- Today’s main news: Kabbage to raise money for acquisitions, possibly OnDeck. Fundbox partners with Zoho. Goji launches diversified P2P lending bond. HNW Lending launches IFISA. Property Crowd launches IFISA.
- Today’s main analysis: Ron Suber on Fintech & fraud.
- Today’s thought-provoking articles: Podcast: Dominic Venturo on creating a model for innovation. Alternative finance for SMEs is even more urgent. Jail sentences for P2P lending scam.
- Kabbage looks to raise money for acquisitions. GP:” With a valuation of about $350mil and given their origination volume, OnDeck could be a great acquisition for Kabbage as long as they take it private post acquisition. I assume the multiple in Kabagge valuations are much better then OnDeck’s and therefore it’s a win-win for everybody …except maybe the executive team of OnDeck who in such acqusitions are typically holding the short straw when efficiencies are implemented. Perhaps Funding Circle should also consider such a move or other companies. ” AT: “The interesting thing here is the eye toward On Deck.”
- Suber on fintech and fraud. GP:” I wonder if online fraud is easier then in-person fraud because anybody who has internet is a potential attacker vs only people who are willing to be physically presnet in a branch is a potential branch fraud attacker.” AT: “Fraud is a growing concern worldwide. Online lenders need to get ahead of this, as difficult as it is.”
- Fundbox partners with Zoho. GP:” A partnership with an accounting software is a dream partnership for any business lender.” AT: “This is an interesting partnership. I think it would be more interesting if the partnership was between Fundbox and FreshBooks. I’m curious if it will make Zoho more competitive or simply serve its current customer base with a value-added service, which is a benefit in itself. Good move for both companies.”
- Podcast: U.S. Bank’s Dominic Venturo on creating a model for innovation. AT: “Excellent interview, a must-listen for banks and Fintech companies.”
- On Deck announces extension, upsize of revolving credit facility with Deutsche Bank. GP:” An extension of $52mil is surprisingly small given their annual roughly $2bil origination volume. Compare this to Prosper’s $5bil lending capital deal done 1 month ago.”
- Online small business lending recovering. GP:” On the other side I believe the sector is facing increased competitions from banks.” AT: “I hope the prediction on the surge of loan originations is accurate.”
- Banks are back in the game. GP:” I strongly believe the question is: what can’t banks do for reasons that are not likely to change? And perhaps focus on that market segment.” AT: “The small business lending game, that is.”
- How one startup aims to help ‘credit invisible’ foreign workers in the U.S. AT: “I’m a huge proponent of the continued tradition of immigration, and in particular, of U.S. citizens and businesses extending the hand of friendship. This is a much-needed service for this niche. I’m glad someone is addressing it.”
- Podcast: Private lending, turnkey investing, and RECF.
- Humans to robos: You can’t touch this.
- Insurtech: Fabric targets parents. AT: “I’m excited about the accidental death offering.”
- Evolve Capital Partners advises on LeaseDimensions acquisition.
- Financial stress suggests consumers make impulsive decisions on home buying.
- Autobooks closes $5.5M Series A round.
- 5 ways bank are using Snapchat. AT: “The takeaway: If banks can do it, so can alternative lenders. Are you getting innovative in these five areas?”
- Small Change announces first L.A.-based real estate offering.
- Conference of State Bank Supervisors releases statement to Congress on OCC FinTech Charter.
- Goji launches P2P lending bond. GP:”The interesting part here is that it’s a bond relying on loans from different originators, a diversified bond.”
- HNW Lending launches IFISA targeting 7%-15%.
- Property Crowd launches IFISA targeting 7%-10%.
- P2P lending roundup.
- IFISA offers sweet deal for investors if the know it exists.
- Master Investor Show.
- Alternative finance for SMEs even more urgent.
- Warburg Pincus buys stake in Avaloq. GP:”An interesting move. In Finance Switzerland plays an oversized role and this deal comes on the heals of the Mysis – D+H deal recently, also in the bank software space.”
