 4% which continues to reflect improvements in housing starts and prices throughout much of the country. Accommodation and Food fell 5% while all other segments were within 3% of May 2017. Growth geographically remains broad based as well with British Columbia and Quebec showed the largest increases from May, both up 3%, while Atlantic Canada exhibited the largest decrease (3%).

The financial health of Canadian companies continues to maintain stability with relatively few signs of deterioration of financial health. The PayNet Canadian Small Business Delinquency Index (CSBDI) 31-180 days past due held steady at 1.09% in June from May 2017. Compared to June 2016, delinquency decreased (10 bps).

Agriculture delinquency decreased by (11 bps), the largest monthly decrease amongst all industries in June.

Africa

Nigeria’s Fintech industry has grown by over 90 % in 4 years (Business Day Online), Rated: AAA

In 2009, we began to look at how digital  is affecting the economies and consumers. The economy has changed, the world has changed. We now live in global, digital economy and because of that, one of the key things that makes money gets to businesses is through payment.

Fintech in Nigeria has come to stay, but what is your assessment of the industry in Nigeria today?

We are coming a bit late but the nation is doing so well compared to other nations. In the last 3-4 years the industry has grown by over 90 percent. It is said that there is over 400 Fintech organisations working with Africa Fintech organisation. These are all entrepreneurs and different groups providing solutions.

Are you saying that  Fintech has impacted  hugely on the economy, assist to solve clients’ challenges and provide job opportunities?

Imagine the 400 Fintech firms working with Africa Fintech Organisation and many of them are at infancy.  And each of them has its own niche of providing  solution to a particular sector. This is the new economy. Before now we had an economy that is based on crude oil, manufacturing and others, but the new economy is digital.

Are there examples of countries that employed Fintech to drive their economy?

Fintech  manifests in different forms and that is why speakers at the forum said that they do not see Nigeria being a follower in Fintech market. They see Nigerian being a leader because it is leading its own form of Fintech which is different from countries like S/Africa.  Though South Africa is doing so well in Fintech with its peculiar needs and penetration of banks to customers.

Nigeria is now growing from a combination of these models. But there are some models, where Nigeria is yet to get to which have been done so well in other markets. For instance, Econet which has worked very well in Zimbabwe where the number of people who are insured through the mobile platform are higher than the number of people insured in Nigeria. Under Fintech, people can borrow money like in Kenya without going to the bank because the whole system can read all your transactions as the system knows how money comes in and how it goes out. So when you ask for loan, they know that you are trustworthy and then they can lend you money easily.

Shivani Siroya of Tala (Lend Academy), Rated: A

Our next guest on the Lend Academy Podcast is Shivani Siroya, the CEO and founder of Tala. While Tala is headquartered in southern California its lending operations are focused on the developing world. They launched in Kenya back in 2014 and in three short years they have become the #5 most downloaded app in that country. How they have done this is a fascinating story.

Authors:

George Popescu
Allen Taylor

Monday August 7 2017, Daily News Digest

LendingClub

News Comments Today’s main news: SoFi Ventures to support financial services startups. Prosper’s valuation dives 70%. Fundrise drops minimum investment to $500 for New Starter Portfolio Offering. UK P2P lenders asked to reveal past defaults. Hargreaves Lansdown cancels special dividend. FinMason expands into Prague. PledgeMe close to profitability. Today’s main analysis: LendingClub is looking beleaguered. Australian fintech update. Today’s thought-provoking articles: Surge […]

LendingClub

News Comments

United States

United Kingdom

China

European Union

International

Australia/New Zealand

India

Asia

Africa

Barbados

News Summary

United States

SoFi Ventures to support financial services startups (Pitchbook), Rated: AAA

SoFi, a provider of online lending and wealth management services, has launched a strategic VC arm led by 

Surge in FinTech Financings; PeerIQ Closes Series A (PeerIQ), Rated: AAA

This past week featured a slate of fintech venture financings. Kabbage (Series F: $250M), Dianrong (Series D: $220M), Bread (Series B: $126M), and Juvo (Series B: $40M) all announced major financings.

And last, but not least, , led by TransUnion, Hearst Financial Venture Fund, and Macquarie Group.

For PeerIQ, it means continuing to execute upon the vision we shared at our seed financing just over two years ago. This fall, we will be launching our first products uniting TransUnion’s dataset with the PeerIQ analytics platform.

Along with its investment, Hearst brings several major holding companies, including auto data provider, BlackBook, and Fitch Ratings, the global ratings provider, which opens up many new value propositions for our customers. Finally, we are working hand in hand with Macquarie, a major provider of capital to the fintech space, to improve tools for warehouse lenders and their borrowers alike.

Lending Club Is Looking Beleaguered Heading Into Q2’s Do-Or-Die Earnings (Seeking Alpha), Rated: AAA

Source: Thomson Reuters Eikon, image made by James Brumley

Fast forward to Monday. That’s when Lending Club is expected to log another progressive quarter, cranking revenue up to $136.2 million, and whittle the per-share loss back to only one cent; the company lost nine cents per share on $103.4 million in sales for the same quarter a year earlier. Not only is revenue expected to keep growing beyond that, Lending Club is expected to swing back to a profit in Q3, of two cents per share.

Fintech lender Prosper’s valuation dives 70% in latest funding round (Biz Journals), Rated: AAA

San Francisco fintech Prosper is about to close on $50 million in funding, in a round that slashes its value 70 percent to $550 million, The Information reports .

That a steep decrease from the $1.9 billion valuation the second-largest online lender saw just last year.

Fundrise Drops Minimum Investment to $ 500 in New Starter Portfolio Offering (Crowdfund Insider), Rated: AAA

The Fundrise Starter Portfolio starts with a $500 minimum and includes a 9.25% annual dividend yield and zero advisory fees through the end of the year. If you want to try it out the Starter Portfolio comes with a 90 day guarantee. If you have a change of heart, Fundrise will purchase your investment back at the original investment amount. Not a bad deal to test the waters.

Online Lender Prosper in Talks on Deal That Would Slash Its Value (WSJ), Rated: AAA

Prosper Marketplace Inc. is in talks to sell a roughly 10% stake to a Chinese conglomerate in a deal that could reduce the online lender’s valuation by more than two-thirds, according to people familiar with the matter.

