- Today’s main news: Affirm debuts shopping app. Zopa profits tick upward. RateSetter recovering from loan scandal. PPDAI stock rises 7% with lift in institutional-funded loans. Oportun ends Nasdaq debut with 8% gain. Australia: RBA cuts interest rates, online lenders follow.
- Today’s main analysis: The Future of Finance: Marcus, Neobank, and fintech. (A MUST-READ)
- Today’s thought-provoking articles: Peter Renton’s quarterly marketplace lending results. Loans for sneakers. Lessons learned from LendIt Fintech Europe. What’s happening in fintech worldwide.
- Affirm debuts new app for shoppers. The app allows consumers to shop and check out with “virtually any retailer.” This Business Insider article highlights Affirm’s need to step up its game in order to compete with Amazon, 66 percent of whose customers begin their search for new product at Amazon. Affirm will have to offer better deals for consumers and make it easy to purchase things. With Affirm’s relationship with Walmart, that shouldn’t be too much of a challenge. However, it will be a challenge.
- Affirm app allows for bill splitting.
- Interview with Max Levchin, founder and CEO of Affirm.
- OnDeck survey indicates small businesses are concerned about economy. Old news, still interesting.
- Marcus, jobs, the economy, housing prices, and Oportun. From PeerIQ, well worth the read.
- Peter Renton’s quarterly MPL results. For Q2 2019. Always interesting to read how Renton’s investments have been doing. With lots of charts.
- The rose of “loans for sneakers” as a business. The focus is on Afterpay, an Affirm competitor, but this is a good read because it tackles POS lending from a consumer’s perspective. Insightful and interesting.
- What happened to Borro?
- Auto, home equity are soft spots in consumer lending.
- Maker offers multi-collateral DAI lending.
- A $40 billion pile of leveraged loans battered by huge losses.
- CFPB ruling shorts debt collectors.
- The SEC is hiring a data chief.
- Voyager selects Celsius Network for asset management.
- Zopa’s profits tick upward.
- Zopa says 9 out of 10 shoppers are confused by car finance options.
- RateSetter recovering from loan scandal.
- Wonga customers average 118 GBP payout.
- Savvy secures 20 million GBP funding facility.
- Interview with founder of Blend Network.
- Crowdfunding options for startups explained.
- Lessons learned from LendIt Fintech Europe.
- Linked Finance launches ‘Beyond Brexit’ business loans.
- ID Finance to double revenues within two years.
- Binance launches next phase of crypto lending program.
- What’s happening in the fintech revolution worldwide. A great read with interesting charts.
- Marcus, Neobank, and fintech developments. This is today’s must-read. Very detailed with lots of charts, but the focus is mostly on digital banking. Still, a very good read.
- Blockchain: The future of finance.
- China: PPDAI stock soars 7% on institutional-funding lending increase.
- Australia: RBA cuts rates. Online lenders do too.
- Australia: loans.com.au cuts rates.
- Bahrain: Beehive funds first SME.
- Malaysia: The risks and rewards of SPV 2030.
- Australia: OnDeck appoints national broker chief.
- Canada: BFS Capital opens data science and engineering hub in Toronto.
- United States
- OnDeck Survey: Economy is Top Concern for Small Businesses Ahead of 2020 Election (New Kerala), Rated: AAA
- Affirm debuted a new app encouraging customers to start their shopping journeys with it (Business Insider), Rated: AAA
- Affirm ships new shopping and bill splitting app (Finextra), Rated: A
- Max Levchin On The Future-Present Of Everywhere POS Lending (PYMNTS), Rated: A
- Latest Macro; latest from Marcus; Oportun goes IPO (PeerIQ), Rated: AAA
- My Quarterly Marketplace Lending Results – Q2 2019 (Lend Academy), Rated: AAA
- The Maybe-Dubious Rise of the Loans-for-Sneaker Business (GQ), Rated: AAA
- What Happened to Borro? (deBanked), Rated: A
- Auto, home equity are soft spots in consumer lending (American Banker), Rated: A
- Finally! Maker Offers Multi-Collateral DAI Lending (Cryptovest), Rated: A
- A $ 40 Billion Pile of Leveraged Loans Is Battered by Big Losses (Bloomberg), Rated: A
- Ruling cuts short debt collectors’ victory lap over CFPB proposal (American Banker), Rated: B
- The SEC is hiring a chief data officer (Business Insider), Rated: B
- Voyager Selects Celsius Network to Manage Certain Assets (AP News), Rated: B
- United Kingdom
- Zopa’s P2P profits tick up but group losses widen due to heavy investment in bank (P2P Finance News), Rated: AAA
- Zopa: nine in 10 shoppers confused by car finance options (Verdict), Rated: A
- Ratesetter recovering from loan scandal (The Times), Rated: AAA
- Wonga customers’ average compensation payout may be just £118 (The Guardian), Rated: A
- Payday loan alternative Savvy secures £20 million funding facility (Finextra), Rated: A
- MEET THE FRENCHMAN WHO WANTS TO SOLVE THE UK’S HOUSING CRISIS (Business Leader), Rated: A
- Crowdfunding a start up options explained for businesses and investors (What Investment), Rated: A
- Landlords wary of tax changes (Money International), Rated: A
- PPDAI Stock Soars 7% on Increase in Institutionally-Funded Loans (Capital Watch), Rated: AAA
- European Union
- What we learned at this year’s LendIt Fintech Europe (Business Insider), Rated: AAA
- Linked Finance launches ‘Beyond Brexit’ business loans (Bridging and Commercial), Rated: A
- ID on track to double revenues as it eyes €300m+ of revenue within 2 years (Fintech Finance), Rated: A
- Binance Launches New Lending Program Phase (CoinCodex), Rated: A
- A Guide to What’s Happening in the Fintech Revolution (Bloomberg), Rated: AAA
- Goldman’s $ 1.3B Marcus burn, Neobank £200MM loss; plus 14 short takes on top developments (Lex), Rated: AAA
- Blockchain: the future of finance (Financier Worldwide), Rated: A
- Hot home loan rates starting with a 2 (mozo), Rated: AAA
- loans.com.au jumps on October RBA home loan rate cut party (mozo), Rated: AAA
- OnDeck appoints Robbie Fidler as new national broker chief (IT Wire), Rated: B
- SPV 2030: Sharing of risks and reward (The Malaysian Reserve), Rated: A
- Beehive funds first SME in Bahrain (Arabian Business), Rated: AAA
- BFS Capital Opens New Data Science and Engineering Hub in Toronto (Financial Post), Rated: B
OnDeck Survey: Economy is Top Concern for Small Businesses Ahead of 2020 Election (New Kerala), Rated: AAA
OnDeck today announced the results of a national survey of U.S. small business owners that finds economic issues are the most important factors in determining their choice for president in 2020.
- Economic concerns arise in several dimensions, including tax policy, job growth, support for small businesses, government spending and the overall economic climate. These issues were cited as the top concerns of more than 33% of those surveyed;
- Immigration was an issue of interest for 11.3% of small business owners surveyed, ranking second behind the economy as a concern.
- 57% of small businesses surveyed said they were either Very Optimistic or Somewhat Optimistic about the economic outlook for their businesses;
- 93% of those surveyed said they plan to vote in the 2020 election.
- 60% of small business owners surveyed said they already know who they plan to vote for in the 2020 presidential election.
Affirm debuted a new app encouraging customers to start their shopping journeys with it (Business Insider), Rated: AAA
The point-of-sale (POS) financing provider
Affirm ships new shopping and bill splitting app (Finextra), Rated: A
Affirm’s app also allows consumers to pay at any brick-and-mortar store that accepts Apple Pay or Google Pay, which is increasingly important as 24% of consumers want the flexibility to look online and shop in-store.
Those with Apple Pay or Google Pay enabled have also seen up to 14% of transactions driven in-store, making the Affirm app a rare omnichannel solution for customer acquisition.
Max Levchin On The Future-Present Of Everywhere POS Lending (PYMNTS), Rated: A
Since Affirm’s launch, the landscape in the POS space is radically different than it was when Affirm entered. It is, first and foremost, a much bigger and more populated space than it once was. Other startups have come to the field — Afterpay, Uplift and Sezzle for example — but also bigger and more established names in financial services. In the last 12 months alone Square, Mastercard, PayPal and Chase have all rolled out POS installment lending products or enhancements as the market continues to pick up popularity among consumers, particularly younger ones.
Latest Macro; latest from Marcus; Oportun goes IPO (PeerIQ), Rated: AAA
Q4 is off to a brisk start. The jobs report released this past Friday shows 114K in net new jobs (vs expectations of 120K), generally flat wages, and a drop in the unemployment rate to 3.5%.
On the one hand, the US economy is near ‘stall speed’ – around 1 to 1.5% growth rate.
House prices are expected to rise 5.8% over the next year due to low mortgage rates.
Two major financing announcements this week. FinTech lender, Oportun, led by CEO Raul Vazquez, ends its Nasdaq debut with an 8% gain. The debut is notable as it represents a positive shift in the sentiment to the reception of lenders to the IPO market.
My Quarterly Marketplace Lending Results – Q2 2019 (Lend Academy), Rated: AAA
The upward trend in my returns continued in Q2, making it the fifth quarter in a row with increasing returns. My preliminary return for the 12 months ending June 30, 2019 is 6.20% (one investment is still not final), the best I have achieved since Q3 2017.
The Maybe-Dubious Rise of the Loans-for-Sneaker Business (GQ), Rated: AAA
Afterpay is one of a number of platforms that have sprouted up over the past couple years that are willing to float customers a couple hundred or thousand dollars to shop. In addition to it, there are Affirm, Sezzle, Klarna, and Quadpay. They are positioned as a more consumer-friendly option than credit cards, a whole host of services bent on—because this is 2019—disrupting the powers that be.
Globally, Afterpay, which launched in Australia, has over 4.6 million customers and 35,000 retail partners. In the U.S., where Afterpay only launched in May of last year, it has two million customers and is available at 6,500 retailers. Over three million people use Affirm, while another 500,000 have shopped with Sezzle.
Silicon Valley promises aside, Afterpay is, at best, a platform that allows you to take out what amounts to a small loan on an item. After an approval process—Afterpay does not check a credit score; others like Affirm do—the customer pays a fourth of the price upfront and the rest is paid off in three equal installments every two weeks.
Also new is the $1,500 limit, up from $500, that Afterpay raised after Hyde-McCormick proved himself a responsible shopper and the $87.50 payments currently due every two weeks.
What Happened to Borro? (deBanked), Rated: A
In 2013, Borro, an innovative online lending company that was poised to disrupt pawn shop lending forever, invited me to their stylish offices at 767 Third Avenue in Manhattan.
Borro made $50 million worth of such loans in 2013 and doubled that number in 2014.
Auto, home equity are soft spots in consumer lending (American Banker), Rated: A
In its quarterly report that tracks consumer delinquency trends, the American Bankers Association said that 30-day past-due rates ticked up in eight of 11 categories in the second quarter when compared with the first quarter, but stressed that delinquencies remain well below historic norms.
Finally! Maker Offers Multi-Collateral DAI Lending (Cryptovest), Rated: A
Maker DAO, the most active decentralized finance app on the Ethereum network, has announced a date for its long-awaited multi-collateral DAI generation. According to observers, November 18 may be the date MKR starts accepting other assets as collateral.
Multi-collateral DAI creation has the potential to be riskier in comparison to ETH-based models. Currently, Maker is deliberately over-collateralized at above 300%, with the minimum at 150%, due to the high volatility of crypto assets.
A $ 40 Billion Pile of Leveraged Loans Is Battered by Big Losses (Bloomberg), Rated: A
Loans tied to more than 50 companies have lost at least 10 percentage points of face value in just three months, according to data compiled by Bloomberg. Some have dropped a lot more, with lenders lucky to get back just two-thirds of their investment if they tried to sell.
Energy is the hardest-hit sector on the list, with more than $12 billion of loans falling more than 10 cents on the dollar. Consumer and health care follow, comprising around $8 billion and $5 billion of loans outstanding, respectively.
The SEC is hiring a chief data officer (Business Insider), Rated: B
The Securities and Exchange Commission is hiring its first chief data officer, according to a job posting for the role.
Voyager Selects Celsius Network to Manage Certain Assets (AP News), Rated: B
Voyager Digital, LLC, a subsidiary of publicly-traded Voyager Digital (Canada) Ltd (Ticker VYGR.CN), an industry-leading best execution crypto asset broker, today announced a partnership with Celsius Network, in which Celsius will manage a portion of Voyager’s digital assets.
Zopa’s P2P profits tick up but group losses widen due to heavy investment in bank (P2P Finance News), Rated: AAA
Zopa Group – which incorporates the P2P platform and upcoming digital bank – reported a pre-tax loss of £18.295m for the year ended 31 December 2018, compared to a pre-tax loss of £5.536m the previous year.
Zopa: nine in 10 shoppers confused by car finance options (Verdict), Rated: A
In a survey of 2,000 consumers, 47% of people who had recently bought a car with finance are unable to identify which type of finance deal they signed up for. Zopa estimates that the average car buyer could save up to £11,000 over the course of their lifetime by working out the best finance deal available.
Wonga customers’ average compensation payout may be just £118 (The Guardian), Rated: A
Customers who were mis-sold loans by the collapsed payday lender Wonga are expected to receive less than 10% of what they are owed in compensation after administrators revealed that only £41m will be put aside for claimants.
Payday loan alternative Savvy secures £20 million funding facility (Finextra), Rated: A
Stockport and Wilmslow based fintech company Savvy.co.uk is to create 25 jobs after securing a £20 million investment.
MEET THE FRENCHMAN WHO WANTS TO SOLVE THE UK’S HOUSING CRISIS (Business Leader), Rated: A
WHY DID YOU START BLEND NETWORK?
I started working in the financial industry as an FX trader before moving to trading gold and copper, both much more inefficient markets than FX. I realised that the UK property market was a hugely inefficient market in the sense that lenders and borrowers are not meeting. On the one hand, you have very experienced property developers across the country who are trying to access funds to build homes but traditional lenders are no longer active in providing development finance.
Instead, we lend in places such as Coventry, East Anglia, Doncaster, Northern Ireland. Northern Ireland is a very good example of our strategic approach to lending. Last year, we did around 80-85% of our business in Northern Ireland.
Crowdfunding a start up options explained for businesses and investors (What Investment), Rated: A
Crowdfunding a start up brings to mind the statement ‘Nothing worth having comes easy’, never truer than in the case of launching a start-up. Getting a new business off the ground will often require capital. Something which a lot of people don’t know how to go about getting.
- Reward based crowdfunding;
- Equity based crowdfunding;
- Debt based crowdfunding, and
- Donation based crowdfunding.
Landlords wary of tax changes (Money International), Rated: A
Half of the 200 landlords approached agreed tax changes and tougher mortgage borrowing criteria have thwarted their plans to buy more properties, while 15% admitted they had been put off buying homes to rent.
A third who still wanted to invest are considering a switch from buy to let to peer-to-peer lending secured against property, while 8% have already done so.
PPDAI Stock Soars 7% on Increase in Institutionally-Funded Loans (Capital Watch), Rated: AAA
The stock in PPDAI Group Inc (NYSE: PPDF) closed 7% higher on Wednesday, at $2.83 per American depositary share, after it announced a positive trend in funding of loans by its institutional partners and increased loan origination volume.
For the third quarter, the Shanghai-based company, which operates an online consumer finance marketplace, said in a statement on Wednesday that the volume of loans facilitated by its institutional funding partners jumped to $2.64 billion, up 91% from the second quarter. Total loan origination volume was above PPDAI’s guidance, it said, as it reached $3.51 billion, up 14% from the previous quarter.
What we learned at this year’s LendIt Fintech Europe (Business Insider), Rated: AAA
At the conference, Business Insider Intelligence identified four emerging themes that we expect to set the tone for the space for the next year: further proliferation of partnerships between banks and fintechs, increased focus on digital banks’ sustainability, accelerated innovation and disruption from small- and medium-sized business (SMB) lenders, and more challenges ahead for the UK’s P2P lenders.
- CYBG bank and price comparison site GoCompare recently partnered to offer an energy compare and switch service for all of CYBG’s B customers.
- Barclays bank partnered with SMB finance fintech MarketInvoice last year to give Barclays’ SMB clients access to MarkeInvoice’s solutions.
- French Banking-as-a-Service platform Treezor was acquired by Société Générale last year, as the bank looked to enhance its ability to innovate and decrease time to market.
Linked Finance launches ‘Beyond Brexit’ business loans (Bridging and Commercial), Rated: A
The new 18-month loan period will allow borrowers to access working capital facilities of up to €300,000 (approximately £265,194) in just 24 hours.
ID on track to double revenues as it eyes €300m+ of revenue within 2 years (Fintech Finance), Rated: A
ID Finance, the fintech operating in Europe and Latin America, saw revenue growth of over 100% in the first 9 months of 2019 and is on track to double its revenues to €90m revenue this year. The data science, credit scoring and digital finance company is now planning its first equity crowdfunding round via Crowdcube as it targets €300m+ of revenue within 2 years.
Binance Launches New Lending Program Phase (CoinCodex), Rated: A
The Binance cryptocurrency exchange has launched the latest phase of its relatively new lending program. For the program’s eighth installment, Binance is sticking with the model of short-term loans, as users only have to commit their crypto for 14 days.
A Guide to What’s Happening in the Fintech Revolution (Bloomberg), Rated: AAA
These underbanked markets, led by countries in Asia and Africa, have inspired fintech innovation that’s leapfrogging the technology available in the developed world. Ant Financial Services Group’s Alipay and Tencent Holdings’ WeChat Pay in China, Paytm in India, and Safaricom’s M-Pesa in Kenya are some well-known examples.
Take Facebook Inc.’s plan to launch a digital currency called Libra in 2020. The social network’s gigantic reach—more than 2.4 billion active monthly users—could draw a much wider audience to Libra than has used previous cryptocurrencies. For instance, global remittances by migrants reached a record $689 billion last year, according to the World Bank.
San Francisco-based 500 Startups staked 43 such companies in the 12 months ended June 30.
Goldman’s $ 1.3B Marcus burn, Neobank £200MM loss; plus 14 short takes on top developments (Lex), Rated: AAA
Goldman is losing $1.3 billion on Marcus, trying to build a Fintech leader. Etrade is going to lose $75 million from cutting trading fees to $0 to keep up with Robinhood. Revolut is losing £35 million on £60 million in revenue, with another £140 million burned by Atom, Monzo, Tandem, and the rest.
Generally speaking, from a deposit point of view, these are still all small businesses at £1 billion in assets (e.g., Betterment manages $20 billion).
The first is that the Robinhoods and Monzos of the world are 10x overpriced relative to the payments apps. I can sort of buy this — though money in motion is way easier to capture than money at rest. The second is that venture investors think a finance user is worth $1,500 in a digital bank.
Blockchain: the future of finance (Financier Worldwide), Rated: A
Recent examples of blockchain’s impact on financial markets go well beyond these initial applications or P2P lending or crowdfunding.
The first wave of applications in finance and banking is being driven by easily achievable gains in actively traded assets.
MasterCard incorporated a blockchain payment system providing vendors real time, lower cost settlements on cross-border transactions. Representing a consortium of more than 40 of the world’s largest banks, fintech firm R3 launched a payment system built on DLT platform Corda, to expedite intra-bank transfers.
St. Regis Aspen, a Colorado resort, is a partnership formed with a crowdfunding site, Indiegogo, that in lieu of a traditional IPO completed a private placement via DLT financing real estate. This sale of ‘tokens’ – fractional interests in the underlying property – raised $18m, compliant with securities laws.
Hot home loan rates starting with a 2 (mozo), Rated: AAA
The RBA has cut official interest rates for the third time this year, and already a handful of lenders have responded by slashing rates across their range of variable rate home loans. Right now, if your home loan doesn’t have a ‘2’ in front of it, you’re missing out.
OnDeck appoints Robbie Fidler as new national broker chief (IT Wire), Rated: B
Online SME lender OnDeck Australia has appointed experienced commercial lending operator Robbie Fidler as its national broker channel manager.
SPV 2030: Sharing of risks and reward (The Malaysian Reserve), Rated: A
BFS Capital Opens New Data Science and Engineering Hub in Toronto (Financial Post), Rated: B
BFS Capital, a leader in small business lending, has officially launched a data science and engineering hub in Toronto as the company accelerates its plans to develop best-in-class digital financial products for small businesses across the globe.
News Comments Today’s main news: SoFi to roll out crypto trading with Coinbase. Walmart now offers Affirm loans. Funding Circle fund ups the ante on buyback strategy. Orca launches IFISA. LendDenClub cross 1 million borrowers, lenders milestone. Today’s main analysis: 2019 securitization update. How marketplace lending is a growing and dynamic global market. (A MUST-READ) Today’s thought-provoking articles: The 2009 […]
- Today’s main news: SoFi to roll out crypto trading with Coinbase. Walmart now offers Affirm loans. Funding Circle fund ups the ante on buyback strategy. Orca launches IFISA. LendDenClub cross 1 million borrowers, lenders milestone.
- Today’s main analysis: 2019 securitization update. How marketplace lending is a growing and dynamic global market. (A MUST-READ)
- Today’s thought-provoking articles: The 2009 housing market compared to today. Personal loan interest rates for February 2019. Why Midwest BankCentre created a separate digital-only bank. Some bankers are worse off than in 2009. Dragon Victory International analysis.
- SoFi to offer crypto trading through Coinbase partnership. This is the most interesting news story of the week. The largest cryptocurrency exchange partnering with one of the largest marketplace lenders to offer cryptocurrency trading will be a huge feather in the cap for both companies.
- Walmart now offers Affirm loans. We saw this one coming. In fact, I wonder why it took so long. Affirm snagging Walmart as a customer will catapult it to PayPal status fast.
- More on Affirm’s, Walmart’s partnership.
- Affirm CEO breaks it down.
- 2019 securitization update, Square charter status. Square is finally seeing some opposition to its banking aspirations. Excellent analysis from PeerIQ.
- The housing market of 2009 compared to today. A LendingTree analysis showing the markets where median home values have increased the most and the least. California is hot. The Mid-Atlantic and Eastern states are not.
- Personal loan interest rates for February 2019. A great breakdown from Nerdwallet.
- Why a small bank launched a separate digital-only branch. I think we’re going to see more of this. As more consumers demand digital banking, and Millennials are all over it, more brick-and-mortar banks will see the opportunity to launch digital-only branches as separate entities. It’s actually a smart move.
- SoFi to offer zero-fee ETFs.
- FTC orders SoFi to stop misleading consumers.
- Figure raises $65 million.
- Gen Xers have the largest auto loan burden.
- Elevate Credit posts earnings results.
- Elevate’s CIO wins award.
- Hunt Real Estate Capital buys RealtyMogul’s loan underwriting program.
- Kabbage says it’s prepared for the coming recession.
- Kabbage named one of the top workplaces among midsize companies in Atlanta.
- CrowdStreet has new self-directed IRA offering.
- Liquid P2P, Interest Radar partner.
- Direct Lending Investments suspends investor withdrawals.
- HSBC partners with Neptune Financial.
- Venmo debuts rainbow-colored card.
- Mastercard says digital identities will be very important in a few years.
- Credit Karma wants to be known for more than free credit scores.
- Brex launches credit card for e-commerce.
- YieldStreet raises $62 million.
- Guaranteed Rate listed as top loan originator.
- Americans focus on debt management more than retirement savings.
- Banking regulator challenging New York on fintech charters.
- Blockchain can be used for P2P lending.
- LoanStreet makes new hires.
- White Oak Business Capital hires new head of markets.
- Funding Circle fund adds firepower for buyback strategy.
- Orca Innovative Finance ISA launches.
- Experian backs off ClearScore merger.
- NatWest launches account aggregation.
- Open Banking could boom in 2019.
- Wonga reaches from beyond the grave.
- What you need to know about crowdfunding developments.
- Aave launches bill pay platform for crypto.
- Some bankers are worse off than in 2009. A look at global IPOs.
- Report on how marketplace lending is still a growing and dynamic market. A must-read from DBRS.
- Enova expands worldwide credit access.
- Blossom Capital gets $85 million from Robinhood, Funding Circle investors.
- How lending can earn your Bitcoin online. I’d like to see a service where small lenders can lend fiat and earn Bitcoin.
- India: LenDenClub crosses 1 million borrower, lender milestone. Congratulations! Excellent achievement.
- Mexico: PayPal to expand small business loans into country with new partnership. PayPal has begun its slow expansion internationally. Could it someday be a global powerhouse?
- China: Analysis of Dragon Victory International. A very interesting look from Seeking Alpha.
- Latin America: ID Finance Latam revenues climb 403%.
- India: Why startups, investors see big potential in lending.
- Ireland: Grid Finance suspends investments below 100,000 euro.
- Brazil: N26 expands into Brazil.
- China: Is the Chinese P2P lending boom over?
- Singapore: Fintech investments rose to $365 million USD in 2018.
- India: UDS ban will benefit P2P lending.
- Australia: How should accountants talk about fintechs?
- Singapore: Validus Capital raises $15 million for SME financing.
- China: BHB raises $20 million using fake bios of founding team.
- Africa: Fintechs inspire with mobile technology.
- China: Futu Securities downsizes U.S. IPO.
- United States
- Fintech Startup SoFi to Roll Out Crypto Trading Via Partnership With Coinbase (CoinTelegraph), Rated: AAA
- Millennial online lender SoFi to offer zero-fee ETFs, an unexpected rival for index fund giants Vanguard, iShares (CNBC), Rated: A
- FTC orders SoFi to stop misleading consumers (MPA Mag), Rated: B
- Digital lender founded by ex-SoFi CEO raises $ 65M to fuel expansion (American Banker), Rated: A
- Walmart teams with Affirm to offer point-of-sale loans (American Banker), Rated: AAA
- Affirm’s latest partnership brings its alternative financing to Walmart’s US stores and website (TechCrunch), Rated: A
- Loan app Affirm CEO breaks down new Walmart partnership (CNBC), Rated: A
- ABS Vegas – 2019 Securitization Update; Square Charter Status (PeerIQ), Rated: AAA
- The Housing Market’s 10 Year Challenge — Comparing The Housing Market of 2009 to Today (LendingTree), Rated: AAA
- Gen Xers Carry the Biggest Auto Loan Burden; Study Finds (One World Herald), Rated: A
- Personal Loan Interest Rates for February 2019 (Nerdwallet), Rated: AAA
- Elevate Credit (ELVT) Posts Earnings Results, Meets Expectations (Fairfield Current), Rated: A
- Hunt Real Estate Capital buys RealtyMogul’s proprietary loan underwriting program (Housing Wire), Rated: A
- Elevate’s Joan Kuehl Named Dallas ORBIE CIO of the Year (The Progress), Rated: B
- A Recession Coming? Small Business Lending Platform Kabbage Says It’s Prepared (Forbes), Rated: A
- Here’s more on the AJC Top Workplaces midsize companies (AJC.com), Rated: B
- Diversifying a Self-Directed IRA Made Simple with New Offering from CrowdStreet (The Progress), Rated: A
- Liquid P2P and Interest Radar Announce Strategic Partnership (Liquid P2P), Rated: A
- Direct Lending Investments Suspends Investor Withdrawals (Lend Academy), Rated: A
- Fintech deal will provide access to midsize businesses in U.S. (American Banker), Rated: A
- Venmo debuted a limited-edition rainbow-colored card (Business Insider), Rated: A
- Why digital identities will be so important in the next few years, according to Mastercard’s vice chairman (CNBC), Rated: A
- Credit Karma’s Dana Marineau: ‘We want users to think of us as more than just free credit scores’ (Tearsheet), Rated: A
- Why this small bank created a separate, digital-first brand (American Banker), Rated: AAA
- The Future Is Plastic: Fintech Unicorn Brex Launches New Credit Card For E-Commerce Merchants (Forbes), Rated: A
- YieldStreet raises $ 62M to democratise alternative investments in shipping, real estate and more (TechCrunch), Rated: A
- Guaranteed Rate Leads Mortgage Executive Magazine’s List of Top Loan Originators in America (GlobeNewswire), Rated: A
- Americans Focus On Debt Management But Lose Focus On Retirement Savings (Forbes), Rated: A
- U.S. banking regulator fights NY lawsuit over fintech charters (Reuters), Rated: A
- Blockchain and data protection: the main concerns (JDSupra), Rated: A
- LoanStreet positions for growth with new hires (LoanStreet Email), Rated: B
- White Oak Business Capital Hires Carol Bader Apicella to Expand Northeast and Mid-Atlantic Markets (GlobeNewswire), Rated: B
- United Kingdom
- Funding Circle fund adds firepower for buyback strategy (AltFi), Rated: AAA
- Orca Innovative Finance ISA Launches, Enables Diversified P2P Investment (Crowdfund Insider), Rated: AAA
- Experian, ClearScore scrap merger plans (Reuters), Rated: A
- NatWest launches account aggregation as Open Banking takes hold (AltFi), Rated: A
- Will Open Banking boom in 2019? (AltFi), Rated: A
- Aave Launches Platform to Pay Bills Using Crypto (Finance Magnates), Rated: A
- Investing in crowdfunded development projects – what you need to know (Property Investor Today), Rated: A
- Failed Lender Reaching ‘From Beyond The Grave,’ MPs Warn (Law360), Rated: A
- Some Bankers Are Doing Even Worse Than in 2009 (The Washington Post), Rated: AAA
- Marketplace Lending – A Growing and Dynamic Global Market (DBRS Email), Rated: AAA
- Bank on it: How Enova’s software expands credit access worldwide (Built in Chicago), Rated: A
- Blossom Capital scores $ 85m from Robinhood and Funding Circle backers (AltFi), Rated: A
- Eight Simple Ways to Earn Bitcoin Online Legally (The Crypto Updates), Rated: B
- European Union
- Grid Finance suspends taking investments below € 100,000 (Irish Times), Rated: AAA
- Dragon Victory International: Exposure To The Chinese Crowdfunding Market At A Regulatory-Driven Discount (Seeking Alpha), Rated: AAA
- China Fintech Today: The P2P Boom Is Truly Over (SupChina), Rated: A
- A Crypto Project That Raised $ 20 Million Is Caught Faking Its Founding Team (CoinDesk), Rated: A
- Tencent-backed brokerage firm downsizes US IPO amid weak market demand (Technode), Rated: A
- How should accountants talk to clients about fintechs? (In the Black), Rated: A
- LenDenClub crosses 1,00,000 borrowers and lenders milestone (News Barons), Rated: AAA
- Why Do Fintech Startups and Investors See a Huge Potential in Lending? (Entrepreneur), Rated: AAA
- Banning of UDS to benefit P2P Lending Industry (Inventiva), Rated: A
- Singapore fintech investments rose two-fold to US$ 365m in 2018 (SBR.com.sg), Rated: AAA
- Validus Capital raises $ 15m for SME financing (Fintech Futures), Rated: A
- Latin America
- PayPal expands its small business loans initiative to Mexico (Leaprate), Rated: AAA
- ID Finance eyes ‘pivotal moment’ for Latam fintech as revenue in region climbs 403% (Fintech Finance), Rated: A
- Challenger bank N26 expands to Brazil (Fintech Futures), Rated: A
- How FinTech Companies Inspire Africa With Mobile Technology (PYMNTS), Rated: AAA
Fintech Startup SoFi to Roll Out Crypto Trading Via Partnership With Coinbase (CoinTelegraph), Rated: AAA
Fintech startup SoFi — known for its online lending services — is partnering with major United States-based crypto exchange Coinbase to roll out crypto trading support, according to a CNBC report Feb. 26.
Millennial online lender SoFi to offer zero-fee ETFs, an unexpected rival for index fund giants Vanguard, iShares (CNBC), Rated: A
The race to zero-fee exchange-traded funds has found an unlikely competitor: Online lending and personal finance platform SoFi, which has filed for two index ETFs that will waive management fees for the first year. In making the move to zero-fee ETFs, the online lender is crashing an ETF party dominated by Vanguard and BlackRock‘s iShares.
FTC orders SoFi to stop misleading consumers (MPA Mag), Rated: B
The Federal Trade Commission has ordered online lender SoFi to stop lying about how much borrowers can save by refinancing with the company.
Digital lender founded by ex-SoFi CEO raises $ 65M to fuel expansion (American Banker), Rated: A
The new company founded by Mike Cagney, the former embattled chief executive of Social Finance, plans to announce a $65 million funding round on Wednesday, bolstering firm’s expansion into other financial services, including wealth management.
With the new venture, Cagney is using some of the strategies from his tenure at SoFi — like diversification into areas typically only occupied by traditional banks. However, the new company, Figure, is focusing on different customers, and it’s taking steps to avoid scandals similar to the ones that saw Cagney step down from the SoFi helm.
Walmart teams with Affirm to offer point-of-sale loans (American Banker), Rated: AAA
Walmart will offer its customers point-of-sale loans for the first time — both on its website and in nearly 4,000 U.S. stores — under a partnership with the Silicon Valley lender Affirm.