- Why fintech will make banks stronger. GP:” Competition is good for the survivors, and for the clients.”
- Jail sentences for P2P lending scam. AT: “It’s nice to see consequences for bad actors.”
- VARIV Capital, Chilango Ventures invest in MPOWER Financing. GP:” An unusual investor in a US company, but which makes sense given MPOWER’s target market.”
- United States
- Kabbage looks to raise money for acquisitions (Reuters), Rated: AAA
- Ron Suber on Fintech & Fraud: A Global Challenge (Crowdfund Insider), Rated: AAA
- FUNDBOX PARTNERS WITH ZOHO TO SOLVE CASH FLOW GAPS (Fundbox Email), Rated: AAA
- U.S. Bank’s Dominic Venturo on creating a model for innovation (Tearsheet), Rated: AAA
- Ondeck announces extension, upsize of revolving credit facility with Deutsche Bank (Reuters), Rated: A
- Online small-business lending recovering (Biz Journals), Rated: A
- How one startup aims to help ‘credit invisible’ foreign workers in the U.S. (Tearsheet), Rated: A
- BP Podcast 219: Private Lending, Turnkey Investing, and Crowdfunding Real Estate with Dr. Kenyon Meadows (Bigger Pockets), Rated: A
- Humans to Robos: You Can’t Touch This (Think Advisor), Rated: A
- New US insurtech Fabric targets parents (Business Insider), Rated: A
- Evolve Capital Partners Advises on Acquisition of LeaseDimensions (Yahoo! Finance), Rated: A
- Financial Stress Suggests Consumers are Making Impulsive Decisions in the Home Buying Process (Yahoo! Finance), Rated: A
- Detroit Fintech Startup Autobooks Closes $ 5.5M Series A Round (Xconomy), Rated: A
- Banks are Back in the Game (Forbes), Rated: A
- 5 ways banks are using Snapchat (Tearsheet), Rated: A
- Small Change Announces First Los Angeles-Based Real Estate Offering (Crowdfund Insider), Rated: B
- Conference of State Bank Supervisors Releases Statement to Congress on OCC FinTech Charters (Buckley Sander), Rated: B
- United Kingdom
- Goji launches P2P lending bond (FT Adviser), Rated: AAA
- HNW Lending unveils Innovative Finance ISA targeting 7% – 15% (AltFi), Rated: AAA
- Property Crowd launches IFISA with target returns of 7-10% (AltFi), Rated: AAA
- P2P lending news roundup 22/03/17 (AltFi), Rated: A
- Innovative Finance ISA offers sweet deal for investors – if they know it exists (The Investment Observer), Rated: A
- Master Investor Show: Setting the Standard for Investment Events (Yahoo! Finance), Rated: B
- European Union
- Alternative finance for SMEs is even more urgent (Irish Examiner), Rated: AAA
- Warburg Pincus buys stake in Swiss fintech group Avaloq (Financial Times), Rated: A
- Here’s why fintech will make banks stronger (City A.M.), Rated: A
- Commonwealth Bank of Australia and Austrade sign fintech collaboration agreement (Finextra), Rated: A
- Investing in the Fintech Revolution: How Glance Technologies is innovating mobile payments (OTC Markets), Rated: A
- Jail sentences for P2P lending scam (Shangai Daily), Rated: AAA
- Peer to Peer Lending Advantages and Disadvantages [Case Study] (Scalar), Rated: A
- How transparency is driving Asian asset managers to technology (The Asset), Rated: A
- Latin America
- Latin American Venture Capital Firms Invest in MPOWER Financing (NBC12), Rated: AAA
Kabbage looks to raise money for acquisitions (Reuters), Rated: AAA
Small U.S. business online lender Kabbage Inc is in talks to raise a new round of equity funding that could be used for potential acquisitions at a time when many of its peers face funding challenges, people familiar with the matter said.