Under the terms of the proposed transaction, Linca would invest $50 million in Prosper at a valuation of about $550 million. No deal has been finalized, however, and there was no guarantee the parties would come to an agreement, the people said.

David Kimball, who took over as Prosper’s CEO last December, has been focused on making the company profitable. In February, to ensure a funding source for the company’s loans, Mr. Kimball agreed to sell $5 billion worth of Prosper’s loans to a consortium of investors over the next two years along with warrants to purchase shares representing 35% of the company, The Wall Street Journal previously reported.

Small Change Completes First Real Estate Crowdfunding Offer Under Reg CF (Crowdfund Insider), Rated: A

Real estate investment crowdfunding site Small Change has closed its first real estate offering available to everyone – not just accredited investors.

Small Change reports that investors have funded projects via their platform in cities including Pittsburgh, Los Angeles, New Orleans, and Washington D.C. These projects are as diverse as the cities in which they’ve been built. They include Pittsburgh’s first tiny house, a historic main street mixed-use conversion, and affordable housing in Washington, D.C. with the largest residential solar install in the country.

Small Change has now completed its first offering open to all investors — a Starter Home Two project by architect Jonathan Tate.

WSFS Introduces Private Student Lending Solutions (WSFS), Rated: A

WSFS Financial Corporation (Nasdaq:WSFS), the parent company of WSFS Bank, today announced that it is now offering Private Student Lending Solutions, expanding its consumer lending product line to bridge the funding gap that exists between the actual cost of higher education and the federal aid, grants and scholarships available.

WSFS is partnering with LendKey.

SoFi to finally file for IPO? (Housingwire), Rated: A

Social Finance, better known as SoFi, first teased it would file for an initial public offering nearly three years ago.

SoFi CEO Mike Cagney appears to be interested in filing for an IPO again.

If SoFi did file for an IPO, it would mark the second major IPO for a housing-related company after a dry spell the last few years.

According to an article in Reuters by Lisa Lambert, “Last year IPOs in the United States fell by more than a third from 2015, and many of those 102 share offerings ended up trading below their debut price.”

Renters Insurance: PolicyGenius vs. Lemonade (Coverager), Rated: A

Yesterday, NYC-based digital broker PolicyGenius announced its expansion to renters insurance. The product is delivered in collaboration with Stillwater.

Another thing happened yesterday. Lemonade announced its renters and homeowner’s insurance is now available to folks in NJ, joining those residing in CA, IL and NY.

The result: Stillwater was 40% more expensive than Lemonade, all else equal.

Fluid Strikes Strategic Partnership with Nomad Credit (LendIt), Rated: B

Fintech and adtech startup Fluid announced a strategic partnership with Nomad Credit, a financial marketplace for international students in the US; the partnership looks to offer better credit options to this underserved market; together the companies will deliver better financial literacy, credit building tools and more cost effective financial products.

Here’s how start-ups get funded before they’re ready for venture capital (CNBC), Rated: B

Fledgling businesses rarely command seed or venture funding right out of the gate. But they still need cash to get started.

In reality, there’s a big difference between securing a loan for your business and winning over backers on a site like Kickstarter. Meanwhile, equity crowdfunding, enabled by sites like AngelList, CircleUp and SeedInvest, is generally for businesses that are further along.

Here are the real ways that most entrepreneurs get money at the very start.

  • Personal savings
  • Wages
  • Credit cards
  • Loans
  • Crowdfunding

Countering West Coast Pull, by Helping Finance Start-Ups Sell in New York (The New York Times), Rated: A

Nine of the 15 United States financial technology “unicorns” — companies worth $1 billion or more, as tracked by CB Insights — are in the San Francisco area. These Bay Area companies, which are not public, include the online payments processor Stripe, the online lender Social Finance and the finance website Credit Karma.

For the last seven years, a New York business-backed program — the FinTech Innovation Lab — has been working to stem that West Coast tide by helping financial services start-ups sell their services in New York in an industry where the city clearly dominates: big banks and other finance companies.

Make Delaware the financial technology capital (Delaware Online), Rated: A

One such “industry of the future” that Delaware should be working to attract is the financial technology sector, or what some affectionately call “FinTech. Empowered by mobile computing, these companies use technology to bring better, cheaper, more efficient financial services to citizens. Mobile apps that allow you to send money quickly to friends or family are examples of FinTech products.

For a number of reasons, Delaware is well-suited to become the nation’s FinTech capital. First, the financial services industry has served as a core portion of Delaware’s economy for over 40 years. Individuals with skills and expertise are ready and waiting.

Second, banks, of which many call Delaware home, are leading the way in partnering with startups large and small to develop new solutions and businesses in the space.

Third, Delaware’s nimble government and business community make it a flexible, attractive place for innovation.

Is an Online Business Loan Your Best Option? (Nav), Rated: B

There should be no surprise that with the growth of the internet and online banking that online lending would be close to follow. Over time, banks began to accept loan applications online and eventually began to offer full-service lending through the web.

While online loans may be tempting, it is important to consider every option when borrowing a large sum. Comparison shopping is your friend. There are more than 44 different kinds of business financing — that’s a large ocean to navigate before finding the lowest-cost option that fits your business profile and approval chances.

Nonbank lenders typically lend from their own funds or look to the financial markets to raise millions or billions of dollars to lend in smaller increments.

Here are some questions to ask yourself to get started:

  • How much money do you need to borrow?
  • Do you need an in-person experience or are you comfortable online?
  • What are the best interest rates available today?
  • What origination fees are you willing to pay?
United Kingdom

UK’s peer-to-peer lenders to be asked to reveal past defaults (Financial Times), Rated: AAA

The FCA is expected to announce new measures later this year, including forcing P2P groups to give extra information on the past performance of loans and on how much due diligence they have done on the borrowers’ past performance.

P2P lenders — which had collectively facilitated loans of £7.3bn in the UK by the end of last year, according to research from the Peer-to-Peer Finance Association (P2PFA) — have had plenty of time to prepare for tighter regulation.

The FCA’s latest review is the second in two years, and any measures are unlikely to come in before mid-2018, since the industry will be given between three and six months to respond to the proposals the authority puts forward later this year.

Hargreaves Lansdown Cancels Special Dividend After Regulator Warns on Capital (The New York Times), Rated: AAA

Fund supermarket Hargreaves Lansdown cancelled a planned special dividend on Friday after Britain’s financial regulator said the company needed to shore up its capital base, sending its shares lower.