Under the deal, Walmart shoppers will be able to get Affirm loans of three, six or 12 months to finance purchases ranging from $150 to $2,000. The loans are already being offered in Walmart stores, and they will be available to Walmart’s online shoppers in the coming weeks.
Affirm’s latest partnership brings its alternative financing to Walmart’s US stores and website (TechCrunch), Rated: A
The companies announced this morning that Affirm’s financing options would be made available in more than 4,000 Walmart Supercenters across the U.S., and will roll out to Walmart.com in the weeks ahead.
The offering will go live across Walmart Supercenters nationwide, except in Iowa, West Virginia and Puerto Rico, and will be soon available on Walmart.com.
Loan app Affirm CEO breaks down new Walmart partnership (CNBC), Rated: A
ABS Vegas – 2019 Securitization Update; Square Charter Status (PeerIQ), Rated: AAA
In regulatory news, Square’s ILC charter application has received opposition from 37 community groups. The groups are concerned about Square’s CRA activities and have asked the FDIC to bolster Square’s CRA requirements. Before this letter from community advocates, nearly all of the 15 letters the FDIC received were in favor of Square’s bid. Square is the furthest along the path to getting an ILC charter and its experience will determine whether other FinTechs follow its lead.
Structured Credit Investor magazine explores the challenges facing the maturing marketplace lending sector. Issuers need to distinguish between the borrower experience that they provide and manage liquidity. The article also makes the point that the sector is ripe for consolidation, although we haven’t seen any M&A yet.
2019 Securitization Update
The first two months of 2019 saw 5 securitization deals totaling $1.7 Bn in new issuance. The issuance volume represents a 23% drop over that seen in the first two months of 2018, as the market recovers from the volatility in equity and credit markets seen at the end of 2018. Total securitization issuance now stands at $46.2 Bn, with 147 deals issued to date.
The Housing Market’s 10 Year Challenge — Comparing The Housing Market of 2009 to Today (LendingTree), Rated: AAA
When the real estate bubble burst in late 2008, many Americans saw their home values fall drastically, but a lot has changed in the 10 years since — housing prices have rebounded from their lows during the Great Recession. And though prices are now starting to cool, in many cases, home values have even exceeded their 2006 highs.
On average, median home values have increased by nearly $50,000 across the 50 largest metros in the United States since 2009.
Metros where housing prices have recovered the most since 2009
San Jose, Calif.
Median home value 2009: $638,300
Median home value 2017: $957,700
Median home value change: $319,400
Median unemployment rate change: -6.4%
Median household income change: $32,991
Median home value 2009: $591,600
Median home value 2017: $849,500
Median home value change: $257,900
Median unemployment rate change: -5.4%
Median household income change: $27,889
Median home value 2009: $463,600
Median home value 2017: $617,100
Median home value change: $153,500
Median unemployment rate change: -5.0%
Median household income change: $11,467
Gen Xers Carry the Biggest Auto Loan Burden; Study Finds (One World Herald), Rated: A
According to the loan comparison website, the median balance of Gen Xers who have auto loans is $18,741 is higher than other age groups. It is 9% more than baby boomers’ $17,185 median balance. This is higher than millennials’ $16,200 and 37 percent more than the lowest median balance of $13,666 held by Gen Z.
Personal Loan Interest Rates for February 2019 (Nerdwallet), Rated: AAA
Personal loan interest rates, whether you’re considering a loan from a bank, credit union or online lender, generally range from about 6% to 36%. The actual rate you receive depends on factors such as your credit score and history, annual income, existing debt and where you get the loan.
Online lenders offer the lowest starting interest rates on personal loans to borrowers with good to excellent credit.
LightStream and Marcus both require a minimum credit score of 660. LightStream accepts joint applications, and one applicant can have a credit score lower than its minimum. SoFi has a slightly higher credit score requirement and requires at least $45,000 in annual income.
Elevate Credit (ELVT) Posts Earnings Results, Meets Expectations (Fairfield Current), Rated: A
Elevate Credit (NYSE:ELVT) announced its quarterly earnings results on Monday, February 11th. The company reported $0.09 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.09, Bloomberg Earnings reports. The business had revenue of $207.29 million for the quarter, compared to the consensus estimate of $212.42 million. Elevate Credit had a return on equity of 15.72% and a net margin of 1.59%. Elevate Credit updated its FY 2019 guidance to $0.55-0.65 EPS.
Hunt Real Estate Capital buys RealtyMogul’s proprietary loan underwriting program (Housing Wire), Rated: A
Hunt Real Estate Capital, which offers financing for all types of commercial real estate, will soon have a new underwriting system to help it originate those loans, as the company is buying a proprietary loan underwriting system from RealtyMogul.
Elevate’s Joan Kuehl Named Dallas ORBIE CIO of the Year (The Progress), Rated: B
Elevate Credit, Inc. (“Elevate”) today announced that Executive Vice President and Chief Information Officer Joan Kuehl has been named the Large Enterprise CIO of the Year by the Dallas ORBIE CIO of the Year Awards. The award honors chief information officers who have demonstrated excellence in technology leadership.
If those predictions prove true, it will be the first major economic downturn for some of the nation’s leading fintechs. Born out of the ruins of the recession, these startups have enjoyed nearly a decade of success buoyed by strong economic growth, a bull run in the stock market and low unemployment.
Here’s more on the AJC Top Workplaces midsize companies (AJC.com), Rated: B
Kabbage has been named to the list for five consecutive years and this is its first year in the top five. The private financial technology company, founded in 2009, has 489 global employes and 367 at its U.S. headquarters in Atlanta. Flexibility at work and perks, such as a daily catered lunch and snacks, are among reasons employees appreciate working for Kabbage. Wellness benefits include fitness classes, health equipment onsite, biweekly meditation classes, CPR training, an annual flu shot clinic and sponsoring sports clubs. It also fully pays health benefits for individuals and provides annual bonuses and a 401(k) match. Through its sabbatical program, employees of five years can receive six weeks of paid time off and an additional $6,000. In 2018, Kabbage participated in the Atlanta PRIDE parade and also took a stand against gun violence after the mass shooting at Stoneman Douglas High School. Workers in 2019 will build a Habitat for Humanity home as part of its Kabbage Kares program, which also has supported PAWS Atlanta, Easter Seals and the Epilepsy Foundation.
Diversifying a Self-Directed IRA Made Simple with New Offering from CrowdStreet (The Progress), Rated: A
CrowdStreet, an online marketplace for direct equity investment in commercial real estate (CRE), today launched a streamlined, investor-friendly approach to investing qualified retirement account funds into commercial real estate offerings. This new option makes it easier than ever for individuals to access CRE investments with their self-directed IRAs (SDIRA), thus reducing their investment exposure to a volatile stock market and achieving more independence in managing their investments.
Liquid P2P and Interest Radar Announce Strategic Partnership (Liquid P2P), Rated: A
Liquid P2P and Interest Radar are pleased to announce that they have entered into a strategic partnership. The two third-party investing services for online peer-lending giant Lending Club will combine strengths under a single platform to deliver a more comprehensive automated tool with a patent-pending liquidity solution.
Direct Lending Investments Suspends Investor Withdrawals (Lend Academy), Rated: A
Earlier this month Brendan Ross, the CEO of Direct Lending Investments, Inc., sent a letter to investors notifying them that they have suspended withdrawals and redemptions effective February 8, 2019. Lend Academy was able to obtain a copy of this investor letter, dated February 11, that provides some color into what happened. The reason given was the delinquency of a large holding, VOIP Guardian, a telecom receivables factoring company.
Fintech deal will provide access to midsize businesses in U.S. (American Banker), Rated: A
Add HSBC to the list of banks partnering with commercial online lenders.
The bank on Tuesday announced a partnership with Neptune Financial, a San Francisco online lender that focuses on businesses with $10 million to $100 million in assets. The bank estimates that, with the access it will get to Neptune customers, the deal represents a $1.5 trillion opportunity.
Venmo debuted a limited-edition rainbow-colored card (Business Insider), Rated: A
Venmo, the PayPal-owned peer-to-peer (P2P) giant, debuted a limited-edition rainbow-colored version of its physical card product. The card will function the same as regular Venmo cards, allowing customers to pay wherever Mastercard is accepted, split costs and tips, withdraw funds from select ATMs, and manage their Venmo balance, but it will only be available for as long as supplies last, according to Venmo.
Why digital identities will be so important in the next few years, according to Mastercard’s vice chairman (CNBC), Rated: A
The pace with which we are moving toward the internet of things is “very rapid” but we “can’t have the internet of everyone without the inclusion of everyone,” according to the vice chairman of payments giant Mastercard.
“You have to start focusing on how does the human get involved, and that’s going to be through having a digital identity,” Ann Cairns told CNBC’s Karen Tso on Monday at the Mobile World Congress in Barcelona.
Credit Karma’s Dana Marineau: ‘We want users to think of us as more than just free credit scores’ (Tearsheet), Rated: A
Today’s marketer on the hot seat is Dana Marineau, Credit Karma’s vice president of brand, creative and communications. People love Credit Karma for its free credit scores, but the company provides so many other free tools. Dana’s team is tasked with elevating the brand beyond just free credit scores, as a place to get help with financial decisions and achieve financial progress. She brings a 15 year experience at EA, working on many of the top sports games in the business.
Why this small bank created a separate, digital-first brand (American Banker), Rated: AAA
When Midwest BankCentre, a community bank in St. Louis, launched the digital-first Rising Bank in February, it joined the ranks of other financial companies —generally large players such as JPMorgan Chase, Wells Fargo and MUFG Union Bank — that have created separate, digital-only brands. Unlike them, the $1.9 billion-asset Midwest hopes to keep a community bank feel at the internet-only unit.
The Future Is Plastic: Fintech Unicorn Brex Launches New Credit Card For E-Commerce Merchants (Forbes), Rated: A
Brex, a San Francisco credit card startup that reached a valuation of $1.1 billion late last year, 22 months after its founding, is launching its second product, a physical credit card for e-commerce companies. Its first card, targeted to venture-backed tech startups, has attracted more than 3,000 customers by providing higher spending limits and simplifying the application process.
YieldStreet raises $ 62M to democratise alternative investments in shipping, real estate and more (TechCrunch), Rated: A
YieldStreet — which provides a platform for making alternative investments in areas like real estate, marine/shipping, legal finance, commercial loans and other opportunities that in the past were only open to institutional investors — is today announcing that it has raised $62 million in a Series B round of funding.
Guaranteed Rate Leads Mortgage Executive Magazine’s List of Top Loan Originators in America (GlobeNewswire), Rated: A
For the seventh consecutive year, Guaranteed Rate has the most loan originators of any lender on Mortgage Executive Magazine’s annual list of the “Top 200 Mortgage Originators in America,” including the number one originator.
Guaranteed Rate led the way with 36 originators ranking within Mortgage Executive Magazine’s Top 200, including three of the top five. Shant Banosian of Boston, Mass., was named the nation’s 2018 Top Originator by funding $536 Million in total loan volume.
Americans Focus On Debt Management But Lose Focus On Retirement Savings (Forbes), Rated: A
U.S. banking regulator fights NY lawsuit over fintech charters (Reuters), Rated: A
The U.S. Office of the Comptroller of the Currency has asked a Manhattan federal court to dismiss a lawsuit by a New York financial regulator over its plan to issue banking charters to fintech companies, saying the lawsuit is premature.
Blockchain and data protection: the main concerns (JDSupra), Rated: A
Blockchain’s usage is no longer limited to digital crypto currencies, as blockchain databases may be deployed in innumerable circumstances and scenarios, including, for instance, within the financial services and insurance sectors for money transfer, peer-to-peer lending and transfer of securities, as well as automatic execution of contracts.
LoanStreet positions for growth with new hires (LoanStreet Email), Rated: B
After the launch of LoanStreet’s commercial lending product and the announcement of their $6.5 million funding round, LoanStreet – the first fully-integrated platform that streamlines the process of sharing, managing, and originating loans – has appointed three credit union industry veterans to support LoanStreet’s aggressive growth.
These new hires include Mike Doherty, Managing Director and Head of Credit Union Sales; Tony Harter, Business Development Director; and Joe Parvin, Business Development Director.
White Oak Business Capital Hires Carol Bader Apicella to Expand Northeast and Mid-Atlantic Markets (GlobeNewswire), Rated: B
White Oak Business Capital, Inc. (“WOBC”), an affiliate of White Oak Global Advisors, LLC, has announced that Carol Apicella has joined the firm as Senior Vice President and Senior Business Development Officer. Apicella will be responsible for expanding the firm’s markets in the Northeast and Mid-Atlantic.
Funding Circle fund adds firepower for buyback strategy (AltFi), Rated: AAA
The portfolio, an investment trust, of loans originated by Funding Circle lowered its dividend expectations amid lower projected returns last year prompting a discount to its net asset value.
Following a move to a more than 10 per cent discount last year it started share buybacks in a bid to narrow its discount. It has now made additional capital available from its free cash flow to be deployed into share buybacks, the fund said yesterday.
Orca Innovative Finance ISA Launches, Enables Diversified P2P Investment (Crowdfund Insider), Rated: AAA
Orca Money is finally launching its long-anticipated Innovative Finance ISA (IFISA). Orca’s spin on the savings vehicle allows investors to spread their money across multiple peer-to-peer lenders (P2P) thus providing a heightened degree of diversification. Additionally, Orca Money conducts due diligence on behalf of IFISA investors.
Currently, the Orca IFISA allows access to 5 P2P platforms: Lending Works, Assetz Capital, Landbay, Octopus Choice and Lending Crowd.
Experian, ClearScore scrap merger plans (Reuters), Rated: A
Experian Plc, the world’s biggest credit data firm, said on Wednesday that it had agreed with rival ClearScore to abandon their proposed merger, after Britain’s competition watchdog indicated that it may block the deal.
NatWest launches account aggregation as Open Banking takes hold (AltFi), Rated: A
It’s been a long time coming, but Open Banking is finally spreading through the traditional banking industry, this week with the launch of account aggregation for NatWest customers.
The RBS subsidiary becomes the UK’s 4th bank to let customers connect rival current accounts.
Will Open Banking boom in 2019? (AltFi), Rated: A
It has been over a year since the Open Banking UK initiative under the Competition and Markets Authority order and Second Payment Services Directive (PSD2) was launched and has become one of the industry’s biggest technology and regulatory shake ups in recent years. It is no surprise that the initiative’s first year has seen a relatively low consumer uptake. This has been coupled with reports that consumers’ knowledge of the scheme appears to be markedly low.
Aave Launches Platform to Pay Bills Using Crypto (Finance Magnates), Rated: A
In an attempt to bring crypto closer to the mainstream, the London-based fintech startup has announced the launch of Aave Pay.
The app will allow its users to pay their utility bills using digital coins by converting crypto into fiat in real-time using bank transfer facility. The company is claiming that the platform can be used to business expenses as well including employee salaries, income taxes, and other commercial or corporate expenses.
Investing in crowdfunded development projects – what you need to know (Property Investor Today), Rated: A
You can invest in peer to peer development loans for the short term or in an Innovative Finance ISA for a longer commitment period, but with the potential to earn tax free returns.
By comparison, a peer to peer lending platform with its own development company will have much more control over its projects and be able to give you more detailed and trustworthy updates.
Failed Lender Reaching ‘From Beyond The Grave,’ MPs Warn (Law360), Rated: A
Failed payday lender Wonga is damaging the finances of thousands of customers “from beyond the grave” because they cannot seek redress for allegedly missold loans as the company was not covered…
Some Bankers Are Doing Even Worse Than in 2009 (The Washington Post), Rated: AAA
It may not feel like it, but some corners of banking are suffering as badly as they did during the depths of the financial crisis. Global volumes of initial public offerings and share placings in January and February have been nearly 60 percent lower than in the same period last year. The numbers are worse than the first two months of 2009. If activity doesn’t pick up soon, it would be worrying evidence of the fragility of investor sentiment.
The hope is that the lull is temporary, and technical. The government shutdown in Washington has gummed up U.S. IPOs. Uncertainty over the U.K.’s future relationship with Europe just drags on. And the December stock-market wobble probably killed off deals that were being planned for the window that traditionally opens between January and the start of the full-year earnings season in late February.
Marketplace Lending – A Growing and Dynamic Global Market (DBRS Email), Rated: AAA
I wanted to share with you a new joint report from our U.S. and European structured finance teams. The new report, attached to this email, analyzes the growth of the marketplace lending market around the globe.
The commentary includes the following topics:
— The evolution in finance, from traditional banking to FinTech.
— FinTech’s influence on marketplace lending around the globe.
— Growth hurdles.
— Securitization considerations.
Bank on it: How Enova’s software expands credit access worldwide (Built in Chicago), Rated: A
Not all credit histories are created equal.
That’s the case for a large part of the world’s population who can’t get access to a loan from a traditional credit provider — like a bank — creating a world in which the hardest working people don’t always get access to the credit they need. Enova, however, believes it has a solution. The fintech company draws on the power of machine learning and data to offer products that expand access to credit for consumers and small businesses.
Blossom Capital scores $ 85m from Robinhood and Funding Circle backers (AltFi), Rated: A
Blossom Capital, which has already backed five startups including rental marketplace Fat Lama, today raised $85m which it will use to lead Series A rounds of between $5m and $10m in Europe.
Eight Simple Ways to Earn Bitcoin Online Legally (The Crypto Updates), Rated: B
Earn Bitcoins as the interest payments: If you have earned some Bitcoins already, you can put the Bitcoins to earn for you. Lend them out at particular interest rate. You can lend the Bitcoins directly to someone known at a greed interest rate and repayment period. You need to assess trustworthiness of borrower. Peer to peer Bitcoin lending is another way to let the earned Bitcoins earn for you. There are many peer-to-peer lending websites where the borrowers post the borrowing requests. Over these websites, you can act as a lender. It is also possible to fund the small portion of numbers of loans to reduce the risk.
Grid Finance suspends taking investments below € 100,000 (Irish Times), Rated: AAA
One of the largest providers of peer-to-peer loans in the State has shut down a key part of its business aimed at smaller investors, blaming an absence of regulation in the crowdfunding space.
Grid Finance, which is backed by Enterprise Ireland, wrote to holders of its “Brick” accounts – that facilitate the investment of up to €100,000 – in recent days stating that it would withdraw the offering from the marketplace.
Dragon Victory International: Exposure To The Chinese Crowdfunding Market At A Regulatory-Driven Discount (Seeking Alpha), Rated: AAA
In recent years as China winds down its industrial and manufacturing powerhouse growth, it’s looking to other developed nations to determine which platforms it should invest in and pave the way to sustained economic growth. As most other major developed nations have done over the past century, financial services and engineering have been a very profitable platform and companies in China are quick to launch their own services to capitalize on the triple-digit growth in online financial services exhibited since 2003.
Similar to Hexindai (HX), which I’ve previously covered as a leading online lender which is capitalizing on the middle class appetite for debt to finance their lives and vacations, Dragon Victory International Limited (LYL) is taking on the crowdfunding segment in the People’s Republic of China. Similar to countless other platforms around the world, the company’s services are around financing new companies and capitalizing entrepreneurs through public funding and they already have over 4.5M users who use their services, a number nearly doubling each year.
China Fintech Today: The P2P Boom Is Truly Over (SupChina), Rated: A
This year, the government has continued to lead a reorganization of the industry:
- More companies will die: As of February 17, only 60 percent of online lending institutions had disclosed their operational information for January 2019, including five problematic platforms.
- However, the current asset quality of the online lending industry has improved significantly according the data from firms that did report.
- As of the end of January 2019, the accumulated amount of the online P2P online loan industry was about 7.78 trillion yuan ($1.16 trillion). The total loan amount in January was 91.4 billion yuan ($13.61 billion), down 55.1 percent year-on-year and down 1.3 percent from the previous month.
- Further consolidation of industry players is certain. Some experts quoted in media reports predict that the scale of future online loans will continue to shrink because of regulation.
- Some listed companies, such as Aoma Electric and Panda Financial Companies, have abandoned their P2P businesses.
- Aoma Electric issued a letter of concern to the Shenzhen Stock Exchange on February 14, attributing the decision to the broader economic slowdown, and a high number of overdue loans.
- Panda Gold Control in 2018 was also dragged down by its P2P business, and expects a net loss of 41.16 million ($6.13 million) to 57.63 million yuan ($8.58 million) in 2018. Faced with the uncertainty of the P2P sector, Panda Gold Control chose to divest.
How should accountants talk to clients about fintechs? (In the Black), Rated: A
Like the ombudsman’s office, ASIC has also made information available to educate consumers and advisers, including on its MoneySmart Borrowing Basics and Peer-to-Peer Lending sites.
Is any flexibility possible, Shiel wonders, with a peer-to-peer lending model in which the borrower likely doesn’t know who is providing the funds?
LenDenClub crosses 1,00,000 borrowers and lenders milestone (News Barons), Rated: AAA
LenDenClub, one of India’s fastest growing peer-to-peer (P2P) lending platforms, recently crossed an important landmark with more than 1,00,000 borrowers and lenders on its platform. The breakdown of borrowers to lenders is 83,300 and 16700, respectively. The company crossed this milestone by keeping up with latest market trends, and saw an increase in the use of its product InstaMoney, which was launched in June 2018.
Why Do Fintech Startups and Investors See a Huge Potential in Lending? (Entrepreneur), Rated: AAA
Today, thanks to the ongoing digitization, borrowing has become as easy as it can get in India. For contrast, all it takes now is the touch of a few buttons, answers to a few verification-related questions, and anyone can receive a loan in a matter of hours or days, if not minutes. And all of this is without any collateral and while enjoying the comfort of your home. Now, compare this with taking a day off to go to the bank, doing extensive paperwork, visiting frequently to check the progress of your loan application, and ultimately, getting your application rejected because of the loan officer’s misjudgement. All while wasting two months of time in the constant to and fro and taking multiple days off from your office.
It is beyond doubt that the advent of fintech startups has altered the game of lending in India. It has become both simpler and convenient to borrow using their revolutionary approaches driven by state-of-the-art technologies. Currently, more than 1,500 fintech startups (of all shapes and sizes) are catering to the Indian market, and more than half of these startups have been launched over the last 3 years. This gives us a clear picture of how lucrative the sector is becoming for our startup ecosystem. But what is essentially fuelling this trend? Let’s find out.
Banning of UDS to benefit P2P Lending Industry (Inventiva), Rated: A
The latest ordinance of the Banning of Unregulated Deposits (UDS) 2019, was passed by the government to provide a comprehensive mechanism to ban UDS as well as to protect the interest of depositors. This is in line with the Reserve Bank of India’s guidelines on the NBFC-P2P sector, issued in October 2017 to regulate the unorganized lending business in the country.
Singapore fintech investments rose two-fold to US$ 365m in 2018 (SBR.com.sg), Rated: AAA
US$102.2m of the total funds raised went to lending fintech companies such as the homegrown Funding Societies.
Fintech investments in Singapore more than doubled to US$365m in 2018 from US$180m in 2017, putting the country amongst the top five fintech markets by funds raised last year in Asia Pacific, behind China, India, Australia and Japan, according to Accenture’s analysis of CB Insights data. The number of deals in the country rose to 71 from 61 in 2017, making it the third busiest market in the region, behind only China and India.
Validus Capital raises $ 15m for SME financing (Fintech Futures), Rated: A
Validus Capital, a Singapore-based SME financing platform, has raised SGD 20.5 million ($15.2 million) in a Series B funding round, led by FMO, a Dutch public-private development bank.
PayPal expands its small business loans initiative to Mexico (Leaprate), Rated: AAA
Online payment giant PayPal launched its Working Capital initiative in 2013 as an alternative method for business to access working capital much faster than through traditional means. Many small and medium-sized business (SMB) clients embraced the program and since then the company has advanced more than $6 billion in loans to over 170,000 businesses in the UK, US, Germany and Australia.
PayPal also recently revealed that it has partnered with Konfio, a Mexican online lender that utilizes unconventional data sources to facilitate fast credit assessments, in a deal that will allow PayPal to extend its Business loan and working capital programs to Mexican businesses.
ID Finance eyes ‘pivotal moment’ for Latam fintech as revenue in region climbs 403% (Fintech Finance), Rated: A
ID Finance, the fintech company operating in Europe and Latin America, saw revenue of $49m in 2018. This represents growth of 236% for the business, which was formally separated from its operations in Russia and CIS region last year.
The company is enjoying particularly strong growth in Latam, one of the world’s fastest growing markets for fintech adoption thanks to high mobile penetration and a sizeable underbanked population – according to the World Bank 61% of Mexico’s population is excluded from the traditional banking system, while 40% of Brazil’s 207m population are blacklisted. The company now has 141 employees in Latam and saw revenue growth of 403% in the region last year.
Challenger bank N26 expands to Brazil (Fintech Futures), Rated: A
Germany-based mobile challenger bank N26 is powering on yet again as it has revealed its plans to expand to Brazil.
How FinTech Companies Inspire Africa With Mobile Technology (PYMNTS), Rated: AAA
With the potential for rapid growth and job creation, FinTech firms in Africa have caught the attention of global investors. According to the London Stock Exchange Group’s 2019 “Companies to Inspire Africa” report, which highlights these firms, the FinTech sector has the second highest growth rate representation of technology and telecoms as well as financial services. As it stands, companies in this space represent more than a quarter of 360 featured firms from 32 different countries. Pan-African payments firm Cellulant is among the companies that appeared in the first and second editions of the report.
News Comments Today’s main news: SoFi CEO explains how market volatility, rising interest rates create opportunities. Amazon debuts no-fee AmEx card for small businesses. Funding Circle broker channel hits 1B GBP lending. China Rapid Finance is expected to break even. Today’s main analysis: Funding Circle’s short-lived rally. Today’s thought-provoking articles: Is student loan debt creating a millennial class […]
- Today’s main news: SoFi CEO explains how market volatility, rising interest rates create opportunities. Amazon debuts no-fee AmEx card for small businesses. Funding Circle broker channel hits 1B GBP lending. China Rapid Finance is expected to break even.
- Today’s main analysis: Funding Circle’s short-lived rally.
- Today’s thought-provoking articles: Is student loan debt creating a millennial class war? The horrors of Halloween spending. Building loyalty with Gen Z and millennials. The top 250 fintech startups in 2018.
- SoFi CEO says market volatility, rising rates create opportunities for them. Other alt lenders should look for opportunities, as well.
- Amazon debuts no-fee AmEx card for small businesses. That’s a competitive offer that is hard to beat.
- Student-loan debt is creating a millennial class war. If it wasn’t student debt, it would be something else. Some people will do anything for money. That’s why lenders are in business.
- The horrors of Halloween spending. The interesting thing here is that so many people are willing to go into debt for a Halloween costume.
- Building loyalty with Gen Z and millennials.
- The fintech 250. From CB Insights.
- Lendio named to Fintech 250 fastest-growing companies.
- Alternative lenders batten down the hatches.
- JPMorgan signs deal with Plaid for data sharing.
- Marcus is moved to Goldman’s wealth unit.
- Unbanked population continues to fall.
- We’re close to autonomous finance.
- UltraFICO score stokes concern for data privacy.
- Use your employer as a payday lender.
- Navient sees end of non-compete with Sallie Mae.
- Kabbage extends access of small business lending.
- 10 niche crowdfunding platforms for startups. They’re not all in real estate.
- How you could have invested your money instead of buying Mega Millions tickets.
- The promising places to open a restaurant.
- Nav, Clover partner on business credit.
- Memorial Healthcare Systems taps ezCarePoint for online financing.
- RealtyFolio updates platform.
- Tamarack makes new hires and expands headquarters.
- White Oak ABL appoints new managing director.
- PNC to offer online business loan options.
- TickPick partners with Affirm for checkout payment options.
- Funding Circle’s broker channel reaches 1 billion GBP in lending.
- Funding Circle’s short-lived rally.
- OakNorth – the future of lending.
- UK still leads in tech unicorns.
- Klarna talks split payments.
- INDOCHINO chooses Klarna.
- N26’s major security gap.
- Robo.cash welcomes new loan originator Z-Finance.
- ID Finance Group reports 61% revenue growth in nine months.
- Moven expands globally.
- Beginner’s guide to becoming a private lender.
- Fintech streamlines socially responsible impact investing with robo-advisors.
- Uphold joins Cred.
- United States
- SoFi CEO Anthony Noto: Market volatility, rising rates create ‘opportunity for us’ (CNBC) Rated: A
- Amazon Debuts No-Fee AmEx Card to Lure Small-Business Spending (Bloomberg) Rated: AAA
- Student-Loan Debt Is Bringing on Millennial Class War (Vice) Rated: AAA
- Credit Card Stats & Studies (Hub Wallet) Rated: AAA
- Building Loyalty with Gen Z and Millennials Starts with a Better Experience (Globe Newswire) Rated: AAA
- The Fintech 250: The Top Fintech Startups Of 2018 (CB Insights) Rated: AAA
- Lendio Named to the 2018 CB Insights Fintech 250 List of Fastest-Growing Fintech Startups (PR Newswire) Rated: A
- As Rates Rise and Recession Threatens, Alternative Lenders Batten Down the Hatches (Bank Innovation) Rated: A
- JPMorgan signed a deal with Plaid for customer data sharing (Business Insider) Rated: A
- Goldman shifts Marcus digital bank to its wealth unit (American Banker) Rated: A
- U.S. ‘Unbanked’ Population Continues to Fall (Wall Street Journal) Rated: A
- We’re Closer Than you Think to Autonomous Finance (Lend Academy) Rated: A
- New UltraFICO score stokes concerns about data privacy (American Banker) Rated: A
- Short on Cash? Use Your Employer as a ‘Payday Lender’ (Nerd Wallet) Rated: A
- Navient eyes end of non-compete with Sallie Mae in January (Asset Securitization Report) Rated: A
- Kabbage Extends Access Of Small Business Lending (Benzinga) Rated: A
- Beyond Kickstarter: 10 Niche Crowdfunding Platforms for Startups (Entrepreneur) Rated: A
- Guaranteed Rate Ranks as the Best Mortgage Lender for Online Mortgage Service by U.S. News & World Report (Bankless Times) Rated: A
- Bought Mega Millions Tickets? Here’s What You Could Have Made If You Invested That Money Instead (Time) Rated: A
- Milwaukee, Cincinnati and Minneapolis Are the Most Promising Places to Open a Restaurant (PR Newswire) Rated: A
- Nav and Clover Partnership Streamlines Access to Business Credit Scores & Financing (PR Newswire) Rated: A
- Memorial Healthcare System Taps ezCarePoint to Provide Instant Online Financing for Patients’ Out-of-Pocket Medical Costs (AP News) Rated: A
- RealtyFolio Updates Its Platform for a Big 2019 (PR Newswire) Rated: B
- Tamarack Hires Seven and Expands Headquarters (ELFA) Rated: B
- White Oak ABL Appoints Griffith to Managing Director (ABL Advisor) Rated: B
- PNC to offer online business loan option in 2019 (Delaware Business Now) Rated: B
- TickPick Announces Affirm Partnership, Expands Payment Options at Checkout (PR Newswire) Rated: B
- United Kingdom
- Funding Circle’s broker channel reaches £1bn lending milestone (Bridging and Commercial) Rated: AAA
- Funding Circle’s short-lived rally (Investors Chronicle) Rated: AAA
- OakNorth: The Lending Bank of the Future (The Fintech Times) Rated: A
- UK regions come to the fore in producing $ 1bn tech companies (London Loves Business) Rated: A
- Loss-Making China Rapid Finance Limited (NYSE:XRF) Expected To Breakeven (Simply Wall St News) Rated: AAA
- European Union
- Klarna Talks Split Payments at Money2020 Conference (Cheddar) Rated: A
- INDOCHINO Chooses Klarna to Give Consumers the Power to Pay Over Time (PR Newswire) Rated: B
- German fintech poster child N26’s major security gap (Handelsblatt) Rated: A
- Robo.cash welcomes new loan originator (Peer2Peer Finance News) Rated: B
- ID Finance Group reports 61% revenue growth for the nine months of 2018 (Fintech Finance) Rated: AAA
- Moven Enterprise Expands Availability of AI Smart-Banking Solution with Global Launch (Business Wire) Rated: A
- The Complete Beginner’s Guide to Becoming a Private Lender—Pros & Cons (NuWire Investor) Rated: A
- Fintech Streamlines Socially Responsible Impact Investing Via Robo-Advisors (Investor Place) Rated: A
- Uphold Joins Crypto Lending Platform Cred for New Lending and Earning Solutions (Coin Speaker) Rated: A
- Indian P2P Lending Operators forms Association to Make P2P Industry More Credible (Indian Web2) Rated: AAA
- Choose bank or online lender based on nature of loan (DNA Online) Rated: A
Rising interest rates and market volatility, while feared on the Street, create an opportunity for online lending platform SoFi to gain new customers, according to CEO Anthony Noto.
