- 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: Morningstar to rate blockchain securities. nCino raises $80M. RateSetter rolls out Access, Plus, Max. Revolut losses double. Today’s main analysis: Race and homeownership. Today’s thought-provoking articles: Big banks are losing mortgage share. Race and homeownership. LendIt Fintech Europe highlights. International P2P lending volumes for September 2019. United States Morningstar to offer […]
- Today’s main news: Morningstar to rate blockchain securities. nCino raises $80M. RateSetter rolls out Access, Plus, Max. Revolut losses double.
- Today’s main analysis: Race and homeownership.
- Today’s thought-provoking articles: Big banks are losing mortgage share. Race and homeownership. LendIt Fintech Europe highlights. International P2P lending volumes for September 2019.
- Morningstar to offer ratings on blockchain securities. This should have been easily seen. Blockchain-based securities is growing fast and could overtake traditional securities in volume in short order.
- nCino raises $80 million. nCino is working to make banks more competitive with fintech.
- Big banks are losing mortgage share. Of course, they’re losing that share to non-bank lenders and alternative lenders.
- White Americans are largest homeowner segment. Across the board, white Americans are the largest homeowner segment, however, there are markets where they don’t dominate.
- BFS Capital eliminates upfront fees.
- Self launches first-of-kind secured credit card without a credit check.
- Crowdfunding may not come to commercial real estate.
- RiverNorth Marketplace Lending announces monthly distribution of $0.18 per share.
- Robots will eliminate 200,000 bank jobs in 10 years.
- Goldman traders kicked off desk.
- The 7-year auto loan.
- Naborly raises $7.5 million.
- How much can you get from a business loan?
- Best mortgage lenders for first-time buyers.
- Coinbase to offer 1.25% APy on USDC holdings.
- Curo wants to drop lawsuit.
- eOriginal chief product officer honored.
- OYO partners with Biz2Credit on small business financing for hotels.
- Finastra launches Fusion Mortgagebot Data Insights.
- Seattle Bank expands relationship with Finastra.
- RateSetter rolls out Max, Access, Plus.
- Revolut doubles losses.
- Visa expands Revolut partnership.
- LandlordInvest asks staff to avoid EU travel as P2P lenders prepare for Brexit.
- Small business owners should beware when backing business debt.
- Fintech is the future of finance.
- Brokers should be Open Banking advocates.
- Drapers, Klarna to launch Next Generation Entrepreneurs.
- Bunq to launch in UK.
- Entrepreneurs reveal how failures, triumphs shape who they are.
- Ex-city minister shines spotlight on P2P lending secondary markets.
- How Linked Finance links Irish SMEs with quick loans.
- LendIt Fintech Europe 2019 highlights.
- Bnext raises $25 million.
- Australia: RateSetter partners with PLAN Australia.
- Indonesia: Pawnshop PT Pegadaian to invest $35 million in local fintech.
- Canada needs to take more chances on fintech.
- South Africa: CredoLab to drive financial inclusion.
- Australia: National Australia Bank to provide $57 million to Symple Loans.
- Asia: INLOCK listed as one of the largest crypto exchanges.
- Australia: Which banks have cut home loan rates?
- Singapore: 40 solutions shortlisted for 2019 fintech awards.