The company plans to launch its HL Savings product later in the year, a cash deposit service supported by marketplace lending, and this year also launched Lifetime ISAs, or individual savings accounts eligible for a government bonus.

Distribution still keeping the wheels of credit turning (Computer Weekly), Rated: A

A recent survey revealed a third of SMEs in the IT sector have missed out on business opportunities because of a lack of finance. Distributors have long been a major source of credit for SME resellers but with consolidation taking place in distribution through mergers and acquisitions, the sources of credit available to resellers are being reduced.

One distributor that has publicly taken the initiative on credit is Exertis. The company recently introduced a programme called Credit Xtra with the intention of doubling the credit limit for more than 1,650 of its SMB accounts. There is also the option to increase the limit further if resellers remain within the distributor’s credit terms.

Dow believes that it is especially important to offer extra credit at this time of year, when resellers are targeting the peak summertime buying period in education.

LendInvest closes retail bond offer early (P2P Finance News), Rated: A

LENDINVEST has closed its bond offer early, due to strong demand from both retail and institutional investors.

The online mortgage lender launched the five-year notes on 19 July and the offer was scheduled to close at noon on Friday. However, it closed the offer at 11.30am on Thursday.

It said estimated net proceeds from the offer would be just under £49m and confirmed that the issue date will be 10 August.

Kantox raises £4.6 million from investors as it targets profitability (Business Insider), Rated: A

Foreign exchange fintech company Kantox has raised £4.6 million from its existing investors as it aims for profitability.

Filings with Companies House show Kantox raised the sum at the end of July.

Kantox, founded in 2011, made an operating loss of £258,538 on revenues of £2.3 million in 2015, the most recent year accounts are available for.

LendingCrowd offers cashback incentive (P2P Finance News), Rated: A

LENDINGCROWD has launched a £150 cashback offer to investors when adding £2,500 or more amid surging demand from borrowers for business loans.

The offer, which runs until 31 August, is available to new and existing investors and can be used in its Innovative Finance ISA (IFISA.)

Competition regulator confirms P2P business lenders exempt from APR rules (P2P Finance News), Rated: A

NEW pricing rules on business loans will not apply to peer-to-peer lenders, the Competition and Markets Authority (CMA) has confirmed.

From today, all providers of unsecured loans and overdrafts worth up to £25,000 to small- and medium-sized enterprises (SMEs), will have to publish and clearly display the annual percentage rates (APRs.)

It had previously been unclear if this would apply to P2P and alternative finance lenders but the CMA confirmed to Peer2Peer Finance News this morning that it would not.

Can P2P Lending Kill NBFCs? (TechBullion), Rated: A

NBFCs, on the other hand, are the Non-Banking Financial Companies.

Does P2P lending offer such a serious threatto NBFCs and can P2P lending kill NBFCs? We write an informative review to let you know!

While NBFCs mostly deal with the unbanked population, P2P concentrate on the businesses that are usually locked out by traditional lenders and also on the tech-savvy individuals.

While P2P platforms have embraced the use of modern technology, NBFCs have failed in the use of technology. This has really affected their growth as they cannot really compete efficiently in the modern world.

Should you go with the crowd? (MoneyWeek), Rated: B

The returns available to investors aren’t as high as they used to be, but they’re still much, much more than you’d get putting your money in a deposit account. But there’s a very good reason for that. It’s an awful lot riskier too. You’re not covered by the financial services compensation scheme – which safeguards up to £85,000 of your savings if your bank goes bust. That means you cold lose everything.

China

Hexindai Partners with China UnionPay to Launch a Mobile Payment Function to Its App (PR Newswire), Rated: AAA

Hexindai Inc. (“Hexindai” or “the Company”), a fast-growing consumer lending marketplace in China, today announced that it has partnered with China UnionPay to launch its “Quick Pass” app on Hexindai’s mobile platform. The app will allow investors on the Company’s platform to use surplus funds that have not been lent out to pay for goods and services provided by stores partnered with China UnionPay by scanning a QR code created by the app.

Huge Internet finance firms to be assessed (Shanghai Daily), Rated: A

CHINA will explore methods to include large Internet financial businesses of systemic importance in its macro prudential assessment, said a central bank report issued late Friday.

The first peer-to-peer lending platform opened in 2007, and exploded in popularity, with the number of such platforms increasing 18-fold between 2012 and 2015 and the combined transaction volume jumping about 40 times over the period, said the State Information Center.

Inclusive finance to lift fintech firms (China Daily), Rated: A

Financial technology or fintech companies, particularly those focused on credit analysis, will greatly reduce cost of lending and also reduce credit risks. So, they are likely to experience fast growth on market demand as commercial banks are joining the inclusive finance market.

That market is currently dominated by smaller, private financial institutions, such as peer-to-peer or P2P lending platforms and consumer finance platforms.

In China, only 30 percent of citizens are covered by existing credit reporting system, while in mature markets the percentage could be 70 percent or higher.

By the end of July, the five biggest banks in China-Industrial & Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of Communications and Bank of China-had launched inclusive finance arms, just two months after the authorities concerned called for better financial services for a wider group of people across China.

European Union

FinMason Announces International Expansion: Opens Operations in Prague (Crowdfund Insider), Rated: AAA

Boston-based fintech and investment analytics firm, FinMason, announced its international expansion plans and the opening of a new operations center based in Prague. The company stated the initial expansion will include the hiring of twenty software engineers to keep pace with the rapid growth and development needs of the company.

The company shared that FinMason Europe, s.r.o., opened August 1st and the first employees have already started.

Vendorly Adds Three New Companies to Vendor Oversight Platform (Markets Insider), Rated: AAA

Vendorly, an innovative vendor oversight platform for financial institutions, today announced the continued expansion of its platform through the addition of three new third-party oversight integrations available on the Vendorly™ platform. These additions further enable our customers to enhance their compliance management framework and help them maintain the high oversight standards required in today’s marketplace.