One of the acquisition targets under consideration by Kabbage is rival On Deck Capital Inc, which has market capitalization of $321 million, according to one of the sources.
Ron Suber on Fintech & Fraud: A Global Challenge (Crowdfund Insider), Rated: AAA
How fraud occurs is a never-ending, shape-shifting challenge for individuals, companies and public authorities. There will always be another Ponzi or Madoff looking to separate hard-earned money from honest people via duplicitous actions. As all types of business shift online, fraudster’s will inevitably adapt to pursue their malevolent objectives.
Some of the challenges that impact online lenders include:
- “Shotgunning” – taking out multiple loans from multiple platforms in under ten days
- Loan stacking – multiple unsecured loans over several months
Download Ron Suber’s special report “Fintech & Fraud” here.
FUNDBOX PARTNERS WITH ZOHO TO SOLVE CASH FLOW GAPS (Fundbox Email), Rated: AAA
Fundbox, the cash flow optimization platform for small businesses (SMBs), and Zoho, the cloud-based business operating system, today announced a partnership in which Zoho will offer Fundbox to its user base of over 25M. Under the partnership, Zoho will provide access to Fundbox’s technology to streamline and automate the business borrowing experience within the Zoho ecosystem.
Fundbox addresses one of the biggest pain points for small businesses and freelancers: cash flow. A recent Fundbox study revealed that 64 percent of small businesses are adversely affected by late payments. Over 80 percent of small business invoices are over 30 days due. This integration will allow Zoho customers approved for Fundbox Credit to advance funds tied up in their receivables so they can focus on business growth.
U.S. Bank’s Dominic Venturo on creating a model for innovation (Tearsheet), Rated: AAA
Every institution innovates differently. Our approach is to work with the businesses to understand their objectives and strategies. We want to keep a long-term eye on emerging technology and how consumers and businesses interact with technology. We’ll blend that into the product development roadmaps for the businesses. In some cases, emerging technology will look like it has a lot of potential but then you really have to see how it applies to a business, whether it solves a customer problem or pain point, and whether it can scale to a company our size. I don’t know if this is different than others, but it’s definitely our approach.
Ondeck announces extension, upsize of revolving credit facility with Deutsche Bank (Reuters), Rated: A
On Deck Capital Inc – amended its asset-backed revolving credit facility with Deutsche bank to extend facility’s maturity date to march 2019
On Deck Capital Inc – amended credit facility to increase facility’s borrowing capacity by about $52 million to a total of up to approximately $214 million
Online small-business lending recovering (Biz Journals), Rated: A
For online business lenders, 2016 was a rough year.
Two prominent fintech companies saw their market valuations drop. One small-business lender abruptly stopped issuing loans temporarily due to performance issues, while another was forced to shut down.
Lifshitz offers his view on the subject:
1. Fintech loan originations will surge in 2017.
It’s clear to me that the fintech space’s long-term themes are unchanged. The credit gap remains, and fintech companies still provide a much-needed service. Plus, they’re doing so in a far easier and seamless way than has been available to customers in the past.
Those who reacted to the negativity of 2016 are going to be surprised. Fintech companies will recover from the sector’s downbeat view. Demand and originations will continue to grow. I predict that market sentiment will come back as confidence returns.
2. Fintech companies will adapt by diversifying products and target markets.
Fintech also will get a boost from a secular trend. More millennials are joining the workforce and consuming more services online, including financial services. The generational change favors fintech companies.
3. Fintech companies could form partnerships with banks.
4. Fintech will dominate the user experience.
How one startup aims to help ‘credit invisible’ foreign workers in the U.S. (Tearsheet), Rated: A
For millions of immigrants and temporary foreign residents in the U.S., establishing a financial identity here can be complicated and expensive. Since credit reports don’t cross borders, an immigrant with an exceptional credit score in his home country may arrive in the U.S. as ‘credit invisible’ — a status that may render him ineligible for loans or long-term housing.