- United States
- Morningstar Inc. will offer ratings to blockchain based securities (Ripple Coin News), Rated: AAA
- North Carolina-based Fintech Startup nCino Raises $ 80M (Crunchbase), Rated: AAA
- Bank Wars; ABS East + Blockchain; Housing (PeerIQ), Rated: AAA
- White Americans Have the Highest Homeownership Rates but There Are Large Differences Among Cities (LendingTree), Rated: AAA
- BFS Capital Eliminates Upfront Fees to Simplify Financing for Small Business Owners (Yahoo! Finance), Rated: A
- Self Announces The Self Visa Credit Card, A First-Of-Its-Kind Secured Credit Card That Does Not Require A Credit Check (Globe Newswire), Rated: A
- The Crowdfunding Revolution Might Never Come To CRE (Bisnow), Rated: A
- RiverNorth Marketplace Lending Announces Monthly Distribution of $0.18 Per Share (Crowdfund Insider), Rated: A
- The Robot Revolution Will Wipe Out 200,000 U.S. Banking Jobs in the Next Decade (Fortune), Rated: A
- Goldman Sachs Tries Banking for the Masses. It’s Been a Struggle. (WSJ), Rated: A
- Small bank’s big digital goal: Launch 3 niche banks (American Banker), Rated: A
- The Seven-Year Auto Loan: America’s Middle Class Can’t Afford Its Cars (WSJ), Rated: A
- Naborly Raises $ 7.5M in Seed Funding (FINSMES), Rated: A
- How Much Money Can I Get From a Business Loan? (All Business), Rated: A
- Best Mortgage Lenders for First-time Buyers (Benzinga), Rated: A
- Coinbase Announces 1.25% APY on USDC Holdings (DeFi Rate), Rated: A
- Investors Say Curo’s Bid To Nix Their Suit Misses The Point (Law360), Rated: A
- eOriginal Chief Product Officer Honored as a 2019 HousingWire Tech Trendsetter (PR Web), Rated: B
- OYO Announces Partnership With Biz2Credit to Provide Small Business Financing Options to Hotel Owners (Globe Newswire), Rated: B
- Finastra Launches Fusion Mortgagebot Data Insights to Help Financial Institutions Optimize their Mortgage Business (Financial Content), Rated: B
- Seattle Bank expands relationship with Finastra to drive innovation (Finastra), Rated: B
- United Kingdom
- Welcome to Access, Plus and Max! (RateSetter), Rated: AAA
- Fintech unicorn Revolut’s losses double as it pushes for global expansion (CNBC), Rated: AAA
- Visa Expands Alliance with Revolut to Grow in Fintech Space (Zacks), Rated: A
- LandlordInvest staff asked to avoid EU travel as P2P lenders prepare for Brexit deadline (P2P Finance News), Rated: A
- Small business owners should beware when backing their business debt (Money Week), Rated: A
- The future of finance is fintech (Raconteur), Rated: A
- Brokers should be Open Banking advocates (Bridging and Commercial), Rated: A
- Drapers and Klarna launch Next Generation Entrepreneurs (Drapers), Rated: A
- Dutch app-only bank Bunq to launch in UK this week (AltFi), Rated: A
- 10 Respected Entrepreneurs Reveal How Failures and Triumphs Shaped Who They Are Today (Digital Journal), Rated: A
- Ex-City minister shines spotlight on P2P lending secondary markets (P2P Finance News), Rated: B
- European Union
- How Linked Finance is Linking Irish SMEs With Quick Loans (deBanked), Rated: AAA
- LendIt Fintech Europe 2019 Conference Highlights (Lend Academy), Rated: AAA
- Bnext raises $ 25 million for its mobile banking alternative (TechCrunch), Rated: A
- International P2P Lending Volumes September 2019 (P2P-Banking), Rated: AAA
- P2P lender partners with aggregator (Broker News), Rated: AAA
- National Australia Bank to provide $ 57m warehouse funding facility to Symple Loans (AltFi), Rated: A
- Which banks have cut home loan rates already? (mozo), Rated: A
- Indonesia’s State-Owned Pawnshop PT Pegadaian to Invest $ 35 Million in Local Fintech Firms (Crowdfund Insider), Rated: AAA
- Another Milestone Comes True: INLOCK Is Listed on One of the Largest Crypto Exchanges (NewsBTC), Rated: A
- 40 Innovative Solutions Shortlisted for 2019 FinTech Awards (MAS), Rated: A
- CredoLab set to drive financial inclusion in South Africa (Next Billion), Rated: AAA
- Stability’s important, but Canada needs to take more chances with fintech (Financial Post), Rated: A
Morningstar Inc. will offer ratings to blockchain based securities (Ripple Coin News), Rated: AAA
Chicago-based financial service provider, Morningstar Credit Ratings announced plans to diversify its business operation by providing ratings for debt securities issued on public blockchains, also known as crypto-assets. Morningstar Inc, the parent company of the rating agency is valued at $6.4 billion. Last year it generated $1.7 billion in revenue. The company is well known for rating mutual funds from giants of the financial world like Prudential and Morgan Stanley among others.
