- Today’s main news: CreditEase Wealth Management approved by SEC to be RIA. RateSetter sees decline in net lending volumes. Fluid expands into 32 states with no-interest student loans. Landbay loans achieve AAA rating. Funding Circle fund on track despite Brexit risks. BBVA rated best mobile banking service in the world.
- Today’s main analysis: Squaring all-time high credit scores with higher delinquencies.
- Today’s thought-provoking articles: What investors need to know about PayPal investing in LendUp. UK fintech shrugging off Brexit. Digital banks must diversify or die.
- CreditEase Wealth Management approved for RIA status. AT: “This will no doubt increase the competitiveness of the RIA playing field.”
- Squaring all-time high credit scores with higher delinquencies.
- What investors should know about PayPal investing in LendUp.
- Fluid expands into 32 states. AT: “I wonder if Fluid has plans to include loans to student at interest. If not, this could put student loan companies out of business as it grows more popular.”
- How to find the best student loan refi options.
- Conventional bank not the only game in town.
- LendingTree announces senior appointment.
- Hybrid advice priced at 25 to 50 basis points.
- New York doesn’t allow that.
- Top 10 considerations for international investors investing in U.S. MPL. AT: “A white paper from dv01.”
- RateSetter sees decline in let lending volumes. AT: “The implication seems to be that not having yet been authorized by the FCA for IFISAs has caused RateSetter’s lending volumes to fall, but I’m not sure yet we can draw that connection. RateSetter may have to make more adjustments to its business structure, however.”
- P2P loans score AAA securitization rating.
- UK fintech shrugging off Brexit.
- Funding Circle fund on track despite Brexit risks.
- Why Paul Manduca is backing P2P lending.
- FundingKnight receives full FCA authorization.
- Growth Street CEO talks about transparency, Brexit, and more.
- One to one with Landbay CEO John Goodall.
- Emotional intelligence needed to win over millennials.
- Using emotional intelligence to appeal to seniors.
- Just Eat and Funding Circle partner.
- Gas fire firm loses Funding Circle funds in hack.
- Dianrong sharpens edge with blockchain.
- 60% of banking systems to deploy in the cloud by 202o.
- 2017 LendIt Summit China held in Shanghai.
- LendIt China.
- YES Bank seeks global partnership.
- Funding dreams: Collateral-free education.
- How new age investors are opting for alt investment.
- Online-only Chinese platform to launch in Singapore.
- Connector.id to launch full version.
- Modalku launches new app.
- United States
- CreditEase Wealth Management Became an SEC Registered Investment Advisor (PR Newswire), Rated: AAA
- Squaring All-Time High Credit Scores With Higher Delinquencies (PeerIQ), Rated: AAA
- PayPal Holdings Invests in LendUp — What Investors Need to Know (The Motley Fool), Rated: AAA
- Fluid Expands into 32 States Providing No Interest Credit to Students (Crowdfund Insider), Rated: AAA
- How To Find The Best Student Loan Refinancing Options (Forbes), Rated: A
- Laurence Kotlikoff: Conventional banking is not the only game in town (Denton Record-Chronicle), Rated: A
- LendingTree announces senior appointment (Mortgage Professional America), Rated: B
- Hybrid Advice Priced at 25 to 50 Basis Points (Insurancenewsnet.com), Rated: A
- ‘New York doesn’t allow that’: Maria Vullo stares down fintechs, OCC (American Banker), Rated: A
- TOP 10 CONSIDERATIONS FOR INTERNATIONAL INVESTORS INVESTING IN U.S. MARKETPLACE LENDING (dv01), Rated: B
- United Kingdom
- P2P lender RateSetter sees decline in net lending volumes (AltFi), Rated: AAA
- UK peer-to-peer loans score AAA securitization (AltFi), Rated: AAA
- UK fintech shrugging off Brexit in 3 charts (AltFi), Rated: AAA
- Funding Circle fund on track but warns of Brexit risks (P2P Finance News), Rated: AAA
- Why I’m backing peer-to-peer lending (RateSetter), Rated: A
- FundingKnight, Part of GLI Finance, Receives Full FCA Authorisation (Crowdfund Insider), Rated: A
- A new altfin investment aggregator has launched (P2P Finance News), Rated: A
- UK Marketplace Lender Growth Street CEO Greg Carter Talks Transparency, Brexit and Fintech Innovation (Crowdfund Insider), Rated: A
- One to One: John Goodall, chief executive, Landbay (Mortgage Strategy), Rated: A
- Emotional intelligence needed to win over next generation of shoppers (Internet Retailing), Rated: A
- Selling to silver surfers: how e-tailers can develop emotional intelligence to appeal to an older demographic (Net Imperative), Rated: A
- Just Eat and fintech startup Funding Circle are partnering on a recipe for takeaway success (City A.M.), Rated: A
- Gas fires firm lost £300k to online hack before going bust (Leicester Mercury), Rated: B