“When the markets pull back, people evaluate: ‘Where am I putting my money from an investment standpoint?'” Noto said on CNBC’s “Closing Bell” on Tuesday.
Amazon Debuts No-Fee AmEx Card to Lure Small-Business Spending (Bloomberg) Rated: AAA
The two companies unveiled a new co-branded card for small businesses on Tuesday. Cardholders with an Amazon Prime membership will be able to choose between an interest-free loan for 90 days or 5 percent back on purchases made at Amazon.com, Amazon Business, Amazon Web Services and Whole Foods Market, the companies said in a statement. The no-fee metal card will also offer 2 percent back on purchases at U.S. restaurants and gas stations and on mobile-phone services.
Student-Loan Debt Is Bringing on Millennial Class War (Vice) Rated: AAA
MagnifyMoney, an independent service that compares financial products and is affiliated with the loan marketplace LendingTree, recently analyzed 2016 data from the Federal Reserve and estimated the average millennial with student debt had 75 percent less net worth than their debt-free peers. Though many of the stats they calculated might have been skewed by extremes—think people with debt loads of $200,000 and trust-fund kids worth seven figures—they were able to reach some pretty startling conclusions. For instance, the median net bank account balance (checking and savings) of all grads under 35 who had loans, they found, was $5,500, while it was some $10,180 for those who didn’t.
So what’s the most meaningful difference between those with loans and without?
The one that’s really most costly is when you look at the retirement savings. On that side, the average grad under 35 with debt has around $21,000 in retirement savings. Someone who doesn’t have student loans has an average of almost $40,000.
Credit Card Stats & Studies (Hub Wallet) Rated: AAA
Building Loyalty with Gen Z and Millennials Starts with a Better Experience (Globe Newswire) Rated: AAA
In particular, changes in the credit card market have been heavily influenced by the youngest generations. While TransUnion studies have found that consumers generally have a much higher propensity of opening their next credit product with a lender with whom they already have multiple relationships, this doesn’t appear to hold true for Gen Z. Younger consumers are engaging with new lenders rather than going to existing lenders for new products. In the report, Gen Z respondents indicated that they were the least likely to open a new credit product with a financial institution as a result of an existing relationship with that lender.
While consumers are carrying more credit cards in their wallets today than in 2010, the industry has seen five straight quarters of declining year-over-year origination growth. The study also found that the average duration for which a credit card remains open has shortened across the majority of age groups, which would indicate shifting loyalty.
The Fintech 250: The Top Fintech Startups Of 2018 (CB Insights) Rated: AAA
The financial services industry is being transformed by insurgent startups. From capital markets to insurance and digital banking to wealth management, the Fintech 250 are among the most promising of these companies globally.
Lendio Named to the 2018 CB Insights Fintech 250 List of Fastest-Growing Fintech Startups (PR Newswire) Rated: A
“It’s an honor for Lendio to be listed among the innovative companies driving the fintech industry forward,” said Brock Blake, Lendio CEO and founder. “Lendio is doing its part to power the economy by bridging the financing gap for small businesses. We are committed to shaping the future of marketplace lending to help business owners unlock their financial potential.”
Lendio, the nation’s leading marketplace for small business loans, recently announced it has facilitated over $1 billion in financing to more than 51,000 small businesses across the U.S. Through access to this growth capital, Lendio’s small business customers have generated an estimated $3.8 billion in gross economic output and created more than 25,000 jobs nationwide. Lendio’s milestone comes after an 80 percent increase in loans funded through its platform in the last year.
As Rates Rise and Recession Threatens, Alternative Lenders Batten Down the Hatches (Bank Innovation) Rated: A
The CEOs of Prosper Marketplace, Lending Club, and Social Finance Inc. all spoke to a common theme – preparing for the coming storm and choosing loans for quality, not quantity. JPMorgan Chase has predicted a 60% chance of recession by 2020, and it’s not clear how traumatic an event it will be.
JPMorgan signed a deal with Plaid for customer data sharing (Business Insider) Rated: A
JPMorgan on Monday signed an agreement with Plaid, a technology company that connects bank accounts with fintech apps like Robinhood, Venmo, and Acorns, that will give its customers better control over their personal data.
Plaid will access JPMorgan’s customer data through a secure application programming interface or API, allowing customers to share their financial information more easily and safely. Banks including JPMorgan have pushed back against so-called screen scraping, another way for fintech apps to companies to access customer data that generally is viewed as less secure.
Goldman shifts Marcus digital bank to its wealth unit (American Banker) Rated: A
Goldman Sachs Group is shifting a heavily touted business line into its wealth management unit as the bank eyes expansion through products that can be pitched to the division’s customers.
The firm is handing oversight of the Marcus business — its retail-banking effort, which offers personal loans online — to its $1.5 trillion investment management division, according to a memo seen by Bloomberg. The move is aimed at starting new business offerings under the Marcus brand that can be sold to the unit’s expanding roster of clients.
A spokesman for Goldman Sachs confirmed the contents of the memo.
U.S. ‘Unbanked’ Population Continues to Fall (Wall Street Journal) Rated: A
The number of U.S. households without a bank account fell to 6.5% in 2017, according to a federal government survey, as the improved economy helped bring mainstream banking services to more people.
The Federal Deposit Insurance Corp. said Tuesday the number of ”unbanked” households reached its lowest level last year since the regulator began the biennial survey in 2009. The share of households without an account at a federally insured financial institution was down half a percentage point from 7% in 2015.
We’re Closer Than you Think to Autonomous Finance (Lend Academy) Rated: A
Autonomous finance isn’t a well known term within fintech, but it may be the biggest innovation in the consumer finance space in recent years. Ken Lin, the CEO and Co-Founder of Credit Karma talked with us recently on the Lend Academy podcast about this concept of autonomous finance, a concept that is slowly turning into reality.
Credit Karma is in the unique position to capitalize on this idea, particularly when it comes to the lending business, which still relies heavily on credit scores. The company has built a platform in which users can track their credit score over time and get suggestions on products based on their financial life. From my perspective Credit Karma has a monopoly of sorts on this business with no other serious competitors at scale. Due to their sheer size and the engagement with their members, Credit Karma is a significant lead generator for the major online lenders that exist today.
New UltraFICO score stokes concerns about data privacy (American Banker) Rated: A
A new credit score that includes a consumer’s cash flow alongside their credit score — dubbed UltraFICO — is winning praise for its potential to help expand access to credit but also stoking concerns about its data privacy implications.
FICO announced this week that it is testing a new credit score with Experian and data aggregator Finicity that draws on several months’ worth of data from consumers’ bank accounts. The idea, according to FICO, is to create a “second chance” score that could allow consumers who’ve been denied credit due to the traditional model another shot at obtaining it.
Short on Cash? Use Your Employer as a ‘Payday Lender’ (Nerd Wallet) Rated: A
In recent years, startups from Silicon Valley and beyond have stepped up to offer payday alternatives through the workplace. Some, including Earnin and PayActiv, have put a new twist on the two-week pay cycle to give people access to their wages as soon as they’ve earned them. Others, such as HoneyBee, SalaryFinance and TrueConnect, allow employers to offer low-cost emergency loans as an employee benefit.
Paycheck advances in the modern workplace
What technology companies like Earnin and PayActiv say they offer is a streamlined approach for employees that retains the employer’s traditional two-week pay cycle.
Navient eyes end of non-compete with Sallie Mae in January (Asset Securitization Report) Rated: A
Navient Corp. has been ramping up origination of refinance student loans even as rising interest rates reduce the potential savings for borrowers. Earnest, the online lender it acquired late in 2017, originated $903 million of refinance loans in the third quarter, bringing year-to-date originations $2 billion. But so far, the servicing giant’s ability to expand has been limited because of a non-compete agreement with the largest private student-lender, SLM Corp., better known as Sallie Mae.
Under the terms of their split in 2014, Navient is unable to refinance either private student loans made by Sallie Mae or any federally guaranteed student loans held by Sallie Mae.
The non-compete clause expires in January, and Navient CEO Jack Remondi doesn’t plan to waste any time. On a third quarter conference call Wednesday, Remondi made it clear that he sees plenty of potential to refinance loans made or held by Sallie Mae.
Kabbage Extends Access Of Small Business Lending (Benzinga) Rated: A
Kabbage is now lending over $10 million per day to small businesses, in congruence with the company’s recent addition of 30,000 customers in 2018. The company reported its first $500 million quarter this year, according to the press release.
The lender serves up to 1,400 businesses daily and has demonstrated a 68 percent increase of working capital accessed by Kabbage on mobile devices, as well as a 283 percent growth in use of the Kabbage Card since 2017.
“It was a great growth quarter for the company, and is a direct result of developing flexible and convenient solutions that simplify accessing capital for small businesses,” Kabbage CFO Scott Rosenberg told Benzinga.
Beyond Kickstarter: 10 Niche Crowdfunding Platforms for Startups (Entrepreneur) Rated: A
If you’re building a real-estate investment business — or developing real-estate projects — check out the online crowdfunding opportunities on CrowdStreet.
If your business is remodeling and reselling homes, FundThatFlip offers a place to get quick cash to fix up and resell. Investors put in a minimum of $5,000.
Guaranteed Rate Ranks as the Best Mortgage Lender for Online Mortgage Service by U.S. News & World Report (Bankless Times) Rated: A
Guaranteed Rate, an industry leader in technological innovation, tops the list of the Best Mortgage Lenders of 2018, according to U.S. News and World Report. The Chicago-based retail mortgage lender was named the Best Lender for Online Service with its groundbreaking advances to make the mortgage experience fast, simple and secure with its digital platform.
US News & World Report recommended the Guaranteed Rate mortgage process as best for borrowers who:
- Want to complete most of the mortgage process online
- Want help figuring out the right product for their situation
- Want access to a variety of home loan options
Bought Mega Millions Tickets? Here’s What You Could Have Made If You Invested That Money Instead (Time) Rated: A
Americans spend a lot of money playing the lottery. Approximately 370 million lottery tickets were sold between Saturday and Tuesday before the Mega Millions drawing, according to a lottery official. The U.S. generated nearly $73 billion in lottery sales in 2016 and CNN reports that in 2017, U.S. residents spent about $73.5 billion on tickets. The average American spends about $223.04 per year on lottery tickets, loan marketplace LendEDU found in a report that calculated its average by dividing the 2016 lottery revenue by the U.S. population (325.7 million).
Milwaukee, Cincinnati and Minneapolis Are the Most Promising Places to Open a Restaurant (PR Newswire) Rated: A
LendingTree, the nation’s leading online loan marketplace, today released its study on the best cities to open a restaurant. The study found that while traditional foodie destinations like New York and San Francisco are saturated with restaurants, up-and-comers have room to grow. The restaurant population in cities like Milwaukee, Cincinnati and Minneapolis cities is less dense than in other areas, and labor costs are lower.
LendingTree analyzed the 50 largest U.S. cities to see which offer prospective restaurateurs the best shot at success. Many top spots are in once-overlooked Midwestern cities now experiencing urban renewal. The least promising cities have historically been the restaurant industry’s most competitive.
Nav and Clover Partnership Streamlines Access to Business Credit Scores & Financing (PR Newswire) Rated: A
Today, Nav and Clover, a subsidiary of First Data, formally announced an integrated, multi-year partnership to deliver U.S.-based Clover users access to their free business credit scores, as well as custom-tailored business financing and credit card options.
The Federal Reserve Bank and other surveys consistently report around 70 percent of small business loan applicants are denied by their bank. As credit data is a primary way that banks and other financial institutions evaluate business loan applicants, the integration of business credit scores and insights directly into Clover’s dashboard enables these merchants to manage this important data.
Memorial Healthcare System Taps ezCarePoint to Provide Instant Online Financing for Patients’ Out-of-Pocket Medical Costs (AP News) Rated: A
Patients at facilities run by South Florida’s Memorial Healthcare System (MHS), one of the nation’s largest public healthcare systems, can now easily and quickly finance their out-of-pocket medical fees online, thanks to a new program powered by ezCarePoint, a next generation medical financing technology platform created by ezVerify, a Sunrise, Fla. based company and LendingPoint, a Kennesaw, Ga. based company.
RealtyFolio Updates Its Platform for a Big 2019 (PR Newswire) Rated: B
RealtyFolio, the online real estate investing platform has updated its interface, including a redesign, rebrand, and upgraded features. The upgrade was meant to “make it even more comfortable for clients to navigate the platform and for clients to be able to invest in real estate projects, quickly and easily,” according to the company’s CEO, Jonathan Klein. He went on to say that they “expect a very big year in 2019, with many projects in the works, and a lot of demand from clients.”
RealtyFolio is ushering in the future of real estate investing by allowing you to build a real estate portfolio online. With over 30 years of real estate investing and management experience on its team and a vast network of strategic partners across the United States, in cities such as New York, Miami and Los Angeles, RealtyFolio gives everyone a chance to swim with the sharks.
Tamarack Hires Seven and Expands Headquarters (ELFA) Rated: B
Tamarack, a leader in providing independent software solutions in the equipment finance and commercial lending industry, has moved to a new headquarters in the North Loop, doubling their space, and added seven new positions over the past three months to meet the growing demand.
With over 25 years of Leasing and Lending experience and an expert in InfoLease®, Tamarack hires on George Burke. Burke adds extensive experience to Tamarack’s back office software engineering team.
White Oak ABL Appoints Griffith to Managing Director (ABL Advisor) Rated: B
White Oak ABL, LLC, an affiliate of White Oak Global Advisors, LLC, announced the appointment of Clark D. Griffith to Managing Director, based in San Francisco. Griffith joins from Encina Business Credit where he held the position of Senior Managing Director in charge of West Coast originations, offering lines of credit and term loans from $5 million to $50 million.
PNC to offer online business loan option in 2019 (Delaware Business Now) Rated: B
PNC announced that in 2019 it plans to begin offering fully digital business lines of credit, up to$100,000.
PNC will partner withOnDeck and use its Platform-as-a-Service to simplify and accelerate the conventional lending originations processes for PNC Bank’s small and medium-sized business customers.
PNC will combine its expertise with ODX’s online origination technology and professional services to create PNC Small Business Lending.
TickPick Announces Affirm Partnership, Expands Payment Options at Checkout (PR Newswire) Rated: B
TickPick, the no-fee ticket marketplace that is transforming the industry, announced today a partnership with Affirm, the company founded by entrepreneur Max Levchin to provide fair and honest alternatives to traditional credit. This new payment option makes TickPick the first and only secondary marketplace to offer Affirm, which allows customers the ability to spread out the cost of their purchase over time through simple monthly payments.
Funding Circle’s broker channel reaches £1bn lending milestone (Bridging and Commercial) Rated: AAA
After four consecutive record-breaking quarters, the in-house broker team has supported the growth of 9,600 British businesses.
Prior to the lending milestone, the P2P platform promoted Tom Shave to head of broker.
Tom has assisted in developing a diverse network of introducers, big and small, across the country.
UK regions come to the fore in producing $ 1bn tech companies (London Loves Business) Rated: A
The UK’s leading tech clusters are competing head to head with European capitals, according to new analysis of company growth, in a sign that the success of the UK tech sector is pushing far beyond its London heartland.
Following the IPOs of Farfetch and Funding Circle, the UK is now home to 15 unicorns and six cities have produced so-called unicorns – $1bn tech companies – according to research prepared for Tech Nation and the Government’s Digital Economy Council by venture capital analytics company Dealroom.co. This latest research is published ahead of the Secretary of State for Digital, Culture, Media and Sport’s first meeting with the Digital Economy Council on 24 October 2018.
Looking at the creation of $1bn tech companies, Oxford and Cambridge combined have produced more fast-growing tech companies than both Paris and Berlin.
Loss-Making China Rapid Finance Limited (NYSE:XRF) Expected To Breakeven (Simply Wall St News) Rated: AAA
China Rapid Finance Limited’s (NYSE:XRF): China Rapid Finance Limited, through its subsidiaries, provides a consumer lending marketplace for lenders and borrowers in the People’s Republic of China. The US$156m market-cap posted a loss in its most recent financial year of -US$122m and a latest trailing-twelve-month loss of -US$49m shrinking the gap between loss and breakeven. As path to profitability is the topic on XRF’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for XRF.
Klarna Talks Split Payments at Money2020 Conference (Cheddar) Rated: A
Klarna is launching a new ‘Slice it in 4’ product, allowing users to split up payments. Michael Rouse, chief commercial officer of Klarna, explains how it works.
INDOCHINO Chooses Klarna to Give Consumers the Power to Pay Over Time (PR Newswire) Rated: B
INDOCHINO shoppers can now Slice it at the checkout by using Klarna’s online consumer financing to easily spread the cost of their purchase over 6-36 months. Slice it has a simple 4-step credit application process, real-time decisioning and is offered within the merchant’s own website – no re-directs – for a frictionless and fast purchase experience.
By taking the premium made-to-measure experience direct to the consumer, INDOCHINO has created a superior alternative to off-the-rack clothing at ready-to-wear prices. Their immersive multi-channel experience enables customers to order their custom garments with ease online or in-person at one of 30+ showrooms across North America
German fintech poster child N26’s major security gap (Handelsblatt) Rated: A
Germany’s fintech darling N26 is potentially vulnerable to money laundering and terrorism financing, according to research by Handelsblatt’s sister magazine WirtschaftsWoche, which exposed a security gap at the online banking startup.
The apple of discord is how easily someone can open an account with a fake ID. A WirtschaftsWoche correspondent saw first hand how a man, Milo T., scanned a friend’s ID, added his own passport photo to the ID, printed it out and stuck it atop of a white plastic card that was the same size as the office ID card in his country. He cut the edges to make them round and voilà: a new identification card.
It took five minutes and the result is so blatantly a forgery that it would fail to convince even the laxest of nightclub doormen. None of the holograms or other security features found on original IDs can be seen on the fake. Regardless, Milo effortlessly used this ID to set up an N26 account, and this wasn’t a one-off occurrence. WirtschaftsWoche documented how several people opened N26 accounts using forged papers.
Robo.cash welcomes new loan originator (Peer2Peer Finance News) Rated: B
LATVIAN peer-to-peer payday lender Robo.cash has added a loan originator from Kazakhstan to its platform.
Z-FINANCE provides short-term private lending in Kazakhstan with an average loan size equivalent to €60 (£52).
Investors on the Robo.cash site can now invest in these loans, which have a repayment period up to 30 days and an expected interest rate up to 12 per cent per annum.
Z-FINANCE was launched in July this year and currently lends through a network of 102 sales branches in Kazakhstan.
ID Finance Group reports 61% revenue growth for the nine months of 2018 (Fintech Finance) Rated: AAA
ID Finance Group has reported 61 per cent revenue growth and revenues of $141.3 million for nine months of 2018 following strong growth in Europe and Latam. The data science, credit scoring and digital finance company issued $215.7m in loans in the first nine months of the year, a 64 per cent increase on the same period last year.
Its European and LatAm operations comprising Spain, Poland, Brazil and Mexico demonstrated exceptional growth experiencing a 197 per cent revenue growth and revenues of $32.6 million for the nine months of 2018. It issued $63.8 million in loans, a 142 per cent increase on the same period last year, and has also grown its customer base to over one million registered users with 20,000 new users joining weekly.The Group has now separated its European and LatAm operations from its CIS businesses (comprising Russia, Kazakhstan and Georgia) and it is functioning as a separate entity under the ID Finance name.
Moven Enterprise Expands Availability of AI Smart-Banking Solution with Global Launch (Business Wire) Rated: A
–Moven Enterprise, the smart-banking solutions division of Movencorp, Inc, today announced that it has expanded its footprint globally to help banks deepen their digital customer engagement and drive new revenue streams while significantly reducing attrition and acquisition costs.
After working successfully with TD Bank (TD) in Canada, Westpac in New Zealand, and others, Moven is now bringing its AI-driven digital banking platform to banks across LatAm, APAC, Africa, the Middle East and Europe. The global expansion is well-positioned as Moven Enterprise received investment from SBI Group to enhance Moven’s footprint in Asia earlier this year. This included the formation of a joint venture, SBI Moven Asia. The company’s innovative platform leverages a bank’s data and uses proprietary algorithms to create contextual, individualized smart-banking experiences for consumers; providing them the right advice at the right time with the right offer and helping them move towards a better financial lifestyle.
The Complete Beginner’s Guide to Becoming a Private Lender—Pros & Cons (NuWire Investor) Rated: A
Private lending has picked up the pace in recent years. This is despite high-interest rates charged by private lenders. Many reasons have pushed lenders into this space including tightened requirements by banks.
In addition, banks tend to shy away from lending money to small businesses and startups. As a result, many borrowers look for other ways of funding, and such opportunities provide opportunities to private lenders.
However, starting out as a private lender is no easy walk in the park. Numerous risks lurk in the business, and you need to tread with caution. In this article, you’ll learn how to become a private lender and some of the pros and cons involved, so if you have an interest in becoming “a bank,” read on.
Fintech Streamlines Socially Responsible Impact Investing Via Robo-Advisors (Investor Place) Rated: A
What makes an investment socially responsible? There are several criteria. For instance, SRI investing avoids tobacco companies as their products cause health problems and death. Typically, a company’s social responsibility rating is based on its performance in three categories: environmental, social and governance (ESG). Positive practices across one or more of these spheres can land a company in the socially responsible category.
At the same time, robo-advisors are digital investment managers designed to grow your wealth through investing with models are based on sophisticated computerized algorithms, including ESG consideration. These fintech darlings have answered the call for socially responsible robo-advisors with a host of diverse options. Of course, you could choose a socially responsible mutual fund or ETF on your own. But, for the busy investor, let one of the many robo-advisors take charge of your investing, in line with your personal values.
Uphold Joins Crypto Lending Platform Cred for New Lending and Earning Solutions (Coin Speaker) Rated: A
In today’s business community, partnership has become one of the most promising tools on the way to new amazing developments and interesting projects that are aimed at offering customers really unique experience and opening new opportunities for them.
News about recently established collaborations regularly appears here and there. This time the headlines are made by Uphold which is a major global digital money platform, that has conducted transactions worth over $4.0 billion across 184 countries, and Cred that is a crypto-backed lending provider with over $250 million in credit facilities.
Having announced their partnership Uphold and Cred have revealed their plans to launch two cutting edge blockchain-based consumer finance products: Uphold Earn and Uphold Borrow. Both products are aimed at helping customers to earn interest from stablecoin holdings and borrow money against the cryptocurrencies they have.
Indian P2P Lending Operators forms Association to Make P2P Industry More Credible (Indian Web2) Rated: AAA
After the Reserve Bank of India unveiled guidelines last October recognizing the need for peer-to-peer lending platforms as NBFC-P2P in the country, the regulatory authority had issued first license in May 2018 and since then 9 players have been recognized as NBFC-P2P companies. More than 12 companies are in the process of getting approval from the regulatory authority. Some of them are at advance to mid-level stage.
To represent the NBFC-P2P industry at various front as well as to represent country’s P2P lending industry at international forums, most of existing & new players have teamed-up and formed a registered body – Association of NBFC P2P Platforms.
The association has been registered under The Society Registration Act, 1860. Mr. Pramod Akhramka has been elected as President, Mr. Rajiv Ranjan as Secretary and Mr. Mukesh Bubna as Treasurer of the association.
Choose bank or online lender based on nature of loan (DNA Online) Rated: A
Unexpected expenditures often come knocking on your door when you want them the least. The reasons could range from maintenance for your vehicle to your old washing machine that needs to be replaced. The plus point of such expenses cropping up during the festive season is that you can always get a good bargain online (or at the store nearby). The fact still remains that these are expenses nevertheless. And that too when your festive expenditure is already lined up, leaving no financial bandwidth.
At times like these, loans bring a sigh of relief. But with so many options available in the market, whom should you approach with your loan requirement- banks or digital lending platforms?
Today, Indian consumers are benefitting from a range of financial products and financial institutions (FI) such as banks, non-banking finance companies, online lending platforms, etc, available at their disposal. If you are planning to take a loan or feel like there’s a possibility of availing the same in the near future, you must primarily understand that every lender has its own unique pros and cons. Some are quick in terms of loan approval and disbursal, some are cost-effective, some offer greater flexibility to their customers, while some offer innovative products that are more relevant for an applicant.
News Comments Today’s main news: Funding Circle tumbles. SoFi partners with Kukun. Petal raises $34M on launch day. China is losing its grip on P2P lending risks. ID Finance Mexico profitable after 8 months. Today’s main analysis: Wealthfront: Clients who engage with automated financial advisors save more. Today’s thought-provoking articles: The difference between LendingClub’s, Funding Circle’s valuations. Venture capital investment […]
- Today’s main news: Funding Circle tumbles. SoFi partners with Kukun. Petal raises $34M on launch day. China is losing its grip on P2P lending risks. ID Finance Mexico profitable after 8 months.
- Today’s main analysis: Wealthfront: Clients who engage with automated financial advisors save more.
- Today’s thought-provoking articles: The difference between LendingClub’s, Funding Circle’s valuations. Venture capital investment in blockchain startups is up 280% this year. Why Flipkart wants to enter the financial services market.
- Lending Club compares valuation with Funding Circle’s. These are two different companies operating in two different cultures. Of course their valuations will differ and be based on different criteria.
- SoFi partners with Kukun on home remodeling.
- Petal raises $34 million on launch day. This is great right out of the gate. Petal could be a rising star in credit card issuances as they are targeting a hard-to-service market for traditional lenders.
- Clients who engage with automated financial advisors save more. This is based on Wealthfront research. The data is interesting.
- Lending Coin: Real estate lending powered by the blockchain.
- U.S small business lending keeps rolling.
- Making business analytics as easy to use as a smartphone.
- NetSuite angles for speed-to-market advantage.
- The best places for boomer entrepreneurs.
- U.S Bank Simple Loan 2018 review.
- How robotic process automation can transform banking.
- White Oak Healthcare Finance closes SNF portfolio financing for Granite Investment Group.
- Shared Harvest Fund tackles student debt.
- Early-stage fintech firms benefit from TransUnion, FinTech Sandbox Partnership.
- Funding Circle rallies, then tumbles. I think this came as a surprise to everyone.
- Intrust Bank partners with Funding Circle.
- Desai makes top 10 on Tech 100 list.
- Banks shudder at Marcus launch.
- Orca Money opens P2P lending market to investors.
- LendInvest cuts bridging rate.
- LendInvest adds CFO to board of directors.
- VC investment in blockchain startups is up 280% this year. I think we’re still in the early stages of a blockchain boom.
- Tencent-backed N26 launches in UK and plans US expansion next year. A company to watch.
- Why Flipkart could enter financial services.
- Credit card EMI vs. P2P loans.
- Aadhaar verdict sends fintech lenders back to the drawing board.
- United States
- Lending Club weighs in on Funding Circle’s float (Altfi News) Rated: AAA
- SoFi Forms New Partnership With Kukun to Help Homeowners Understand the Remodeling Cost (Crowdfund Insider) Rated: AAA
- Petal Card Announces $ 34 Million Round on Launch Day (Lend Academy) Rated: AAA
- Wealthfront Research Shows Clients Who Regularly Engage With Automated Financial Advice Save More (PR Newswire) Rated: AAA
- Worldwide Business with kathy ireland Discusses Blockchain Empowered Real Estate Lending with Lending Coin (Digital Journal) Rated: A
- U.S. Small Business Lending Keeps Rolling in August, According to PayNet (Business Wire) Rated: A
- Making business analytics as easy to use as a smartphone (American Banker) Rated: A
- NetSuite angles for speed-to-market advantage over fintechs (American Banker) Rated: A
- San Jose, San Francisco and Boston are the Best Places for Boomer Entrepreneurs (PR Newswire) Rated: A
- U.S. Bank Simple Loan 2018 Review (Nerdwallet) Rated: A
- RPA: the new tech transforming banking (Kyron Systems email) Rated: A
- White Oak Healthcare Finance Closes Subsequent SNF Portfolio Financing for Granite Investment Group (Business Wire) Rated: B
- Volunteer Organization Tackling the Crippling Student Debt Facing Americans (Crazy Good Turns email) Rated: B
- Early-Stage Financial Technology Firms to Benefit from TransUnion and FinTech Sandbox Partnership (Business Wire) Rated: B
- United Kingdom
- Funding Circle rallies as it makes official market debut (The Telegraph) Rated: AAA
- Intrust Bank driving small business opportunities with Funding Circle partnership (Witchita Business Journal) Rated: A
- Funding Circle’s Desai makes top 10 of ‘Tech 100’ list (Peer2Peer Finance) Rated: B
- British banks shudder at Goldman Marcus launch (financial Times) Rated: A
- Orca Money opening up the peer-to-peer lending market to investors (Proactive Investors) Rated: A
- LendInvest announce new bridging rate cuts (Property Reporter) Rated: A
- Property Fintech LendInvest Adds CFO to Board of Directors (Crowdfund Insider) Rated: B
- China doesn’t yet have a grip on P2P lending risks (East Asia Forum) Rated: AAA
- European Union
- German Challenger Bank Kontist Secures Series A Investment (Crowdfund Insider) Rated: A
- VC Investment in Blockchain Startups Is Up 280% So Far This Year (CoinDesk) Rated: AAA
- Tencent-backed mobile bank N26 launches in the UK and plans US expansion by early 2019 (CNBC) Rated: A
- Here is Why Flipkart is Keen to Enter the Financial Services Sector (Entrepreneur) Rated: AAA
- Credit Card EMI vs P2P Loan: Which one should you opt for? (Economic Times) Rated: A
- Aadhaar verdict sends fintech players back to the drawing board (The Week) Rated: A
- VN Central Bank working on framework for P2P lending (Vietnam Net) Rated: AAA
- Latin America
- ID Finance Mexico operations reaches profitability within eight months of launch (Finextra) Rated: AAA
Lending Club weighs in on Funding Circle’s float (Altfi News) Rated: AAA
The stock closed at 364p yesterday, down almost 20 per cent. This was the result of trading during the period between its float last Friday and the stock’s official market debut yesterday.
SoFi Forms New Partnership With Kukun to Help Homeowners Understand the Remodeling Cost (Crowdfund Insider) Rated: AAA
On Tuesday, online lending platform SoFi announced it has formed a new partnership with home improvement platform Kukun to offer advanced new tools to help homeowners gain a greater understanding of how much their home improvement project could cost and how it can affect the resale value of their home.
SoFi reported that the tools will help homeowners estimate costs and returns on investment for over 28 project types that range in price from $10,000 to $300,000, including renovations and expansions. These are notably the first tools SoFi is offering related to its home improvement loans. Financial calculators that are built by Kukun are notably based on highly normalized and granular property condition marketplace data, in addition to normalized construction permit data (fresh and historic), as well as customer intent from the Kukun marketplace
Petal Card Announces $ 34 Million Round on Launch Day (Lend Academy) Rated: AAA
Petal, a startup aims to deliver on what we’ve often called the real promise of fintech: financial inclusion. The company describes itself as “credit with a conscience” and announced a new fundraising round of $34 million on the same day that they officially launched their credit card product to the public. Backing the vision is Jefferies and Silicon Valley Bank.
The funding will aid the roll-out to a waitlist which includes 100,000 people. The card is aimed at the tens of millions of Americans who have no credit score at all or a short credit history.
Wealthfront Research Shows Clients Who Regularly Engage With Automated Financial Advice Save More (PR Newswire) Rated: AAA
Today, Wealthfront released the 2018 Savings Report detailing the impact their automated advice engine, Path, has on their clients’ savings patterns. In the last year, the company has observed that consistent engagement with Path correlates with a 28% increase in a client’s savings rate. For a 32-year-old client with a $130,000 income and $100,000 in savings, this could mean an additional $1.25 million dollars at retirement.
Wealthfront’s goal is to fully automate financial decisions to what some people have called, “self-driving money.” Clients will be able to automatically deposit their paycheck into their Wealthfront account and the company will route their money appropriately based on the lifestyle and goals they’ve set. Bills will be automatically paid, emergency funds and 401(k)s will be topped off and Wealthfront will invest the rest in the most tax efficient way. To date the company offers a suite of automated financial planning, investment management and banking related services. To read the full report visit to start saving and investing today download the app on iOS or Android.
Worldwide Business with kathy ireland Discusses Blockchain Empowered Real Estate Lending with Lending Coin (Digital Journal) Rated: A
“We provide peer-to-peer lending around the world,” says Ngo. “By using the blockchain, we don’t have high overhead costs or errors like traditional financing. That’s why we are able to offer such low interest rates.”
Backed by Popular Bank, the platform is fully operational. With Highly experienced private banking professionals and dedicated office suites in each of its principal New York and Miami markets, the Popular private client program is well-positioned to cater to current and prospective clients.
U.S. Small Business Lending Keeps Rolling in August, According to PayNet (Business Wire) Rated: A
Small business lending continued its blistering pace in August, according to the latest Strategic Insights Report from PayNet, the leading provider of small business credit data and analysis. The Thomson Reuters / PayNet Small Business Lending Index (SBLI) seasonally adjusted originations increased 7% from 145.1 in July 2018 to 154.7 in August 2018, its second-highest reading ever. Year-over-year, the index is up 16%, marking its 11th consecutive increase over the prior year and the fourth double-digit year-over-year gain in the last five months. The rolling three-month index at 148.3 is relatively flat compared to July 2018 but is up 12% on the year.