North Carolina-based Fintech Startup nCino Raises $ 80M (Crunchbase), Rated: AAA
Bank Wars; ABS East + Blockchain; Housing (PeerIQ), Rated: AAA
In U.S Housing, borrower home equity is hitting all time highs. Homeowners with a mortgage saw equity increase by 4.8% since 2Q2018. This equates to $4,900 gained per American homeowner and a strengthening of the US consumer balance sheet.
Over the past ten years, the largest American banks – Wells Fargo, JPMorgan, and Bank of America – have seem their share of home loan originations fall 30% as digital customer friendly non-banks such as Quicken Loans take share.
White Americans Have the Highest Homeownership Rates but There Are Large Differences Among Cities (LendingTree), Rated: AAA
Americans who identify as white own a disproportionately large percentage of homes in all of the nation’s 50 largest metros. White Americans make up an average of 59% of people in the metros featured in our study, but they own around 73% of owner-occupied homes.
Where white Americans own the most homes relative to their overall population
% of the population – White alone: 46.99%
Median household income – White alone: $91,806
% of owner-occupied homes – White alone: 68.65%
Difference between % of owner-occupied homes and % of population: 21.66%
% of the population – White alone: 46.20%
Median household income – White alone: $80,276
% of owner-occupied homes – White alone: 65.37%
Difference between % of owner-occupied homes and % of population: 19.17%
% of the population – White alone: 56.41%
Median household income – White alone: $64,423
% of owner-occupied homes – White alone: 75.17%
Difference between % of owner-occupied homes and % of population: 18.76%
Where white Americans own the least homes relative to their overall population
% of the population – White alone: 85.82%
Median household income – White alone: $59,089
% of owner-occupied homes – White alone: 93.29%
Difference between % of owner-occupied homes and % of population: 7.47%
BFS Capital Eliminates Upfront Fees to Simplify Financing for Small Business Owners (Yahoo! Finance), Rated: A
BFS Capital today announced it has eliminated all upfront fees on its financing solutions, including loans and business advances, as it simplifies pricing for small business owners.
BFS Capital customers can now apply for and receive up to $500,000 in financing with no origination fees, no processing fees and no upfront costs.
Self Announces The Self Visa Credit Card, A First-Of-Its-Kind Secured Credit Card That Does Not Require A Credit Check (Globe Newswire), Rated: A
Self, a leading fintech startup offering people a way to build their credit while also saving money, today announced the release of the Self Visa® Credit Card. This first-of-its-kind secured card uses a unique funding model to provide customers with a line of credit without the need for a significant upfront investment or a credit check – two areas that perennially sideline subprime consumers who are looking to build their credit scores.
The Crowdfunding Revolution Might Never Come To CRE (Bisnow), Rated: A
Crowdfunding has not coalesced into the influential force in commercial real estate some may have expected, and is at risk of being decimated by the next economic downturn.
RiverNorth Marketplace Lending Announces Monthly Distribution of
RiverNorth Marketplace Lending Announces Monthly Distribution of $0.18 Per Share (Crowdfund Insider), Rated: A.18 Per Share (Crowdfund Insider), Rated: A
RiverNorth Marketplace Lending Corporation, an established and currently operating as a closed-end interval fund dedicated to the marketplace lending asset class, announced on Tuesday its monthly distribution of $0.18 per common share for the months of October, November, and December 2019.
The Robot Revolution Will Wipe Out 200,000 U.S. Banking Jobs in the Next Decade (Fortune), Rated: A
Technological efficiencies will result in the biggest reduction in headcount across the U.S. banking industry in its history, with an estimated 200,000 job cuts over the next decade, Wells Fargo & Co. said in a report.
The $150 billion annually that the country’s finance firms are spending on tech — more than any other industry — will lead to lower costs, with employee compensation accounting for half of all bank expenses, said Mike Mayo, a senior analyst at Wells Fargo Securities LLC.
Two dozen of Goldman Sachs Group Inc.’s most profitable traders were kicked off their desk last year to make room for the swelling ranks of the firm’s Main Street lending arm.
Small bank’s big digital goal: Launch 3 niche banks (American Banker), Rated: A
The first one, introduced this summer, is called “booyah” and is aimed at college students and young graduates. The $122 million-asset bank sees it as a way to target a specific audience outside the central Florida area and boost deposits in order to ward off competitive threats from fintechs.