- Blockchain sharpens Dianrong’s edge in P2P lending to small businesses (SCMP), Rated: AAA
- WeiyangX Fintech Review (Crowdfund Insider), Rated: A
- 2017 LendIt Summit China was Held in Shanghai (Xing Ping She), Rated: A
- LendIt China July 9th 2017 – Journal Entry: AMTD + LendIt: Fintech, The 4th Industrial Revolution. (Crowdfund Insider), Rated: B
- European Union
- BBVA, the best mobile banking service in the world (BBVA Compass), Rated: AAA
- Digital banks must diversify or die (VentureBeat), Rated: AAA
- Study says women are better at crowdfunding (Reuters), Rated: A
- IFSB view on Islamic Crowdfunding (Islamic Finance), Rated: A
- Australia/New Zealand
- Rivalry between banks expected to ramp up after launch of new reforms (Mozo), Rated: AAA
- Nearmap hires VP of marketing to support rapid growth (CMO.com.au), Rated: A
- YES Bank hunts for global partnership to develop fintech landscape (The Hindu Business Line), Rated: AAA
- Funding dreams: Get a collateral-free education loan with just a click of a button (The News Minute), Rated: B
- How new age investors are opting for alternative investment (Daily News & Analysis), Rated: A
- Online-only Chinese retail investment platform to launch in Singapore in third quarter (The Straits Times), Rated: AAA
- ANGIN’s startup-investor site Connector.id to launch full version soon (Deal Street Asia), Rated: A
- Modalku launches new app (Deal Street Asia), Rated: A
- SA fintech startup Yoco announces it has hit 10 000 SMEs users milestone (Ventureburn), Rated: AAA
- Middle East
- Central Bank to Finalize Fintech Regulations (Financial Tribune), Rated: AAA
CreditEase Wealth Management Became an SEC Registered Investment Advisor (PR Newswire), Rated: AAA
CreditEase Wealth Management has recently been approved by U.S. Securities and Exchange Commission (SEC) as a registered investment advisor (RIA). At its first stop overseas, the firm can start providing advice to investors in the U.S., representing a globalization milestone to better serve especially Chinese investors around the world.
Squaring All-Time High Credit Scores With Higher Delinquencies (PeerIQ), Rated: AAA
Citigroup, J.P. Morgan and Wells Fargo reported Q2 bank earnings last week as earnings season kicked off. All three banks beat analyst expectations for earnings, but also posted declines in trading revenue:
J.P. Morgan reported better than expected second quarter earnings, beating on the top and bottom line due to the company’s strong loan growth, partly due to the success of Chase Sapphire Reserve product.
In this week’s newsletter, we illustrate the flaw of FICO as a forward-looking credit score.
Below is a histogram showing the distribution of FICO credit scores for Avant’s 2017 deal:
The distribution is relatively similar across historical ABS deals suggesting the credit risk across deals is similar. However, Avant has substantially tightened and improve credit quality in recent vintages. The FICO credit score is not able to capture this. For instance, as compared to AVNT 2016-C, the collateral in the AVNT 2017-A contains loans made to borrowers with a much smaller balance ($5,348 vs $6,589) and a shorter weighted-average remaining term of 33 months vs. 40 months in AVNT 2016-C. Also, AVNT 2017-A has 93.9% of loans under 36 month term, a significantly different collateral pool mix than that of AVNT 2016-C, which has only 47% 36-month loans. Shorter term 36-month loans carry less credit risk than 60-month loans all things being equal.
PayPal Holdings Invests in LendUp — What Investors Need to Know (The Motley Fool), Rated: AAA
On LendUp’s website, the company states that more than half of the U.S. population has a credit score under 680, meaning they cannot be approved for credit at most financial institutions. The site explains that consumers in this segment will pay more than $250,000 over the course of their lifetimes for basic financial services. LendUp believes it can make a profit by offering affordable financial products to these consumers, which will simultaneously help them build their credit.
Regular users of PayPal probably know that PayPal offers credit to its customers through its PayPal Credit platform. PayPal normally offers credit to customers at checkout, offering account holders no-interest payments on purchases greater than $99 if the loan is paid off within six months. PayPal also offers credit to small- and medium-sized businesses through its PayPal Working Capital program, which is then paid back through small amounts from each transaction going back to PayPal. Schulman believes both services are important to PayPal’s future.
In its most recently reported quarter, PayPal CFO John Rainey stated that loan losses for its consumer and retailer credit programs totaled $129 million, or approximately 4.3% of revenue. The net charge-off rate was 6.9%.