The SBLI remained above 140 for the eighth consecutive month. The majority of industries experienced lending growth on an annual basis in August, led by Transportation & Warehousing (+20.4% Y/Y) and Mining (+9.7% Y/Y). Lending in Arts & Entertainment (+4.6% Y/Y) climbed to an all-time high in August, and more than half of industries achieved index readings in the top 25th percentile of all readings since 2005. Construction (+8.0% Y/Y) saw its strongest annual growth since November 2016 (despite weakening residential investment) due to strong investment in commercial and industrial structures. Regionally, lending increased across all ten of the largest states in August, continuing the widespread expansion seen in July. On an annual basis, regional growth was led by Texas (+15.3% Y/Y), Illinois (+12.3% Y/Y), North Carolina (+9.9% Y/Y) and Michigan (+9.4% Y/Y) — each of which saw lending reach record highs in August. Meanwhile, Pennsylvania (+7.9% Y/Y) and New York (+6.2% Y/Y) experienced their fastest year-over-year growth since mid-2015.
Making business analytics as easy to use as a smartphone (American Banker) Rated: A
A constant drumbeat in banking is that businesses require ever more data analytics to remain informed and competitive. Yet Envestnet|Yodlee acknowledged its data offerings were out of tune with customer expectations.
Its Envestnet Envision IQ platform, launched in May, offered up a variety of information concerning a bank’s customers and products, but it had no focus, according to a top executive at the data aggregator.
Branch managers will be able to create their own “playlist” of questions to be answered daily, he said, and the system will record and categorize questions asked into favorited questions and most-asked questions.
NetSuite angles for speed-to-market advantage over fintechs (American Banker) Rated: A
The biggest bank technology providers are revamping their most popular platforms to offer new features and reach more financial service sectors — all in the name of protecting market share from insurgent fintechs and pivoting peers.
Oracle joined the fray last week, announcing it was adding banking as a service to NetSuite, the venerable cloud-based enterprise resource planning platform it acquired for $9.3 billion in 2016.
San Jose, San Francisco and Boston are the Best Places for Boomer Entrepreneurs (PR Newswire) Rated: A
- San Jose – the seat of the Silicon Valley – is by far the best place for boomer entrepreneurs, with a final score of 93.6. In addition to representing high business income, San Jose boasts the largest share of boomer business founders.
- San Francisco comes in second with a score of 86.5, thanks to remarkable earnings potential, relative to the other metros on the list, indicating that boomers are sharing in the general prosperity of self-employed entrepreneurs there.
- Boston earned the third place on the list, with a score of 74.1.
- New Orleans, Miami and Orlando ranked last on the list, with scores of 16.4, 20.5 and 21.1, respectively.
See the full study here.
U.S. Bank Simple Loan 2018 Review (Nerdwallet) Rated: A
Cost: The Simple Loan costs $12 for every $100 borrowed, which translates into an annual percentage rate of 71%. That’s much cheaper than typical payday loans, where the average rate is 391%, and it’s due after three months, not the two-week cycle that is common of payday loans.
Auto-pay discount: U.S. Bank allows both auto-payments and manual payments. Manual payments cost extra, $15 per $100 borrowed, which is equal to 88% APR.
Payments are reported to the credit bureaus, so your score can increase if you make on-time payments.
RPA: the new tech transforming banking (Kyron Systems email) Rated: A
The number of U.S. banks has almost halved since 2007, from 8,400 to about 5,500 in 2017, and the reason is that it costs more. Rising AML and KYC compliance costs combined with regulatory fines are continuously putting banks out of business, especially small banks; U.S. Fed research indicates that adding just two new employees to a small bank’s compliance team would make a third of these banks unprofitable.
In response, banks are turning to a new field of virtual assistants: RPA, which stands for ‘robotic process automation’ but there are no actual, physical robots, rather virtual bots that run in the background on employee computers, learning what processes the bots can do instead, and then doing exactly that. Although RPA is being implemented in almost every industry, it dovetails particularly well with banking because there are so many repetitive processes that can be automated, everything from risk exposure calculations to compliance reports.
More information on RPA can be found here.
White Oak Healthcare Finance Closes Subsequent SNF Portfolio Financing for Granite Investment Group (Business Wire) Rated: B
White Oak Healthcare Finance, LLC (“White Oak”), today announced it acted as sole lender and administrative agent on the funding of a $28 million senior credit facility for Granite Investment Group (“Granite”). Secured by three skilled nursing facilities in Texas, the funds refinanced existing debt and provided a dividend for investors. White Oak recently announced it financed a separate portfolio of four skilled nursing facilities in Texas for Granite.
“We are happy to have had another opportunity to work with Granite. This transaction materialized as an opportunity to provide a bridge-to-HUD financing for an under-levered portfolio. As an active lender in the space, we can optimize our offerings to meet each company’s unique business needs,” said Isaac Soleimani, Managing Director and Partner at White Oak.
Granite Investment Group is a privately held, real estate investment firm focused on multi-family, senior housing, and post-acute care.
Volunteer Organization Tackling the Crippling Student Debt Facing Americans (Crazy Good Turns email) Rated: B
A new non-profit, Shared Harvest Fund has created an impactful way to pay down student debt. Shared Harvest Fund has created a program that partners non-profit organizations in need of workers, with students looking to not only pay down their debt, but do something with purpose as well. Once the connection is made, students volunteer a set amount of hours per month, and the non-profit organization in turn sends a check directly to the lender of the student’s choice.
The founders of Shared Harvest Fund; Dr. Briana DeCuir, Dr. Joanne Moreau and Dr. NanaEfua B.A.M, will be featured on the October 17th Crazy Good Turns podcast, a non-profit podcast that shines a light on people and organizations making a positive impact in the world, to share the in’s and out’s of their platform and discuss in detail how students looking to pay down debt—or non-profits looking for volunteers—can be a part of the Shared Harvest Fund community.
Podcast Topics Include:
- The founders discuss how and why they created the platform
- The negative physical and mental consequences that carrying debt has on borrowers and the positive effects of volunteering to help others.
- How unaware most students are about the length of time it takes to pay off student loans.
- How corporations can increase their corporate responsibilities goals by supporting the Shared Harvest Fund.
Early-Stage Financial Technology Firms to Benefit from TransUnion and FinTech Sandbox Partnership (Business Wire) Rated: B
FinTech Sandbox today announced it has entered into a partnership with TransUnion to help early-stage financial technology firms launch in the marketplace. As part of the partnership, TransUnion’s Startup Credit Kit will enable startups to test business model concepts and refine their go-to-market strategies.
Funding Circle rallies as it makes official market debut (The Telegraph) Rated: AAA
Shares in Funding Circle rallied as it made its official market debut on the London Stock Exchange today, in a move likely to quell fears over market uncertainty.
The peer-to-peer lender tumbled as much as 8pc in the company’s first official day of trading, falling well below the 440p per share it had floated at last week, before later jumping back up.
Around 20pc had been wiped off their value during conditional trading, which began last Friday and ran through to Tuesday evening. Shares dropped as low as 340p on Wednesday, before later rising to 390p.
Intrust Bank driving small business opportunities with Funding Circle partnership (Witchita Business Journal) Rated: A
The original partnership was announced in January. It expanded in June and Intrust increased its commitment to more than 500 loans.
Brian Heinrichs, CFO at Intrust, says the bank is now at around 400 of those commitments, though he declined to say what amount of lending that represented for the bank.
Heinrichs says Intrust is the only bank partnered in such a way with U.K.-based Funding Circle.
Funding Circle’s Desai makes top 10 of ‘Tech 100’ list (Peer2Peer Finance) Rated: B
FUNDING Circle’s chief executive Samir Desai has been named as one of the top 10 most influential people in the British tech industry.
The peer-to-peer pioneer appears alongside fellow fintech leaders such as Starling Bank chief executive Anne Boden, and Tom Blomfield, chief executive of Monzo.
The Tech 100 list is compiled by Business Insider and aims to celebrate “the 100 coolest and most ground-breaking people in the UK tech industry over the past 12 months”.
British banks shudder at Goldman Marcus launch (financial Times) Rated: A
Marcus by Goldman Sachs recently launched in the UK and the biggest high street banks are only beginning to grapple with what the new competitor means for the market. Marcus has seen significant success in the U.S. market and is hoping to bring that to the UK, they currently have a savings rate offer 3 times the traditional powers and have plans to launch more products soon.
The news is not all bad for high street powers as data has shown customers thus far have stayed loyal to their bank and regulations around use of deposits make it a bit trickier for Marcus to repeat their U.S. model.
Keith Horowitz, analyst at Citigroup, tells the FT where the biggest opportunity could exist, “The big key for Goldman ultimately is customer data, that’s the holy grail for banking, creating an open financial marketplace platform that can also utilise their huge balance sheet.”
Orca Money opening up the peer-to-peer lending market to investors (Proactive Investors) Rated: A
LendInvest announce new bridging rate cuts (Property Reporter) Rated: A
Online property finance platform, LendInvest, has announced that it has cut rates across its Bridging product range and introduced a new Bridge to Term transition service.
The lender has cut rates on its Residential and Commercial Bridging, Development Exit and Auction Finance products. Monthly interest rates now start from 0.55% for Residential Bridging, Auction and Development Exit and 0.79% for Commercial Bridging.
A new Bridge to Term service has also been introduced that offers borrowers looking to purchase residential property at auction, undertake refurbishment or carry out minor development the opportunity to then switch to one of LendInvest’s Buy-to-Let mortgages.
Property Fintech LendInvest Adds CFO to Board of Directors (Crowdfund Insider) Rated: B
LendInvest, an online lending platform for property finance, has announced the addition of Chief Financial Officer, Angelie Panteli, to the board of directors.
China doesn’t yet have a grip on P2P lending risks (East Asia Forum) Rated: AAA
China’s online peer-to-peer (P2P) lending platforms have been falling like dominos. This has sparked investor panic, exposing deeper risks long hidden in China’s shadow finance sector. It is yet to be seen if Chinese regulators will be able to manage the risks and effectively regulate P2P in the same way they have done in other areas of shadow banking.
Shadow banking from institutions supervised by empowered central regulators is shrinking. One of the best ways to measure shadow credit funded by banks is through their lending to non-bank financial institutions. It rose 80 per cent year-on-year in February 2016, but over the last year has shrunk by 4 per cent.
The number of surviving P2P platforms has been on a gradual decline since November 2015, but regulators were caught off guard when failures suddenly accelerated in mid-June 2018. Investors began to panic and tried to pull their money out, sparking yet more failures. Many protested for government help when they found that their savings had been stolen or sunk into bad loans.
Outstanding loans then plummeted by 300 billion RMB (US$44 billion), from 1.3 trillion RMB (US$190 billion) to just under 1 trillion RMB (US$146 billion). They fell again in August, but the outflows and failures moderated. The storm may have passed, leaving most platforms intact for now.
German Challenger Bank Kontist Secures Series A Investment (Crowdfund Insider) Rated: A
Kontist, a Berlin-based challenger bank, announced on Tuesday it secured a Series A investment to expand the financial services available to freelancers, small businesses, and entrepreneurs. The round was led by Haufe Group, one of Germany’s providers of digital workplace solutions and services with participation from existing investor Danish company builder, Founders.
VC Investment in Blockchain Startups Is Up 280% So Far This Year (CoinDesk) Rated: AAA
As the crypto industry sees a decline in initial coin offerings (ICOs) amid regulatory concerns and major losses across token markets, traditional VC investment is once more on the rise.
In its latest report, blockchain research group Diar reports that blockchain and cryptocurrency-focused startups have raised nearly $3.9 billion through VC investments in the first three quarters of the year – that up 280 percent when compared to the whole of 2017, it says.
Based on data from Pitchbook, the report indicates that number of deals also nearly doubled this year.
Alongside the increase in VC deals, the average size of crypto and blockchain investments has increased by over $1 million in 2018. Ten of the largest blockchain and crypto investments in 2018 saw the recipient companies raise more than $1.3 billion in total venture capital. While one of the firms has a native token (DFINITY), the rest represent equity investment, says Diar.
Tencent-backed mobile bank N26 launches in the UK and plans US expansion by early 2019 (CNBC) Rated: A
The Berlin-based firm, which is backed by Chinese tech giant Tencent, German insurer Allianz and PayPal co-founder Peter Thiel, said on Thursday that its services are now available in Britain, on a limited basis.
Initially, a select number of “early adopters” will be given access to the app in the U.K. More than 50,000 people who have signed up to a waiting list for the U.K. launch will be on-boarded on a phased basis, and a broader launch is planned for next month.
Here is Why Flipkart is Keen to Enter the Financial Services Sector (Entrepreneur) Rated: AAA
Looks the Indian startup’s ecosystem is smitten by the opportunities fintech industry is benefiting of. No wonder, we have unicorn startup companies such as the Flipkart looking into tap the market.
Market buzz says that Flipkart is in the middle applying for an NBFC license to extend the line of credit to its sellers and customers. With time, it would expand its financial services offerings beyond its e-commerce platform.
The credit problem in India is beyond surreal. For example, the small and medium enterprises sector (SMEs), which contributes between 30-40 per cent in the country’s GDP, suffers majorly because of its unattended financing need and the gap is as big as around USD 650 billion.
Giving an example of the consumer lending space, Gaurav Chopra, Founder & CEO, IndiaLends says this segment is expected to be a USD 1.2 trillion opportunity for the organised lenders, implying a 22 per cent compound annual growth rate over the next three years.
Credit Card EMI vs P2P Loan: Which one should you opt for? (Economic Times) Rated: A
Credit cards can be extremely handy when it comes to making an impulsive high-ticket purchase. All you have to do is to flash the card and walk away with your purchase. Many credit card companies would immediately offer you an option to pay back the money in equated monthly instalments or EMIs.
Compared to credit cards, personal loans can be cheaper. “Credit cards can charge somewhere around 0.1% every day. Making the annual charges go up to 36% in some cases,” says Tanwir Alam, Founder & CEO, Fincart.
P2P loans, unlike the usual bank loans, offer short-term tenures starting 3-36 months and can be looked as an alternative to credit cards, depending on the requirement of the borrower. The interest rates are anywhere between 12 and 28%.
Aadhaar verdict sends fintech players back to the drawing board (The Week) Rated: A
The recent Supreme Court verdict on Aadhaar may bring in tough times for the fintech companies who used to conduct eKYC (electronic Know Your Customer) via Aadhaar. Not mandating Aadhaar for the verification process has sent some fintech players back to the drawing board to work out strategies for physical verification, which is usually a time-consuming and expensive process. Experts and industry representatives with whom THE WEEK spoke to feel that verification of customers will eventually move to a traditional mode of verifying individuals through physical ID proof.
Bhavin Patel, CEO and co-founder of LenDenClub, a P2P digital lending platform, says that a physical KYC check takes around 24 hours or more now in an ideal scenario and this change in processing will result in longer disbursal time and higher cost for the consumer.
VN Central Bank working on framework for P2P lending (Vietnam Net) Rated: AAA
Anh spoke at a recent workshop on international experiences in P2P lending held in Ha Noi with the participation of more than 100 representatives, including financial management authorities from China, Singapore, Thailand and Indonesia.
With the rapid proliferation of mobile devices, artificial intelligence and big data, P2P lending—the practice of lending money to individuals or businesses through online services that match lenders with borrowers—has developed rapidly around the world in recent years.
Although P2P can create enormous socio-economic benefits, it also contains potential risks for the relevant parties, he said, adding that it is necessary to strictly monitor this field to mitigate the risks and improve awareness of the relevant parties.
Through this model, lenders can earn higher returns than they can get from banks while borrowers, especially individuals and micro businesses, can get money at lower rates. But the lending is also fertile ground for high-tech crimes. China had to eliminate some 160 online lending companies as they were in fact high-tech criminals working to cheat investors.
ID Finance Mexico operations reaches profitability within eight months of launch (Finextra) Rated: AAA
The Mexico operations of ID Finance, the emerging markets fintech company, has reached profitability in just eight months since launching in the region.
The announcement represents a key milestone for the business as it continues its rapid expansion across Latin America. It currently operates in Mexico and Brazil.
News Comments Today’s main news: SoFi is like a bank, but not a bank. Finastra’s blockchain solution for lenders is live. Linked Finance pass 50M Euro lending mark. Capital Float raises $22M from Amazon. Today’s main analysis: Cities where credit card debt has increased, decreased the most. Today’s thought-provoking articles: Fintech business lenders are evolving. Why marketplace lending needs […]
- Today’s main news: SoFi is like a bank, but not a bank. Finastra’s blockchain solution for lenders is live. Linked Finance pass 50M Euro lending mark. Capital Float raises $22M from Amazon.
- Today’s main analysis: Cities where credit card debt has increased, decreased the most.
- Today’s thought-provoking articles: Fintech business lenders are evolving. Why marketplace lending needs less transparency. Teachers get more loans than anyone.
- SoFi is more like a bank, but not a bank. AT: “This is great news, but Americans don’t seem much interested in challenger banks. Maybe this will change as larger companies like SoFi and Marcus attempt to make it popular. I hope they succeed.”
- Cities where credit card debt is decreasing and increasing the most. AT: “I can think of all sorts of ways that alternative lenders can use this data, especially if they issue any type of credit card. But even lenders that don’t issue credit cards can benefit from knowing these details.”
- Fintech business lenders are evolving. AT: “Re-evaluating and changing business models and practices from time to time is an absolute necessity.”
- Marketplace lending needs less transparency. AT: “Some good points made here.”
- Teachers take out more loans than anyone else. AT: “This is great news if you lend to teachers.”
- What banks can learn from BB&T’s technology glitch.
- Zelle is vulnerable to fraud.
- Interview with Steve Polsky of Juvo.
- Half of Americans feel like banks can help them progress financially.
- Blockchain helps millennials get into housing.
- Daijo: decentralized P2P lending on the Stellar blockchain.
- Harvest Properties, Cerberus Capital acquire DC Station.
- Why consumers should search for online loans from direct lenders.
- Finastra’s blockchain solution for lenders goes live.
- Landbay reaches Women in Finance targets.
- Assetz Capital joins Positive Lending panel.
- Growth Street joins FCA Register as appointed representative.
- Business Catalyst Club launches partnership.
- Linked Finance loans pass 50 million Euros. AT: “Congratulations.”
- ID Finance R&D joins Hi-Tech Park in Belarus.
- United States
- SoFi Becomes More Like a Bank without Becoming a Bank (Crowdfund Insider) Rated: AAA
- Cities Where Credit Card Debt Has Increased and Decreased the Most (CompareCards), Rated: AAA
- Fintech business lenders evolving (Banking Exchange) Rated: AAA
- Why Marketplace Lending Needs Less Transparency, Not More (PYMNTS) Rated: AAA
- What other banks can learn from BB&T’s glitch (American Banker) Rated: A
- Zelle, the Banks’ Answer to Venmo, Proves Vulnerable to Fraud (The New York Times) Rated: A
- Steve Polsky of Juvo (Lend Academy) Rated: A
- Boiler Rooms Are Not Brands, Kabbage CEO Says (DeBanked) Rated: A
- Only Half of Americans Feel Like Banks Can Help Their Financial Progress (Business Wire) Rated: A
- Blockchain to Help Millennials Get their Foot on the Housing Ladder (CoinSpeaker) Rated: A
- Teachers take out more loans than anyone else (Thinknum Media) Rated: AAA
- Reasons Stellar (XLM) Bulls Will Beat The Bears (Crypto Gazette) Rated: B
- Harvest Properties and Cerberus Capital Management Acquire DC Station in Daly City, California (Markets Insider) Rated: B
- Why you should search for direct lenders for online loans (Baltimore Post Examiner) Rated: B
- United Kingdom
- Finastra’s Blockchain-Based Solution Fusion LenderComm Goes Live (Crowdfund Insider), Rated: AAA
- Landbay reaches Women in Finance targets (Peer2Peer Finance News) Rated: A
- Assetz Capital Joins Positive Lending Panel (Crowdfund Insider) Rated: A
- Growth Street joins FCA Register as an Appointed Representative, launches P2P investment opportunity for individuals (Growth Street) Rated: B
- Commercial financial partnership launched (The Business Desk) Rated: B
- European Union
- Loans from Linked Finance pass the €50m mark (Independent) Rated: AAA
- ID Finance R&D joins Eastern European tech elite at Belarus’ Hi-Tech Park (ID Finance) Rated: B
- YayProto ICO (YFN Token): Blockchain Money Transfer System? (Bitcoin Exchange Guide) Rated: A
- Robo-advice platform powers financial advice firm Collins House (Money Management) Rated: A
- Indian lending platform Capital Float raises $ 22M Series C extension from Amazon (Tech Crunch) Rated: AAA
- Four NBFCs empowering MSME sector (The Siasat Daily) Rated: A
SoFi Becomes More Like a Bank without Becoming a Bank (Crowdfund Insider) Rated: AAA
During the Cagney period, SoFi was promoted as an anti-bank solution for retail customer needs. The Fintech acquired a digital only challenger bank, Zenbanx, while initiating the process to provide banking services by applying for industrial loan charter (ILC).
A few months later, Zenbanx was shut down and eventually Cagney departed SoFi and the ILC process was halted.
Today, SoFi is pushing further into bank like services with SoFi Money, a mobile first challenger bank like platform minus the banking charter.
Cities Where Credit Card Debt Has Increased and Decreased the Most (CompareCards), Rated: AAA
The U.S. economy is in a good place, growing at a healthy rate of nearly 3% annually, and the unemployment rate is around 4%. So it’s perhaps surprising that credit card balances are growing in 20 of the 30 largest U.S. metros while declining in nine with one city unchanged.
The changes in credit card balances range from a 9% increase in Miami to a 6% drop in San Francisco.
Miami led the 30 largest metros by far with a 9% annual increase. Pittsburgh was No. 2 at a nearly 6% rise with New York and Chicago both just above 5%.
Average credit card balances range from $7,276 in Washington, D.C. to $5,114 in Riverside, Calif.
Cities with the largest average credit card balance decreases
30. San Francisco — credit card balances declined 6%.
29. Dallas — credit card balances down 5%.
28. Baltimore — credit balances drop by 5%.
Fintech business lenders evolving (Banking Exchange) Rated: AAA
While the merits of the proposed fintech national banking charter continue to be debated in Washington, online nonbank business lenders haven’t been circling in a holding pattern over Reagan National Airport.
Case in point: The business of lending isn’t lending, but getting paid back, said Andrea Gellert, chief revenue officer at OnDeck, the largest online small business lender in the U.S.
Pro’s and cons of alternative data
One of the criticisms of traditional credit bureaus is that they have typically relied on backward-looking, historical data. One of the elements of fintech lenders has been use of alternative indicators intended to give a glimpse of the future.
“Alternative data sources have been proven to work to predict credit,” said Luke Voiles, director at QuickBooks Capital, which lends to users of Quicken’s accounting software. (Currently the company caps loans as $50,000.) The input the firm can access provides a strong picture of how a business is doing and may be doing in the future. Gellert said that as loans grow larger, OnDeck adds in methodologies derived from behavioral economics.
Why Marketplace Lending Needs Less Transparency, Not More (PYMNTS) Rated: AAA
Marketplace lending platforms — Lending Club, OnDeck, Prosper and the like — have inarguably and fundamentally altered the geography of the lending landscape. In the last decade, they’ve gone from being a niche product to representing about a third of unsecured consumer loan volume in the United States as of 2016, according to a recent study by Harvard Business School Professor Boris Vallée and University of Washington Professor Yao Zeng.
The really savvy investors, the study noted, aren’t merely savvy because of the knowledge they possess — but because of the technology they leverage. One popular such technology is LendingRobot’s quantitative modeling that takes in the historical data provided by the platforms and uses it to create rules of purchase — and then allows its user set it to literally auto-invest whenever it encounters a loan that meets the rules’ criteria.
Looking at a swath of loans executed by LendingRobot users between January 2014 and January 2017, with a particular focus on $120 million invested in LendingClub and Prosper during that time period, what they found is that those who used LendingRobot bought much better loans — the average default rate for LendingRobot purchases was 20 percent lower than the average default rate on the platform.
What other banks can learn from BB&T’s glitch (American Banker) Rated: A
In February, BB&T Chief Executive Kelly King took to Twitter with a video apology to thousands of irate customers after an equipment malfunction hobbled ATMs, online and mobile banking. “We are committed to making this right,” he said.
On Thursday, during the Winston-Salem, N.C.-based bank’s quarterly earnings call, King revealed the bottom-line cost of the high-profile, three-day system outage: $15 million in lost revenue and an additional $5 million in noninterest expenses tied to fee waivers and other costs.
Zelle, the Banks’ Answer to Venmo, Proves Vulnerable to Fraud (The New York Times) Rated: A
Zelle, a service that allows bank customers to instantly send money to their acquaintances, is booming. Thousands of new users sign up every day. Some $75 billion zoomed through Zelle’s network last year. That’s more than twice the amount of money that customers transferred with Venmo, a rival money-transfer app.
But the same features that make Zelle so useful for customers, its speed and ubiquity, have made it irresistible to thieves. Hackers and con artists have used the system to steal from victims — some of whom had never used Zelle or even heard of it until someone used it to clean out their bank accounts.
Steve Polsky of Juvo (Lend Academy) Rated: A
In this podcast you will learn:
- How Steve’s diverse background as an entrepreneur helped in the launch of Juvo.
- What Juvo does exactly and what problem they are trying to solve.
- How Juvo is able to extend credit in tiny amounts to prepaid phone customers.
- Who Juvo partners with to reach these people.
- What Juvo brings to the table for the mobile operators.
- The geographies they have focused on.
- Why their website leads with “Identity Changes Everything”.
- How they are verifying identity and approving these people with no credit file.
- How the mechanics work in getting credit to these people.
- Why the major value proposition is one of convenience.
- How they are mitigating against fraud.
- Why they don’t charge the consumer interest or any fees.
- Why the big opportunity is moving people up to other financial services.
- The scale they are at today.
- What the partnership with Samsung means for Juvo.
- How the information and data on these people will end up being so valuable.
- What is next for Juvo.
Boiler Rooms Are Not Brands, Kabbage CEO Says (DeBanked) Rated: A
Speaking at LendIt Fintech 2018 Kabbage CEO Rob Frohwein talked about building a brand in the online lending space; he explained most companies think boiler rooms equal brands, he went on to say you need to spend time and money on building your company’s brand; building relationships is the key, not just credit scores and data, you need to understand what your customer wants and needs by engaging with them on a regular basis.
Only Half of Americans Feel Like Banks Can Help Their Financial Progress (Business Wire) Rated: A
When it comes to getting a loan or credit card from their bank, many Americans are not so confident. A newly released study from Elevate’s Center for the New Middle Class (CNMC) found that non-prime Americans – the 2/3rds of US adults with credit scores under 700 – were significantly less likely to depend on a traditional financial institution for access to credit. Compared to individuals with prime credit scores, non-prime Americans are:
- 4x as likely to have been denied a loan over the last year
- 8x as likely to not use a bank
- 6x as likely to use an online-only financial institution
- 21% less likely to believe their financial institution has products designed for them
- 48% less likely to believe they would be approved for a personal loan
The non-prime are often characterized by income volatility, making it all the more necessary they have access to credit. Yet, one in 12 non-prime Americans do not even use a traditional bank for their day-to-day needs. Non-prime Americans often move to an online only bank to meet this void.
Blockchain to Help Millennials Get their Foot on the Housing Ladder (CoinSpeaker) Rated: A
Representatives of the so-called millennial generation are approaching their mid-thirties, being the single largest segment of home buyers in America. This, undoubtedly, represents a huge opportunity for the mortgage industry.
Couple this with the fact that the American housing market (which currently stands at $26 trillion) is the largest asset class in the world – even bigger than the U.S. stock market – and it’s clear that there is certainly a huge wealth of opportunity within this sector.
Teachers take out more loans than anyone else (Thinknum Media) Rated: AAA
When we solved for job titles, we discovered that teachers take out the most Lending Club loans with 47,761 loans issued. “Manager” and “Owner” follow, but as you’ll see in the chart below, teacher reappears (with a lower-case “t”) with another 8,777 loans issued.
This chart shows average monthly income for the teachers requesting loans. It’s widely beleived that teachers aren’t paid as well as they should be.
Reasons Stellar (XLM) Bulls Will Beat The Bears (Crypto Gazette) Rated: B
Daijo is yet another decentralized P2P lending platform built atop the Stellar blockchain. The Demo version for Daijo mobile app is currently available and running, with the full version expected to be released in a couple of weeks, however QIN tokens are available for presale.
The QIN token is Daijo’s very own multi-purpose asset. QIN will be used for basically everything on the platform, from rewards, to loan requests, to repay of loans. Daijo presents a little update to existing lending platform, with this, our arms are crossed to see how Daijo and the QIN tokens would perform on the big stage.
Harvest Properties and Cerberus Capital Management Acquire DC Station in Daly City, California (Markets Insider) Rated: B
Harvest Properties, a full service commercial real estate investment, development, and management firm (“Harvest”) and an affiliate of Cerberus Capital Management, L.P. (“Cerberus”), a global leader in alternative investing, announced today that they have acquired DC Station, an office property located in Daly City, California. The Leadership in Energy and Environmental Design (LEED) Silver certified project is comprised of a nine-story, multi-tenant office building totaling approximately 383,000 square feet.
Why you should search for direct lenders for online loans (Baltimore Post Examiner) Rated: B
Borrowing online has a number of major benefits, from quick approval – as the online lender can tell you more or less instantly if you’re either approved or not – to lower interest rates (if any) and easier approval because they always use alternative information to evaluate your credit worthiness. You can find information about all types of loans, but make sure you search for it in the right places. For example, expert online loan lenders like Credit Cube provide a review of all types of loans and they make sure you choose a loan that satisfies your requests. For now, let’s see what the differences between the main types of lenders are!
Finastra’s Blockchain-Based Solution Fusion LenderComm Goes Live (Crowdfund Insider), Rated: AAA
UK fintech Finastra announced on Tuesday its blockchain-based solution, Fusion LenderComm, is now commercially available as an app on R3’s Corda platform for financial institutions operating in the syndicated lending market. The launch was announced at the LSTA Operations Conference in New York. Finastra reported that following a pilot, the solution is proven to streamline information exchange between agent banks and lenders, driving transparency and efficiency in the syndicated loan market.
Fusion LenderComm is now available as a “low-cost” service for financial services institutions acting as agent banks, using Fusion Loan IQ, a syndicated loan servicing platform. However, the Fusion LenderComm platform is an open utility for all institutions involved in syndicated lending, regardless of the loan servicing software in use.
Landbay reaches Women in Finance targets (Peer2Peer Finance News) Rated: A
LANDBAY has achieved the targets set last year as part of its commitment to the Treasury’s Women in Finance Charter.
The buy-to-let specialist has confirmed that there is now a minimum of one female representative on every interview panel. It has also drafted a formal maternity and paternity leave plan for all employees.
The peer-to-peer lender’s third target was to ensure that for any additions to executive management or the board of directors, at least one woman must be shortlisted. However, there have been no vacancies at an executive and non-executive level since this promise was made in 2017.
Assetz Capital Joins Positive Lending Panel (Crowdfund Insider) Rated: A
UK-based peer-to-peer lending platform Assetz Capital announced last week it has joined the panel of mortgage packager specialist Positive Lending. This news comes just days after the online lender reached a record number of loans available to investors using its Manual Lending Account (MLA), with well over 200 live loans with loan parts available for immediate investment on the secondary market.
Growth Street joins FCA Register as an Appointed Representative, launches P2P investment opportunity for individuals (Growth Street) Rated: B
Growth Street, an alternative banking service provider for SMEs, announced today that it is now listed as an Appointed Representative (AR) on the Financial Conduct Authority’s (FCA) Financial Services Register. Formerly a peer to peer (P2P) platform purely for incorporated businesses to lend and borrow from each other, this new status allows Growth Street to accept individuals as investors on the platform. By expanding the range of investors, Growth Street aspires to provide more businesses with a GrowthLine, its business overdraft alternative.
Commercial financial partnership launched (The Business Desk) Rated: B
The Business Catalyst Club has agreed a deal with commercial finance brokers ABL Business to create Business Catalyst Finance.
The partnership will provide access to a range of funding options such as commercial property finance, business loans and venture capital along with alternative finance opportunities like asset-based lending and peer-to-peer lending.
Loans from Linked Finance pass the €50m mark (Independent) Rated: AAA
Loans from Linked Finance to Irish small and medium enterprises (SMEs) have passed the €50m mark.
The milestone co-insides with the Irish peer-to-peer lending platform celebrating five years in business.