Nova Credit is an alternative score to assess foreign residents’ creditworthiness based on their home country credit data. It can also be used for Americans returning to the country after years working abroad. The company obtains the data through agreements with major foreign credit bureaus, a process that can only be initiated with the customer’s consent, Esipov said. Though Nova Credit is initially focusing on India and Mexico, it’s entered into arrangements with credit bureaus in Europe, Canada, Australia and the Philippines. Its revenue model is based on fees to lenders who request the reports.
BP Podcast 219: Private Lending, Turnkey Investing, and Crowdfunding Real Estate with Dr. Kenyon Meadows (Bigger Pockets), Rated: A
If you are looking to make your real estate more passive, this is one show you can’t afford to miss!
Humans to Robos: You Can’t Touch This (Think Advisor), Rated: A
Over the past five years, robo-advisors that provide algorithm-based financial advice and online portfolio management have skyrocketed in popularity. Once the robots take over, the argument goes, humans will be no more.
A commoditized approach to investing cannot incorporate potentially high-impact life events in the same way a knowledgeable human advisor can. Humans offer expertise throughout the life cycle of a client’s investments, while a robo-advisor often reduces a client to a formula. Moreover, the human advisor offers another invaluable service that the robo-advisor can’t replicate – emotional intelligence.
Industry research supports our view. The Financial Planning Association and Investopedia found that investors want a low cost, automated platform combined with personal advice from a human adviseor. Moreover, they noted that 40% of the investors surveyed revealed they are very uncomfortable with automated investing during periods of extreme market volatility.
MyPrivateBanking estimates that hybrid human/automated solutions will accumulate AUM of nearly $3.7 trillion by 2020, and $16.3 trillion (slightly more than 10% of all investable wealth) by 2025. They estimate that pure robo-advisors will have a market share of only 1.6% of total investable wealth by 2025.
New US insurtech Fabric targets parents (Business Insider), Rated: A
The number of insurtechs in the life insurance space has been in two minutes online; and Fabric Premium, a more comprehensive 20-year term policy. As of Tuesday, Fabric is live in 32 US states, with license applications in the remainder pending approval. Fabric recently raised a $2.5 million Seed round led by VC firm
Evolve Capital Partners Advises on Acquisition of LeaseDimensions (Yahoo! Finance), Rated: A
Evolve Capital Partners Inc., a specialized investment bank, today announced its client, LeaseDimensions, has been successfully acquired by GenPact (NYSE: G), a global professional services firm focused on delivering digital transformation for clients.
Founded in 1995, LeaseDimensions is a technology-enabled business processing management and information technology services company that specializes in providing finance process and technology domain expertise to equipment, vehicle finance and renewable energy companies. By acquiring LeaseDimensions, GenPact will unlock synergies across its core equipment financing businesses, offering enhanced growth and scalability opportunities while effectively providing onshore servicing capabilities.
Financial Stress Suggests Consumers are Making Impulsive Decisions in the Home Buying Process (Yahoo! Finance), Rated: A
Owners.com, an innovative online brokerage, recently commissioned a survey of more than 1,200 consumers considering a home purchase this year. The theme of this year’s spring real estate season? Stress. In fact, according to the study, 72 percent of potential home buyers stated that they expect stress in the home buying process, with many citing financial aspects as the most concerning. Additional key findings are included below.
When asked about concerns and issues when buying a home, leading financial aspects included:
- Fear of losing earnest money deposit (64 percent)
- Becoming “house poor” (61 percent)
- Bidding wars driving up the price (59 percent)
Despite these financial stressors, when potential home buyers were questioned about their willingness to go over budget in a competitive bid to get into a dream home:
- More than half (55 percent) said they were willing to go beyond their budget
- For those willing to stretch their dollars, on average, consumers stated they were willing to go $37,809 over budget
Given these monetary pressures, savvy consumers are considering real estate models that offer opportunities to cut costs in the transaction. When asked about their propensity to handle the home buying or selling process themselves if they would be charged a lower commission, 85 percent said they were likely to consider this opportunity if it meant they had access to some of the more complicated transaction services like the appraisal or legal documents. Nearly one-quarter (23 percent) indicated that they would be motivated to work with a real estate agent or broker who would reward them financially for the work they do on their own. These consumers should look for opportunities to work with a brokerage that offers a buyer rebate or sellers an opportunity to save on traditionally high agent commissions.