Walk into an auto dealership these days and you might walk out with a seven-year car loan.
That means monthly payments that last well past when the brake pads give out and potentially beyond when the car gets traded in for a new one. About a third of auto loans for new vehicles taken in the first half of 2019 had terms of longer than six years, according to credit-reporting firm Experian PLC. A decade ago, that number was less than 10%.
Naborly Raises $ 7.5M in Seed Funding (FINSMES), Rated: A
Naborly, a San Francisco, CA-based credit bureau for the rental industry, closed its $7.5m seed funding round.
How Much Money Can I Get From a Business Loan? (All Business), Rated: A
It’s rare for two loan offers from two lenders to come out to exactly the same number. Different lenders (traditional banks, online lenders, alternative lenders) evaluate a variety of factors, have different algorithms, and may place more emphasis on different aspects of your business history.
Coinbase Announces 1.25% APY on USDC Holdings (DeFi Rate), Rated: A
This announcement comes amid the DeFi boom in 2019. While 1.25% APY is substantially higher than traditional savings rates at banks, it’s still lagging behind the broader DeFi lending market. As of writing, Compound currently offers 5.34% APY on USDC holdings while dYdX offers 3.85% APY – View current USDC lending rates. This doesn’t account for other stablecoins, such as Dai, where holders can earn upwards of 8%.
Investors Say Curo’s Bid To Nix Their Suit Misses The Point (Law360), Rated: A
eOriginal, a digital lending technology pioneer, is proud to announce that Simon Moir, Chief Product Officer, has been named to HousingWire’s Tech Trendsetters list for 2019. HousingWire’s inaugural award recognizes the impactful and innovative technology leaders serving the housing and mortgage finance industry. This is on the heels of eOriginal’s second consecutive listing as one of HousingWire’s HW Tech 100TM in April 2019.
OYO Announces Partnership With Biz2Credit to Provide Small Business Financing Options to Hotel Owners (Globe Newswire), Rated: B
OYO, the world’s third-largest and fastest-growing chain of hotels, homes and spaces*, has partnered with Biz2Credit to provide working capital and commercial real estate loans to existing and potential hotel partners across the United States.
Finastra Launches Fusion Mortgagebot Data Insights to Help Financial Institutions Optimize their Mortgage Business (Financial Content), Rated: B
Finastra has launched Fusion Mortgagebot Data Insights – a powerful new tool that benchmarks mortgage borrower behavior and demographics for banks and credit unions against that of more than 1,400 other Fusion MortgagebotPOS users. The solution leveraged Big Data and machine learning to provide users with new insights into consumer behavior to drive a better borrower experience.
Seattle Bank expands relationship with Finastra to drive innovation (Finastra), Rated: B
Seattle Bank, a single branch boutique bank with $650 million in assets, has selected Fusion Phoenix from Finastra to be the open, modern core to run its banking operations, enabling the bank to better serve clients. The core banking system will be integrated with additional Finastra solutions, including Fusion Mortgagebot, Fusion Card Payments, Fusion Analytics, Fusion Item Processing Services, Fusion LaserPro, and Fusion Digital Banking.
Welcome to Access, Plus and Max! (RateSetter), Rated: AAA
I am delighted to say that our three new investment products – Access, Plus and Max – launched today and are ready for you to enjoy.
Fintech unicorn Revolut’s losses double as it pushes for global expansion (CNBC), Rated: AAA
British financial technology start-up Revolut’s losses doubled in 2018, the firm said Tuesday, as the company embarks on an aggressive global expansion.
The London-headquartered firm recorded a £32.8 million ($40.3 million) net loss on revenues of £58.2 million for 2018. That was more than double the £14.8 million loss it posted a year earlier, while revenue climbed 354%.
Visa Expands Alliance with Revolut to Grow in Fintech Space (Zacks), Rated: A
LandlordInvest staff asked to avoid EU travel as P2P lenders prepare for Brexit deadline (P2P Finance News), Rated: A
LANDLORDINVEST has asked staff to avoid travelling outside the UK after 31 October as peer-to-peer lending platforms prepare for the latest Brexit deadline.
Small business owners should beware when backing their business debt (Money Week), Rated: A
After all, one argument for setting up a business as a limited company, rather than operating as a sole trader, is that you separate your affairs from the company’s.