Continuing this momentum, the new vendor oversight additions to the Vendorly platform include:

  • Dun & Bradstreet (NYSE: DNB)— Vendorly customers now have access to Dun & Bradstreet data to help make smarter decisions about their current and prospective vendor network.
  • The ID Co. — With DirectID, Vendorly customers now have the ability to conduct bank verification for current and prospective vendors in their network, to reduce fraud and misrepresentation prior to payment.
  • TINCheck — Vendorly customers now have the ability to validate the tax ID of all organizations in their current and prospective vendor network.

iFunded Tackles Large Project With Bond Issue (Crowdfund Insider), Rated: A

A new entrant in German online real estate lending, iFunded wants to address the market of larger property development projects that lie beyond the scope of real estate crowdfunding. Partnering with umbrella investment bank NFS Netfonds Financial Service, the platform is launching its first €10 million real estate bond issue, to be listed on the open market of the Frankfurt Stock Exchange. With this, iFunded leads, for the real estate online funding segment, the Fintech startup trend that consists in moving from exemption/sandbox status to a fully regulated financial environment.

According to Crowdfunding.de, in the first half of 2017, German online real estate crowdlending platforms raised €58 million, 45% more than in the entire year of 2016.

In July 2017, iFunded launched its first public bond offering, what motivated you as a company to add the classical fundraising channel to your online real estate platform?

Real estate crowdfunding in Germany has grown very significantly recently and will reach between €100 and €120 million by the end of 2017. However, it still is small.

Our first project Eisenzahnstrasse Berlin is a €10 million bond issue (ISIN: DE000A2E4FQ5) with a 3.5-year maturity and 5.5% interest rate. It is destined to transform an exi property into 281 flats, including a penthouse, and 2,400 sqm commercial space. The total estimated budget is €49.6 million and the expected income €67 million.

Robo-adviser Moneyfarm expects profitability by 2019 (Citywire), Rated: A

European robo-adviser Moneyfarm expects to become profitable by 2019 as it looks to bring to market new products in the coming months.

The Italian firm filed its 2016 financial statements this morning, announcing expansion to 10,000 customers in the UK and £260 million in global assets under management (AUM), which renders it the second largest robo-adviser in Europe.

The firm has reported total losses of £6.4 million in 2016, but claims this was in line with its agreed targets.

Kildare businesses raise over €1m through Linked Finance (Leinster Leader), Rated: B

Linked Finance, Ireland’s leading peer-to-peer (P2P) lending company has raised over €1m for Kildare-based businesses.

36 Kildare businesses including well-known businesses Kelly’s Mountain Brew, Celbridge Playzone, and The Academy Barber, have used the Linked Finance platform to raise funds and facilitate business growth.

International

Analog Regulations Built for the Traditional Banking Space are not Conducive to Fostering Innovation in Financial Services (Crowdfund Insider), Rated: AAA

Mueller notes that Singapore and the UK were the early leaders in Fintech innovation as the respective governments determined it was of strategic importance. With government backing, Fintech flourished.

But there are many challenges for this transformation that is occurring at a breakneck speed. And as Mueller says;

“analog regulations built for the traditional banking space are not conducive to fostering innovation in a financial services industry turned digital.”

Mueller bullets out intrinsic challenges to the existing regulatory ecosystem:

  • Fear of failure has resulted in some regulators taking a go slow approach instead of being proactive. When things go wrong – who gets the blame?
  • Complexity in Fintech requires new skills. Regulatory agencies are typically populated with people entrenched in well defined processes. There is a lack of proper skills and staffing.
  • Internal culture may not be willing to adapt. Changing processes is always a challenge. A cohesive policy strategy is missing.
  • Fintech innovators may struggle to engage and communicate with a regulator. Fear of engagement harms us all

Yes, some countries are blazing trails in Fintech and the list of countries pursuing a Fintech Hub status is growing. Without acknowledging the elephant in the room that the US is not at the top of this list (even though it is the leading global financial center) is telling about the regulatory morass elected officials have allowed to persist.

Read the full report here.

FinTech and the world of investment banking (Brave New Coin), Rated: A

Global banks and investment banks are far more complex creatures than their high street counterparts, which is why we’ve seen far less disruption in corporate, commercial and wholesale banking that we are seeing in retail, but don’t be complacent or closed here. There are things happening in the more complex areas too.

While fintech covers a diverse array of companies, business models, and technologies, companies generally fall into several key verticals, including:

Lending tech: Lending companies on the list include primarily peer-to-peer lending platforms as well as underwriter and lending platforms using machine learning technologies and algorithms to assess creditworthiness.

Payments/billing tech: Payments and billing tech companies span from solutions to facilitate payments processing to payment card developers to subscription billing software tools.

Personal finance/wealth management: Tech companies that help individuals manage their personal bills, accounts and/or credit, as well as manage their personal assets and investments.

Money transfer/remittance: Money transfer companies include primarily peer-to-peer platforms to transfer money between individuals across countries.

Blockchain/bitcoin: Companies here span key software or technology firms in the distributed ledger space, ranging from bitcoin wallets to security providers to sidechains.

Institutional/capital markets tech: Companies either providing tools to financial institutions such as banks, hedge funds, mutual funds, or other institutional investors. These range from alternative trading systems to financial modelling and analysis software.

Equity crowdfunding: Platforms that allow a collection of individuals to provide monetary contributions for projects or companies provisioned in the form of equity.

Insurance tech: Companies creating new underwriting, claims, distribution and brokerage platforms, enhanced customer experience offerings, and software-as-a-service to help insurers deal with legacy IT issues

Source: Brave New Coin

Meantime, rather than ignoring these changes, the biggest banks are investing in them. Since 2012, the ten largest US banks by assets participated in 72 rounds of investment totalling $3.6 billion in 56 FinTech companies whilst, in Europe, Banco Santander leads with the most number of unique investments to FinTech startups. The firm has made 13 investments to 12 unique fintech startups. The largest investment was a $135 million in Q3 2015 to small business lender Kabbage, that also included participation from ING among other investors.

Alt-Lending Enjoys Sudden Investment Revival (PYMNTS), Rated: A

This week alone saw two examples of those concerns in action: One U.S. lawmaker, Rep. Emanuel Cleaver II (D-Mo.) sent a letter to five alternative small business lenders operating in the country, inquiring about their business practices.

This week also saw one alternative lender in the U.K., DueCourse, fall into administration.

All of this makes it even more surprising that alternative lending startups, by far, secured the greatest amount of investment this week – pushing half a billion dollars, in fact.

PYMNTS breaks down the major AltFin investment rounds, plus covers the other B2B FinTechs that were able to secure new funding.