Detroit Fintech Startup Autobooks Closes $ 5.5M Series A Round (Xconomy), Rated: A
Autobooks, the Detroit-based startup spun out of Billhighway in 2015, has closed on a $5.5 million Series A funding round. The investment was led by Pittsburgh-based Draper Triangle, with participation from CU Solutions Group, Baird Capital, Detroit Venture Partners, and Invest Michigan.
Autobooks, he explains, has created a set of digital tools to automatically handle a range of accounting tasks, including collecting payments owed to a business and disbursing money a business owes to others. The company licenses its software to banks and credit unions, and they in turn make the technology available to their small-business customers.
Autobooks sprang from Troy, MI-based Billhighway, a financial technology company serving large enterprise customers.
Banks are Back in the Game (Forbes), Rated: A
The introduction of online and small business lending has forced banks to rethink their strategies, but banks are now starting to play ball and shift the industry again.
In the lending industry, there’s a perception that extreme competitiveness has developed between banks and non-bank lending, but I don’t believe that’s the case. By working together, they can help small businesses – the backbone of the American Dream.
JPMorgan Chase and Bank of America took two different approaches to building out online small business lending. They were able to learn from non-bank lenders and emulate the customer experience, or partner with a non-bank lender, to improve their own offerings. Non-bank lenders like OnDeck have reinvented the customer journey. Combine that with the advantages banks have with cost of capital, customer base, underwriting credit cycles and access to data, and you have a good recipe for the future of small business lending.
But as Tufail pointed out, the migration from baby boomers to millennials will further emphasize digital channels. Tech savvy folks will want even quicker lending decisions, and that starts online.
5 ways banks are using Snapchat (Tearsheet), Rated: A
American banks have also amped up their Snapchat recruiting efforts. Not long after their launch of Snapchat Spectacles, Citibank employees began shooting videos with them to offer insights of life as a Citibank worker.
Dutch bank ABN Amro launched a Snapchat customer service capability (Snapchat “webcare”), a feature that’s yielded them 2000 followers since its launch a year ago. The bank posts stories to engage users who can ask questions using photos, videos, emojis and filters.
Through Snapchat, banks are affiliating themselves with causes close to customers’ hearts. For example, CIBC, Canada’s fifth-largest bank, launched a Snapchat pride filter to mark LGBTQ pride festivities last summer.
The Bank of Ireland pulled in celebrity influencers who use the Snapchat offer financial tips and advice to younger customers — a part of the bank’s FeelFree student reward program.
Bank of America’s Llama was used as a Snapchat lens was released last summer in conjunction with the MLB All Star Game to promote the bank’s mobile app.
Small Change Announces First Los Angeles-Based Real Estate Offering (Crowdfund Insider), Rated: B
Real estate crowdfunding platform Small Change announced on Wednesday the launch of its first Los Angeles-based offering.
Small Change describes Rosewood as a urban-minded development of four single-family units that are designed to achieve net-zero energy usage and further vitalize the area. Each of the units is designed with energy efficiency and resource conservation in mind and will also be pre-wired for solar panels with sufficient roof space to achieve net-zero energy living.
Small Change added a 10% return is projected on this investment.
Conference of State Bank Supervisors Releases Statement to Congress on OCC FinTech Charters (Buckley Sander), Rated: B
Ryan stated that the OCC’s Proposal “sets a dangerous precedent [by demonstrating that] the OCC has acted beyond the legal limits of its authority [and has] bypassed and ignored bipartisan objections from Congress, [thereby] creat[ing] new risks to consumers.” He asserted that the proposed charter would “preempt existing state consumer protections without a comparable mechanism to replace them. It also exposes taxpayers to the risk of inevitable [F]inTech failures.”