Fluid Expands into 32 States Providing No Interest Credit to Students (Crowdfund Insider), Rated: AAA
Fluid, a Fintech and Adtech startup has expanded its service to US students into 32 different states. The App based lender is available on iTunes allowing up to $500 in credit without any additional interest payments. The description on iTunes explains it is exclusively designed for 22 million college students in the United States. Fluid not only allows for an interest free loan but it empowers uses to build a credit profile. Fluid’s target market is Generation Zs (Age 7 to 21 as of 2017. Fluid notes there are 75 million and 1.8 billion Generation Zs that will start shaping this world in the coming years.
How To Find The Best Student Loan Refinancing Options (Forbes), Rated: A
Student loan debt now stands at a whopping $1.3 trillion. There are more than 44 million borrowers. And we’re coming up on the season when many recent graduates start paying down their student loans.
1. SoFi – SoFi only refinances loans for graduates with at least a Bachelor’s degree from a Title IV accredited university or program. Its credit and income requirements are also fairly strict, putting SoFi refinancing out of reach for many recent graduates.
2. CommonBond – CommonBond offers somewhat broader refinancing services since it refinances student loans and Parent PLUS Loans. It also offers borrowing services, if you’re considering consolidating your undergraduate loans and then going to graduate school.
Like SoFi, CommonBond expects borrowers to have a fairly high credit score (here are ways to check your score for free). Borrowers have a median income in the low six figures, as well.
3. Earnest – Earnest has a unique way of qualifying borrowers. Instead of looking at your income and credit score solely, it looks at how easily you can afford your expenses, how regularly you save, and whether you have a retirement account. It also allows you to choose your own monthly payment, and then it builds your interest rate and terms around that.
6. Purefy – Purefy allows married couples to refinance their loans together, which may or may not be a good idea for you. But if you decide to go this route, it will use the higher of your two credit scores to determine the interest rate.
Laurence Kotlikoff: Conventional banking is not the only game in town (Denton Record-Chronicle), Rated: A
Where do we see LPB taking hold? For starters, consider Bitcoin and other electronic currency vaults. They are essentially LPB cash mutual funds — mutual funds that hold only cash. They provide a safe payment system that can never collapse, barring technical disasters. Next, consider peer-to-peer lending. These are closed-end mutual funds that purchase the loans of small- to medium-sized enterprises. The investors have equity stakes and they can go online and check out their investments in real time. That’s a form of disclosure you will never get from, say, JPMorgan Chase.
What about mortgage lending? LPB mortgage mutual funds could materialize overnight, via either peer-to-peer lending or by slightly transforming the centuries-old Northern European covered-bond market by forcing investors to take on the default risk of the mortgages that cover the bonds.
In the information age, we don’t need trust-me banks that take our money and give us no clue where it’s invested. In this Bitcoin era, we don’t need trust-me banks to guarantee our holdings of cash. In this block chain world, we don’t need trust-me banks to assure us they will square up our bets. And we don’t need an enormous army of government bureaucrats to watch over trust-me banks gambling at the taxpayer’s expense.
LendingTree announces senior appointment (Mortgage Professional America), Rated: B
LendingTree has announced Brad Wilson as its new chief marketing officer. He will oversee the company’s brand strategy, marketing operations and consumer engagement as LendingTree continues to expand into new financial service categories.
Hybrid Advice Priced at 25 to 50 Basis Points (Insurancenewsnet.com), Rated: A
Nearly half – 48 percent – of managed account sponsors price their hybrid advice at between 25 and 50 basis points, or between $250 and $500 on a $100,000 account, according to a recent survey conducted by Cerulli Associates.
Another 28 percent of sponsors believe an internet algorithm backed by a flesh-and-blood advisor should be priced at between 50 and 75 basis points, or between $500 and $750 on a $100,000 account, the survey found.
‘New York doesn’t allow that’: Maria Vullo stares down fintechs, OCC (American Banker), Rated: A
Maria Vullo, the head of the New York State Department of Financial Services, is a skeptic of the so-called fintech revolution.
While some policymakers are eager to accommodate online lenders with regulatory oversight that is looser than what applies to banks, Vullo believes the word “fintech” is misleading.
TOP 10 CONSIDERATIONS FOR INTERNATIONAL INVESTORS INVESTING IN U.S. MARKETPLACE LENDING (dv01), Rated: B
We are now starting to see large inflows and investments into the leading U.S. based marketplace lenders. This growth has been driven primarily by investors from Asia, Europe, and Middle East (primarily Israel) who have started to provide their clients with more options to invest in MPL assets outside their home countries.
What are best practices for investing in the MPL asset class in the U.S.?