Australia/New Zealand

PledgeMe closes in on profitability in 2017, weighs up new product development (NZ Herald), Rated: AAA

PledgeMe came within cooee of turning a profit in the 2017 financial year, boosting revenue from fees to use its equity crowdfunding and peer-to-peer lending platform while also clamping down on costs, and is considering adding another string to its bow which that could need another capital injection.

The Wellington-based company narrowed its annual loss to $11,228 in the 12 months ended March 31 from $398,611 a year earlier as revenue climbed 55 per cent to $268,473 and operating costs were slashed 48 per cent to $288,502.

Fintech Australia Shares 2017 Australian Fintech Update (Infographic) (Crowdfund Insider), Rated: AAA

On Saturday, Fintech Australia released a new infographic that revealed more details about the Australian fintech industry’s successes so far this year.

 

Non-bank loans gain momentum in tough lending regime (The Sydney Morning Herald), Rated: A

We have seen demand for construction loans between $10 million and $30 million spike 20 per cent per cent over the last six months as Tier 1 banks are quickly tightening both pre-sales thresholds and loan-to-valuation ratios on new developments.

One area of the greatest demand for non-bank finance is coming from Chinese property developers, who do not have the track record or Australian assets to provide comfort to the major lenders.

Peer-to-peer lending models, like that of Chifley Securities, allow us to access investor funds to progress these developments, as we are applying different, more nuanced assessment of the risks associated with these loans.

Will property crowdfunding take off in Australia? (Your Investment Property), Rated: A

A new study conducted by the University of South Australia (UniSA) in partnership with DomaCom, suggests that crowdfunding could become a viable new vehicle for investors trying to make headway into the country’s increasingly challenging property market.

Braam Lowies, the study’s lead researcher, noted that while the concept was relatively new in Australia, it had been successful in the United States and United Kingdom for approximately seven years.

India

Wadhawan Global takes second UK bet, invests Rs 175 crore (India Times), Rated: A

Wadhawan Global Capital (WGC), which owns 38% of Dewan Housing FinanceBSE 0.07 %, has invested Rs 175 crore in London-based mortgage financer Neyber, marking it’s second investment through the newly set up UK arm as it seeks to expand its global footprint.

Why PPF is like a safety jacket for investors of P2P lending (India Times), Rated: A

Those who do not back the idea of PPF believe investors should carry the risk of loss as the principal idea of P2P Lending is to offer investors an “alternative investment route”. The P2P Lending platform, at best, can try to strengthen the risk-assessment processes by making the optimal use of technological innovations.

While the other camp which is in favour of PPF opines that it is not a luxury but a necessity at the moment as it will only instill confidence among the investors. And, it’s not about disbelieving one’s capabilities.

Asia

Consultation by MAS on the provision of robo-advisory services in Singapore (Lexology), Rated: AAA

A summary of the proposals put forward by MAS in the Consultation Paper is set out below.

  1. Expansion of licensing exemptions

    (a) Expansion of licensing exemption for dealings in securities other than CIS

    (b) Expansion of licensing exemption for provision of fund management services incidental to advisory activities

  2. Dispensation with prior client approval for each and every rebalancing transaction
  3. Case-by-case exemption from collecting full information on the financial circumstances of clients
  4. Relaxation of criteria for CMS licences in fund management for digital advisers
  5. Development, monitoring and testing of client-facing tools
  6. Provision of information on algorithms and conflicts of interest
  7. Responsibility of the board and senior management

MAS Establishes Payments Council (LATTICE80 Email), Rated: A

The Monetary Authority of Singapore (MAS) announced on 2 August that it will establish a Payments Council, comprising 20 leaders from banks, payment service providers, businesses,and trade  associations. Members are appointed for a two-year term and chaired by Mr Ravi Menon, Managing Director, MAS. The Payment Council marks the vision of an e-payments society, fostering collaboration between providers and users of payment services in Singapore.

Green Packet an emerging fintech play (The Star), Rated: A

Communication and technology services company Green Packet Bhd is eyeing an expansion into a new growth area – the mobile payment solutions segment, an area poised for disruptions through technology.

According to the 2016 Visa Consumer Payment Attitudes survey, 74% of Malaysians prefer to make electronic payments instead of cash, an increase of 8% compared with 2015. In fact, Visa indicated in a separate study that seven in ten Malaysians are willing to use mobile wallets.

Hyperintelligent banking in the fickle era of social media (Inquirer.net), Rated: A

Such is the case of American banking giant Citi, which sees itself as a technology company with a banking license, having introduced video banking recently in India.

Video banking is seen suitable especially in wealth management, which is part of the regional consumer business led by Selva. This is a segment where customers need trust and constant advice.

Citi receives 70 million calls a year, almost half of which are answered by a phone agent. The bank usually spends about 30 to 45 seconds validating the call, asking the client his or her mother’s maiden name, date of birth and details about the last transaction.

In the Philippines, Citi now implements voice-enabled biometrics for easier client verification. Citi is likewise moving toward facial recognition.

Fintech Buys Stake in Exchange (finews), Rated: B

GSX, which owns and operates the Gibraltar Stock Exchange, said on Friday that Cyberhub Fintech Holdings Limited is a new strategic shareholder. Cyberhub is a unit of Broctagon, a derivatives trading technology provider.

The stock exchange also wants to become the world’s first to fully integrate blockchain technology.

Africa

The role of financial advisers in raising national savings levels (Biz Community), Rated: A

According to the 2017 Old Mutual Savings & Investment Monitor, working South Africans allocate only 15% of their incometowards savings.

Naidoo explained that these statistics emphasise the extent of the national savings deficit and the large gap that exists between targeted economic growth of 5.4% per year, as per the NDP, and the ability of the South African economy to fund that growth.

Naidoo believes that financial services providers and advisers have a vital responsibility to promote a savings culture via collaborative advice and financial literacy efforts.

Barbados

Carilend seeing ‘phenomenal’ growth (Loop News Barbados), Rated: AAA

Just three months in and Barbados’ sole peer-to-peer lending company, Carilend, is seeing tremendous success with 100 percent of its loans.

With over 900 registered users on the site to date, the team at Carilend has been amazed at the response they have received.

Carilend reported their “average” Borrower is borrowing $8,617 for 43 months at an average interest rate of 11.34%. Whilst all applications receive an answer in one working day, Carilend recently approved a brand new Borrower in 2 hours; 22 minutes from receipt of their initial application.