However, while this is true in theory, it may not pan out in practice. If your business needs to borrow, lenders often expect owners to stand behind the loan. They ask for a personal guarantee that the debt will be repaid. These guarantees aren’t secured – they’re not tied to a particular asset, such as your home – but they do give lenders a legal right to come after your personal wealth in the event your business defaults.
The future of finance is fintech (Raconteur), Rated: A
When Innovate Finance was formed five years ago, with a mandate to represent an emerging UK fintech community, the picture was different to today. The focus was on models challenging traditional approaches to banking, disrupting the incumbents’ model that had stood for decades.
In the years since, peer-to-peer lending became simpler, management of personal finances became more accessible, and remittance processes became faster and more affordable.
Brokers should be Open Banking advocates (Bridging and Commercial), Rated: A
It’s now more than a year and a half since the introduction of Open Banking, which allows people to securely share data about how they spend their money with other parties.
Drapers and Klarna launch Next Generation Entrepreneurs (Drapers), Rated: A
Drapers’ Next Generation Entrepreneurs are the founders and chief executives that we think are changing fashion. The list shines a light on the new wave of game-changers, innovators and boundary-breakers that are making their mark on the UK fashion industry, as well as emerging businesses that exhibit innovative, entrepreneurial spirit.
Dutch app-only bank Bunq to launch in UK this week (AltFi), Rated: A
The Dutch app-only bank bunq is to launch in the UK this week, saying there are “too many traditional banks” in the UK.
10 Respected Entrepreneurs Reveal How Failures and Triumphs Shaped Who They Are Today (Digital Journal), Rated: A
– Courtney Nichols Gould, Founder& co-CEO, SmartyPants Vitamins
– Annie Jackson, co-founder & COO, Credo Beauty
– Sarah Kauss, Founder & CEO, S’well
– Stephen Kuhl, co-founder & CEO, Burrow
– Renaud LaPlanche, co-founder & CEO, Upgrade, Founder of Lending Club (NYSE: LC)
– Jody Levy, Founder, CEO & Creative Director, World Waters (Maker of WTRMLN WTR)
– Betty Liu, Founder of Radiate, Executive Vice Chairman of The New York Stock Exchange (NYSE)
– Ben McKean, Founder, Hungry Root
– Sasha Plavsic, Founder & CCO, ILIA Beauty
– Nat Turner, co-founder & CEO, Flatiron Health
Ex-City minister shines spotlight on P2P lending secondary markets (P2P Finance News), Rated: B
The former City minister, who has already tabled several parliamentary questions regarding the role of the Financial Conduct Authority (FCA) in the collapse of Lendy and Collateral, has widened the scope of his P2P queries.
He has tabled two parliamentary written questions in the past week.
How Linked Finance is Linking Irish SMEs With Quick Loans (deBanked), Rated: AAA
The nation’s Central Statistics Office puts the number of active enterprises in the private business economy at over 250,000. As of June, Linked Finance had made more than 2,100 loans for a grand total of more than €100 million.
LendIt Fintech Europe 2019 Conference Highlights (Lend Academy), Rated: AAA
We have just wrapped up what I think has been the most successful European conference LendIt has ever had.
We kicked off the show with Rishi Khosla, CEO and Co-Founder of OakNorth. Their approach to underwriting is super interesting. While they have very much a digital approach, they are originating loans typically for £5 million to £10 million to fast growth companies.
Bnext raises $ 25 million for its mobile banking alternative (TechCrunch), Rated: A
Fintech startup Bnext has raised a $25 million funding round. The Spanish company is building a banking product and has managed to attract 300,000 active users.
You can lend money to small and medium businesses and earn interest through October, you can save money using Raisin, you can get a loan, a mortgage, an insurance product, etc. Bnext generates revenue from those partnerships.
International P2P Lending Volumes September 2019 (P2P-Banking), Rated: AAA
Milestones in culumulative volume lent crossed this month:
P2P lender partners with aggregator (Broker News), Rated: AAA
Peer-to-peer lender RateSetter has announced a partnership with PLAN Australia that will make its unsecured personal loan and car loan products available to the group’s 1,700 brokers and their clients.