Jeremy has compiled his answers into this free report.
P2P lender RateSetter sees decline in net lending volumes (AltFi), Rated: AAA
Two of the UK’s “big three” peer-to-peer lenders are authorised, and will soon launch their Innovative Finance ISAs. The other, RateSetter, is not yet authorised, and has had to make a few changes to suit the requirements of the regulator in recent months. Mostly notably it has had to put a stop to its wholesale lending business.
Whether or not RateSetter continues to make changes at the behest of the regulator is unclear. But what is clear, using the latest figures from AltFi Data, is that its lending is slowing down significantly. RateSetter posted its first negative month of net lending (new loans net of repayments and defaults) in April, and continued in the same direction in May, with a net lending figure of around -£5m for the month. In June, its net lending fell to almost -£15m.
UK peer-to-peer loans score AAA securitization (AltFi), Rated: AAA
Landbay originated loans have been included in a highly rated pool of mortgages.
More than £30m of loans originated by UK peer-to-peer platform Landbay have been included in a larger securitization of buy-to-let loans awarded an AAA rating.
UK fintech shrugging off Brexit in 3 charts (AltFi), Rated: AAA
While the unfolding Brexit process has added to a list of summer worries for UK investors, those with a stake in the disruptive end of financial services have more reasons to cheer.
The rapidly growing sector is seeing resilient growth, according to data provider Fintech Global, who has found that growth is robust.
The firm’s research found UK fintech had seen growth of CAGR of 18.1 per cent between 2014 and 2016. In 2017 this trend has continued with fintech firms receiving funding of £769m.
Funding Circle fund on track but warns of Brexit risks (P2P Finance News), Rated: AAA
FUNDING Circle’s listed fund performed in line with expectations in its first full year of operation, which saw its net asset value increase by 11 per cent to £164.8m.
The Funding Circle SME Income Fund, which is quoted on the main market of the London Stock Exchange, launched in November 2015 to give a wider range of investors access to the peer-to-peer platform’s loans.
In its annual report for the year to 31 March 2017, released on Friday, it said that investors received dividends of 6.5p per share over the last four quarters, in line with the target of 6-7p per share.
Why I’m backing peer-to-peer lending (RateSetter), Rated: A
In finance we tend to seek an edge, a marginal advantage that inches a company ahead of its competitors.
What attracts me to RateSetter is the simplicity of the business. The primary function of finance is to connect those who want to invest money with those who can put that money to productive use. The peer-to-peer sector is solving this age-old challenge in a refreshingly simple and innovative way. A good example of this innovation is the Provision Fund, which spreads risk across the entire portfolio and allows even the smallest investor to achieve diversification.
FundingKnight, Part of GLI Finance, Receives Full FCA Authorisation (Crowdfund Insider), Rated: A
GLI Finance (AIM: GLIF) has announced that FundingKnight has been granted full Authorisation from the Financial Conduct Authority (FCA). FundingKnight is an online / P2P Lender providing access to capital for UK SMEs. FundingKnight has been operating under interim permissions since 2014, when the FCA commenced the process of regulating the peer-to-peer lending industry.
A new altfin investment aggregator has launched (P2P Finance News), Rated: A
A NEW platform connecting investors with alternative finance opportunities from around the world has launched.
Amsterdam-based Yieldport acts as a community and search engine, crawling the web for new projects using a custom search algorithm. It currently offers more than 2,000 opportunities – such as business loans, mini-bonds and equity start-up investments – from 30 different countries.
UK Marketplace Lender Growth Street CEO Greg Carter Talks Transparency, Brexit and Fintech Innovation (Crowdfund Insider), Rated: A
Growth Street, an FCA-authorized UK business finance platform focusing on SME loans, has aimed to become a flexible working capital solution since launching in 2014. Greg Carter founded Growth Street while still working at Arts Alliance Ventures, a venture capital firm that was founded in 1996 and has since backed over 40 companies, including Growth Street, which it incubated. Carter recently became the CEO of the platform.
Erin: Could you please share Growth Street stats? Milestones?
Greg: I’m very proud of the fact that six months since launching our first product for individual investors, we now have over 1,000 lenders signed up to use our platform. This includes small businesses, who are also taking advantage of our platform to lend themselves. Another key milestone was attaining Appointed Representative status, allowing us to accept individual investors; the next goal for us is to be fully regulated ourselves.
Erin: Please talk about Growth Street’s How to Improve Cash Flow tool. How is it addressing UK SME cash flow ‘pain points’? Which other tools set Growth Street apart from its peers?