Authors:

George Popescu
Allen Taylor

Monday September 11th 2016, Daily News Digest

Monday September 11th 2016, Daily News Digest

News Comments Today’s key news in an exhaustingly long news list : US SME borrowers will receive increased regulatory protection starting Nov 12th; Well Fargo and Amazon were called by the CFPB after being contacted by Sen. Brown’s office, and the deal fell apart after 1 month;  large European corporate bonds are also at negative […]

Monday September 11th 2016, Daily News Digest

News Comments

United States

United Kingdom

European Union

News Summary

 

United States

Movement in marketplace lending regulation for small business loans, (Lexology), Rated: A

From 12 November 2016, some businesses will receive the same protection currently available to consumers as unfair contract terms in small business contracts will become prohibited.

Under the new law, a contract term will be unfair if:

  • it would cause a significant imbalance in the parties’ rights and obligations;
  • it is not reasonably necessary to protect the interests of the party who would be advantaged by the term; and
  • it would cause detriment to a party if the term is relied on.

The Government is also considering further protections for small businesses. Earlier this year, the Parliamentary Joint Committee on Corporations and Financial Services conducted an inquiry into the impairment of customer loans. One of the recommendations made as a result of the inquiry was to extend responsible lending obligations and ASIC’s monitoring ability under the National Consumer Credit Protection Act to small business loans. In response to the recommendations, in August the Government directed the Australian Small Business and Family Enterprise Ombudsman to undertake an inquiry into small business lending practices and identify if further reforms are required. The Government is due to receive the final report in November.

Orchard Platform Launches Data Partner Program for Loan Originators, (Email), Rated: AAA

Orchard Platform, today announced the launch of the Orchard Data Partner Program, which includes loan data from a range of leading online lenders. The Orchard Data Partner Program is part of the Orchard for Originators product suite. The suite provides unbiased third-party validation of the internal consistency and quality of an originator’s data. Through the Orchard Data Partner Program, qualifying originators will gain the ability to analyze and compare their loan performance to that of their peers (on an aggregated and anonymized basis), and share their data in a consistent and transparent manner with new and existing capital providers.

The Orchard Data Partner Program establishes a framework for loan originators to share their origination and performance data within the Orchard ecosystem in exchange for detailed asset class analytics. By securely submitting loan and payment data to Orchard — and having Orchard standardize the data — originators have access to a number of unique product offerings, including Education & Insights, Data Integrity, and Reporting & Analytics.  Originators also have access to a centralized data storage facility, which can be opened to current and prospective whole loan buyers and other parties during the due diligence process.  Institutional investors seeking to take a growing position in this market have a desire to utilize this information in a transparent and user-friendly way, and the Orchard Data Partner Program provides originators with a scalable solution that helps investors assess such opportunities.

The Orchard Data Partner Program currently tracks over $33B in loan originations.

Amazon-Wells Fargo Student-Loan Plan Ran Into Political Obstacles, (Wall Street Journal), Rated: AAA

Amazon.com Inc. teamed up with Wells Fargo & Co. in July to promote private student loans as a benefit to members of one of its services. Instead, it walked into a political firestorm.

The Wells Fargo-Amazon partnership was meant to offer interest-rate discounts on private student loans to qualified members of Amazon’s “Prime Student” service.

Ticas called the partnership “a cynical attempt to dupe current students who are eligible for federal student loans with a record low 3.76% fixed interest rate into taking out costly private loans with interest rates currently as high as 13.74%.”

After publicly slamming the Amazon-Wells Fargo Deal, Ticas took its complaints to Capitol Hill, contacting senators such as Elizabeth Warren, Sherrod Brown, Dick Durbin andPatty Murray, who is from Amazon’s home state of Washington, according to a person familiar with the matter.

In early August, Sen. Brown’s office contacted the Consumer Financial Protection Bureau, which has been critical of private student lending, and bank regulator the Office of the Comptroller of the Currency. The senator’s office raised concerns pertaining to potentially deceptive marketing practices in the deal, according to a spokeswoman for the Ohio Democrat.

In particular, the senator’s office questioned marketing of the rate discount, expressing concerns about whether it disclosed that the underlying rate may be much higher than the cost of loans under federal programs, or that the discount was subject to change or cancellation, said the spokeswoman.

By the end of the month, Amazon and Wells Fargo scrapped their arrangement, which had been more than a year in the making.

A spokesman for the CFPB declined to comment on whether the agency contacted the companies after receiving Sen. Brown’s concerns.

The CFPB has been a vocal critic of private student loans since it launched in 2011 for what it has described as the industry’s high default rates.

Wells Fargo is the second-largest private student lender after Sallie Mae and is one of the few large banks that has remained a big player in the sector. It has about $12.5 billion in outstanding private student loan balances.

Now Companies Are Getting Paid to Borrow, (The Wall Street Journal), Rated: A

German consumer-products company Henkel AG and French drugmaker Sanofi SA each sold no-interest bonds at a premium to their face value Tuesday. That means investors are paying more for the bonds than they will get back when the bonds mature in the next few years.

“We’re trying to get our heads around it,” Edward Farley, head of European corporate bonds at PGIM Fixed Income, said of Tuesday’s deals. “It seems pretty bizarre to ask a corporate to look after your money and give you back less in two to three years’ time.”

Roughly €706 billion of eurozone investment-grade corporate bonds traded at negative yields as of Sept. 5, or over 30% of the entire market, according to trading platform Tradeweb, up from roughly 5% of the market in early January.

Tuesday’s deals, however, are among just a handful of corporate offerings that have actually been sold at negative yields. They include offerings of euro-denominated bonds earlier this year by units of British oil giant BPPLC and German auto maker BMW AG, according to Dealogic. Germany’s state rail operator, Deutsche Bahn AG, also has issued euro-denominated bonds at negative yields.

Funding Circle ‘basically halved’ US lending volumes at the start of the year, (Business Insider), Rated: A

Marketplace lender Funding Circle halved its lending volume in the US at this start of the year after spotting underperforming loans in an earlier batch of loans, according to the fintech company’s chief risk officer.

Since publication, Funding Circle has provided the following quote from Sam Hodges, cofounder and US Managing Director of Funding Circle US: “The Q1 2015 portfolio represents approximately 10% of total lending in 2015. The overall portfolio for 2015 has delivered 8% per annum for the whole loan marketplace.”