P2P lending news roundup 22/03/17 (AltFi), Rated: A
Pollen Street Capital-backed alternative lender Capitalflow has secured a new round of funding valued at £50m to finance its loans to Irish SMEs.
P2P platform Landbay is turning to crowdfunding for capital. The buy-to-let mortgage lending platform, is hosting a £1.5m equity crowdfunding round on Seedrs. Landbay is already overfunded, with more than £1.7m invested so far.
Innovative Finance ISA offers sweet deal for investors – if they know it exists (The Investment Observer), Rated: A
The survey, which focused on understanding investors’ intentions for the year ahead, found priorities for savers included a fixed income (17%), the opportunity to self-select how and where their money is invested (18%) and tax efficiency (24%) were top of their list of investment priorities.
Whilst the IFISA aims to meet all of these needs, half of investors questioned said they had never heard of it. 29 percent said they do know the name but don’t know what it is and only one in 20 said they know enough about what an IFISA is to be able to explain it clearly to other people.
However, the survey also found that those that do know about IFISAs and have invested in them have invested more on averagethan in traditional Cash ISAs. The average amount of £7,013 per person has been invested in Crowdstacker’s IFISA to date; this is compared to £5,810 in cash ISAs between 2015 and 2016.
Master Investor Show: Setting the Standard for Investment Events (Yahoo! Finance), Rated: B
The Master Investor Show brings together private investors of all portfolio sizes to hear keynote talks from celebrity investors and gain access to new investment opportunities.
Ordinary investors will get the opportunity to speak to the CEOs and founders of 100 companies from multiple investment sectors, including equity funds and retirement saving, crowdfunding, life sciences and FinTech, and alternative finance such as film funding and peer-to-peer lending.
This year’s main-stage celebrity line-up:
- Gonçalo de Vasconcelos, CEO of SyndicateRoom, the innovative online investment platform
Alternative finance for SMEs is even more urgent (Irish Examiner), Rated: AAA
While recent Central Bank figures found that perception by Irish SMEs of the willingness of banks to provide them with credit have improved considerably in the past three years, other surveys show access to finance is still a high concern for about one-third of Irish small businesses.
This is why SMEs are looking beyond their banks for alternative sources of funding.
Among these options is peer-to-peer lending. The largest platform Linked Finance launched in 2013 and rival Grid Finance arriving the following year.
Ms Kenneally was getting frustrated with the 10-week wait for a decision on an application for a bank overdraft when a friend pointed her towards Microfinance Ireland, a government initiative to provide loans to small businesses. She received a loan of €25,000 and was impressed with the fast turnaround.
Another source is crowdfunding. The idea behind crowdfunding is to pair donors with small businesses, charities or arts events who want to raise funds for a project or campaign. Platforms include Fundit, iDonate, and Seedups.
Warburg Pincus buys stake in Swiss fintech group Avaloq (Financial Times), Rated: A
Warburg Pincus has agreed to pay close to SFr300m for a minority stake in Avaloq, Switzerland’s largest software provider to banks.
The acquisition of a 35 per cent stake by the private equity group values the company, which already serves key financial centres, in excess of SFr1bn ($1bn), the private equity group said.
Avaloq has more than 2,000 employees and serves 155 banks and wealth managers in financial centres, including London, Frankfurt and Paris. It generated revenues of SFr533m in 2016, which represented a 10 per cent increase from a year earlier.
The private equity group has recruited several leading banking figures to sit on the Swiss company’s advisory board. Among them are Javier Marín, the former chief executive of Santander, Stefan Krause, former chief financial officer at Deutsche Bank and Jacques Aigrain, former chief executive officer at Swiss Re.