Many businesses could optimise cash flow better, but the tactics and strategies often vary from business to business. So, our How to Improve Cash Flow tool asks a series of questions to diagnose any cash flow problems within the business: respondents then get a bespoke, tailored assessment of their position from Growth Street, for free. How to Improve Cash Flow is the first in a series of tools we’ll be launching in the coming months to give businesses more data about their cash flow, helping them make better decisions and hopefully improving their access to capital.
Erin: What are your thoughts on transparency in the sector? How much is too little, too much? Or is there ever enough?
Greg: I believe the most important goal for the sector is to achieve clarity for our customers about the risks and returns of marketplace lending. Transparency is important, but the way information is presented matters a great deal. I don’t think it is enough, for example, to just publish loan book statistics; we also need to explain in plain language how we use this data to manage risk. As the industry matures and looks to grow beyond a base of early adopters, I believe a focus on clarity will best help us to attract new investors.
One to One: John Goodall, chief executive, Landbay (Mortgage Strategy), Rated: A
Is Landbay ready for the PRA underwriting standards coming in from October?
Yes, we are. We introduced our broker portal in Q4 2016. It was built with PRA changes in mind and was designed to capture the additional information this would require from day one.
The buy-to-let sector has been buffeted by significant regulatory winds recently. What are the prospects for the sector?What have been some of your biggest professional challenges?
We are seeing a big uptick in applications from limited companies and we expect this to grow further from 1 October.
What have been some of your biggest professional challenges?
For investors, one of the key things that we needed to do was build trust. As a start-up lender with no record, you cannot do that overnight, so getting the credit function right was crucial. Now that we have been lending for three years, I think we have reassured investors and built that trust.
Which one change would you like to see in the market overall?
A greater focus on technology to improve the service for brokers and borrowers.
Emotional intelligence needed to win over next generation of shoppers (Internet Retailing), Rated: A
Payment company Klarna questioned 2,000 UK consumers, in a survey carried out by Censuswide, and found that members of the millennial generation, aged between 16 and 34, were three times more likely to feel excitement while adding items to their online basket, compared to older shoppers. Millennials are also more likely (68%) than shoppers aged 55 and over (24%) to feel anxiety and guilt at the point of payment.
Klarna suggests that allowing shoppers to try before they buy would be an easy way to build brand loyalty. Deferred payment options would also reduce anxiety among 20% of millenials, making one in five more likely to finish their purchase.
The consumer research judges a myth the idea that items added to a basket show a clear intention to purchase. It found that a significant 89% of millennials used the basket as a tool to review costs, while more than three quarters used their basket as a wishlist, compared with only 29% of over-55s. Meanwhile, nearly three quarters (74%) admit to “buzz browsing” – adding items to a basket with no clear intention to buy.
Selling to silver surfers: how e-tailers can develop emotional intelligence to appeal to an older demographic (Net Imperative), Rated: A
Luke Griffiths, General Manager at Klarna UK, looks at the psychological factors that come into play when older consumers embark on the online shopping journey.
The flip side of this excitement is lows caused by anxiety and guilt, with 52% of millennials saying that they worry that they can’t afford the purchase during checkout. That’s compared to 16% of over 55s, who in many cases will have more disposable income than their younger counterparts – showing there’s a sizeable prize for retailers who get the customer experience for older generations right.
While the millennial customer journey is full of twists and pitfalls, baby boomers are patient, calm, and rational shoppers. They experience low emotional responses, with only 3% of those surveyed feeling guilty when adding things to their basket, and only 5% feeling impatient.
The over 55s buy things because they need them – only 21% are more likely to make a spontaneous purchase online because they deserve a treat – so tapping into necessity is key. And over half (52%) of those surveyed said they would reconsider an online purchase due to high delivery charge, so retailers with costly fees should reconsider their charges or face losing custom.
Just Eat and fintech startup Funding Circle are partnering on a recipe for takeaway success (City A.M.), Rated: A
The peer-to-peer lender will offer the nearly 30,000 restaurants which use Just Eat to get takeaways into people’s laps a deal on loans.
“Our partners Just Eat directed us to Funding Circle who arranged the loan for us in a matter of days. By not spending months speaking with the banks I was able to get the finance I needed and focus on running the business and planning for the future.”
Gas fires firm lost £300k to online hack before going bust (Leicester Mercury), Rated: B
Gas Superstore lost hundreds of thousands of pounds in an online hack prior to going into administration, new documents reveal.
The Leicestershire retailer – which sold electrical goods and gas fires to the public – collapsed in April with debts of about £2.7 million.
FRP said trade creditors were owed more than £1.2 million when the business went bust – including the Google Adwords service, which was owed almost £50,000, and peer-to-peer business loan company Funding Circle, which was owed £275,000.