National Australia Bank to provide $ 57m warehouse funding facility to Symple Loans (AltFi), Rated: A
Australia’s biggest business bank is furnishing a $57m (£46m) warehouse funding facility to personal lender Symple Loans, as part of its $2bn (£1.63bn) commitment to fund technology startups.
Which banks have cut home loan rates already? (mozo), Rated: A
It’s been two days since the Reserve Bank board made the call to lower the official cash rate from 1.00% to 0.75% – an historically low rate in Australia.
Athena and Homestar raced out of the blocks following Tuesday’s RBA announcement – both delivering full 0.25% cuts to their respective variable rate home loans before the ink on RBA Governor Philip Lowe’s monetary policy statement was dry.
Fellow online lender UBank wasn’t far behind after announcing a 0.25% rate cut of its own across a number of variable rate offers.
Indonesia’s State-Owned Pawnshop PT Pegadaian to Invest $ 35 Million in Local Fintech Firms (Crowdfund Insider), Rated: AAA
The state-owned pawnshop PT Pegadaian in Indonesia is reportedly planning to invest Rp 500 billion (appr. $35.26 million) in several local Fintech firms this year.
Another Milestone Comes True: INLOCK Is Listed on One of the Largest Crypto Exchanges (NewsBTC), Rated: A
On September 30, 2019, after nearly six months of preparation, the INLOCK project, a peer-to-peer lending solution, was listed on the Liquid by Quoine exchange, one of the largest Japanese crypto exchanges in the Asian region, with a daily turnover of $150-200 million.
INLOCK is a peer-to-peer lending platform; its customers can lend or borrow using their cryptocurrencies as a collateral.
40 Innovative Solutions Shortlisted for 2019 FinTech Awards (MAS), Rated: A
The Monetary Authority of Singapore (MAS) and The Association of Banks in Singapore (ABS) announced today that 40 finalists have been shortlisted for the FinTech Awards to be presented at this year’s Singapore FinTech Festival x Singapore Week of Innovation and Technology (SFF x SWITCH).
CredoLab set to drive financial inclusion in South Africa (Next Billion), Rated: AAA
Credit scoring fintech company, CredoLab announced on Tuesday, 1 October 2019, that it has officially launched in Africa. Starting in South Africa, CredoLab is aiming to drive financial inclusion in emerging economies on the continent by credit scoring more people, especially those who are new to banking or credit.
Stability’s important, but Canada needs to take more chances with fintech (Financial Post), Rated: A
According to Ernst & Young’s 2019 Global Fintech Adoption Index, Canada is 14 points, and the U.S. 18 points, behind the global average of 64 per cent consumer fintech adoption, and we trail world leaders like China, India and Russia by even more. The two countries’ approaches to regulating fintech, which in many ways reflect enduring national stereotypes, almost certainly have contributed to our continent’s fintech lag.
News Comments Today’s main news: N26 raises $170M at $3.5B valuation for U.S. launch. OnDeck, Upserve partner on restaurant financing. Quicken Loans has best quarter in history. Curve raises $55M at $25M valuation. Lufax to bow out of P2P lending. Goldman funds Lendable. Today’s main analysis: Is America ready for challenger banks? (A MUST-READ) Today’s […]
- Today’s main news: N26 raises $170M at $3.5B valuation for U.S. launch. OnDeck, Upserve partner on restaurant financing. Quicken Loans has best quarter in history. Curve raises $55M at $25M valuation. Lufax to bow out of P2P lending. Goldman funds Lendable.
- Today’s main analysis: Is America ready for challenger banks? (A MUST-READ)
- Today’s thought-provoking articles: Over 57% of purchase borrowers see mortgage rates under 4.25%. Fed rate cuts & digital banks. What will FCA appropriateness test look like? How to spot investment winners.
- N26 jumps into U.S. market with $170 million raise at $3.5 billion valuation. N26 is just one of Europe’s challenger banks getting into the U.S. market, but are Americans ready for digital-only banking? The evidence seems to point to the negative.
- OnDeck, Upserve partner on retaurant financing. We haven’t heard from OnDeck in awhile. This is welcome news, and it fits into their trajectory.
- Quicken Loans has best quarter in history. Quicken Loans originated almost $11 billion in mortgages in June.