ID Finance R&D joins Eastern European tech elite at Belarus’ Hi-Tech Park (ID Finance) Rated: B
ID Finance, the emerging markets fintech company, has been accepted into the Belarus Hi-Tech Park (HTP) in Minsk as it seeks to strengthen its R&D team and take advantage of the favourable business environment on offer to technology companies.
YayProto ICO (YFN Token): Blockchain Money Transfer System? (Bitcoin Exchange Guide) Rated: A
Billions of dollars are transferred every day and people, collectively, lose out on millions in inefficient systems and high transaction fees. There is a lack of transparency and accountability in the system. Another big problem in the major global financial organizations is that more than 3.5 billion (50% of global population) are still unbanked.
A solution to these problems is a crowd-based banking system that secures its customer’s funds by blockchain technology.
Robo-advice platform powers financial advice firm Collins House (Money Management) Rated: A
Robo-advice platform Clover.com.au has entered an agreement to provide proprietary online financial advice and wealth management technology to private wealth firm, Collins House.
Clover chief executive officer and co-founder, Sahil Kaura, said the platform would algorithmically assess information provided by customers to determine if a managed discretionary account (MDA) service was appropriate on a case-by-case basis.
Indian lending platform Capital Float raises $ 22M Series C extension from Amazon (Tech Crunch) Rated: AAA
Capital Float, the fintech startup that says it is India’s largest online lender, announced today that it has raised $22 million in new funding from Amazon. At the end of last year, reports surfaced that Amazon was considering an investment in Capital Float as an extension of its $45 million Series C, which was announced last August. The Bangalore-based startup confirmed to TechCrunch that Amazon’s investment is indeed an extension of that round and brings the total equity it has raised over the past 12 months to $67 million.
Over the same period, Capital Float also raised $80 million of debt from banks and other financial companies, which it combines with its own balance sheet to finance loans to small businesses and other borrowers. Amazon India is among several e-commerce platforms that the company has partnered with to provide loans to sellers, including Snapdeal and Shopclues.
Four NBFCs empowering MSME sector (The Siasat Daily) Rated: A
In this regard, here are four NBFCs that can be explored by and SME and MSME players for financial assistance:
- Lendingkart-This is a non-deposit taking NBFC, providing SME lending in India.
- Aye Finance-It is a commercial institution built around the mission to solve these challenges of funding MSMEs and enabling their inclusion into the mainstream of the economy.
- Faircent-Faircent, a P2P platform has been facilitating loans for number of businesses across the country. Its tech-enabled backbone makes the entire process and hassle free.
- InCred-It is a new-age financial services group that aspires to be the one stop shop for the customers to fund their financial needs.
News Comments Today’s main news: Tala raises $65M for international expansion. The House Crowd hits 1M GBP in one day. Silicon Valley investment into UK hits $1B. 100Credit gets $159M from state-owned fund in China. Mintos adds ID Finance loans issued in Kazakhstan. Today’s main analysis: The 5 best personal loans for good credit. Today’s thought-provoking articles: LendIt Fintech […]
- Today’s main news: Tala raises $65M for international expansion. The House Crowd hits 1M GBP in one day. Silicon Valley investment into UK hits $1B. 100Credit gets $159M from state-owned fund in China. Mintos adds ID Finance loans issued in Kazakhstan.
- Today’s main analysis: The 5 best personal loans for good credit.
- Today’s thought-provoking articles: LendIt Fintech 2018 wrap-up. P2P lending to pass 9B GBP in UK. The 5 best personal loans for good credit. Goldman has big plans for Marcus.
- Tala raises $65 million for international expansion. AT: “The alternative lending battle in major markets seems to be dry at the moment, but there is plenty of battleground around the globe, especially where financial inclusion is a hot grove.”
- LendIt Fintech 2018 wrap-up. AT: “If you didn’t get to attend the conference, this is a good overview of the most important keynotes and talks by industry leaders.”
- 5 best personal loans for good credit. AT: “The first of several good reads from Student Loan Hero today. Geared toward consumers, there are some worthwhile competitive intelligence takeaways, as well.”
- Best options for getting a personal loan with a cosigner. AT: “Perhaps something not often talked or thought about. If a consumer needs a cosigner for a personal loan, where do they go? These alternative lenders can help.”
- Avant or LendUp? AT: “Pros and cons of each.”
- Wunder Capital raises $112M for commercial solar growth. AT: “Niche lending is making huge strides.”
- 9 ways to invest in real estate without buying property.
- Goldman has big plans for Marcus and retail banking. AT: “In Europe, digital banking is cathing on and picking up speed, not so much in the U.S. Marcus has the potential to change that.”
- Goldman Sachs’ new lending business to subprime consumers. AT: “Another good read on Marcus.”
- GreenSky personal loans review.
- What you should know about real estate crowdfunding.
- 48 million psychometric records leaked.
- Point initiates forward flow purchase program with Atalaya.
- StreetShares appoints new chief product & technology officer.
- Millennium Trust wins Professional Services Company of the Year award.
- Capsilon expands digital mortgage platform.
- The House Crowd hits 1M GBP in one day. AT: “Congratulations. A great achievement.”
- Silicon Valley investment in UK hits $1 billion.
- P2p lending to pass 9B GBP.
- Transferwise is first non-bank to join Bank of England payments system.
- Alt funding for SMEs.
- Crowd2Fund to enter Australia.
- Mechanics Cooperative Bank uses Finastra for core banking.
- CreditEase wins major LendIt Fintech 2018 awards.
- 100Credit gets $159M from state-owned fund.
- Alipay pilots digitized national ID cards
- Orange Bank challenges the old banking guard.
- Tink opens floodgates to 300 banks’ data.
- The crowdfunding trend.
- GDPR and financial advice.
- United States
- Fintech lender raises $ 65M to expand in developing nations (American Banker) Rated: AAA
- Wrap-Up of LendIt Fintech USA 2018 (Lend Academy) Rated: AAA
- The 5 Best Personal Loans for Good Credit (Student Loan Hero) Rated: AAA
- Your Best Options If You Need a Personal Loan With a Cosigner (Student Loan Hero) Rated: A
- Avant vs. LendUp: Which Is Right for You? (Student Loan Hero) Rated: A
- Wunder Capital Raises $ 112 Million in Financing To Fuel Commercial Solar Growth in the U.S. (Crowdfunder Insider) Rated: A
- 9 Ways To Invest In Real Estate Without Buying Property (Forbes) Rated: A
- Goldman Sachs Has Big Plans for Marcus and the Future of Retail Banking (Crowdfund Insider) Rated: AAA
- Goldman Sachs’ hot new business is lending to subprime consumers, and Wall Street’s starting to ask questions (Business Insider) Rated: B
- GreenSky Personal Loans Review: Low-Interest Loans for Home Improvement (Student Loan Hero) Rated: A
- Real estate crowdfunding: What you need to know (Bankless Times) Rated: A
- 48 Million Detailed Psychometric Records on Individuals Leaked (InfoSecurity Magazine) Rated: B
- Point Initiates Forward Flow Purchase Program with Atalaya: Unlocking Home Equity Wealth (Crowdfund Insider) Rated: B
- StreetShares Appoints Mohan A. Rao New Chief Product & Technology Officer (Crowdfund Insider) Rated: B
- Millennium Trust Recognized as “Professional Services Company of the Year” at LendIt Fintech USA 2018 (PR Newswire) Rated: B
- Capsilon Expands Digital Mortgage Platform, Automating up to 80% of Manual Data Auditing & Processing Across Back Office (Capsilon) Rated: B
- United Kingdom
- Crowdfunding platform hits £1 million in a day (Growth Business) Rated: AAA
- Silicon Valley investment into the UK breaks $ 1BN for the first time (Information Age) Rated: AAA
- P2P lending set to pass £9bn milestone (Peer2Peer Finance) Rated: AAA
- Transferwise becomes first non-bank to join BoE payments system (AltFi News) Rated: A
- Alternative funding for SMEs demystified (Business Matters) Rated: A
- Crowd2Fund prepares to cross fintech bridge to Australia (Finextra) Rated: B
- Mechanics Cooperative Bank chooses Finastra for core banking system (Real Wire) Rated: B
- CreditEase Wins Major Awards at LendIt Fintech USA 2018 (PR Newswire) Rated: AAA
- Fintech Start-up 100Credit Gets $ 159M From State-owned China Reform Fund (China Money Network) Rated: AAA
- Softbank leads $ 25m Modalku round, while 500 Startups backs HelloGold (TechinAsia) Rated: B
- European Union
- Orange’s entry into digital banking forces old guard to react (Financial Times) Rated: AAA
- Swedish startup Tink just smashed open the floodgates to 300 banks’ data – and it’s a game-changer for Nordic fintech (Business Insider Nordic) Rated: A
- The Crowdfunding Trend – Threat or Opportunity? (Eureka) Rated: A
- GDPR and financial advice: Special categories of personal data (Professional Adviser) Rated: A
- Mintos Marketplace Adds ID Finance Loans Issued in Kazakhstan (Crowdfund Insider) Rated: AAA
- Mo money, mo cash (Financial Times) Rated: AAA
- US-based fintech firm announces its expansion in India’s lending space (Medianama) Rated: AAA
- Singapore Fintech Association established Marketplace Lending Committee (Finextra) Rated: AAA
- Revolut empire-builder seeking to tame “the Asian dragon” (AltFi News) Rated: A
Fintech lender raises $ 65M to expand in developing nations (American Banker) Rated: AAA
A U.S.-based lender that targets borrowers in developing nations where credit scores are often hard to come by has raised $50 million in new equity funding.
Tala, based in Santa Monica, Calif., plans to use the latest round of funding to develop new products for its customers in Kenya, Tanzania, the Philippines, India and Mexico.
It also raised $15 million in debt capital that it will use to fund loans.
Wrap-Up of LendIt Fintech USA 2018 (Lend Academy) Rated: AAA
Last week the sixth annual LendIt USA conference took place in San Francisco. Officially known as LendIt Fintech USA 2018 this event was, in my opinion, the best we have ever produced.
The opening keynote, for the second year in a row, was delivered by Scott Sanborn, the CEO of LendingClub. He gave a different kind of presentation this year. He didn’t talk much about LendingClub at all, instead choosing to focus his keynote on financial health and the looming crisis that maybe coming. He gave us all something to consider beyond just disruption, he said we should think about three key areas: financial inclusion, regulatory innovation and customer alignment. He ended with a call to action for the industry. He wanted everyone to focus on what problem you are solving and what you can do to help restore financial health to all Americans.
The 5 Best Personal Loans for Good Credit (Student Loan Hero) Rated: AAA
The average credit score of Americans is 700, based on April 2017 data from Fair Isaac Corp., an analytics company that issues the FICO credit score.
If your score meets or beats that average, it’s enough to put you in the good credit score range, which goes from 670 to 739. As a result, you should have a good chance of getting approved for some of the best personal loans for good credit.
Your Best Options If You Need a Personal Loan With a Cosigner (Student Loan Hero) Rated: A
As you compare, you’ll find LendingClub, Citizens Bank, and FreedomPlus— all online lenders that accept cosigners. They all accept FICO scores under 700, with LendingClub accepting FICO scores as low as 600.
Here’s a list of some online lenders that accept cosigners for personal loans:
- Citizens Bank
- OneMain Financial
Avant vs. LendUp: Which Is Right for You? (Student Loan Hero) Rated: A
Not only will Avant consider your application even if you have a low credit score, but working with this lender has other benefits.
- You can get your money after one business day.
- There are no prepayment fees.
- Although the average customer has a credit score between 600 and 700, those with poor credit are also considered.
- The company has a 95% customer satisfaction rate.
- The lender offers self-service tools and live support seven days a week.
The biggest benefit of LendUp is the ability to get money fast. In certain states, you could even have your funds in 15 minutes. But there are some other positives as well.
- There are multiple options if you’re having trouble paying back the loan.
- Repeat customers can borrow more and at lower rates.
- There’s an education platform with free videos and articles breaking down complex financial matters. It also teaches you how to make better money decisions.
Wunder Capital Raises $ 112 Million in Financing To Fuel Commercial Solar Growth in the U.S. (Crowdfunder Insider) Rated: A
Wunder Capital, a firm that develops and manages solar investment funds through partnerships, test processes, underwriting framework and its investment portal, announced on Wednesday it secured $112 million in equity and debt financing to accelerate the growth of the company.
9 Ways To Invest In Real Estate Without Buying Property (Forbes) Rated: A
Goldman Sachs Has Big Plans for Marcus and the Future of Retail Banking (Crowdfund Insider) Rated: AAA
Blankfein commented on the other obvious strategic advantage. Their cost of capital is super low. Unlike many of the early entrants into the online lending sector, Marcus has access to deposits via their acquisition of GE Capital Bank several years back – something no other US based online lender can claim. Even with their industry leading interest rate for current accounts (now 1.6% when most banks pay a fraction of that), Marcus can crush the competition in loan originations.
Goldman Sachs’ hot new business is lending to subprime consumers, and Wall Street’s starting to ask questions (Business Insider) Rated: B
Marcus has originated more than $3bn of loans since inception, recently it has become know that more than 10 percent of the loans were sub prime; they have said this is a natural evolution of the loan business and they are being very selective in approving of applications.
GreenSky Personal Loans Review: Low-Interest Loans for Home Improvement (Student Loan Hero) Rated: A
As an online loan servicer, GreenSky works with borrowers and merchants to provide low-cost personal loans for home improvement, specialty retail, and healthcare expenses. It’s funded more than $10 billion in loans to over 1.3 million customers, according to the lender.
Individual borrowers can apply for home improvement loans, which can be used for flooring, windows, landscaping, or other projects. Home improvement loans come with fixed APRs between 3.99% and 23.99%, as of April 18, 2018. You can choose terms of 42, 66, or 90 months. For the most up-to-date rates, check GreenSky’s website.
Real estate crowdfunding: What you need to know (Bankless Times) Rated: A
Right now, real estate crowdfunding companies are becoming very popular because they allow you to pool your resources in order to buy property or to finance real estate companies who are looking to build properties.
48 Million Detailed Psychometric Records on Individuals Leaked (InfoSecurity Magazine) Rated: B
About 48 million records of detailed personal information on tens of millions of individuals have been leaked, containing Cambridge Analytica–style information gathered and scraped from multiple sources.
The culprit, as is the case all too often, is a misconfigured cloud storage repository, in this case belonging to a company called LocalBlox. LocalBlox bills itself as a personal and business data search service, but it’s bread and butter is data-harvesting and the creation of psychometric profiles of individuals.
Point Initiates Forward Flow Purchase Program with Atalaya: Unlocking Home Equity Wealth (Crowdfund Insider) Rated: B
Point, a fintech platform that allows homeowners to unlock home equity wealth without taking on new debt, has agreed to a forward flow purchase program with investment firm Atalaya Capital Management to purchase up to $150 million of Point’s structured home equity investment instruments.
StreetShares Appoints Mohan A. Rao New Chief Product & Technology Officer (Crowdfund Insider) Rated: B
Financing military veteran-owned small businesses lender StreetShares announced on Wednesday it has appointed Mohan A. Rao as Chief Product and Technology Officer. According to the online lender, Rao is the former Chief Technology Officer of Hobsons, Inc., and brings more than 25 years of experience with building software products, R&D, and management consulting to the StreetShares team.
Millennium Trust Recognized as “Professional Services Company of the Year” at LendIt Fintech USA 2018 (PR Newswire) Rated: B
Millennium Trust Company, LLC, was honored at LendIt Fintech USA 2018 as the “Professional Services Company of the Year,” which is awarded to the service provider that has demonstrated deep expertise, unique value, strong ROI, commitment to clients, and the fostering of a deeper understanding of fintech. Organizations such as Cloud Lending Solutions, Deloitte, First Associates, Manatt and Salesforce also received nominations for the award.
Capsilon Expands Digital Mortgage Platform, Automating up to 80% of Manual Data Auditing & Processing Across Back Office (Capsilon) Rated: B
Capsilon, an enterprise SaaS digital mortgage solution partner to the mortgage industry, today announced the expansion of its digital mortgage platform through the addition of big data capabilities and a new set of smart tools designed to radically improve back office workflows and accelerate loan production. With this new data audit functionality, Capsilon can reduce manual data entry and speed up data auditing across the loan process, enabling companies to automate up to 80% of manual processing functions.
Crowdfunding platform hits £1 million in a day (Growth Business) Rated: AAA
Property crowdfunding platform The House Crowd have raised just over £1.3 million over a 24-hour period to support housing developments in Greater Manchester. This is the first time the business has broken the £1 million mark in a day.
Most of the money – £1.2 million – was for its Egyptian Mill Development of 42 house and 15 apartments in Lees, just outside of Manchester. Attracted by a typical return of 10 per cent each year over a 15 month investment term, investors have clambered to raise funds and support new build houses and flats as the UK housing crisis continues.
Silicon Valley investment into the UK breaks $ 1BN for the first time (Information Age) Rated: AAA
UK law firm Pennington Manches has today revealed that British companies are enjoying an unprecedented period of investment from West Coast-based US firms, with 74 deals contributing to a total value of £1.08 billion in 2017 – the first time Silicon Valley investment into the UK has broken the billion-dollar mark.
The new report found that software companies take the lion’s share of this investment, benefiting from £2.2 billion in funds since 2011. The number of deals from Silicon Valley into UK firms has increased by 252% over that period.
P2P lending set to pass £9bn milestone (Peer2Peer Finance) Rated: AAA
LENDING at the UK’s largest peer-to-peer finance platforms is fast approaching £9bn.
Data from the industry’s trade body the Peer-to-Peer Finance Association (P2PFA), released on Thursday, showed its eight members – Crowdstacker, Folk2Folk, Funding Circle, Landbay, LendingWorks, MarketInvoice, ThinCats and Zopa – reached cumulative lending of £8.96bn at the end of the first quarter of 2017.
The figure is up 11.5 per cent on the fourth quarter and 57 per cent higher year on year.
Transferwise becomes first non-bank to join BoE payments system (AltFi News) Rated: A
TransferWise has become the first non-bank payment services provider to hold a settlement account in the Bank of England’s Real Time Gross Settlement (RTGS) system.
The new access should lower costs for Transferwise, one of the UK’s largest fintech start-ups, as TransferWise joins the Faster Payments Scheme (FPS also).
Alternative funding for SMEs demystified (Business Matters) Rated: A
However, as Business Matters reported back in December, over 40 per cent of companies say they would have to put their expansion plans on hold if they could not attain funding.
Research shows that most SMEs turn to traditional sources of funding – such as overdrafts, credit cards and bank loans – when they need a cash injection. What’s more, many are unaware of – or are unclear about – the recent expansion in alternative forms of business financing such as crowdfunding or P2P lending. That’s a shame, because many of these new funding options are very well suited to the needs of SMEs and start-ups.
Crowd2Fund prepares to cross fintech bridge to Australia (Finextra) Rated: B
Leading P2P lending platform Crowd2Fund are launching an Australian office by becoming one the first UK-based companies to utilise the new ‘FinTech Bridge’ between the UK and Australia.
Mechanics Cooperative Bank chooses Finastra for core banking system (Real Wire) Rated: B
Mechanics Cooperative Bank has selected the Fusion Phoenix core banking system from Finastra, as well as a full suite of ancillary offerings, to provide its new technology foundation. The solution will bring together a wide-range of proven, specialized software into a single environment that is more easily managed in the back-office, providing greater workflow and interface efficiencies for the bank’s staff, and ultimately customers.
CreditEase Wins Major Awards at LendIt Fintech USA 2018 (PR Newswire) Rated: AAA
As the exclusive “Global Leader” partner of LendIt Fintech USA 2018, Yirendai was awarded “Top Consumer Lending Platform” and was the only Chinese enterprise to receive a LendIt Fintech industry award, which demonstrates high recognition of its outstanding contributions to the innovation of the financial services industry. In addition, Ms. Yihan Fang, CEO of Yirendai was nominated for “Executive of the Year” and CEFIF was nominated for “Top Fintech Equity Investor”. Both nominations are strong recognition of the great achievements CreditEase has made in both wealth management and Fintech investment fields.
Fintech Start-up 100Credit Gets $ 159M From State-owned China Reform Fund (China Money Network) Rated: AAA
China Reform Fund Management Co.,Ltd, a private equity firm backed by China Reform Holdings Corporation Ltd and other central state-owned enterprises, has led a RMB1 billion (US$159 million) series C round in 100Credit, a fintech start-up that uses big data to provide credit services.
Existing investor Sequoia Capital China also participated in the round, according to 100Credit’s announcement on its official WeChat account.
Softbank leads $ 25m Modalku round, while 500 Startups backs HelloGold (TechinAsia) Rated: B
Alipay pilots digitized national ID cards (China). The digital payments app run by Alibaba affiliate Ant Financial is testing out integration of the Chinese government’s pilot digital ID card scheme, which could one day replace physical ID cards.
Orange’s entry into digital banking forces old guard to react (Financial Times) Rated: AAA
Orange Bank has already onboarded more than 100,000 customers since launch, only Revolut and Boursorama, Société Générale’s digital banking arm have made more progress in the same timeframe; this continues the wider trend across Europe as digital banking becomes a bigger part of the financial services ecosystem.
Swedish startup Tink just smashed open the floodgates to 300 banks’ data – and it’s a game-changer for Nordic fintech (Business Insider Nordic) Rated: A
Last year, after raising €14 million in funding from a consortium of traditional and online banks, Tink pivoted to licensing its technology to banks so they can build their own apps and fintech services.
The startup is now doubling down on its B2B business by launching a third-party developer platform. This means that the same technology that Tink has provided to banks like Nordea and SEB, will now be open to any company that wants to gain access to a given consumer’s account data (with the consumer’s permission).
The Crowdfunding Trend – Threat or Opportunity? (Eureka) Rated: A
There are some concerns that the rise of crowdfunding will cause major disruption across industries. According to the world bank, 2016 saw more money raised from crowdfunding than from venture capital.
In Finland, for example, there is no requirement for crowdfunders to have an MiFID licence, which means that companies who have obtained a licence are more strictly regulated than their unlicensed competitors. Other nations have been quicker to adapt – in France and the UK existing legislation has been brought smoothly up to date to be compatible with crowdfunding.
GDPR and financial advice: Special categories of personal data (Professional Adviser) Rated: A
The difference between ‘data’ and ‘sensitive data’ – that is, between Article 6, which we considered in more detail here, and Article 9 – is that the individual must give explicit consent to the processing of each type of special category of data.
If, for example, a firm will be asking someone whether they are a smoker and will also be recording they are a member of a specific trade union, then the firm would to need capture explicit consent from the individual that they are happy for the firm to collect and process this data about their health and their trade union membership.
For financial advisers, this consent will need to be gathered early in the customer engagement process, with it being made clear the data will be processed and what it will be processed for.
Mintos Marketplace Adds ID Finance Loans Issued in Kazakhstan (Crowdfund Insider) Rated: AAA
Mintos, an online marketplace that provides individuals with a simplified way to invest in loans originated by a variety of alternative lending companies, announced on Wednesday that fintech firm ID Finance has further diversified investment opportunities on the Mintos marketplace by launching personal loans listed in Euro (EUR) and Kazakhstani tenge (KZT) under its Solva brand in Kazakhstan.
According to the companies, Solva uses a scoring system built around machine learning, advanced risk assessment techniques, multiple search technologies, big data and text mining. The system also evaluates the device on which the loan application is being filled out and the user’s behaviour when filling out the application.
Mo money, mo cash (Financial Times) Rated: AAA
Poor old cheques. And cryptocurrencies don’t fare too well either.
US-based fintech firm announces its expansion in India’s lending space (Medianama) Rated: AAA
California-based fintech company Tala said that it is bringing its lending app to India. This expansion was announced along with a new $50 million Series C funding led by Revolution Growth its operations in the country which is already in progress. In addition to Revolution Growth, Tala’s Series C round includes existing investors IVP, Data Collective, Lowercase Capital, Ribbit Capital, and Female Founders Fund. Steve Murray, managing partner at Revolution Growth, will join Tala’s board of directors.
Singapore Fintech Association established Marketplace Lending Committee (Finextra) Rated: AAA
The Singapore Fintech Association (SFA) today announces the launch of the Marketplace Lending committee and website, in response to the rapid growth in the sector.
In 2016, Southeast Asia’s alternative finance market reached a record US$215.94 million, a growth of 362% compared with 2015. Data for 2016 showed that Singapore’s alternative finance market size was valued at US$163.75 million, more than double the entire value from 2013-2015. This upward trend is reflected internationally. The global lending market valued at US$3.5 billion in 2013, expecting to reach US$1 trillion by 2050, according to Statista, a market research company.
Revolut empire-builder seeking to tame “the Asian dragon” (AltFi News) Rated: A
Rishi Stocker, head of partnerships at Revolut, is currently focused on coordinating the banking challenger’s entry into Japan. Speaking to AltFi, Stocker said that the Japanese market, unlike others in Asia, is a tough nut to crack.
He said that regulators are “very keen on local presence and very concerned about international companies entering and then suddenly changing their strategy and leaving”.
To allow Revolut to set up shop in Japan, regulators have insisted that the fintech firm appoint an experienced local Japanese expert as a director of the entity. “That’s quite an interesting nuance of Japan whereas a lot of other markets are a lot more open – so long as there’s a strong compliance team based in our head office in London,” explained Stocker.
News Comments Today’s main news: SoFi’s new CEO wants to get the company ready to go public. Revolut’s transaction volumes increased 700%. China to crackdown on non-bank lending. Blender raises $16M. Today’s main analysis: Stay away from LendingClub’s notes and shares. Today’s thought-provoking articles: Legacy banks, digital startups see opportunity to go beyond storing money. LendingBlock aims to mainstream […]
- Today’s main news: SoFi’s new CEO wants to get the company ready to go public. Revolut’s transaction volumes increased 700%. China to crackdown on non-bank lending. Blender raises $16M.
- Today’s main analysis: Stay away from LendingClub’s notes and shares.
- Today’s thought-provoking articles: Legacy banks, digital startups see opportunity to go beyond storing money. LendingBlock aims to mainstream crypto lending. Marketplace lenders raises almost $9B last year.
- SoFi CEO aims to take SoFi public. AT: “It’s about time, and the company probably would have already started the paperwork had it not been for the scandal that erupted late last year around the former CEO Mike Cagney.”
- Bank charter remains open for SoFi. AT: “Why close doors that need not be closed?”
- Should investors stay away from LendingClub’s notes, shares? AT: “Hobbyist investor Kevin Mackie shares his experience with LendingClub.”
- Legacy banks, digital startups see opportunity to go beyond storing money. AT: “Financial services have grown more complex in the last few years. Technology has enabled greater innovation and specialization, but this will only continue. It’s been a long time since banks saw themselves as simply places people store money. Now, however, it’s essential that they think of themselves otherwise.”
- Retail banks are missing out on digital financial advice opportunities.
- Why neobanks need to find a niche offering. AT: “This makes a lot of sense.”
- How Capital One is rethinking its approach to products.
- Are banks serious about mobile security?
- Bringing credit invisibles into focus with alternative financial data. AT: “And I would argue there is one other category of credit invisibles – those who choose not to enter into debt, for whatever reason.”
- Mobile payments to hit $3T in two years.
- BREAKFORM / RE closes subdivision development via crowdfunding in 72 hours.
- Credible appoints new CFO.
- New York wants to revamp Bitlicense.
- Revolut transaction volume increases 700%. AT: “That’s a big leap in 12 months. I’d be curious about what caused it.”
- LendingBlock wants to popularize crypto lending.
- Big banks roll out new financial apps.
- NatWest sets up network of fintech accelerator hubs.
- MPLs raised almost $9B last year.
- ID Finance uses behavioral metrics to bolster security.
- Celsius is a digital wallet and a P2P lending platform.
- India: P2P lenders gain popularity in small cities.
- Israel: Blender raises $16M.
- Brazil: Airfox launches mobile app for unbanked.
- Canada: Big banks strive to give better digital financial advice.
- Africa: PayJoy takes smartphone financing to Tanzania with Vodacom, CBA.
- Africa: PayJoy partners with Allied Mobile to take more smartphones to Africans.
- United States
- Anthony Noto’s Mission as SoFi CEO: Get the Startup Ready to Go Public (Bloomberg), Rated: AAA
- SoFi’s new CEO says bank charter remains an option (American Banker), Rated: A
- LendingClub’s Underwriting: Stay Away From The Notes And The Shares (Seeking Alpha), Rated: AAA
- Legacy Banks and Digital Startups See a Big Opportunity to Move Beyond Simply Storing Money (AdWeek), Rated: AAA
- Retail Banks Are Missing Opportunities to Give Digital Financial Advice (Wealth Management), Rated: A
- Why neobanks need to find a niche offering (Tearsheet), Rated: A
- How Capital One is rethinking its approach to products (Tearsheet), Rated: A
- Are banks too blasé about mobile security? (American Banker), Rated: B
- Bringing Credit Invisibles Into Focus with Alternative Financial Data (LendIt), Rated: A
- Mobile Payments In US To Reach $ 3 Trillion Within Two Years (Payment Week), Rated: A
- BREAKFORM | RE Closes a Small Lot Subdivision Development in Record Time Via Crowdfunding (PRWeb), Rated: A
- Credible Appoints Chris Bishko as Chief Financial Officer (BusinessWire), Rated: B
- New York Lawmakers Open to Revisiting the BitLicense (CoinDesk), Rated: B
- United Kingdom
- Transaction volumes increase 700pc at fintech firm Revolut (Independent.ie), Rated: AAA
- Lendingblock Aims to Popularize Crypto Lending in a Secure and Transparent Way (cryptovest), Rated: AAA
- Britain’s big banks play catch up with fintech with new apps (Reuters), Rated: A
- NatWest sets up network of fintech accelerator hubs (Finextra), Rated: B
- Screws to tighten further on non-bank lending (The Standard), Rated: AAA
- European Union
- European Fintech Alliance raises bank API fears (Finextra), Rated: A
- Marketplace lenders worldwide raised nearly $9bn last year (P2P Finance News), Rated: AAA
- Online lender ID Finance bolsters security with beahvioural biometrics (Finextra), Rated: A
- Celsius: Get Dollars When You Need Them or Get Paid to HODL (cryptovest), Rated: A
- ‘Essential’ brokers advising Xinja on mortgage strategy (TheAdviser), Rated: A
- Mortgage franchise sees decline in loan settlement (AustralianBroker), Rated: A
- P2P platforms as NBFCs gaining popularity in small cities, but there’s a catch (Financial Express), Rated: AAA
- Peer-to-Peer Lending Startup Blender Raises $16 Million in Debt Financing and Equity (CTech), Rated: AAA
- Latin America
- Airfox Launches Mobile App in Brazil, Giving Unbanked Access to Financial Services (PRWeb), Rated: A
- Big banks strive to give better digital financial advice (BNN), Rated: AAA
- PayJoy Partners With Vodacom & CBA to Bring Smartphone Financing to Tanzania (Crowdfund Insider), Rated: AAA
- PayJoy Teams Up With Allied Mobile to Bring More Smartphones to Africans (Crowdfund Insider), Rated: A
Anthony Noto’s Mission as SoFi CEO: Get the Startup Ready to Go Public (Bloomberg), Rated: AAA
Anthony Noto, the new chief executive officer of Social Finance Inc., is looking to steer the company out of crisis and get it in shape for a potential initial public offering.
The vision for SoFi outlined by Noto didn’t stray far from the one set by his predecessor Mike Cagney, who was ousted after accusations of sexual misconduct inside the company. Noto wants to create a broad online financial-service company, adding checking and savings accounts and wealth management to the main business of refinancing student loans.
SoFi’s new CEO says bank charter remains an option (American Banker), Rated: A
In an interview during his first day on the job, Anthony Noto did not promise any big course changes, though he did leave open the possibility that SoFi will revive its quest to get a banking license.
LendingClub’s Underwriting: Stay Away From The Notes And The Shares (Seeking Alpha), Rated: AAA
I bought my first batch of $25 notes on April 22, 2016. Now, it is important to note that LendingClub is very clear in its advertising that “99% of portfolios with 100+ Notes have seen positive returns.” So I suppose I added a level of risk by not having a portfolio worth at least $2500. But even still, returns can be .1% annualized and count as ‘positive’, but that is not an acceptable return by anyone’s standards given the risks involved in lending to strangers.
To date, I have received $436 in payments, $96 of which is interest. I have lost $100 on notes that have charged-off, meaning that there is zero expectation of future payment and LendingClub collectors have stopped attempting to reach the borrower. I also have a note that is late, and based on how things have gone so far, I fully expect that to charge-off too and will lose the $11.50 still owed. In short, I have already lost almost 20% of my initial investment, crossing my fingers that none of the 14 notes I still have that are current don’t enter a late status with more than a year to go before the oldest reaches full term. My results have been dismal.
LendingClub’s ratings are A-G, with A being the safest. As you can see, the vast majority of my portfolio sits in A-C, with one E and one G note (LendingClub did away with F and G notes last year).