Blockchain sharpens Dianrong’s edge in P2P lending to small businesses (SCMP), Rated: AAA
Blockchains, the distributed databases conceptualised in 2008 as core components of the digital currency bitcoin, are increasingly finding their way into financial technology and helping to redefine the boundaries of traditional banking. They can be used as open, distributed digital ledger systems that can record transactions efficiently.
Dianrong and Foxconn are currently working together to apply the Chained Platform for Foxconn’s suppliers.
Dianrong is expanding its team in preparation for the increase in supply chain finance loans through Chained Finance. The company has plans to hire 500 more staff in Shenzhen in addition to the 60 they already employ, Htite said.
WeiyangX Fintech Review (Crowdfund Insider), Rated: A
By 2020, 60% of systems in China’s banking industry will be deployed in the cloud, most with the approval of the China Banking Regulatory Commission. According to the report, China Banking Regulatory Commission (CBRC) has been seeking to partner with 19 Chinese banks to establish a Fintech cloud stack, and the investment amount of each bank should not be less than CNY 20 million.
Online Market Lender Dashu Finance Raises CNY 800 million for Series C Round
On July 7th, Dashu Finance, a Shenzhen-based provider of online small and micro loan services, received CNY 800 million (USD 118 million) for its Series C financing round.
China’s Central Bank Issues Report on Financial Stability
On July 4th, The People’s Bank of China (PBOC), the central bank of China, released a financial stability report, warning China should redouble its efforts to regulate key risk (such as Bitcoin) in the financial sector to ensure financial stability.
China’s P2P Lending Industry Financing Drastically Decreases in the First Half of 2017
Statistics show, by the end of June, only 15 P2P online lending platforms received financing in China, and the total amount was just about CNY 4 billion (USD 5,987.1 million). Tuandaiwang.com completed the largest round of financing with CNY 1.8 billion, followed by xiaoying.com’s CNY 1 billion.
Alipay Makes Tuition Payments Easier
Thanks to a new cooperative effort between Hangzhou-based Alipay and other 30 banking financial institutions, Chinese students enrolled in primary and secondary schools are now able to pay their tuition online.
China’s Online Insurance Company Zhong An Introduces Flight Delay Insurance
Last week, Zhong An Insurance launched a WeChat-based fight delay insurance. Passengers can just buy the insurance on the Wechat platform 15 minutes before fights take off, rather than one day before departure as termed by the traditional delay insurance. The insurance pays a traveler RMB 10 if a departing or connecting flight is delayed by half an hour, and the compensation is up to RMB 120.
2017 LendIt Summit China was Held in Shanghai (Xing Ping She), Rated: A
On 15th July, LendIt, the world’s largest and most high-profile summit of fintech was held at Kerry Hotel in Pudong, Shanghai. Including keynote speech, seminar and group discussion, the summit covered all the frontier topics of internet finance. Fintech, online lending, block chain, bank & technology, inclusive finance, Asia-pacific and global vision are the fileds discussed.
LendIt is known as the largest fintech summit around the world. It was founded in 2013 by Bo Brustkern, Jason Jones and Peter Renton. The original intention of the summit was to provide social networking and communicating opportunities for the entire online lending and financial technology community. So far, the annual summit has been held for several times in the US, Europe and China, and it is the second time for LendIt held in China.
Over 2000 elites from global fintech and traditional finance participated in the summit, including decision makers, institutional investors, and regulators. It worth mentioning that both Dr. Yang Li, the CEO of Xeenho and CSO of Xing Ping She, and Sherry Yang, the vice president of Xeenho, were invited to attend LendIt China, discussing the development and trend of global internet finance. On April 2017, Xeenho and Xing Ping She have officially reached strategic cooperation with LendIt.
LendIt China July 9th 2017 – Journal Entry: AMTD + LendIt: Fintech, The 4th Industrial Revolution. (Crowdfund Insider), Rated: B
AMTD-LendIt Conference officially kicked off today in one of the most metropolitan cities in the world, Hong Kong, China.
The 2nd annual AMTD and LendIt FinTech Summit is well attended by heads of state from PwC, FuTu Securities (Wealth Management and Robo Advisor), AMTD and many of the leading industry heavyweights giving the audience a preview of what’s to come.
PwC Global FinTech Survey
PwC unveiled their latest Fintech survey from hundreds of financial institution’s CEO and found that more than 60% of the CEOs are making investments into Fintech and some have dedicated 15% of their top line revenue into Fintech R&D.
I was most impressed with Futu Securities Robo advisor chatbot. Leveraging artificial intelligence, Futu’s clients can pose a question to the A.I. assistant on what’s causing a particular stock in their portfolio to fall. The A.I. algorithm then mines social media sites, news sites and the internet, in general, trying to establish whether there was a press release, news articles that may have caused the drop in stock price.