Here’s why fintech will make banks stronger (City A.M.), Rated: A
Brian McCabe, who chairs the fintech working group at the Fintech and Payments Association of Ireland, says existing banks and financial players won’t get weaker at the expense of new entrants.
Collaboration will be a feature of fintech’s next phase as traditional banks, financial institutions and insurance companies in Europe seem to recognise the importance of becoming smarter, more efficient and customer-focused.
Now is the chance for banks to take what fintech pioneers have to offer, and use it to make themselves more competitive.
Commonwealth Bank of Australia and Austrade sign fintech collaboration agreement (Finextra), Rated: A
The Commonwealth Bank of Australia (CBA) and Austrade have signed a new collaboration agreement to support the flow of fintech innovation between Australia and the UK.
The agreement will be used to target and attract fintech investment to Australia, and assist Australian fintech companies to access the UK market.
Investing in the Fintech Revolution: How Glance Technologies is innovating mobile payments (OTC Markets), Rated: A
Now, the creator of PayByPhone parking app has set his eyes on the restaurant industry, creating the Glance Pay Mobile Payment App under Glance Technologies Inc. (CSE:GET) (OTCQB:GLNNF) to revolutionize a C$650 Billion restaurant bill payment industry. Glance Pay allows diners to pay their restaurant bill in seconds using their mobile phone while automatically receiving exclusive restaurant rewards. Gone are the days of waiting for the server to bring around the card machine. Restaurant owners benefit from automatic bill collection, built-in loyalty programs, turn-key in-app marketing and valuable customer experience feedback.
Jail sentences for P2P lending scam (Shangai Daily), Rated: AAA
FORTY-ONE people in the city’s first and high-profile P2P fraud case involving nearly 700 million yuan (US$10.2 million) have been jailed, according to Yangpu District prosecutors.
The 41 were staff members from five outlets of Baiyin Wealth Co, including one in downtown Xintiandi area. Sentences ranged from six to eight months in prison, with some granted a reprieve.
Other suspects are either being investigated or are waiting to be tried.
Peer to Peer Lending Advantages and Disadvantages [Case Study] (Scalar), Rated: A
Peer to Peer lending advantages and disadvantages – lenders perspective
- Higher interest
For example, a 5 year bond with a fixed rate interest of an Indian bank offers 3% AER, while the same amount has the potential to earn 6.32% to 30% p.a. through a peer to peer website, on the same tenure.
- Freedom to commit
- Waiting period
- No legal laws
How transparency is driving Asian asset managers to technology (The Asset), Rated: A
The need for improved transparency is pushing Asian asset managers to use more sophisticated technology than they’ve ever used before in the management of their portfolios and to boost the overall efficiency of their businesses.
Another trend among Asian asset managers is using technology as a way to drive transparency between what their internal stakeholders and investment teams are actually reading and what is driving their investment decision.
Asset managers are also using this technology to look at broker performance which involves having all their data, primarily data on trading positions and transactions, on one buyside platform.
Latin American Venture Capital Firms Invest in MPOWER Financing (NBC12), Rated: AAA
VARIV Capital, a Latin American venture capital firm, and Chilango Ventures, an investment firm with offices in San Francisco and Mexico City, have invested in MPOWER Financing () to help the innovative fintech firm expand its presence in Latin America and attract a greater number of high-potential students to America’s best colleges and universities.
Latin American students already represent 25 percent of MPOWER’s outstanding loan portfolio, with Mexico representing the third-largest student population currently studying in the U.S. through MPOWER’s financial support.
With the addition of these two new equity investors, MPOWER Financing has assembled a diverse global investor base that is enabling the firm to fulfill its mission to provide educational loan support to high-potential, international students who do not fit within traditional credit assessment models. Currently, MPOWER Financing, founded in 2014, has a pipeline of more than $120 million in loan applications from students in Asia, Europe, Latin America and Africa which it expects to fill in 2017. The recent investments are part of the closing of MPOWER Financing’s Series A funding.