- Over 57% of purchase borrowers saw mortgage rates under 4.25% last week. Overshadowed by digital-only bank news in the U.S., LendingTree sheds new light on mortgages.
- Rate cuts, digital-only banks. PeerIQ. Interesting mostly for the charts on Fed interest rates.
- Is America ready for the launch of European challenger banks? This is a good read. Anyone interested in digital-only banking should read this one, but it doesn’t look promising. In short: It will be an uphill climb.
- Varo files bank charter application.
- Moven plans to expand into lending.
- Jamie Dimon says Finn was not a failure.
- JPMorgan says lending income will fall in second half.
- Navient $535.2 million ABS will include only student loans through Earnest.
- Technology’s impact on real estate investing.
- Millennials say real estate is best investment.
- Real estate investing in a 1-click world.
- Krista Morgan of P2Binvestor overcomes naysayers.
- Lendbuzz raises $150 million.
- George Soros invests in AlphaSense.
- Bill introduced in House to keep big tech out of financial services.
- PayActiv accused of discrimination by former employee.
- New apps can have hidden costs.
- CrediVia expands into multifamily.
- SEC posts final judgement against iFunding founders.
- Lending Express rebrands as Become.
- Cross River names new CFO.
- SecurCapital acquires Breakout Capital’s lending business.
- CheapAir expands Affirm relationship.
- LendEDU recognizes Sokolov-Miller Family Center.
- Community Capital appoints new board member.
- Curve raises $55 million at $250 million valuation. Congratulations.
- What will appropriateness test look like? No one agrees.
- How investors can spot a winner.
- Lendy administrator outlines state of loanbook.
- Interview with OakNorth’s Rishi Khosla.
- OakNorth lends 19.5 million GBP to care concern group.
- Fintech deals top $2.9 billion in 2019.
- More on fintech deals.
- Are ‘bad credit’ credit cards more expensive than payday loans?
- P2PFA to woo intermediaries.
- Preview of LendIt Fintech Europe 2019. To be held in London.
- How Jules B uses technology to stay ahead online.
- Lufax to get out of P2P lending. Regulation is taking its toll on the industry in China.
- P2P crackdown has hurt carmakers.
- China is rich with fintech talent opportunity.
- International: Goldman backs Lendable with 200 million GBP.
- Australia: RateSetter joins aggregator panel.
- Singapore: Smaller banks at risk due to digital banking.
- Switzerland: Bitcoin Suisse applies for banking license.
- Australia: OnDeck joins FAST.
- International: Interview with BlockFi CEO Zac Prince.
- Australia: X factor mortgages.
- Canada: HousingHub uses OnDeck analytics for lending.
- Singapore: Accountants have critical role in fighting cybercrime.
- United States
- Thiel-Backed Bank Valued at $ 3.5 Billion Amid U.S. Launch (Bloomberg), Rated: AAA
- OnDeck And Upserve Partner To Speed Financing To Restaurants (Yahoo! Finance), Rated: AAA
- Quicken Loans Has Best Quarter in Company’s 34-Year History (PR Newswire), Rated: AAA
- Over 57% of Purchase Borrowers Received Mortgage Rates Under 4.25% Last Week (LendingTree), Rated: AAA
- Rate Cuts; Digital Banks (PeerIQ), Rated: AAA
- European Challenger Banks Launch U.S. Invasion – Is America Ready? (The Financial Brand), Rated: AAA
- Varo files application for bank charter that will differentiate it (Business Insider), Rated: A
- Moven’s Plan B after buyout bid stalls: Expansion into lending (American Banker), Rated: A
- JPMorgan Chase’s Dimon: Finn app was not a failure (bank innovation), Rated: A
- JPMorgan warns that lending income will fall in the second half (American Banker), Rated: A
- Navient plans full-Earnest loan pool in $ 535.2M student-loan ABS (Asset Securitization Report), Rated: A
- Technology’s Inescapable Impact on Real Estate Investments – (MarketCurrents Wealth Management), Rated: A
- Millennials say real estate investing is one of the best ways to build wealth (Business Insider), Rated: A