BBVA, the best mobile banking service in the world (BBVA Compass), Rated: AAA
BBVA has the best mobile banking app in the world, according to Forrester Research’s latest report “2017 Global Mobile Banking Benchmark.” The study, which was published today, analyzed 53 apps from large retail banks in 18 countries, including the U.S., the U.K., France, Brazil, Turkey, China and Australia.
BBVA Spain’s mobile banking services received a final score of 87 out of 100 – the highest score since Forrester began the global rankings in 2013.
Digital banks must diversify or die (VentureBeat), Rated: AAA
Across Europe the 10 largest digital bank financings have totalled $500 million so far, with Atom alone raising more than half that amount.
However, look more closely and it’s clear the era of digital-only challenger banks may actually be coming to a close. Systemic difficulties in turning profits with pure digital-only banking will drive more businesses to adopt a broad-based approach focusing on digital financial services, of which banking is part.
Customer acquisition costs (CAC) for pure digital banking businesses are rising – fast. The fundamental problem, in Europe as well as in the U.S., is one of demographics: Dozens of fintechs are chasing a small, well-defined target customer base. These customers need to have enough disposable income, be digitally-savvy, and usually live in key urban areas. It can easily cost $100-250 to acquire customers in certain segments, and it takes an awful lot of $5-10 transaction fees for single-use services to generate a return on these customers. It boils down to a supply and demand issue: The number of high-value prospects is static, but there is a glut of well-funded and aggressive fintechs chasing them.
Study says women are better at crowdfunding (Reuters), Rated: A
Consultancy firm PwC, together with The Crowdfunding Center, analyzed 450,000 crowdfunding campaigns across the globe over the past two years and found that those led by women were 32 percent more successful at reaching their target than those carried out by men.
The results of the study, which were published on Thursday, also found that female-led projects are able to attract an average $87 pledge per funder, while men received $83 on average.
IFSB view on Islamic Crowdfunding (Islamic Finance), Rated: A
To identify relevant crowdfunding platforms with a focus on equity- and loan-based platforms located in the Muslim world, the database of Crowdsurfer was consulted. It lists in 32 of the 57 member states of the Organisation of Islamic Cooperation (OIC) a total of 108 crowdfunding platforms.
The findings were somewhat surprising:
- The platform that was characterised in its Crowdsurfer profile as a “Sharīʻah-compliant equity platform for SMEs and start-ups in Malaysia” (AtaPlus) did not mention the Sharīʻah compliance on its website. The only hint of Sharīʻah compliance was the list of activities in which a fund-seeking entrepreneur must not be involved.
- Only one loan-based crowdfunding platform – Liwwa (Lebanon) – outlines the importance of Sharīʻah compliance and gives a brief explanation of its business model (based primarily on murābaḥah) in the FAQ section of its website.
- A loan-based platform in the UAE – Beehive – applies a dual approach: it offers both conventional as well as Sharīʻah-compliant lending techniques. The Islamic option is explained in a rather detailed manner on the website.
- One of the oldest equity crowdfunding platforms in Egypt – Shekra – quotes several previous Islamic awards on its website. It does not explain how it assures Sharīʻah compliance, but the founders have propagated their approach in journals and conference papers. The platform operates as a “closed investors network”, which is quite unusual for a crowdfunding platform.
- Finally, an Indonesian platform for student loans – Danadidik – applies a profit- (or income-) sharing model to calculate the returns for investors. Although this is vaguely reminiscent of Islamic financing techniques and the platform claims to adhere to Islamic principles, the Sharīʻah compliance is uncertain.
Rivalry between banks expected to ramp up after launch of new reforms (Mozo), Rated: AAA
Federal Treasurer Scott Morrison has today announced new banking reforms that will allow credit unions and building societies to legally call themselves banks, in a move aimed at increasing competition between home loan providers.
Morrison and MP Kelly O’Dwyer said in a joint statement that the government will axe the restrictions deposit-taking institutions currently face, which mean they can only attain “bank” status with $50 million or more worth in capital.
Nearmap hires VP of marketing to support rapid growth (CMO.com.au), Rated: A
Aussie aerial mapping business, Nearmap, has appointed a new VP of marketing among two senior executive hires aimed at driving its next phase of international growth.
Silvia Arrigoni will be Nearmap’s new VP of marketing and Shane Preston will be vice-president of sales.
Arrigoni, who previously held positions as head of brand marketing at online lender, SocietyOne, and as group business director for marketing agencies such as Havas and Arnold Furnace, brings decades of experience to Nearmap.