Jerome Le Luel, who joined the company from Barclays last October, made the disclosure during a press conference at Funding Circle’s London headquarters on Thursday, citing it as an example of the company’s pro-active approach to managing risk and making sure investors who lend money on the platform are properly protected.

Le Luel told journalists: “Last year, when I came in, we looked at the vintages we’d just created and although 2014 was looking fine, the first quarter 2015 vintage for some reason was going off track. Significantly off track. 50%. It was earlier on, 6 months along.”

Le Luel said lending volumes in the UK, by far Funding Circle’s biggest market, have been unaffected and the company is still growing at around 100% year-on-year.

UK-listed VPC Specialty Lending Investments, which invests in peer-to-peer loans, said in a letter to investors last month that it stopped purchasing Funding Circle US loans late in 2015 after its portfolio “continued to substantially underperform our expectations.”

Funding Circle has lent over $2.6 billion globally over its platform. The company has operations in Germany, Spain, and the Netherlands, as well as the UK and US. The company has raised over $270 million from investors including BlackRock, Singapore investment giant Temasek, Scottish investment company Baille Gifford, and a fund owned by billionaire Russian internet entrepreneur Yuri Milner.

Moody’s Expects Residential Mortgage Backed Securities from Marketplace Lenders, (Crowdfunding Insider), Rated: A

Foreshadowing the inevitability for all forms of finance moving online, Moody’s has published a report stating the Residential Mortgage-Backed Securities (RMBS) will soon be issued by marketplace lending platforms. They also believe that current regulatory and securitization frameworks will reduce additional risk with RMBS issued by marketplace lending platform.

Balancing out this opinion, Moody’s says there is a difference between consumer lending and mortgage loans. The existing laws will demand a higher degree of compliance compelling new online entrants to “make significant capital and knowledge investment.” These standards will help maintain online lending quality in the RMBS space.

The Moody’s report is available here.

Escaping The Squeeze: 3 Forces Challenging Mid-Sized Banks And Credit Unions, (The Financial Brand), Rated: A

Squeeze #1: Fintech Startups Carving Out the Convenience Position

Fintech startups are establishing the bar for convenience. Pundits like to say that firms like Uber and Amazon are the ones setting expectations, but I really believe that consumers’ points of references are those within an industry, not across industry lines.

Are these startups making bad lending decisions? Consumers don’t care. All they see is that the process takes a tenth of the time and effort that it does with traditional financial institutions.

Squeeze #2: Merchants are Attacking Traditional Payments Deposits

What’s important, here, is that this represents the new behavior in how consumers manage their money. Paychecks get deposited in a bank account, then some portion of it quickly gets moved to loyalty and closed loop prepaid cards.

Squeeze #3: Megabanks are Winning the Millennial Market

Escaping the Squeeze

Reinvent marketing. A good rule of thumb in banking is that financial institutions spend about one-tenth of one percent of assets on marketing. That means the typical megabank has a marketing budget of $1.3 billion. Do you really think you can out-market that kind of spending? You can’t. You have to use other tactics.

Own the financial health position. Millenials will be moving to the life stage that puts a premium on convenience and into a stage where advice and guidance become more important.

Mobile banking now only trails online banking as consumers’ preferred method, (Mobile Payments Today), Rated: A

This year’s results show a marked increase in mobile banking popularity compared with the association’s 2014 findings, which showed mobile in fourth place. Branch banking and ATMs rounded out the top four spots.

However, when considering the latest results, it is important to note that the new survey was conducted online, while previous years’ surveys were conducted over the phone. This makes a reliable comparison impossible, according to an ABA press release.

Blackmoon: Marketplace Lending Platform of the Future, (Tech.co), Rated: A

Valued at more than $850 billion, this market is still not being fully explored by European alternative finance, which is lagging way behind the United States and the United Kingdom.

Wanting to swim against these tides is Blackmoon, a technological platform that enables institutional investors to directly invest in newly-originated loans issued by balance sheet lenders in a marketplace fashion. This MPLaaS (Marketplace Lending as a Service) has offices in Russia and Cyprus, having recently launched their newest office in the United States.

Investors have been quite successful when using this platform: in the last year, they averaged returns were bigger than 15 percent, and the cumulative turnaround exceeded $13 million. Blackmoon wants to reach $1 billion in cumulative turnaround until the end of 2017, to which the company’s US expansion shall provide a decisive contribute.

CreditEase’s Online Inclusive Finance Becomes Harvard Business School Case Study, (PR Newswire), Rated: A

This is the second time a CreditEase story has been published in Harvard’s case databank since 2014. This makes CreditEase the first ever ChineseFinTech firm to be published twice.

In 2014, Lena G. Goldberg, a professor at HBS, put together CreditEase’s seven-year journey from 2006-2013 into a business case. Subsequently, Tang Ning, the Founder, and CEO of CreditEase, was invited a number of times to Harvard to share his stories in financial innovation.

In January 2016, Professor Michael Chu visited Beijing for field research and conducted in-depth interviews with Tang and his management team.

CreditEase is a leading FinTech company in China. Its majority-owned subsidiary Yirendai (NYSE: YRD), an online consumer finance marketplace, is listed on the New York Stock Exchange.

Takeaway from Finovate and Next Money: Ditch the Humans, (American Banker), Rated: A

The Rise of ‘Regtech’

Technology intended to help companies stay compliant is having its moment.

SME Lending

Marketplace lending might still be trying to figure out its future as an industry, but it succeeded in pushing banks to reconsider how they approach lending.

That’s particularly true in small-business lending, an area that remains one of the more manual (and paper-intensive) areas of the industry.

“If we add a human into banking, we don’t just slow it down to human speed, humans create friction,” King said. “Humans only ever add friction.”

The Impact of Micro-Investing Technology that No One is Talking About, (Dara Albright), Rated: A

Micro-investing technology, coupled with new crowd financing structures made possible by the JOBS Act, enables a small business to cost-effectively and compliantly build a large, impassioned and well-diversified investor base.

Despite the SEC’s implementation of all key components of the JOBS Act, there are many issuers still reluctant to employ these “crowd finance” exemptions. Some express concern that an expansive cap table is too difficult to manage. Others fear that too many small retail investors on the cap table will be an obstacle to obtaining future venture capital financing. Other issuers mistakenly believe that it is easier and less cumbersome to raise capital from a small band of large investors than it is to pool tiny increments from a massive crowd.