Legacy Banks and Digital Startups See a Big Opportunity to Move Beyond Simply Storing Money (AdWeek), Rated: AAA
Change can be hard for the financial industry, which is dominated by decades of processes and internal systems. But with a slew of upstarts making their way into the trillion-dollar industry, the old guard is finding innovative ways to beat these challenger brands at their own game.
“A lot of these companies have what we call ‘technical debt’—very expensive mainframe systems that are very difficult to change, run [and are] expensive and obviously that limits their ability to innovate,” said Oliwia Berdak, principal analyst at Forrester Research. “The biggest challenge is often culture … In banks the attitude has always been to perfect [products] before it’s unleashed on customers and [technology] is a big change where you’re working with a certain degree of uncertainty and risk.”
According to data collected by Accenture, 90 percent of banking executives said that their companies needed to “innovate at an increasingly rapid pace just to remain competitive,” but only 47.8 percent say that they are actually “investing comprehensively” in digital.
Another challenge: For all the talk about slick mobile banking apps and services, consumers—gasp—still like going to physical banks to manage financial decisions. Eighty-seven percent of customers enjoy going to a physical bank and prefer to interact with a human while there, per Accenture.
Retail Banks Are Missing Opportunities to Give Digital Financial Advice (Wealth Management), Rated: A
Why neobanks need to find a niche offering (Tearsheet), Rated: A
Customers still aren’t excited about digital-only banks. Less than 10 percent of Americans looking to open a checking account would consider doing so at a digital bank, according to a new report by Cornerstone Advisors.
For example, San Francisco-based neobank Chime’s customers are mostly middle-income millennials, with a median age of 29 and incomes between $45,000 to $65,000. Chime says it caters to a gap in the market for younger customers who felt larger institutions weren’t meeting their needs.
Neobanks should focus on a “clear, differentiated value proposition” for the customer, but too many of them are just adding a little technology to a customer experience that’s not terribly different from what the big banks offer, said Satya Patel, a partner at Homebrew, a seed-stage venture capital firm based in San Francisco and an investor in Chime.
How Capital One is rethinking its approach to products (Tearsheet), Rated: A
For the past year, Capital One has been rethinking how it can get out of the too-common approach of “innovating” by layering new technology on top of an old product — it’s realized it needs to entirely reconsider the customer’s interaction with it.
Are banks too blasé about mobile security? (American Banker), Rated: B
About a third of companies have knowingly sacrificed security for expediency or business performance, according to a newly published study, and researchers said that bankers’ responses were consistent with the group as a whole, which included health care and other sectors.
Bringing Credit Invisibles Into Focus with Alternative Financial Data (LendIt), Rated: A
Ten percent of the U.S. adult population do not have a credit score or history with any of the big three credit bureaus.
That’s 1 in 10, or roughly 26 million people who are considered “credit invisible.”
But the financial underserved market spends $173 billion in fees and interest to use $1.94 trillion in financial services, according to the 2017 Center for Financial services Innovation study.
There are four basic categories of people who fall under the credit invisibles umbrella:
- Millennials: People between 18– 34 and have not yet borrowed money or gotten a credit card.
- Low-Income: People who don’t make enough money to gain access to credit.
- Recent immigrants: People who recently moved to the U.S. but haven’t established credit.
- Mass-affluent: People who earn more than $100,000 per year and pay with cash instead of credit.
Mobile Payments In US To Reach $ 3 Trillion Within Two Years (Payment Week), Rated: A
in 2015, mobile payments in the US represented $550 billion. That’s good by most any standard, but the growth expected is staggering. By 2020, that number is projected to hit $2.8 trillion. That represents a compound annual growth rate (CAGR) of 39.1 percent, which is far beyond most any but the most unlikely investments.
China represents $5.5 trillion in mobile payments use as of right now, a combination of various societal factors like a comparative eschewing of the personal computer in favor of the mobile device, as well as a near-ubiquity of locations that accept the system.
BREAKFORM | RE Closes a Small Lot Subdivision Development in Record Time Via Crowdfunding (PRWeb), Rated: A
BREAKFORM | RE closed its latest small lot subdivision development project in the prime West Hollywood adjacent neighborhood in record time using Equity Multiple, one of the leading real estate crowdfunding platforms. The offering was 145% subscribed in 72 hours.
Credible Appoints Chris Bishko as Chief Financial Officer (BusinessWire), Rated: B
Credible, the consumer finance marketplace that helps consumers save money and make smarter financial decisions, today announced that it has appointed Chris Bishko as chief financial officer. Mr. Bishko will report to Credible’s founder and CEO Stephen Dash.
New York Lawmakers Open to Revisiting the BitLicense (CoinDesk), Rated: B
A bill to reform the regulation could be introduced “very soon,” State Senator David Carlucci told CoinDesk.
But what is likely to remain is the animosity toward the BitLicense, as evidenced by the small but dedicated protest gathering outside just before the roundtable began, not to mention the grievances aired by the two dozen or so attendees.
Transaction volumes increase 700pc at fintech firm Revolut (Independent.ie), Rated: AAA
Fintech start-up Revolut has seen its monthly transaction volume increase by over 700pc in the last 12 months to $1.5bn (€1.2bn).
Lendingblock Aims to Popularize Crypto Lending in a Secure and Transparent Way (cryptovest), Rated: AAA
Lendingblock aims to become the first to build a marketplace where cryptocurrency lenders meet borrowers, and can exchange their assets across blockchains. The platform aims to bring securities lending to the crypto economy. The current estimates of the market paint a picture of enormous potential for development: in 2017, $2 trillion of assets on loan in traditional securities lending brought approximately $4 billion in revenue. Replicating this in crypto could generate up to $300 million within 3 years as the project notes in its white paper.
Britain’s big banks play catch up with fintech with new apps (Reuters), Rated: A
British retail banks are poised to introduce money management apps to compete with those already launched by financial technology start-ups, betting their trusted brands, broad client base and deep pockets will help them make up lost ground.
NatWest sets up network of fintech accelerator hubs (Finextra), Rated: B
The UK’s NatWest is launching four specialist fintech accelerators based in its Bristol, Edinburgh, London and Manchester sites.
Screws to tighten further on non-bank lending (The Standard), Rated: AAA
China will tighten its crackdown on illegal fundraising to fend off financial risks, according to an inter-agency meeting.
European Fintech Alliance raises bank API fears (Finextra), Rated: A
The European Fintech Alliance has fired another broadside in its tussle with the financial services establishment over PSD2, raising fears that banks will develop substandard APIs as a way to fend off competition.
Marketplace lenders worldwide raised nearly bn last year (P2P Finance News), Rated: AAA
THE GLOBAL marketplace lending sector saw nearly $9bn (£6.45bn) invested across 233 deals last year, marking a new funding record for the industry.
Consultancy firm Fintech Global, who compiled the data, found that equity investment in the sector rebounded to $8.9bn last year after a slowdown in 2016. The total was boosted by the top 10 deals, which raised a combined $4.4bn.
The second half of the year was strongest for funding, with the largest deal of the year closing in the fourth quarter when Shanghai-based peer-to-peer lender Lufax raised $1.2bn.
Online lender ID Finance bolsters security with beahvioural biometrics (Finextra), Rated: A
ID Finance, the emerging markets fintech company, is incorporating behavioural biometrics into its AI-based fraud scoring engine to eliminate fraud, boost loan approvals and reduce the incidence of non-performing loans.
The behavioural biometrics system studies the unique typing and behavioural patterns users display during the loan application process to capture a range of patterns. These include mouse movements, to how fingers interact with a keyboard. The biometrics record patterns such typing speed, typos, flight time between keys, keystroke depressions, as well as the patterns from actual input.
Celsius: Get Dollars When You Need Them or Get Paid to HODL (cryptovest), Rated: A
The global financial system is wobbling. Banks and other traditional financial institutions have so far managed to survive the crisis resulting entirely from their errors, greed, and arrogance. Now, many believe, they won’t live through the crypto revolution unless they embrace it.
Meet the Celsius Wallet – a combination of a digital wallet and a peer-to-peer lending platform where members can earn passive interest on their crypto holdings and use them as collateral to get loans in fiat currencies.
‘Essential’ brokers advising Xinja on mortgage strategy (TheAdviser), Rated: A
The chief executive of banking disruptor Xinja has revealed that mortgage brokers have been involved in the group’s home loan plans and will be “essential” to its strategy.
The crowdfunded online lender recently received an Australian credit license (ACL) from the Australian Securities and Investments Commission (ASIC) and plans to utilise the broker channel to facilitate its digital home loan approval process.
Mortgage franchise sees decline in loan settlement (AustralianBroker), Rated: A
Mortgage franchise Yellow Brick Road posted a 2% decline to $7.74bn in loan settlement volume in the first half of FY18 over the previous period as it reduced its number of branches.
Overall, the company delivered 85% growth in profitability, with net profit before tax increasing to $0.53m in the first half of FY18 over the same period of FY17. It cited higher revenue – up by 5% – and lower costs – down by 4% – as drivers of its result.
The company also expects the addition of a small business lending product through its partner Prospa to provide additional revenue opportunities for its network and support growth in commercial lending.
P2P platforms as NBFCs gaining popularity in small cities, but there’s a catch (Financial Express), Rated: AAA
P Kanwal is from Punjab’s Bhatinda. He has a furniture business which mainly deals in cash, because of which it was difficult for him to get a secured loan from the formal banking system. For him, a Peer-to-peer (P2P) lending platform came as a rescue, which got him an unsecured loan for his kid’s education and expanding his business.
This not just the story of Mr Kanwal, but many more small entrepreneurs who are operating their businesses in Tier-1, Tier-2 cities and far-flung areas, some not even on Google map, who are getting financial support through P2P lending.
The pattern that emerges currently from the P2P lending is that borrowers from tier-2 and tier-3 cities comprised 20% and 17% of the total number of loans disbursed through the platform. The new-to-credit borrowers comprise 35% of fulfilled borrowers, while those with poor credit ratings accounted for 10% of the overall number.
Peer-to-Peer Lending Startup Blender Raises Million in Debt Financing and Equity (CTech), Rated: AAA
Israel-based peer-to-peer lending startup Blender P2P Israel Ltd. has raised $16 million in equity and debt financing, the company announced Monday.
Airfox Launches Mobile App in Brazil, Giving Unbanked Access to Financial Services (PRWeb), Rated: A
More than 44 percent of Brazil’s population is unbanked, another 30-44 percent lack sufficient access to mainstream financial services, and those with credit cards face interest rates upwards of 200 percent (sources: World Bank, Bloomberg).
Big banks strive to give better digital financial advice (BNN), Rated: AAA
CTV’s Chief Financial Commentator Pattie Lovett-Reid discusses the Canadian banks’ quest to deliver quality online financial advice in an effort to catch up with the digital age.
PayJoy Partners With Vodacom & CBA to Bring Smartphone Financing to Tanzania (Crowdfund Insider), Rated: AAA
PayJoy, a San Francisco fintech startup, announced this week it has teamed up with Vodacom and CBA to bring smartphone financing to the country of Tanzania.
PayJoy Teams Up With Allied Mobile to Bring More Smartphones to Africans (Crowdfund Insider), Rated: A
PayJoy, a San Francisco fintech startup, announced on Friday it has teamed up with mobile distributor Allied Mobile to bring affordable smartphone payment plans to markets across the continent of Africa. According to the duo, Allied Mobile will use PayJoy Checkout, an instant paperless finance system for customers without access to formal credit, and the patented PayJoy Lock which enables “pay-as-you-go” access to the phone.
News Comments Today’s main news: Court dismisses case against OCC Fintech Charter. Affirm’s valuation confirmed at $1.75B. RateSetter Australia reaches $200M milestone. SoftBank invests $450M into Compass. Starling Bank expected to profit in 2019. Linked Finance launches P2P lending pension accounts. ID Finance raises $85M through ETF bonds. Today’s main analysis: TransUnion reports on consumer credit markets. Today’s thought-provoking articles: What […]
- Today’s main news: Court dismisses case against OCC Fintech Charter. Affirm’s valuation confirmed at $1.75B. RateSetter Australia reaches $200M milestone. SoftBank invests $450M into Compass. Starling Bank expected to profit in 2019. Linked Finance launches P2P lending pension accounts. ID Finance raises $85M through ETF bonds.
- Today’s main analysis: TransUnion reports on consumer credit markets.
- Today’s thought-provoking articles: What comes after Affirm’s $200M capital raise. TransUnion expects consumer credit market to stay strong. Why big banks back isolated web browsing. Seedrs founder wants to save capitalism from itself. Understanding data protection.
- Judge dismisses lawsuit against OCC Fintech Charter. AT: “This fight isn’t over. It simply means a delay as the litigant can bring the suit back in the future.”
- Affirm’s valuation is confirmed at $1.75M. AT: “Affirm is the company to watch in instant POS loans.”
- Levchin talks about what comes next for Affirm.
- Do your customers wrong and the competition will do them right.
- Retailers now offer instaloans.
- Prosper appoints former JP Morgan exec to board.
- OnDeck hires GE Capital, SunTrust executives for finance team. AT: “Talent is very important for a company like OnDeck. Will these executives be able to take the company to the next level?”
- TransUnion says consumer credit market to remain strong. AT: “Excllent analysis. A must-read.”
- Why big banks like isolated web browsing.
- Niche lending crosses path with fintech.
- Finance teams are the problem at banks.
- Royal Business Bank invests in Lendistry Loan Fund.
- Credit union association files amicus brief in English v. Trump. AT: “Represented by Ballard Spahr, credit unions are challenging Trump’s Consumer Financial Protection Bureau (CFPB) appointment.”
- Credit union brings its own lawsuit against Trump on CFPB leadership appointment.
- Zelle succeeds for US Bank.
- Banks need big tech talent.
- BitGo raises $42.5M.
- Top firms using AI to redefine industries, including fintech. AT: “Hint: Affirm is one of them.”
- Promising early-stage startups to watch.
- Using alternative credit to buy a home.
- Linked Finance launches P2P lending pension accounts.
- N26 partners with Younited Credit in France.
- Advantages of P2P lending. AT: “For beginners.”
- Barion secures 6M Euro investment.
- Fellow Finance receives payment institution authorization.
- Former Klarna employee building a network of co-working spaces.
- ID Finance raises $8.5M with ETF bonds.
- Banks, fintechs, and British royal partner on blockchain green-lending initiative.
- United States
- Court throws out New York regulator’s suit against OCC fintech charter (American Banker), Rated: AAA
- Lending startup Affirm valued at $ 1.8 bln in latest financing round (Business Insider), Rated: AAA
- Max Levchin On What Comes After $ 200M Worth Of Capital Affirmation (PYMNTS), Rated: AAA
- Doing customers wrong allows your competitor to make things right (American Banker), Rated: A
- Retailers now offers Instaloans to pay for purchases (ABC30.com), Rated: A
- Prosper Appoints Former J.P. Morgan Chase CMO Claire Huang to Board of Directors (Crowfund Insider), Rated: AAA
- OnDeck Adds Former GE Capital and SunTrust Executives to Finance Team (PR Newswire), Rated: AAA
- Compass gets $ 450M from SoftBank; real estate portal now valued at $2.2B (TechCrunch), Rated: AAA
- Consumer Credit Market Expected to Remain Strong in 2018 Even in a Rising Rate Environment (NASDAQ), Rated: AAA
- Why JPMorgan, Amex, HSBC are backing ‘isolation’ web browsing (American Banker), Rated: AAA
- Niche lending and fintech cross paths in Silicon Slopes (Utah Business), Rated: A
- Finance teams are ‘bottlenecking’ banks’ digital transformations (Tearsheet), Rated: A
- Royal Business Bank Invests $ 500K in Lendistry Loan Fund, Providing Opportunity for Small Businesses in Underserved Communities (Digital Journal), Rated: A
- First financial industry brief filed in CFPB English v. Trump case (Ballard Spahr Email), Rated: A
- Lawsuit: Trump appointee Mick Mulvaney has ‘no more right’ to lead CFPB ‘than Santa’ (Washington Examiner), Rated: A
- US Bank sees success with Zelle (Business Insider), Rated: A
- To compete with big tech firms, banks need big-tech talent (American Banker), Rated: A
- BitGo Raises $ 42.5M in Series B Funding (Finsmes), Rated: A
- AI 100: The Artificial Intelligence Startups Redefining Industries (CB Insights), Rated: A
- 5 Promising Early-Stage Startups to Watch (Tech Startups), Rated: B
- Homebuying With Alternative Credit (Microbilt), Rated: B
- United Kingdom
- Digital challenger Starling to hit profit in 2019 says founder Anne Boden as European expansion takes crucial step (City A.M.), Rated: AAA
- Crowdfunding a mission to save capitalism from itself (Financial Times), Rated: AAA
- SenseTime Raises US$ 410M Series B Financing (Finsmes), Rated: A
- European Union
- Linked Finance Launches New P2P Lending Pension Accounts (Better Business), Rated: AAA
- Mobile bank N26 partners with crowd-lending platform Younited Credit in France (Telecompaper), Rated: A
- The Advantages of #Peer-to-Peer Lending (EU Reporter), Rated: A
- Hungarian fintech secures EUR 6 mln in Czech funding (Portfolio.hu), Rated: A
- Finnish Crowdfunding & P2P Lending Platform Fellow Finance Receives Payment Institution Authorization (Crowdfund Insider), Rated: B
- With Norrsken House, ex-Klarna executive envisions a global network of co-working spaces focused on impact (TechCrunch), Rated: A
- ID Finance raises $ 8.5m via exchange-traded bonds to support growth (Finextra), Rated: AAA
- Banks, fintechs and a Brit royal to build green-lending blockchain (American Banker), Rated: A
- RateSetter’s Australian business hits $ 200m milestone (AltFi), Rated: AAA
- Understanding the Data Protection White Paper Part XI: Establishing proper deterrent consequences for privacy violations (Tech 2), Rated: AAA
- 8Percent leverages power of platform (Korea Herald), Rated: A
- Crowdfunding real estate: a new reality booming? (Gulf News), Rated: AAA
- MK Rachel Azaria threatens banks with P2P legislation (Globes.co.il), Rated: AAA
- South America
- Creditas Raises $ 50M in Series C Funding (Finsmes), Rated: A
Court throws out New York regulator’s suit against OCC fintech charter (American Banker), Rated: AAA
A New York District Court judge threw out a lawsuit by the New York Department of Financial Services that sought to block the Office of the Comptroller of the Currency’s attempted fintech charter, saying the charter doesn’t exist yet so the suit is premature.
Lending startup Affirm valued at $ 1.8 bln in latest financing round (Business Insider), Rated: AAA
Silicon Valley lending startup Affirm said on Monday it has raised $200 million in a fresh round of funding, boosting prospects as the firm aims to go after the market for millennial shoppers needing loans.
The new financing put Affirm’s total fundraising to date at about $450 million, and increases its valuation to $1.75 billion, according to a source with knowledge of the matter.
Max Levchin On What Comes After $ 200M Worth Of Capital Affirmation (PYMNTS), Rated: AAA
The CEO with the measured response is PayPal co-founder Max Levchin, who told Karen Webster that with any capital raise of size, the temptation is to believe that “it is a big victory and it is validation … but all it really is, is a temporary tally of how far you have gone.”
He noted that with big investments come big responsibility (and Affirm has raised roughly $450 million to date), as he remarked that there is the implicit end goal of taking the money and parlaying vision and strategy into strong returns on that cash.
Affirm says that its retailers report that consumers who use Affirm leave with a basket size 75 percent greater than those who don’t use Affirm to pay for their purchases, and enjoy site-wide conversion rates as much as 20 percent higher, with revenue per visitor lifts of more than 10 percent.
Doing customers wrong allows your competitor to make things right (American Banker), Rated: A
Consider Affirm, a startup that offers consumers installment loans for individual purchases and markets the loans as a simpler and more honest financing alternative — a message that is clearly targeted at consumers who are frustrated by a perceived lack of transparency in the costs associated with using credit cards. This message appears to be resonating in the market; Affirm is processing relationships with more than 1,000 internet retailers and is reportedly working with Walmart on a pilot project.
In an interview with American Banker, Douugh founder and CEO Andy Taylor said: “When we dug deeper, we realized the consumer debt levels are out of control. Big banks are running off legacy business models that are driven to keep customers within these debt cycles. They’re not properly incentivized to foster financial wellness.”
Affirm, Marcus and Douugh are all basing their strategic direction on a simple but powerful insight: There is a difference between the way many consumers use credit cards and the way that those consumers should use their credit cards in order to maximize their financial wellness.
Retailers now offers Instaloans to pay for purchases (ABC30.com), Rated: A
A growing number of major retailers offer shoppers instant loans to pay for your purchases.
But how do they work? And are they better than credit cards?
Each lender may be slightly different, but typically: you give basic information, decide the length of the loan -usually anywhere from three to twenty-four months and in less than a minute you’ll know if you’re approved.
Prosper Appoints Former J.P. Morgan Chase CMO Claire Huang to Board of Directors (Crowfund Insider), Rated: AAA
Peer-to-peer lending platform Prosper announced on Tuesday it has appointed former Chief Marketing Officer of J.P. Morgan, Claire Huang to its board of directors. According to Prosper, Huang has held senior leadership positions at various well-known financial services companies, which includes Bank of America, Fidelity Investments, and American Express.
OnDeck Adds Former GE Capital and SunTrust Executives to Finance Team (PR Newswire), Rated: AAA
OnDeck (NYSE: ONDK), the leading online lender to small business, today announced the hiring of two senior financial services executives to join its management team. Kelly Merrill and Erich Wust will assume new leadership roles that directly support OnDeck’s mission of empowering small business owners with the fastest and most flexible credit solutions.
Kelly Merrill joins OnDeck as the Senior Vice President for Finance, where she will help lead the company’s short-term and long-term financial planning initiatives. Merrill brings over a decade of finance experience to OnDeck from GE Capital, where she played a leading role in developing and executing the disposition strategy for GE Capitals’s $200 billion balance sheet. Previously, Merrill was the Chief Financial Officer (CFO) of GE Capital Real Estate, where she led a team of more than 50 employees.
Erich Wust has been appointed as the Senior Vice President for Portfolio Management at OnDeck. He will be responsible for managing portfolio credit strategies, balance sheet optimization and other components of the company’s loan portfolio. Wust joins OnDeck after more than a decade in credit and risk leadership roles at SunTrust Bank.
Compass gets $ 450M from SoftBank; real estate portal now valued at .2B (TechCrunch), Rated: AAA
Less than a month after raising $100 million led by Fidelity, real-estate startup Compass is striking while the iron is hot. The company has now picked up an even bigger investment of $450 million, this time from the SoftBank Vision Fund, plus another $50M in secondary deals, to fill out a vision of its own: taking its real estate rental and sales platform global.
New York-based Compass is now valued at $2.2 billion post-money, up from $1.8 billion just four weeks ago, with $775 million raised to date.
Consumer Credit Market Expected to Remain Strong in 2018 Even in a Rising Rate Environment (NASDAQ), Rated: AAA
In spite of rising interest rates, the U.S. consumer credit market is poised to perform well in 2018, with well-managed delinquencies and continued wide access to credit across all products. TransUnion’s (NYSE:TRU) 2018 consumer credit forecast found that expected increases to GDP, personal income, total employment and the Housing Price Index, among other factors, will outweigh potential negatives such as increasing interest rates and slowing vehicle sales.
|5-Year Trends: Serious Borrower-Level Delinquency Rates for Key Credit Products**|
|Credit Product||Q4 2013||Q4 2014||Q4 2015||Q4 2016||Q4 2017*||Q4 2018*||PCT Change in Last 5 Years (2013-2018)|
|Credit Cards||1.60||%||1.48||%||1.59||%||1.79||%||1.86||%||1.96||%||+22.50 %|
|Unsecured Personal Loans||4.01||%||3.73||%||3.62||%||3.83||%||3.37||%||3.36||%||(-16.21%)|
|*Projections; **Serious mortgage, auto loan and personal loan delinquencies are defined here as those with payments 60 or more days past due. Serious credit card delinquencies are defined as those with payments 90 or more days past due.|
Inside the Mortgage Forecast
|60-Day+ Mortgage Delinquency Rate and Average Mortgage Debt per Borrower|
|Q4 2009||Q4 2010||Q4 2011||Q4 2012||Q4 2013||Q4 2014||Q4 2015||Q4 2016||Q4 2017*||Q4 2018*|
|*Q4 2017 and Q4 2018 include projections|
Inside the Credit Card Forecast
|90-Day+ Credit Card Loan Delinquency Rate and Average Credit Card Loan Debt per Borrower|
|Q4 2009||Q4 2010||Q4 2011||Q4 2012||Q4 2013||Q4 2014||Q4 2015||Q4 2016||Q4 2017*||Q4 2018*|
|*Q4 2017 and Q4 2018 include projections|
Inside the Auto Finance Forecast
|60-Day+ Auto Loan Delinquency Rate and Average Auto Loan Debt per Borrower|
|Q4 2009||Q4 2010||Q4 2011||Q4 2012||Q4 2013||Q4 2014||Q4 2015||Q4 2016||Q4 2017*||Q4 2018*|
|*Q4 2017 and Q4 2018 include projections|
Inside the Personal Loan Forecast
|60-Day+ Personal Loan Delinquency Rate and Average Personal Loan Debt per Borrower|
|Q4 2009||Q4 2010||Q4 2011||Q4 2012||Q4 2013||Q4 2014||Q4 2015||Q4 2016||Q4 2017*||Q4 2018*|
|*Q4 2017 and Q4 2018 include projections|
Why JPMorgan, Amex, HSBC are backing ‘isolation’ web browsing (American Banker), Rated: AAA
Often users are tricked by phishing emails that mimic a legitimate note from the boss or a senior corporate leader. And the links and sites can look secure. According to PhishLabs, nearly 25% of all phishing sites in the third quarter were hosted on HTTPS domains — almost double the rate of the previous quarter.
As part of their effort to deflect these attacks, some banks are turning to isolated browsing, or remote browsing, technology. Such systems force all internet activity to happen in a protected space on the cloud, preventing malicious code from reaching a company’s network. The technology is not brand new, but it is starting to gain traction as some large banks have finished their testing of it and are going public with their use of it.
JPMorgan Chase, American Express and HSBC announced Monday that they are leading a $40 million round of funding in the isolation-tech provider Menlo Security, bringing its total funding to $85 million.
Niche lending and fintech cross paths in Silicon Slopes (Utah Business), Rated: A
There are, however, entire demographics not serviced by tried-and-true lending institutions. Often, these folks’ credit score fails to meet a bank’s minimum standards. Or they need unconventional terms on an equipment or business loan. Whatever the reason, these transactionally marginalized sectors find themselves at the mercy of high-interest lenders. Or with no access to capital at all.
“There is a significant population of U.S. consumers who can’t get a loan,” notes Nate Heward, CFO at Acima Credit, a company that provides a point-of-sale credit platform.
Capitalism abhors a void
From the ubiquitous strip mall payday lender to the world of microfinance, a plethora of entrepreneurial solutions has emerged to get cash in the hands of would-be borrowers cut off from other avenues. These alternative lending practices have various degrees of reputability; a wide spectrum exists between the purely predatory lending shop, on the one hand, and the creative value-adding venture, on the other.
Scratching the consumer itch
In practical terms, Acima asks four simple questions of the would-be borrower:
- Do you have a three-month history with your current employer or source of income?
- Do you deposit $1,000 or more into your checking account each month?
- Have you had a checking account for at least 90 days?
- Is your checking account free from NSFs, excessive overdrafts and negative balances?
It’s all fintech
The companies profiled in this article may not be considered fintech firms per se; they’re not using technology to create a new financial paradigm a la Paypal, Indiegogo or Coinbase. They’re merely offering tried-and-true solutions to untapped consumer markets. Viewed from another angle, however, they’re fintech companies through and through. Acima, Progressive, et al are racing to deliver the most convenient financial solutions to the most people in their target customer base. And to do so, they’re relying on technology all the way.
Finance teams are ‘bottlenecking’ banks’ digital transformations (Tearsheet), Rated: A
Banks are working hard to beef up their technology and innovation teams, embrace agile developmentand move to acting like digital companies, but bank finance departments still do a lot of manual work and will start to hold their companies back from becoming digital entities. Finance teams are the control functions and scorekeepers of an organization, but if they can’t process data at the same speed as the rest of the organization they could slow down the speed of company mergers or product rollouts when competing transactions are already taking place.
Royal Business Bank Invests $ 500K in Lendistry Loan Fund, Providing Opportunity for Small Businesses in Underserved Communities (Digital Journal), Rated: A
Royal Business Bank, a wholly-owned subsidiary of RBB Bancorp, has made a $500K commitment to the Lendistry CRA Loan Fund I. Launched at a time when most banks were struggling, Royal Business Bank has been successfully serving the Asian-American community since 2008. While specializing in businesses engaging in trade with Pacific Rim countries, the bank also offers small business loans and residential mortgages.
First financial industry brief filed in CFPB English v. Trump case (Ballard Spahr Email), Rated: A
This afternoon (LT Editor: December 12,2017) the Credit Union National Association (CUNA), represented by Ballard Spahr’s Alan Kaplinsky, filed the first amicus brief from the financial industry in the English v. Trump litigation over who will succeed Richard Cordray as the head of the Consumer Financial Protection Bureau. CUNA supports the President’s authority to appoint an acting director.
Lawsuit: Trump appointee Mick Mulvaney has ‘no more right’ to lead CFPB ‘than Santa’ (Washington Examiner), Rated: A
A new federal lawsuit says President Trump’s “plainly illegal” appointment of Mick Mulvaney to be acting director of the Consumer Financial Protection Bureau must be reversed in favor of Leandra English, who also claims the title.
Ilann Maazel, an attorney for the Lower East Side People’s Federal Credit Union, told the Washington Examiner that the credit union is suing because of the feared effect of Mulvaney policies.
The legal dispute centers on whether the 2010 Dodd-Frank financial reform, which set up the CFPB, makes the deputy director the acting director if there’s a vacancy, or whether the older Federal Vacancies Reform Act gives the president that power.
US Bank sees success with Zelle (Business Insider), Rated: A
US Bank integrated Zelle — which has over 30 other banking partners like Bank of America (BofA), JPMorgan Chase, and Citi — last year. The bank saw a 104% increase in Zelle transactions in the past four months, and a 50% increase in customer enrollment in the P2P offering during that time.
To compete with big tech firms, banks need big-tech talent (American Banker), Rated: A
Nine years ago, D.J. Patil and Jeff Hammerbacher coined the term “data scientist.” Four years later, Patil and Thomas Davenport deemed the profession “the sexiest job of the 21st century” in the pages of Harvard Business Review.
For banks, this imbalance is particularly challenging at a time when the industry is increasingly vying for the same talent the tech giants are aggressively courting. To stay competitive, the financial services industry must defend against a new cast of competitors by changing how it attracts, hires and develops data science talent.
BitGo Raises $ 42.5M in Series B Funding (Finsmes), Rated: A
BitGo, a Palo Alto, CA-based company which makes digital currencies usable for businesses in a regulated economy, raised $42.5m in Series B financing.
The company intends to use the funds to accelerate enabling businesses to integrate digital currencies into their existing financial systems.
AI 100: The Artificial Intelligence Startups Redefining Industries (CB Insights), Rated: A
5 Promising Early-Stage Startups to Watch (Tech Startups), Rated: B
Throtle is a 2nd generation data onboarding company focused on deterministic matching, identity resolution and closed loop enablement, powering brands and companies with their omnichannel marketing efforts.
Affirm is a San Francisco-based financial service startup that offers installment loans to consumers at the point of sale. Its aim is to improve the banking industry to be more accountable and accessible to consumers.
Homebuying With Alternative Credit (Microbilt), Rated: B
Digital challenger Starling to hit profit in 2019 says founder Anne Boden as European expansion takes crucial step (City A.M.), Rated: AAA
Digital-only challenger bank Starling will “definitely” be in profit by the end of 2019, its chief executive told City A.M., as it announced a major step in its plans for European expansion.
The bank will today announce it has become a direct member of the single euro payments area (Sepa), which allows credit transfers, direct debit and card payments in euros across the whole of the EU.
Crowdfunding a mission to save capitalism from itself (Financial Times), Rated: AAA
Jeff Lynn is on a mission to save capitalism from itself at a time when millions feel locked out, and unable to foresee themselves better off than their parents. His answer: to democratise capital.
That is one reason he founded Seedrs, an online platform through which individual investors can buy shares in high-growth companies at an early stage — a privilege once reserved for institutions and private equity funds. The other reason was to make money.
Seedrs, which along with Crowdcube dominates the UK market, has funded more than 540 deals, representing £280m of investment. Some were follow-on rounds, and in total about 400 companies have been funded. About 20-30 companies are live on the site at any time.
Crowdfunding by numbers
Critics say a big difference between crowdfunding and the stock market is liquidity — you cannot just sell your stake. But Seedrs has begun a secondary market and says it has had several exits already.