YES Bank hunts for global partnership to develop fintech landscape (The Hindu Business Line), Rated: AAA
YES Bank, which runs a start-up accelerator programme called Yes Fintech, is looking at exclusive global exchange programme partnerships to help Indian start-ups gain access to developed markets in terms of business and investments.
Towards this end, the bank has already tied up with MaGIC (Malaysian Global Innovation & Creativity Center), a Malaysian government initiative. It is also looking for similar partnerships with the US, Sweden, Norway, Singapore, the UK and Israel over the next few years.
Funding dreams: Get a collateral-free education loan with just a click of a button (The News Minute), Rated: B
The cost of education has skyrocketed over the past decade by 160%, be it colleges or even elementary and secondary school. This has become a major setback for middle class families in India to provide their children with quality education.
Quiklo offers collateral-free loans to students with relatively smaller ticket size. Its biggest USP is that the loan is approved in a day and the amount is disbursed in the next few days
It runs on both a B2B and B2C model.
Quiklo offers collateral-free loans to students with relatively smaller ticket size. Its biggest USP is that the loan is approved in a day and the amount is disbursed in the next few days
It runs on both a B2B and B2C model.
Under the B2C model, parents can go to its website or download the app, enter their details, the student’s details, their financial problems, the course fees and submit the application. There is an algorithm that runs to check their credit worthiness depending on a few parameters like salary, etc.
Under the B2B model, Quiklo ties up with colleges and test prep companies. When a student goes there for admission, the college pitches Quiklo to them in case they are in the need of financing.
How new age investors are opting for alternative investment (Daily News & Analysis), Rated: A
Fixed Deposits, investment in gold, and many other traditional options are losing grounds when trying to woo the new age investors.
Digital gold currencies are issued by a number of companies like now Paytm as well, each of which provides a system that enables users to pay each other in units that hold the same value as gold bullion.
Peer-to-peer (P2P) lending in India currently gives a net return of 18-22 percent to lenders.
Online-only Chinese retail investment platform to launch in Singapore in third quarter (The Straits Times), Rated: AAA
An online-only platform for retail investors will launch here in the third quarter, China’s Ping An Group announced on Monday (July 17).
Lu International (Singapore) Financial Asset Exchange, a spin-off from the Shanghai-based Lufax, has received an in-principle approval from the Monetary Authority of Singapore for its capital markets services (CMS) licence.
The company, which will offer investments via mobile devices with no face-to-face encounters, hopes to attract customers who may have less wealth than those served by private banks.
ANGIN’s startup-investor site Connector.id to launch full version soon (Deal Street Asia), Rated: A
Connector – powered by Indonesian angel investor network (ANGIN) and the UNDP – has garnered over 400 startup applications since its beta version was introduced two weeks ago.
The idea is to help startup founders find the right investors for their ventures. Often, founders waste resources chasing the wrong investors, or even don’t have the channels nor the experience to source funding.
So far, Connector team has received more than 420 applicants, of which 70 per cent are technology companies. About 50 per cent have requested further connection (eg. pitch deck, call or meeting). Most applicants (38 per cent) are looking for equity, while the rest are looking for grants (14 per cent), collateralised loan (13 per cent), bridge loan (9 per cent), non-collateral loan (7 per cent), trade financing (5 per cent), and invoice financing (3 per cent).
Modalku launches new app (Deal Street Asia), Rated: A
P2P lending platform Modalku has announced that it will launch a new app next week. The app will be a “new innovation for lenders and debtors alike”, and is hoped to further bolster Modalku’s mission to support the small and medium enterprises in Indonesia.
SA fintech startup Yoco announces it has hit 10 000 SMEs users milestone (Ventureburn), Rated: AAA
South African payments company Yoco today announced that it now has 10 000 small and medium-sized enterprises (SME) clients in South Africa using its point-of-sale payments platform to accept card payments.
Maphai said the company is adding over 1 000 new SMEs to its base every month. This makes it the largest independent mobile point-of-sale player in South Africa by number of merchants, he claimed.
Yoco has in the past two years of operation, raised $7-million in funding from international investors and employs over 70 people in Cape Town and Johannesburg.
Central Bank to Finalize Fintech Regulations (Financial Tribune), Rated: AAA
In light of the importance of regulating fintech firms to prevent any problem in the monetary market, the Center for E-Commerce Development’s deputy has announced that the Central Bank of Iran will define the framework of fintech operations by the end of summer.
According to CBI regulations, innovative financial services are allowed to operate as long as they are not involved in money creation, currency exchange and offering payment tools (like cards) and attract deposits.
Payment aggregators allow sellers to quickly launch a payment gateway on their website, without getting involved in the demanding process imposed by banks and other PSPs.
According to Oskouei, currently 50 fintech firms have announced their commitment to continue their operations until CBI regulations are ready for implementation.