Due to advancements in micro-investing technology, many of these apprehensions are unfounded.

Where the 27 Fintech Unicorns Got Their Start, (Equities), Rated: A

United Kingdom

Ex-Lloyds CEO Joins Board of P2P Lender, (Bloomberg), Rated: A

Eric Daniels, the former chief executive officer of Lloyds Banking Group Plc during the 2008 global financial crash, has joined the board of British peer-to-peer lender, Funding Circle Ltd.

The six-year-old lender catering to small businesses is increasingly turning to traditional bankers as it expands into the U.S., Germany, Spain, and the Netherlands. The company, which has arranged $2.5 billion in loans, is also girding for the economic impact of the U.K.’s decision to quit the European Union.

In July, Funding Circle hired Jeremy Bennett, the architect of the U.K.’s toxic-asset insurance program following the crash and a former chief of Nomura Holdings Inc.’s European division, as its chief financial officer. Jerome Le Luel, the onetime chief risk officer at Barclays Plc’s credit-card unit, joined the London-based startup last October to oversee risk management.

He said he will serve on Funding Circle’s risk and audit committees. Daniels will work closely with another one-time bank chief who’s jumped into online lending: Bob Steel, the former CEO of Wachovia Corp. who sold that bank to Wells Fargo & Co. during the crisis. Steel joined Funding Circle’s board in 2014.

Hargreaves Lansdown delays P2P launch until 2017, (Bridging and Commercial), Rated: A

Hargreaves Lansdown has revealed that it expects to launch its peer-to-peer lending operation in 2017.

Hargreaves Lansdown also reported that it had capitalized £1.1m of staff costs relating to the development of the cash deposit and peer-to-peer platforms.

The firm has been helping clients choose and manage investments since 1981 and its latest results showed that profit before tax had increased by 10% on last year.

Fintech: Opportunities For All? – Remarks Given By Victoria Cleland, Chief Cashier, Bank Of England – Given At The 2nd International Workshop P2P Financial Systems 2016, (MondoVisione), Rated:AAA

Complete speech can be found here.

 

Since 2010, more than $50bn has been invested in almost 2,500 FinTech companies. In 2015 alone, the UK alternative finance sector grew by 84%. 5 Over 24 countries are currently investing in DLT with $1.4bn in investments over the past three years. Over 90 central banks are engaged in DLT discussions worldwide and more than 90 corporations have joined blockchain consortia. 80% of banks are predicted to initiate DLT projects by 2017.6

In his recent speech “Enabling the FinTech transformation: Revolution, Restoration, or Reformation?” 7 the Bank of England Governor Mark Carney, set out the ways the Bank is enabling the FinTech transformation:

 widening access to central bank money to non-bank Payment Services Providers;

 being open to providing access to central bank money to new forms of wholesale securities settlement;

 exploring the use of DLT in our core activities;

 partnering with FinTech companies on projects of relevance to our mission;

 calibrating our regulatory approach to FinTech developments.

European Union

French Crowdlending Platform Unilend Receives a €2.5 million Investment from NewAlpha’s FinTech fund, (Crowdfund Insider), Rated: A

Unilend, a pioneer in SME crowdlending in France, announced on September 7 that it has received a €2,5 million investment from NewAlpha Asset Management (NewAlpha).

This is the third investment coming from the venture capital fund dedicated to FinTech and Assurtech that NewAlpha launched in November 2015. Investors in the fund, such as Crédit Mutuel Nord Europe, find in NewAlpha a leading innovation scout and incubator who proactively monitors usage innovation and technology change in areas of finance including banking, insurance, and asset management. NewAlpha has concluded more than 60 strategic partnerships and invested over one billion euros in French and international FinTech and Assurtech firms.

Founded in 2013, Unilend leads retail crowdlending in France with a strong community of 10,600 lenders. It was the first French crowdlender to pass the €20 million mark of funds raised in July this year. The platform is now looking to conquering a larger share of the €90 billion of French SMEs’ financing needs.

Bondora reaches new record-high loan origination of €2.8 mln in Aug 2016, (SMN Weekly), Rated:A

In August, grade C-E loan originations in Estonia took the highest share of 32%. In Finland, 13% of all loans were grade D-F, and in Spain, new originations were primarily in the higher interest grades of E, F, and HR. Overall, interest rates were highest in Spain, followed by Estonia and Finland.

Bondora is a leading Estonia-based P2P lending platform. The platform has facilitated the disburse of more than €66 million. The average Bondora loan is €2,370, but loans range from €500 to €10,000. Bondora also operates a secondary market for P2P loans where investors can buy and sell their existing investments.

Bondora is authorized by the Securities and Exchange Commission (SEC) in the US, the Financial Supervision Authority (FSA) in Estonia, and the Regional State Administrative Agency (RSAA) in Finland.

Kroll Bond Rating Agency (KBRA) is pleased to announce that Ira Powell has been appointed as Chief of Staff and that Mauricio Noé has been hired to build our presence in the European markets, (Email , Kroll Bond Rating Agency), Rated: A

Kroll Bond Rating Agency (KBRA) is pleased to announce that Ira Powell has been appointed as Chief of Staff and that Mauricio Noé has been hired to build our presence in the European markets. In Ira’s new position, he will be taking on a broader management and operating role and will continue to report to Jim Nadler, President and Chief Operating Officer at KBRA. Powell joined KBRA as Chief Credit Officer in early 2015 and has been an integral part of KBRA’s recent success and growth. After receiving his J.D. from Harvard Law School, Ira worked in various positions across Structured Finance before most recently spending 15 years in Goldman Sachs’ investment banking division.

In addition, KBRA has hired 20-year ex- Freshfields, ABN AMRO, and Deutsche Bank veteran Noé to lead its European business. KBRA is in the process of establishing a presence in Europe and expects to be a full service and locally staffed regulated rating agency in the near future. We have been certified by ESMA since March 2013 in accordance with Regulation (EC) No 1060/2009 and are currently establishing a regulated European subsidiary. In the meantime, we continue to conduct a significant amount of business in Europe, predominantly for European clients issuing securities into the US market notably in the Private Placement, Project Finance, and Aircraft space.

Author:

George Popescu