Free Agent, a Scottish maker of accounting software, floated in November 2016 at 87p. Its shares remain below the 100p Seedrs investors paid, though some sold when it hit 140p this year. Chapel Down, a vineyard, was already quoted on the Nex exchange (formerly ISDX) when it raised money at 28p a share in October 2014. It has been trading around three times that level.
SenseTime Raises US$ 410M Series B Financing (Finsmes), Rated: A
SenseTime, a Chinese artificial intelligence company focused on computer vision and deep learning technologies, raised US$410m series B1 B round of financing.
SenseTime has powered many industries such as finance, security, smart phone, mobile Internet, robotics, and automobile with core computer vision technologies including face recognition, video analysis, character recognition, and autonomous driving.
Linked Finance Launches New P2P Lending Pension Accounts (Better Business), Rated: AAA
Irish peer-to-peer lending company Linked Finance has launched a new type of account that allows holders of self-administered pensions to make P2P lending to Irish SMEs part of their pension investment portfolio.
With net returns of between 7 and 8.5 per cent, 24/7 online account access, complete control of lending activity, and monthly repayments of principal & interest, P2P lending is becoming an attractive asset class for a growing number of investors.
Mobile bank N26 partners with crowd-lending platform Younited Credit in France (Telecompaper), Rated: A
European start-up N26 has expanded the range of its banking services on offer in the French market via a partnership with Younited Credit, a fintech start-up specialising in short-term loans and crowd-lending.
The Advantages of #Peer-to-Peer Lending (EU Reporter), Rated: A
For many years, if someone wanted a loan, they would have to apply for one through a bank. Before they received that loan, the bank investigated their credit and decided what the rate of interest would be applicable.
However, there is another way to get a loan without worrying about a low credit score or high interest rates. This is peer-to-peer lending or P2P. Through peer-to-peer lending platforms, individuals can invest their money in other individuals, with an interest rate that the two groups have agreed is fair.
Hungarian fintech secures EUR 6 mln in Czech funding (Portfolio.hu), Rated: A
The investor will first acquire a 20% stake in Barion, which is active in online and mobile payments, for EUR 2 mln.
Finnish Crowdfunding & P2P Lending Platform Fellow Finance Receives Payment Institution Authorization (Crowdfund Insider), Rated: B
Finnish crowdfunding and peer-to-peer lending platform Fellow Finance announced on Tuesday it received payment institution authorization from the Financial Supervisory Authority of Finland. The online lender claims it is the first funding platform to receive this type of authorization, which will notably enable Fellow Finance to provide new services to its consumer and corporate customers, to expand its services further in Europe and to utilize the new payment service directive (PSD2) in the development of Fellow Finance service.
With Norrsken House, ex-Klarna executive envisions a global network of co-working spaces focused on impact (TechCrunch), Rated: A
He launched the Norrsken Foundation later that year with about $20 million of his own money. By early 2017, the first fruits of that funding took shape with the opening of Norrsken House, a co-working space in Adalberth’s hometown of Stockholm dedicated to companies that are developing technologies that have a social impact.
Now, Adalberth has committed an additional $62 million of his own money to expand that vision. The goal, he said, is to eventually create a network of 25 impact-focused co-working spaces and foundation hubs around the globe in the next 10 years. The first Norrsken House has 112 companies in it and seven have received direct investment from the Norrsken Foundation’s fund (more on that in a bit).
ID Finance raises $ 8.5m via exchange-traded bonds to support growth (Finextra), Rated: AAA
ID Finance, the emerging markets fintech company, today announced successful completion of its first issuance of exchange-traded bonds.
Banks, fintechs and a Brit royal to build green-lending blockchain (American Banker), Rated: A
Could fintech help the planet cope with climate change?
Some major players — Prince Charles; bankers from Barclays, Standard Chartered, and BNP Paribas; three fintechs; and professors from the University of Cambridge — all hope the answer is yes.
On Tuesday at the One Planet Summit in Paris, they are expected to announce they are developing blockchain technology that lets banks see which potential borrowers use environmentally sustainable practices and therefore are worthy of preferential lending terms. Such disclosures presumably would put pressure on companies to pollute less.
RateSetter’s Australian business hits $ 200m milestone (AltFi), Rated: AAA
RateSetter Australia has hit the AUD$200m mark in lending a little over three years removed from launching down under. The platform, which lends to both businesses and individuals, has doubled its lending volumes over the past six months.
Interestingly, 56 per cent of its investors withdrew money from bank savings accounts in order to divert them into the platform, while a further 17 per cent reallocated money from bank term deposits. The greatest proportion of the platform’s investors are millennials, at 58 per cent, although they invest the least amount of money on average of any age group at $9,454. Retirees (aged 65 and over) by contrast invest an average of $66,118.
Understanding the Data Protection White Paper Part XI: Establishing proper deterrent consequences for privacy violations (Tech 2), Rated: AAA
This article is Part 11 of a multi-part series explaining the recently issued white paper on data protection in India. You can read Part 1, Part 2, Part 3, Part 4, Part 5, Part 6, Part 7, Part 8, Part 9 and Part 10.
Consider also the case of Sitesearch in the US, where the company bought payday loan applications and sold them to third parties, which included fraudsters, who used the data to steal more than $25 million from user accounts. Such careless buying and selling off of data should not be justifiable in the name of consent. While safeguards such as requiring that companies transfer data to only to companies with a comparable level of privacy provisions help, these must be backed up by huge penalties for violations.
For example, consider the Equifax data breach, the breach of a credit information company, leading to the loss of crucial data of over 143 million Americans. This breach was the result of a vulnerability in their web application software, a vulnerability that was discovered and for which a patch had been issued at least 2 months before the actual hack. The breach of this crucial data was thus the result of negligent, or non-implementation of the patch.
A landmark privacy judgment in India is the Canara Bank case, which struck down a provision in a law, which allowed the authorisation of ‘anyone’ to conduct investigations and demand the production and seizure of documents, including bank documents. Such a wide delegation of powers can allow any and everyone, even unscrupulous actors, permission to gain access to confidential data, which should not be allowed.
This case draws attention to an important aspect of data protection — it must be ensured that investigations, at all times, must be authorised, and by authorised personnel only. Any violations, or even exceeding of powers must be punishable.
8Percent leverages power of platform (Korea Herald), Rated: A
Companies that have used the 8Percent platform include Korea’s leading vehicle-sharing app operator Socar, solar energy firm S-Power and restaurant chains Power Plant and The Booth.
For example, a P2P investor into Socar was given a 1-hour free-driving offer each month for a year, until the loan matured. The offer was part of a return to about 600 retail investors, who lent a combined 1.3 billion won ($1.19 million) to the car-sharing firm in July 2015.
Vouchers for restaurants, such as Power Plant and The Booth, were given as rewards to investors.
According to a December estimate by 8Percent, three-fourths of investors, who offered an accumulated 97.7 billion won in loans, were from metropolitan areas — either Seoul or Gyeonggi Province — while those in their 20s or 30s accounted for over three-fourths of investors. The investors, without tax being deducted, are offered on average 9.78 percent interest for investments.
Some 65 percent of its borrowers — about 5,000 – had a credit rating between 4 and 6 on the scale of 1 to 10.
Similarly, online REITs use online platforms and digital technology to enable wider access to REITs and quicker dissemination of REIT information. This allows mass participation and broader wealth distribution.
The ticket size to crowdfund a $1-billion airport is not exactly for everyone. However, a three-bedroom apartment in Mumbai, Manchester or Dubai Marina jointly owned by a hundred individuals sounds realistic. It also helps diversify risks for investors.
Smart Crowd is a crowdfunding platform, very different from an online REIT. The company believes it can enable anyone with Dh5,000 in savings to enter the Dubai property ladder. Its platform is awaiting final regulatory approval from the Dubai Financial Services.
MK Rachel Azaria threatens banks with P2P legislation (Globes.co.il), Rated: AAA
MK Rachel Azaria, chair of the Knesset Reforms Committee (officially known as the Special Committee on the Planning and Building Bill and the Maternity Leave and Parenting Bill) did not like the draft circular released by the Bank of Israel on regulating the relationship between the banks and the digital peer-to-peer (P2P) lending platforms on Sunday.
Azaria is now threatening to promote legislation that will regulate relations between the banks and the platforms, but this appears to be designed to pressure the Bank of Israel to publish new, more focused guidelines .
Creditas Raises $ 50M in Series C Funding (Finsmes), Rated: A
Creditas, a Sao Paulo, Brazil-based digital secured loan platform provider, raised $50m in Series C funding.
News Comments Today’s main news: Prosper’s top concern next year is liquidity. Affirm seeks new funding at $1.5B valuation. LendingHome surpasses $2B in loan originations. ThinCats delays IFIsa launch. Funding Circle hits 3B GBP in lending. Dianrong planning $500M IPO. Today’s main analysis: Acorns puts up a fight to upscale. Mobile credit and financial inclusion. Today’s thought-provoking articles: Is Lending Club […]
- Today’s main news: Prosper’s top concern next year is liquidity. Affirm seeks new funding at $1.5B valuation. LendingHome surpasses $2B in loan originations. ThinCats delays IFIsa launch. Funding Circle hits 3B GBP in lending. Dianrong planning $500M IPO.
- Today’s main analysis: Acorns puts up a fight to upscale. Mobile credit and financial inclusion.
- Today’s thought-provoking articles: Is Lending Club misleading new investors? Best and worst cities for wallet fitness. China set to rank its citizens. China Rapid Finance eyes a new opportunity. How mobile credit can lead to financial inclusion. India’s small businesses brace for a boom.
- Prosper is concerned about liquidity. AT: “As Prosper grows, liquidity will become even more important. The risk is to go bell up or sink the company in debt, which could keep it tied away from expecting profits for years to come. I’d like to see the company hit the level of liquidity it expects.”
- Is Lending Club misleading new investors about past performance? AT: “I’ll have to agree with Sean Murray on this one. While it may be misleading, the onus is on investors to do their due diligence. The information is out there.”
- Affirm said to be raising funds at $1.5B valuation. AT: “Unicorn status is just a symbol. The real test of success is how the company is run, whether or not it is profitable, and whether it services customers’ expectations well. That said, Affirm has huge potential in the niche it is targeting. We’re just at the beginning stage of this boat ride.”
- Acorns puts up a fight to go upmarket. AT: “A few years ago, while building a content marketing company, I discovered that there were two ways a business can pursue the success dragon. You can sell high-dollar products to raving fans and build upon reputation–like Apple–or you can target to the masses and make your profits on slim margins. The latter is the more difficult row to hoe, especially if there is a lot of competition at the price level. Acorns may have a lot of customers, but they can’t bank forever on slim margins. This is a great read.”
- How Cross River Bank is taking mobile payments to businesses.
- Morgan Stanley is starting a robo-advisor.
- The best and worst cities for wallet fitness.
- Rich Uncles hires new CFO, COO.
- Perkins Coie hires SEC attorney.
- Barclaycard rebrands to Barclays to open digital bank in U.S.
- The Argon Group fires staff en masse.
- Atlantic Capital Bank adds new position: VP of Fintech Industry Banking.
- 2 secrets to getting a business loan.
- ThinCats delays IFIsa launch.
- Funding Circle hits 3B GBP lending milestone. AT: “In case you missed it.”
- Oakam nabs 35M GBP debt facility from Victory Park Capital.
- LandlordInvest publishes loan book.
- Welendus launches beta platform for investors.
- 6 ways fintech startups can hurt incumbent banks.
- 5 UK startups to watch.
- Dianrong planning a 2018 IPO for $500M.
- China all set to implement ranking system on citizens.
- China Rapid Finance sees new opportunity.
- Banks’ robo-advisors see more scrutiny.
- Pinganfang caught up in U.S. fraud case.
- Fintech faces a change of pace.
- Why mobile credit can lead to financial inclusion. AT: “An excellent read using Juvo data.”
- Bitfinex crashes.
- Etherecash provides lawyer-backed platform.
- ID Finance adds ex-CEO of 4finance to board.
- Small businesses are ready to boom.
- Rentickle raises $4M.
- P2P Easy the fastest growing P2P platform in India.
- United States
- Prosper’s Top Concern in 2018 is Liquidity, CEO Says (Bank Innovation), Rated: AAA
- Is Lending Club Misleading New Investors About Past Performance? (deBanked), Rated: AAA
- Affirm Is Said to Be Raising Funding at $ 1.5 Billion Valuation (Bloomberg), Rated: AAA
- Acorns Teardown: The Most Popular Robo-Advisor Faces A Fierce Fight As It Goes ‘Upmarket’ (CB Insights), Rated: AAA
- Mortgage Marketplace Lender LendingHome Surpasses $ 2 Billion in Loan Originations (Crowdfund Insider), Rated: AAA
- How Cross River Bank plans to bring mobile payments to business customers (Tearsheet), Rated: A
- Morgan Stanley is getting in on the hottest trend in investing (Business Insider), Rated: A
- 2017’s Best & Worst Cities for Wallet Fitness (WalletHub), Rated: AAA
- Rich Uncles Announces New CFO, COO, and Corporate Headquarters (Business Insider), Rated: A
- Perkins Coie Law Firm Boosts Fintech Bench with SEC Attorney Hire (Crowdfund Insider), Rated: A
- Barclaycard building digital bank in US (Banking Technology), Rated: A
- Mass firings at top digital currency investment bank (New York Post), Rated: A
- Atlantic Capital Bank expands into Fintech Banking with strategic new hire (GlobeNewswire), Rated: A
- Want to Learn 8 Secrets for Getting a Business Loan? Here are 2 (Small Biz Trends), Rated: B
- United Kingdom
- ThinCats delays IFIsa launch (Bridging&Commercial), Rated: AAA
- Funding Circle hits £3bn lending milestone (P2P Finance News), Rated: AAA
- Micro-lender Oakam secures £35 million debt facility from Victory Park Capital (Finextra), Rated: A
- LandlordInvest publishes loan book (P2P Finance News), Rated: A
- Welendus launches beta platform for investors (P2P Finance News), Rated: A
- Six ways fintech startups could hurt incumbent banks (Econsultancy), Rated: A
- Five (more) UK startups to watch: Were we right? | Fintech Recap 2017 (Bob’s Guide), Rated: B
- Chinese Online Lender Dianrong Eyes 2018 IPO, Could Raise at Least $ 500 Million (WSJ), Rated: AAA
- China Is Set to Implement a System of Ranking Its Citizens (Interesting Engineering), Rated: AAA
- Micro-lender China Rapid Finance spots opportunity in new rules (Reuters), Rated: AAA
- Banks’ robo-advisers are facing increasing scrutiny (China Daily), Rated: A
- WeiyangX Fintech Review (Crowdfund Insider), Rated: A
- Change of pace ahead for fintech (China Daily), Rated: A
- Why Mobile Credit Can Be the Entry Ticket to Financial Inclusion (Let’s Talk Payments), Rated: AAA
- Anger and confusion as crypto traders lose thousands in ‘flash crash’ on $ 54 billion exchange (Business Insider), Rated: A
- Etherecash Provides Lawyer-backed Platform to Secure Loans Against Your Own Cryptocurrency (Coinspeaker), Rated: B
- ID Finance strengthens board with ex-CEO of 4finance (ID Finance Email), Rated: A
- India’s Small Businesses Are Ready To Boom, Thanks To Fintech (Forbes), Rated: AAA
- Online lifestyle renting firm Rentickle.com raises $ 4 M in equity and debt (YourStory), Rated: A
- P2P Easy Extends Services As The Fastest Growing Peer-to-Peer Money Lending Platform In India (Digital Journal), Rated: B
- Culum Capital launches online platform for alternative investment (HedgeWeek), Rated: A
- Fintech versus financial inclusion: What’s the difference? (DevEx), Rated: A
Prosper’s Top Concern in 2018 is Liquidity, CEO Says (Bank Innovation), Rated: AAA
Marketplace lender Prosper will make liquidity a top priority as the company moves into 2018, company CEO David Kimball said during a lending conference that took place last week.
“Our main concern… it’s always liquidity, and I think most people in this room understand that the best way to get to liquidity is to have a lot of different options,” Kimball said to attendees of the Investors Conference in Marketplace Lending on Friday, December 1st. “And so I think you’ll see our toolkit expand [in 2018] versus where it is now.”
Is Lending Club Misleading New Investors About Past Performance? (deBanked), Rated: AAA
New retail investors interested in the Lending Club platform are greeted with a friendly statistic, that “99% of portfolios with 100+ Notes have seen positive returns.” That’s a slippery statement, which is probably why they footnoted it.
Affirm Is Said to Be Raising Funding at $ 1.5 Billion Valuation (Bloomberg), Rated: AAA
Affirm Inc., an online lender run by PayPal co-founder Max Levchin, is in advanced talks for a financing round that would earn it a place in the unicorn startup club.
The San Francisco-based startup is discussing an investment of about $150 million, said people familiar with the matter. The deal would value the company at $1.5 billion, about double the valuation from the last round in April 2016, said the people, who asked not to be identified because the terms aren’t finalized. Affirm declined to comment.
Acorns Teardown: The Most Popular Robo-Advisor Faces A Fierce Fight As It Goes ‘Upmarket’ (CB Insights), Rated: AAA
The micro-investing app has grown an of army of 2.2M accounts. But making money off these first-time, lower-income investors won’t be easy. To do so, Acorns is building out higher-tier investment services and moving into the highly saturated $40T retirement planning market.
With over 2.2M investment accounts in the US since launch, the company has proved there is a clear niche for its product. It is already the largest robo-advisor by client accounts.
Acorns’ service isn’t free, but it is cheap — the company charges $1 a month or .25% for accounts over $500. At $12 annually for many accounts, that’s not a lot of revenue.
Acorns is making a number of important moves:
- It is launching its own retirement savings plan in 2018 called Acorns Later, which could help it reach new users and push up current users’ account size.
- It has formed a strategic partnership with investor Paypal to extend its product to Paypal’s huge user base. In addition, its partnership with Paypal could ultimately help Acorns get into bank account services, a move similar to what low-income investing competitor Stash has done.
- A B2B offering may also be in the works, based on recent acquisition activity. B2B products have helped other robo-advisors see big jumps in AUM.
Acorns manages approximately $528M in AUM and approximately $407 per account as of September 2017. Compare that to Betterment which manages approximately $28.5K per client account and Wealthfront which averages $42.3K.
Mortgage Marketplace Lender LendingHome Surpasses $ 2 Billion in Loan Originations (Crowdfund Insider), Rated: AAA
On Monday, mortgage marketplace lender LendingHome announced it has originated more than $2 billion in mortgage loans for homeowners and real estate investors. The online lender revealed that the first billion of originations occurred over the course of 30 months, while it took just 12 months for the company to originate its second billion. In the process, LendingHome crossed the major milestone of financing more than 10,000 homes nationwide.
How Cross River Bank plans to bring mobile payments to business customers (Tearsheet), Rated: A
How and when employees get paid should be their choice, Isaacson said. The technology to make that happen is already in the market — Uber and Lyft drivers are taking advantage of it, for example — but the systems aren’t in place at most companies, and there’s a mental barrier for businesses to overcome to begin creating mobile payout experiences.
It’s also too inflexible for some businesses, like a restaurant or store that may need more or fewer cases of Coca Cola than the originally ordered 10. They need to be able to make adjustments like that in real time, Isaacson said. With a mobile device, people can manage and initiate payments in real time and remotely.
Cross River Bank is a business bank, whose clients are some of the biggest fintech companies. Behind the scenes, CRB has developed payments solutions for faster, more secure and lower-cost transfers that have been integrated by TransferWise and the bitcoin wallet Coinbase, as well as Google Wallet and Stripe — which counts Lyft as a customer.
Morgan Stanley is getting in on the hottest trend in investing (Business Insider), Rated: A
The New York-based investment bank announced Monday the launch of Access Investing, an online roboadviser designed to capture a younger clientele.
The goal of Morgan Stanley’s new offering is to serve as a stepping stone, so to speak, for younger savers who one day might want to tap into the bank’s broader suite of wealth-management services when they are wealthier and older.
2017’s Best & Worst Cities for Wallet Fitness (WalletHub), Rated: AAA
Wallet Fitness levels vary widely across the U.S. As we prepare to make resolutions for self-improvement, it’s fair to wonder who’s best positioned for financial success and who has the most work to do. To find out, we compared more than 180 U.S. cities based on 29 key indicators of Wallet Fitness.
|10 Best Cities for Wallet Fitness||10 Worst Cities for Wallet Fitness|
|1||Fremont, CA||173||Oxnard, CA|
|2||San Francisco, CA||174||Miami, FL|
|3||Madison, WI||175||New Orleans, LA|
|4||Columbia, MD||176||Gulfport, MS|
|5||San Jose, CA||177||Santa Ana, CA|
|6||Seattle, WA||178||Brownsville, TX|
|7||Minneapolis, MN||179||San Bernardino, CA|
|8||Sioux Falls, SD||180||North Las Vegas, NV|
|9||Bismarck, ND||181||Newark, NJ|
|10||Warwick, RI||182||Hialeah, FL|
See the rest of the results here.
Rich Uncles Announces New CFO, COO, and Corporate Headquarters (Business Insider), Rated: A
Leading crowdfunding real estate investment platform, Rich Uncles, LLC, today announced the appointment of John H. Davis as its new chief financial officer and Jean Ho as its new chief operating officer and chief compliance officer.
Mr. Davis comes to Rich Uncles after more than four decades with KPMG LLP, one of the world’s four largest accounting firms, where he had served as a partner since 1988.
Ms. Ho joined Rich Uncles, LLC in 2016 as the company’s chief financial officer, where she has helped lead the acquisitions of 29 commercial properties across two Rich Uncles-sponsored REITs: Rich Uncles Real Estate Investment Trust I and Rich Uncles NNN REIT, Inc. Prior to joining Rich Uncles, LLC, Ms. Ho held positions as chief operating officer and chief financial officer of Soteira Capital, LLC, chief financial officer of MKA Capital Advisors, LLC, and with KPMG LLP, where she specialized in real estate, financial services, and high net wealth personal financial and estate planning.
Perkins Coie Law Firm Boosts Fintech Bench with SEC Attorney Hire (Crowdfund Insider), Rated: A
Perkins Coie, a law firm that is very active in the Fintech / Blockchain space, has announced the hiring of a former SEC attorney. Michael S. Didiuk has joined the firm’s Investment Management practice group as a partner in the San Francisco office where he will represent clients on various federal securities laws and complex regulatory issues raised by Blockchain technology and with the emergence of digital asset sales and digital securities.
Barclaycard building digital bank in US (Banking Technology), Rated: A
Barclaycard is rebranding itself to Barclays in the US as part of its retail digital banking strategy in 2018.
According to Tearsheet, Barclaycard says since last November it has been targeting prime and super-prime borrowers with an online personal loan offering on a test-and-learn basis to a small group of customers. Barclaycard plans to launch the same offering publicly by the middle of 2018.
Mass firings at top digital currency investment bank (New York Post), Rated: A
The largest investment bank catering to the red-hot cryptocurrency sector was in total disarray on Friday after management fired nine employees — including the entire tech team, The Post has learned.
The Argon Group had been battling internal turmoil recently as many of its investment bankers had grown disenchanted over the direction of the company, sources said.
Atlantic Capital Bank expands into Fintech Banking with strategic new hire (GlobeNewswire), Rated: A
Chris Stanley joins Atlantic Capital Bank as Vice President of Fintech Industry Banking, to lead Atlantic Capital’s Fintech Banking practice.
Expanding on a successful payments industry line of business, the new fintech banking practice will focus on emerging growth and growth-stage companies in this evolving technology segment. This will bolster Atlantic Capital’s core deposit gathering strategy.
Want to Learn 8 Secrets for Getting a Business Loan? Here are 2 (Small Biz Trends), Rated: B
Secret #1: Yes, You CAN Improve Your Personal Credit Score
- Pay down your credit cards. As a yardstick, you’ll want all your cards under 50 percent of their limits. This means no more maxing out cards — for personal or business.
- Lower your debt compared to your income. A good benchmark is keeping debt to 30 percent of less of your income. Rather than taking a second mortgage on your home and increasing your debt load, you might be better served to apply for a business loan.
- Monitor your credit score. Errors are more common than most people realize. Besides you’ll learn which creditors report to credit agencies and what they report on.
Secret #2: Your Business Credit History May Be Incomplete, But It’s Not Hard to Change That
- Establish free profiles with the three major business credit bureaus: D&B, Experian, Equifax
- Apply for a business credit card and use it to establish a timely repayment history.
- Do business with vendors (“trades”) that report to credit bureaus regularly.
ThinCats delays IFIsa launch (Bridging&Commercial), Rated: AAA
The peer-to-peer lending platform had hoped to launch its IFIsa by the end of this year and thanked investors for their patience.
It is currently building the new systems needed to handle the different aspects of accepting and administering Isa investments safely.
Funding Circle hits £3bn lending milestone (P2P Finance News), Rated: AAA
FUNDING Circle has become the first UK peer-to-peer platform to reach the £3bn cumulative lending milestone.
The business finance provider said on its website that “30,948 UK businesses have financed their goals by borrowing £3bn through Funding Circle”.
Zopa, which lent out a record £100m last month, said it expects to reach the £3bn mark in January.
Micro-lender Oakam secures £35 million debt facility from Victory Park Capital (Finextra), Rated: A
Digital micro-lender, Oakam today announced that it has secured a £35 million debt investment from Victory Park Capital Advisors, LLC (VPC), an investment firm focused on private middle market debt and equity investments.
LandlordInvest publishes loan book (P2P Finance News), Rated: A
LANDLORDINVEST, a peer-to-peer lending platform for residential and commercial real estate mortgages, has published its entire loan book to mark its one-year anniversary.
It reveals that LandlordInvest lent a total of £2.7m between December 2016 and December 2017, with an average loan amount of £210,535.
The average loan term was 7.6 months, the average LTV was 63.7 per cent and the average annual gross return to investors was 11.1 per cent.
Welendus launches beta platform for investors (P2P Finance News), Rated: A
WELENDUS, the peer-to-peer payday lender, has launched a beta version of its platform for investors after its latest funding round exceeded its target in under 24 hours.
Six ways fintech startups could hurt incumbent banks (Econsultancy), Rated: A
For years, there has been much talk about the impact of fintech startups like Mondo and Atom Bank on incumbent banks but little has been done to quantify the actual effects fintechs are having on big banks.
New data from The Bank of England (BoE), published as part of its 2017 stress test of the UK banking system, however, is shedding light on this subject.
- Reduced overdraft revenue
- Reduced fees from payment services
- Higher customer acquisition and retention costs
- More difficulty cross-selling
- Increased liquidity risk
- Increased cyber security risk
Five (more) UK startups to watch: Were we right? | Fintech Recap 2017 (Bob’s Guide), Rated: B
Where they were then: Trussle, the online mortgage trading company, is a rising star in the fintech industry. The start-up company provides solutions and answers to those looking to invest with a hassle-free process.
Where they are now: Following their funding round in early February to raise £4.5m ($5.68m) backed by Orange and Growth Capital, and existing investors LocalGlobe, Zoopla and Seedcamp, Trussle went on to join forces with Revolut in April to give users direct access to their mortgage brokering services.
Total equity funding: $7.38m (now $7.6m) +2.98%*
Where they were then: Iwoca was created to help make credit and loans of up to £100,000 available to small businesses.
Where they are now: 8 days after the time of writing the previous bio, Iwoca partnered with NatWest through Capital Connections to provide SMB loans, a significant collaboration for the six year-old startup.
Total equity funding: $58.5m (now $90m) +54%*
Where they are now: They currently boast a 6.6% annual return for investors and have earned £156m in interest for investors. They’ve lent £3 billion to UK businesses in a total of 43,251 loans (since 2010).
Total equity funding: $373.2m (now flat) –%*
Where they were then: Crowdcube is an investment crowdfunding platform that lets customers hand pick the businesses they want to back and invest in.
Where they are now: In the third quarter of 2017, Crowdcube registered £1m in company revenue, with 70 pitches.
Funds raised to date: $18.69m (now $28.3m) +51.42%*
Where they were then: Based in the heart of the UK capital, LendInvest is the UK’s leading online property lending and investing businesses.
Where they are now: In September, LendInvest announced the strategic partnership with Clever Lending, a specialist lending solution.
Total equity funding: $58.6m (now $393m) +570%*
Dianrong.com, a Chinese online lending platform started and run by a co-founder of LendingClub Corp. , is planning an initial public offering as soon as next year that could raise at least $500 million, according to people familiar with the matter.
China Is Set to Implement a System of Ranking Its Citizens (Interesting Engineering), Rated: AAA
China is set to implement a social credit system that will rate each of its citizens on a publicly available scale. Officially known as the Social Credit Score or SCS, the system is likely to be implemented by 2020.
It works by giving each citizen a score based on their daily interactions and financial decisions, the score can be affected by debt, spending habits and even social interactions. Obviously, to get this kind of score that will be somewhat compared to a person’s trustworthiness, there will need to be a huge amount of individual monitoring and data collection. The SCS is expected to be rolled out in 2020, but there will be a large scale trial period from now until then so the system can be at optimal functionality when it goes live on its 1.3 billion citizens.
Micro-lender China Rapid Finance spots opportunity in new rules (Reuters), Rated: AAA
China Rapid Finance will make any adjustments needed to its business practices and the fees it charges in response to Bejing’s new requirements to clean up fast-growing online micro-lenders, its chief executive Zane Wang said on Monday.
Online micro-lenders have come under scrutiny as “problems such as over-lending, repeat borrowing, improper collection, abnormally high interest rates, and privacy violations have become prominent”, Chinese financial regulators said last week.
Banks’ robo-advisers are facing increasing scrutiny (China Daily), Rated: A
With financial institutions increasingly employing roboadvisers, China’s central bank and financial regulators issued draft regulations for comment recently, requiring financial institutions to receive regulatory approval for offering such services.
The regulatory authorities said financial institutions should create rational investment strategies and algorithm models, as well as remind investors of the flaws and risks associated with algorithm-based robo-advisory models.
WeiyangX Fintech Review (Crowdfund Insider), Rated: A
The project that Pinganfang.com was caught up in is a sharing working place project called Bar Works. Every work place was sold at $25,000 and the minimum purchase quota per investor was two each. The expected annual rate of return was between 12% to 15%. On June 30th 2017, the SEC charged Renwick Haddow (the planner of Bar Works project) with multiple counts, including illegal fundraising $36 million from the Bar Works investors.
On November 30th, JD Finance and China UnionPay co-launched a Blockchain-based risk information sharing mechanism.
On December 1st, Alibaba officially set up a poverty alleviation fund. As planned, the fund will invest 10-billion-yuan in the next five years to establish a comprehensive security system and help people fight against poverty. At the fund launch ceremony, Jack Ma, the executive chairman of Alibaba Group, told the media that Ant Financial would suspend plans for an initial public offering.
Change of pace ahead for fintech (China Daily), Rated: A
China has emerged as a leading fintech market globally, with analysts estimating the market size to have exceeded $243 billion by the end of last year, accounting for about 85 percent of the global market share.
The sector’s fast and furious growth was also illustrated by the surge of fintech investment in the country, which attracted capital of $8.8 billion between July 2015 to June 2016, equivalent to an increase of 252 percent since 2010, according to a report by Singaporean banking giant DBS Group and global accounting firm Ernst & Young.
Why Mobile Credit Can Be the Entry Ticket to Financial Inclusion (Let’s Talk Payments), Rated: AAA
Think for a moment of what your life would be like with no access to credit. Chances are you wouldn’t own a home or a car. Most of us could not have afforded our college education. The entrepreneurs among us would be hard-pressed to build successful businesses. And what about the ways we take advantage of credit cards – basically small-time loans that exist to allow us to pay for emergencies and unexpected expenses? Our financial identity is tied up in our access to these credit opportunities.
The good news, however, is that mobile devices – along with the existence of the cloud – are providing an entirely new landscape for the developing world. This landscape involves assigning a financial identity to those who have largely remained anonymous, reaching these populations through their smartphones. There are scores of creditworthy people on the planet, and we’ve proven before through data science that worthiness has little to do with income or wealth, but instead with the opportunity to demonstrate responsibility.
With this understanding in mind, we reviewed activity in the wake of recent hurricanes that rocked the Caribbean and observed a spike in prepaid mobile users topping up their phone allowances via on-demand credit extensions prior to hurricanes making landfall.
The following image shows the ratio of airtime credit extensions to cash top-ups as the eye of Hurricane Irma hit the Leeward Islands as well as Turks & Caicos.
As Irma made landfall, purchasing airtime from shops become extremely difficult, if not impossible. The graph above shows what happens when cash based-top ups are not possible.
For these reasons, creating a mobile financial identity in order to provide mobile credit remains the best place to start to address financial exclusion in many parts of the world and smartphones are the most logical vehicle for providing it. Nearly 80% of people all across the globe have prepaid phones, and there are nearly $1 trillion in transactions taking place every day.
Anger and confusion as crypto traders lose thousands in ‘flash crash’ on $ 54 billion exchange (Business Insider), Rated: A
A “flash crash” on the world’s biggest cryptocurrency exchange has left customers demanding answers and refunds, with many claiming to have lost thousands of dollars.
The price of cryptocurrencies NEO, OMG, and ETP crashed as much as 90% in minutes on the Bitfinex exchange on Wednesday before quickly bouncing back to former levels.
The price crash led Bitfinex, the world’s largest cryptocurrency exchange by daily volume, to close the positions of many traders who had placed leveraged bets on these digital currencies. Leveraged trading involves borrowing money to increase exposure.
Brett Kruger, a Bitfinex user affected by the “flash crash”, told Business Insider he is unhappy with Bitfinex because he claims the website was “lagging, unresponsive” at the time of the crash. He said he was also repeatedly logged out of the website, blaming recent DDoS attacks. Bitfinex announced last Sunday that it had been hit by a distributed denial of service (DDoS) attack, a malicious attack meant to bring down the service.
Etherecash Provides Lawyer-backed Platform to Secure Loans Against Your Own Cryptocurrency (Coinspeaker), Rated: B
EthereCash, is a three prong financial platform, wants to eliminate borders, intermediaries and prejudices, providing access to bank services for everybody. It makes all the tedious and lengthy bank operations simple, transparent and secure.
ID Finance strengthens board with ex-CEO of 4finance (ID Finance Email), Rated: A
ID Finance, the emerging markets fintech company, has strengthened its board with the appointment of Kieran Donnelly, ex-CEO of, 4finance, as a board advisor. The appointment will support ID Finance as it continues rapid expansion and further diversification of its business.
Kieran Donnelly served as CEO at 4finance, the European online and mobile consumer lending group for three years. He brings over 30 years of management experience to ID Finance having also held senior roles at Standard Bank Group, MDM Bank and Renaissance Group.
India’s Small Businesses Are Ready To Boom, Thanks To Fintech (Forbes), Rated: AAA
In 2017, India ranked second in the growth rate of fintech adoptionamong digitally active consumers across the globe; this surge was paralleled by the rise in fintech funding — receiving over $200 million in the first half of the year.
The financial services market in India is primarily untapped, with 40% of the population having no association with any bank, and more than 80% of the transactions carried out through cash.
Economic analysts predict that the next impetus for growth in the Indian economy will come from SMBs and startups.This is a great opportunity for the fintech industry, especially startups, to make it easier for SMBs, including kirana and mom-and-pop stores that are looking to gain access to capital and grow their business, by providing services where traditional banks and lenders have failed to reach, or have done so at a far higher cost. For example, Mumbai-based online loan platform, SMECorner.com, offers business loans to SMBs with virtually zero collateral.
Online lifestyle renting firm Rentickle.com raises $ 4 M in equity and debt (YourStory), Rated: A
Delhi-NCR-based lifestyle products rental portal Rentickle.com today announced it has raised $4 million in a fresh funding round. The fundraising is a combination of equity and debt.
The equity portion was led by Ajay Relan, Founder and Chairman, CX Partners, and ThinKuvate, a Singapore-based VC firm, with participation from existing investors. Delhi-based NBFC, DMI Finance Pvt Ltd, extended the company a debt line. Rentickle.com had raised $250,000 seed funding in early 2016.
P2P Easy Extends Services As The Fastest Growing Peer-to-Peer Money Lending Platform In India (Digital Journal), Rated: B
‘P2P Easy’ is a recently founded online platform that works hand in hand with borrowers and lenders for fast loan processing & acceptance.
Although the idea of loaning money dates back to the time when the first bank was established, the core issues are more or less the same to date – i.e. 90% borrowers are rejected, and lenders are skeptic due to a lack of any reasonably acceptable guarantee.
Culum Capital launches online platform for alternative investment (HedgeWeek), Rated: A
Culum Capital, a Singapore-based receivables and supply chain financing provider, has launched a new investor platform, which is aimed at accredited and institutional investors around the globe, and provides invoice financing to SMEs as an alternative to traditional financing sources.
The platform uses its proprietary credit scoring and on-going risk measurement to identify optimum investment opportunities and provide transparency. The transactions carry a short tenor of maximum 120 days, with the average transaction at 70 days. Annualised gross returns are between 10 and 25 per cent, with a strong SME diversification.
Fintech versus financial inclusion: What’s the difference? (DevEx), Rated: A
Mobile phones have introduced a sea of opportunities in every sector imaginable, and that includes in finance. Today, anyone with a cellphone can engage in one form or another of cashless transaction, be it paying bills, sending phone credit, transferring cash, or buying goods and services — even in flea markets.
But what makes this a game changer in the financial sector is how it has penetrated different levels of society. This applies particularly to the unbanked, who are unable to access formal financial institutions and often borrow money from informal lenders who may charge high interest rates and where there is no guarantee of consumer protection.
In recent years, new technologies have emerged that are being used to complement and further what mobile money has achieved: machine learning, peer-to-peer lending, biometric technology, cloud computing, and blockchain, among others.
A conscious effort to ensure all these innovations work for the unbanked
But just because it’s fintech doesn’t necessarily mean it covers financial inclusion.
In fact, a number of the technologies being adopted in the sector are largely aimed at consumer convenience instead of the unbanked.
News Comments Today’s main news: LendingClub’s Q3 results, rise in originations of 34%. Lending Club achieves highest revenues in company history. November review of Funding Circle. JD Finance intros Fintech-as-a-Service. Revolut seeking EU banking license. ID Finance sees 50% loan approval rate after AI fraud scoring tech rollout. Today’s main analysis: Lending Club’s Q3 earnings. Today’s thought-provoking articles: Due diligence […]
- Today’s main news: LendingClub’s Q3 results, rise in originations of 34%. Lending Club achieves highest revenues in company history. November review of Funding Circle. JD Finance intros Fintech-as-a-Service. Revolut seeking EU banking license. ID Finance sees 50% loan approval rate after AI fraud scoring tech rollout.
- Today’s main analysis: Lending Club’s Q3 earnings.
- Today’s thought-provoking articles: Due diligence requires deep dive into data. China’s fintech minting two new billionaires. Demonetiziation improves digital transactions in India. Principles for consumer-authorized data sharing and aggregation.
- Lending Club’s Q3 earnings and rise in originations. AT: “Lending Club’s comeback may be better than anyone ever expected.”
- Lending Club achieves highest revenue in company history. AT: “Congratulations. A great milestone.”
- Lending Club Q3 earnings review. AT: “Lending Club is very close to profitability, which makes me wonder, when do they expect to get into the black?”
- Lending Club forecasts Q4 loss.
- LendingClub stock drops 22%.
- Due diligence requires deep data dives. AT: “This is an excellent read.”
- Medical residency refinancing may be what the doctor ordered.
- SoFi launches ‘Refi and Relax’ campaign. AT: “I honestly don’t understand anxiety over student loan debt, but I wonder if this will solve the problem or just make young people forget their problems until they remember them again. Either way, pampering is a key part of SoFi’s business strategy to help millennials refinance their student loans. It seems to be working.”
- Is there really a gender gap in college savings? AT: “This study has a huge and obvious flaw. I wonder if socioeconomic status of the parents was considered in this study. Why didn’t they include parents who have both boys and girls at home? This is written to make it seems as if parents favor the educational outcome of their sons more than their daughters, but the study only includes parents who either have all boys or all girls. I’m not convinced of the conclusion drawn based on this information.”
- LendKey partners with Allied Solutions on digital lending for financial institutions.
- Interview with LendingPoint executives.
- Bank of America Merrill Lynch signs with quant firm.
- Can cryptocurrencies solve the lending problem?
- CrowdStreet expands access to commercial real estate investing.
- CrowdStreet expands leadership team.
- CrowdSeekr sits in catbird seat of real estate crowdfunding resources.
- Real estate investing and property management technology.
- U.S. fintech investments double. AT: “Also, the stock market is doing better under Trump than almost any other president since Kennedy in the first year. It will be interesting to see what the second year looks like.”
- Goldman Sachs shuffles leadership at fixed-income unit.
- Consumer Financial Protection Bureau publishes principles for consumer-authorized data sharing and aggregation.
- USATech buys Cantaloupe Systems.
- 11 most valuable VC-backed fintech companies.
- Funding Circle review. AT: “October was a good month.”
- Assetz Capital poaches LendInvest exec for intermediary expansion.
- JD Finance intros fintech-as-a-service technology.
- China’s fintech sector grooming two new billionaires. AT: “And more to come.”
- P2P platforms turn to U.S. for fundraising.
- Yixin launches $900M IPO.
- Video: Dianrong CEO Soul Htite talks about marketplace lending.
- ID Finance sees 50% loan approval rate after AI-based fraud scoring tech rollout.
- Crypto assets reshape P2P lending.
- Round up of fintech funding.
- 9 firms to IPO this week.
- United States
- LendingClub originations rose 34% in Q3 (American Banker), Rated: AAA
- LendingClub Q3 Results: Highest Revenue in the Company’s History of $ 154.0 million (Crowdfund Insider), Rated: AAA
- LendingClub Q3 2017 Earnings – Close to a Return to Profitability (Lend Academy), Rated: AAA
- LendingClub forecasts fourth-quarter loss, shares plummet (Reuters), Rated: A
- LendingClub comes up short as it cuts back full-year guidance (Financial Times), Rated: A
- DUE DILIGENCE REQUIRES DEEP DIVES INTO DATA (All About Alpha), Rated: AAA
- Medical residency refis may be just what the doctor ordered (Asset Securitization Report), Rated: A
- SoFi Launches “Refi and Relax,” Aimed at Combating Widespread Student Loan Anxiety (PR Newswire), Rated: A
- There’s a gender gap in college savings, too (Mashable), Rated: A
- LendKey Forms Partnership with Allied Solutions to Offer Digital Lending & Loan Participation Solutions for Financial Institutions (Crowdfund Insider), Rated: A
- Catching Up With LendingPoint (deBanked), Rated: A
- Accounting software giant Intuit launches direct business loans (CNBC), Rated: A
- How banks can beat digital lenders at their own game (American Banker), Rated: A
- Bank of America Merrill Lynch has signed on with a quant firm — and it shows where Wall Street is headed (Business Insider), Rated: A
- Can Cryptocurrencies Solve What Traditional Lenders Cannot? (TheStreet), Rated: A
- CrowdStreet Gains Momentum as it Delivers on Vision of Expanding Access to Commercial Real Estate Investing (Marketwired), Rated: A
- CrowdStreet Announces Leadership Team Expansion & Advisory Board Formation (Crowdfund Insider), Rated: B
- CrowdSeekr Takes Top Spot Among Real Estate Crowdfunding Resources (PR.com), Rated: A
- The Next Frontier Of Real Estate Investor And Property Manager Technology (Forbes), Rated: A
- U.S. Fintech Investments Double (WealthManagement.com), Rated: A
- Goldman Sachs Shuffles Leadership in Slumping Fixed-Income Unit (Bloomberg), Rated: A
- U.S. Consumer Financial Protection Bureau Sets Out Principles for Consumer-Authorized Data Sharing and Aggregation (Lexology), Rated: AAA
- USATech buys Cantaloupe Systems for $ 85M (Philly.com), Rated: B
- The 11 Most Valuable VC-Backed Fintech Companies In The US (Fintech News), Rated: B
- United Kingdom
- Your November Review – Insight and Analysis (Funding Circle), Rated: AAA
- Assetz appoints LendInvest’s Damien Druce for intermediary expansion (P2P Finance News), Rated: A
- JD Finance Announces JD Financial Cloud“Fintech as a Service” (Business Insider), Rated: AAA
- China’s Raging Fintech Boom on Verge of Minting Two Billionaires (Bloomberg), Rated: AAA
- P2P platforms turn to US markets for funds (China.org.cn), Rated: A
- Auto Financier Yixin Launches $ 900 Million IPO (Caixin), Rated: A
- Marketplace lending: where everybody wins (Enterprise Innovation), Rated: A
- European Union
- Revolut becomes latest UK fintech firm to seek banking license (Reuters), Rated: AAA
- Revolut to bring processing in-house (Banking Technology), Rated: A
- AI-based fraud scoring boosts loan approval rate by 50 per cent for ID Finance (ID Finance Email), Rated: AAA
- Reshaping Peer-to-peer Lending with Crypto Assets (Coinidol), Rated: A
- Fintech funding round-up: 7 November 2017 (Banking Tech), Rated: A
- 9 Firms To IPO This Week (Benzinga), Rated: B
- The digital register is ringing loud and clear (The Hindu Business Line), Rated: AAA
- Kosdaq-listed SFC buys full stake in Korean P2P lending startup Villy (Pulse News), Rated: A
LendingClub originations rose 34% in Q3 (American Banker), Rated: AAA
Loan originations continued to climb for LendingClub in the third quarter, yet profitability remained out of reach even as the lender continued to recover from the scandal that forced out its former CEO.
LendingClub Q3 Results: Highest Revenue in the Company’s History of $ 154.0 million (Crowdfund Insider), Rated: AAA
LendingClub (NYSE:LC), the largest marketplace lending platform in the United States, has published Q3 2017 financial results. The company delivered the best revenue in LendingClub’s history generating $154 million in top line revenue, an increase of 34% versus year prior and 10% over Q2 2017.
LendingClub Q3 2017 Earnings – Close to a Return to Profitability (Lend Academy), Rated: AAA
SoFi Launches “Refi and Relax,” Aimed at Combating Widespread Student Loan Anxiety (PR Newswire), Rated: A
On the heels of the end of most new college graduates’ student loan repayment grace period, SoFi today announced its first-ever Refi and Relax campaign, which aims to educate graduates on their refinancing options as a way to relieve the overwhelming stress that comes with carrying student debt.
Student loan debt is a large source of anxiety and stress for many young Americans. According to a recent SoFi member survey of over 1,200 respondents, eighty three percent shared that they’ve felt like they couldn’t relax due to the burden of the debt. Fifty percent of people dealing with student loan debt reported feeling anxious and/or depressed, and fifteen percent of respondents went so far as to talk with a mental health professional about the stress of their student debt.
Over a third of respondents have reported losing sleep due to student loan debt. Seventy five percent of respondents shared that they would give up social media if it meant their student loans would disappear. Forty percent of respondents said they would stay at a job that they hate because of student loan debt. Another twenty percent are willing to take even more dramatic measures by sacrificing a finger or toe in exchange for erasing their student loans.
Refi and Relax will comprise of a robust social media advertising campaign (#RefiandRelax), in addition to a members-only launch party in New York exclusively for those who recently refinanced their loans. On November 7, to give SoFi members a night off to unwind, the event will be dedicated to utmost relaxation, with manicures from GlamSquad, playtime with Socials Tees puppies, premium giveaways, and more.
There’s a gender gap in college savings, too (Mashable), Rated: A
Two studies recently found that parents save less for their daughters’ college educations than they do for their sons’. As highlighted in a Wall Street Journal story, a study by T. Rowe Price examined families who had all boys and families who had all girls.
The families who only had boys saved more for college than the families who only had girls. Fifty percent of households with boys saved money for college, compared to only 39 percent of households with girls. And 83 percent of families with boys contributed to college savings monthly, while only 70 percent of families with girls did. This all stood up no matter how many children the families had.
LendKey Forms Partnership with Allied Solutions to Offer Digital Lending & Loan Participation Solutions for Financial Institutions (Crowdfund Insider), Rated: A
LendKey, a lending-as-a-service solution for banks and credit unions, announced on Monday it has formed a partnership with Allied Solutions to offer its digital lending solutions, including unique and innovative loan participation programs, to Allied’s more than 4,000 clients.
Catching Up With LendingPoint (deBanked), Rated: A
At Money2020, we sat down with Chief Executive Officer Tom Burnside and Chief Strategy Officer Juan Tavares, both of LendingPoint, an online consumer lender we examined in the July/August magazine issue.
An interesting initiative that they’re now just ramping up, Tavares says, is partnerships with hospitals that allow patients to determine their deductible expenses and obtain credit on the spot to pay for it.
Accounting software giant Intuit launches direct business loans (CNBC), Rated: A
Financial software firm Intuit is offering loans directly to businesses with a lending product called QuickBooks Capital.
The company, which makes tax-preparation and accounting software, said Tuesday it would enable firms to use its bookkeeping software to access up to $35,000 in credit, with a term between three and six months.
QuickBooks Capital uses machine learning to help small businesses demonstrate credit-worthiness.
According to a study by the Federal Reserve earlier this year, only 23 percent of businesses younger than five years get access to credit.
How banks can beat digital lenders at their own game (American Banker), Rated: A
Perhaps it’s time to start acknowledging that banks are no longer taking a back seat to pioneering online lending startups.
Many depositories have learned that if they fail to modernize their lending processes, they risk being left behind. At the same time, many startups have been stymied by certain intractable advantages held by the banking sector, the most notable being significantly lower funding costs.
Bank of America Merrill Lynch has signed on with a quant firm — and it shows where Wall Street is headed (Business Insider), Rated: A
Manoj Narang, founder of quant hedge fund MANA Partners, has launched a trading subsidiary that is developing market-testing products. One of his first clients: Bank of America Merrill Lynch.
MANA Tech is also marketing a product using similar data that allows investors to measure how much money their algorithmic strategies would have performed in past market conditions, and identifies how they could become more profitable.
“It’s much more beneficial to be a quant trading firm where technology is a profit center and not a cost center. It allows you to spend much more on your technology than you can with the traditional setup where technology is a tax on trading profits,” Narang added.
Can Cryptocurrencies Solve What Traditional Lenders Cannot? (TheStreet), Rated: A
Beyond general economic anxiety in a post-2008 world, numerous other factors contribute to small businesses’ difficulties securing credit. New companies don’t have track records showing years of rising revenue and profit. Some of the world’s most promising theaters for business growth, like Asia Pacific, are regions where many individuals typically don’t have access to banks. Women-owned businesses may be at a particular disadvantage, since women have been starting businesses at a high rate over the past decade, and therefore tend to constitute a higher proportion of young businesses.
The financial services industry typically evolves at a glacial pace. The three trends outlined above – the rise in alternative lenders, crowdfunding and cryptocurrencies – represent evolution, not necessarily disruption.
CrowdStreet Gains Momentum as it Delivers on Vision of Expanding Access to Commercial Real Estate Investing (Marketwired), Rated: A
With its innovative integrated online investor marketplace and software as a service (SaaS)-based investment lifecycle management solution, CrowdStreet has increased investment dollars managed on its platform by 4x, reaching $4.2 billion in 2017, and doubled the number of investors year-over-year to more than 61,000. These results signify a major shift in confidence in online commercial real estate investing as this infographic illustrates.
In 2017, CrowdStreet’s technology platform has seen more than $745 million distributed back to investors, a 3x increase from $245 million last year. The marketplace investment run rate also grew by over 3x reaching $250 million of equity raised this year, compared to $76 million in 2016.
CrowdStreet Announces Leadership Team Expansion & Advisory Board Formation (Crowdfund Insider), Rated: B
The funding portal revealed Molly Moore, was appointed as its new Chief Marketing Officer while Rohit Colaco was named Vice President of Engineering. CrowdStreet appointed Thomas Byrne (CEO of Property Capsule Inc), Lewis G. Feldman ( CEO and Founder of Heritage Capital Ventures LLC), Christopher Keber (Currently Head of Investments and Strategy at McCourt Global), and John Witchel (President and COO of GitPrime) to its advisory board.
CrowdSeekr Takes Top Spot Among Real Estate Crowdfunding Resources (PR.com), Rated: A
CrowdSeekr is proud to announce that it is now the top data resource for real estate crowdfunding based on the number of investment opportunities in its database. CrowdSeekr is an aggregator and search engine for the real estate crowdfunding industry. The company was founded in 2015 and now features nearly 300 available real estate crowdfunding investments from dozens of platforms.
CrowdSeekr.com is a leading aggregator and search engine for real estate crowdfunding investment opportunities. It was founded in 2015 by e-commerce attorney Ashley Smith and commercial real estate professionals Tim Strange and Marylee Strange. CrowdSeekr currently lists offerings from over 30 real estate crowdfunding platforms. Over 7 billion dollars has been raised for real estate projects using crowdfunding since 2013.
The Next Frontier Of Real Estate Investor And Property Manager Technology (Forbes), Rated: A
Quietly working and collecting rent used to be the DIY real estate investor commonly known as the landlord. Then real estate investing boomed, and property management became a reported $77 billion business as real estate investors grew to an estimated 7 million people. Single and two- to four-unit buildings currently comprise an estimated 54% of the rental units available today — a market share that has turned the heads of software developers looking to service the independent DIY real estate investor market.
Over the last five to seven years, hoards of real estate investors embraced the efficiencies technology brought to the industry and to their bottom line. Owners accumulating between two and 500 units have started to look at technology solutions as a platform for controlling costs.
Most landlords are now set up in a software solution and can fill a calendar with the dates of the cycle specific to just the payment processing phase. We watched the benefits of the speed of the automatic payment options processed through electronic ACH banking unfold.
A New Horizon For Real Estate Tech
The next step is to use the information available from machine learning and AI to help landlords better manage the asset and identify consumer behavior while anticipating needs.
U.S. Fintech Investments Double (WealthManagement.com), Rated: A
Investments in U.S. fintech companies nearly doubled during the third quarter to $5 billion, up from $2.6 billion in the second quarter, according to KPMG’s recent Pulse of Fintech report. There were a total of 142 deals during the quarter, up from 125 deals in the prior year quarter and 147 deals last quarter. The automated advice platform technology was a big bet during the quarter, with hybrid models—those using a combination of humans and technology—gaining more traction over pure robo advisors, the report said.
One year after President Donald Trump defeated Hillary Clinton to become President of the United States, the stock market has risen 21.2 percent.
InvestCloud and Willis Towers Watson are partnering. The cloud-based financial services platform was selected to build a bespoke solution for the WTW Asset Management Exchange that will enable clients to better access and monitor roughly $2 billion, according to a statement.
Goldman Sachs Shuffles Leadership in Slumping Fixed-Income Unit (Bloomberg), Rated: A
Goldman Sachs Group Inc. has shaken up the leadership of its vaunted fixed income, currencies and commodities business after stumbles this year called its strategy into question.
The firm named Jim Esposito and Justin Gmelich, both 49, to newly created roles as co-chief operating officers of FICC, according to a memo Tuesday from securities division co-heads Isabelle Ealet, Pablo Salame and Ashok Varadhan. Gmelich gives up his title as global head of credit and mortgage trading, while Esposito relinquishes his role helping to run fixed-income sales, leaving John Willian with sole responsibility.
U.S. Consumer Financial Protection Bureau Sets Out Principles for Consumer-Authorized Data Sharing and Aggregation (Lexology), Rated: AAA
On October 18th, 2017 the U.S. Consumer Financial Protection Bureau (“CFPB”) outlined the principles to be followed (“Principles”) when consumers authorize third party companies to access their financial data to provide certain financial products and services.
The Principles line up quite closely with the ten Fair Information Principles that underlie Canadian federal privacy legislation (PIPEDA). Absent (or diluted) from the CFPB Principles are the Fair Informaiton Principles regarding “Limiting Use, Disclosure and Retention”, “Limiting Collection” and “Identifying Purpose”. The CFPB Principles also attempt to address many of the same issues that arise in the mandatory “Open Banking” regime in the EU and the UK, but in a much less fulsome manner.
The CFPB’s interest in consumer data (and specifically Open Banking) was telegraphed by the Director of the CFPB his remarks at the 2016 Money 20/20 conference when he stated that the CFPB was “gravely concerned” that financial institutions were limiting or shutting off access to financial data, rather than “exploring ways to make sure that such access…is safe and secure.”
The CFPB has now released its set of Consumer Protection Principles intended to reiterate the importance of consumer interests. They are, however, non-binding and not intended to alter, interpret, or otherwise provide guidance on existing statutes and regulations that apply.
- 1) Access
- 2) Data Scope and Usability
- 3) Control and Informed Consent
- 4) Authorizing Payments
- 5) Security
- 6) Access Transparency
- 7) Accuracy
- 8) Ability to Dispute and Resolve Unauthorized Access
- 9) Efficient and Effective Accountability Mechanisms
USATech buys Cantaloupe Systems for $ 85M (Philly.com), Rated: B
Shares of USA Technologies Inc., Malvern, hit a 10-year high of $6.75 in early trading Tuesday after the mobile- and cashless-payments company said it agreed to pay $85 million ($65 million cash, the rest in USAT shares) for a competitor, San Francisco-based Cantaloupe Systems Inc.
The 11 Most Valuable VC-Backed Fintech Companies In The US (Fintech News), Rated: B
Your November Review – Insight and Analysis (Funding Circle), Rated: AAA
Last month was a global record month here at Funding Circle. In the UK alone, over £120 million was lent to businesses thanks to your continued support.
You’ve helped more than 8,900 small businesses access finance in the last 6 months…
Totalling over £630 million lent.
Assetz appoints LendInvest’s Damien Druce for intermediary expansion (P2P Finance News), Rated: A
ASSETZ Capital is looking to bolster its presence in the intermediary space as part of the next stage of its expansion.
The peer-to-peer business lender has appointed Damien Druce (pictured) to lead the move as head of intermediary sales.
He joins from LendInvest where he was northern business development manager, and has previously worked for Castle Trust and Crystal Specialist Finance.
JD Finance Announces JD Financial Cloud“Fintech as a Service” (Business Insider), Rated: AAA
JD Finance today announced the launch of JD Financial Cloud. The new platform uniquely combines advanced technology and big data to offer “Fintech as a Service,” a new approach that will help financial institutions solve problems and reduce costs while boosting their productivity and competitiveness.
Where precision marketing is concerned, JD Finance’s “Jingdong Laike,” analyzes a massive base of user tags based on online shopping and mobile usage patterns as well as payment history and credit risk to offer insights that can boost response rates by 25 percent while reducing customer acquisition costs by 20 percent.
Furthermore, leveraging AI and big data to recognize and analyze patterns in JD Finance’s comprehensive dataset that includes 30,000+ risk control variables, 300m+ user credit evaluations, 500+ models and 5,000 risk strategies can help institutions better evaluate credit risk.
China’s Raging Fintech Boom on Verge of Minting Two Billionaires (Bloomberg), Rated: AAA
Online consumer finance platform PPDAI Group Inc. is planning an initial public offering in the U.S. this month, giving co-founder Shaofeng Gu, who owns more than 25 percent of the business, a net worth of at least $1.3 billion, according to the Bloomberg Billionaires Index. Ning Tang owns 36 percent of U.S. listed peer-to-peer lending platform Yirendai Ltd., giving the founder and chief executive officer a net worth of about $930 million.
“In China, one billionaire is created every three weeks,” Qiong Zhang, head of wealth management for UBS Securities in China, said in an interview.
P2P platforms turn to US markets for funds (China.org.cn), Rated: A
Hexindai Inc became the first Chinese financial technology (fintech) company to list on the Nasdaq stock market last Friday. Priced at $10 per share, the IPO aims to raise $50 million. It was also the third Chinese fintech company that went public in the US this year.
According to the global consulting firm Oliver Wyman, the market size for consumer lending will expand to $620 billion by 2020 with a compound annual growth rate of 49 percent.
With such a rapid growth in demand, P2P lending platforms such as Hexindai have seized the growth opportunities. Credit loans accounted for 99 percent of its total loans in the second quarter of 2017, with Q2 profit soaring to 60 million yuan, far ahead of its annual profit in 2016.
According to the US Securities and Exchange Commission, Rong360 Inc, another online financial service provider, plans to raise $270 million through an initial public offering in New York.
Auto Financier Yixin Launches $ 900 Million IPO (Caixin), Rated: A
Yixin Group Ltd., an online car financing company backed by three of China’s top internet companies, is hurtling ahead with a Hong Kong IPO to raise up to nearly $900 million, as enthusiasm on a new generation of financial technology (fintech) companies starts to stall.
The company has set a price range of HK$6.60 ($0.85) to HK$7.60, with plans to issue nearly 880 million shares in Hong Kong, according to a source with direct knowledge of the deal, speaking on condition of anonymity because the matter is private. At that price range, the company would generate between $740 million and $870 million in proceeds.
Marketplace lending: where everybody wins (Enterprise Innovation), Rated: A
Revolut becomes latest UK fintech firm to seek banking license (Reuters), Rated: AAA
British financial technology firm Revolut said on Wednesday it has applied for a European banking license, as it bids to join a growing number of digital-only banks looking to win away customers from larger, traditional lenders.
Current accounts and credit will initially be available to users in Lithuania, before being rolled out to Estonia and Latvia and, as soon as possible, Britain. Next in line are France, Germany and Italy and eventually the rest of the European Union, the firm said.
Revolut to bring processing in-house (Banking Technology), Rated: A
The latest issues were flagged on social media by Revolut’s users from around the world on 3 November, with their cards being declined and payments rejected.
AI-based fraud scoring boosts loan approval rate by 50 per cent for ID Finance (ID Finance Email), Rated: AAA
Reshaping Peer-to-peer Lending with Crypto Assets (Coinidol), Rated: A
The Bitbond, BTC Jam, and BTC POP platforms were pioneers in the market of crypto lending. From that time forward, it can be clearly seen that blockchain and crypto assets usage in p2p lending is stepping up. The congruence of the proven peer-to-peer lending business model and possibilities of blockchain seems to be a solid base for advanced financial services. What does it mean for investors and borrowers, how does it affect global economy, and how can crypto assets possibly reshape the existing peer-to-peer lending market?
According to McKinsey research, there are still about 2 billion unbanked and underbanked people in the worldwide adult population. Blockchain-based lending services can offer microloans to a customer who has no previous credit history. While some banks in Asian countries require enormous amounts of paperwork to be done before approving a loan, cross-border lending platforms have unified rules for everyone. Not mentioning the fact that bank account penetration in developing countries hardly reaches 30%.
Globalization means equality
It’s no secret that interest rates set by traditional banks may significantly vary by country. While the difference can be about 0.1% between loan interests in Germany and UK, interest rates in Thailand, Turkey or Latviamay be 10 times higher. Global platforms offer the same terms regardless of citizenship.
- Lendoit is a decentralized P2P lending platform.
- CoinLoan is a platform for lending secured with crypto-assets (cryptocurrency, tokens).
- ETHLend offers fully decentralized P2P lending.
- Inspeer is a P2P lending service that works with cryptocurrency and fiat.
Fintech funding round-up: 7 November 2017 (Banking Tech), Rated: A
Banking (not baking) challenger Douugh has partnered with community bank Choice Financial to launch an integrated checking account and debit card. Choice has also made an investment to “support Douugh’s roadmap”, bringing the company’s total seed funding to $2.5 million.
Smartkarma, a provider of investment research, has closed a Series B round of financing led by Sequoia India, which brings the company’s total funding to $21 million.
9 Firms To IPO This Week (Benzinga), Rated: B
CBTX, Inc. (CBTX) will issue 2.4 million shares between $24 and $26 Wednesday on the Nasdaq. The Community Bank of Texas maintains nearly $2.94 billion in assets in 34 state branches, according to the Federal Deposit Insurance Corporation.
PPDAI Group Inc. (PPDF) will issue 17 million shares between $16 and $19 Friday on the New York Stock Exchange. The 10-year-old Shanghai company facilitates online peer-to-peer lending and reported $381 million in sales in the 12 months ending June 30.
The digital register is ringing loud and clear (The Hindu Business Line), Rated: AAA
According to government sources, digital transactions since demonetisation have grown manifold on a month-on-month basis. For instance, volume wise, transactions via NACH, IMPS, UPI+BHIM and Rupay have grown to ₹1,47,624 crore in September 2017, against ₹1,07,987 crore in October 2016. Similarly, transactions through debit cards, credit cards, NEFT, RTGS and mobile wallets have grown from ₹1,07,59,649 crore in October 2016 to ₹1,23,28,369 crore as of July this year.
Prime Minister Narendra Modi’s actions to digitise India has brought a momentum to the entire payment ecosystem and helped build a new framework for the digital economy.
As per reports, deposits up to ₹80 lakh were made in 10.9 million accounts in November-December last year, and over 1.48 lakh account holders deposited an average ₹3.3 lakh in their banks. The impact is seen in the number of tax filings for the period April-May 2017, which went up by 17 per cent to 27.5 lakh returns from a level of 23.5 lakh in the same period last year.
Kosdaq-listed SFC buys full stake in Korean P2P lending startup Villy (Pulse News), Rated: A
South Korea’s peer-to-peer (P2P) lending service startup Villy was acquired by Kosdaq-listed solar backsheet manufacturer SFC Co. for 11 billion won ($9.8 million), the company said Monday. It is the country’s first merger and acquisition (M&A) case for a P2P lending startup.
Founded in April 2015, Villy boasts 80.5 billion won worth cumulative loan, 36,000 cases of investment and 5,460 investors, 55.4 percent of whom are people in their 20s to 30s. Its reinvestment rate reaches 74.7 percent. Following the acquisition, Villy will be a subsidiary of SFC with its 100 percent stake owned by the latter.