- Real Estate Investing in a “1-Click” World (Propmodo), Rated: A
- Krista Morgan of P2Binvestor Overcomes Naysayers To Fund Growing Small Businesses (Forbes), Rated: A
- Lendbuzz, AI Auto Startup That Steps in When FICO Fails, Raises $ 150M (Xconomy), Rated: A
- Soros, Innovation Endeavors Provide Fresh Funding for AlphaSense (Institutional Investor), Rated: A
- House Democrats draft bill to keep big tech out of financial services (Yahoo! Finance), Rated: A
- San Jose payday-advance startup faces racial discrimination, retaliation lawsuit (The Mercury News), Rated: A
- New apps competing for your money can have hidden costs (ABC Action News), Rated: A
- CrediVia Brings New Experience to Multifamily Financing (BusinessWire), Rated: A
- SEC Posts Final Judgement in Enforcement Action Against Founders of iFunding (Crowdfund Insider), Rated: A
- Lending Express evolves into Become (Become email), Rated: B
- Cross River Names Global Finance Veteran Melissa Ballenger As CFO (Yahoo! Finance), Rated: B
- SecurCapital Acquires Breakout Capital Finance’s Lending Business (PR Newswire), Rated: B
- CheapAir.com Expands “Travel Now, Pay Later” Option (Yahoo! Finance), Rated: B
- Sokolov-Miller Family Center again recognized as leader in financial education (PSU), Rated: B
- Community Capital Appoints New Board Member, Camden R. Fine (Yahoo! Finance), Rated: B
- United Kingdom
- Curve raises $ 55M at a $ 250M valuation (TechCrunch), Rated: AAA
- What will the appropriateness test actually look like? (P2P Finance News), Rated: AAA
- Uber, Lyft share prices: as tech IPOs disappoint, how can investors spot winners? (CMC Markets), Rated: AAA
- Lendy administrator outlines the state of collapsed P2P lender’s loanbook (P2P Finance News), Rated: A
- Rishi Khosla of OakNorth (Lend Academy), Rated: A
- OAKNORTH LENDS £19.5M TO CARE CONCERN GROUP TO SUPPORT ALPHA REAL CAPITAL OPERATING CARE HOMES (Business Leader), Rated: B
- $ 2.9 Billion in Deals in 2019 on Track to Top Year Prior (Crowdfund Insider), Rated: A
- Latest UK fintech investment figures reflect the evolution of the sector (ComputerWeekly), Rated: A
- Could ‘bad credit’ credit cards be more expensive than a payday loan? (Which?), Rated: A
- P2PFA looks to woo intermediaries (P2P Finance News), Rated: A
- LendIt Fintech Europe 2019 Preview (Lend Academy), Rated: A
- How Jules B uses tech to stay ahead online (Essential Retail), Rated: B
- Ping An-backed Lufax to ditch P2P lending on regulatory woes (Reuters), Rated: AAA
- China slowdown, trade dispute hurt global carmakers (DW.com), Rated: A
- China rich with opportunity for fintech talent (China Daily), Rated: A
- European Union
- Bitcoin Suisse Applies for Banking License with Swiss Regulators (BTC Manager), Rated: A
- Goldman, UK’s Lendable Strike £200M Deal (PYMNTS), Rated: AAA
- A conversation with Zac Prince, Founder, CEO, BlockFi (The Block Crypto), Rated: A
- P2P lender joins another aggregator’s panel (Australian Broker), Rated: AAA
- SME lender expands presence within Australia (Australian Broker), Rated: A
- X factor mortgages: The lenders offering more than just hot rates (Mozo), Rated: A
- Smaller Banks in Singapore Are at Risk As Fintechs Eye Digital Banking License (Fintech News), Rated: AAA
- Accountants have critical role in helping businesses fight cybercrime (Channel News Asia), Rated: A
- Give your BBQ the royal treatment (The Daily Courier), Rated: AAA
Thiel-Backed Bank Valued at $ 3.5 Billion Amid U.S. Launch (Bloomberg), Rated: AAA
A German smartphone bank backed by billionaires Peter Thiel and Li Ka-shing has raised new funds at a valuation of $3.5 billion, making the company one of Europe’s highest valued non-listed fintech firms.
N26 GmbH extended its Series D funding round by $170 million to a total $470 million, the Berlin-based company said on Thursday.
OnDeck And Upserve Partner To Speed Financing To Restaurants (Yahoo! Finance), Rated: AAA
OnDeck (ONDK) and Upserve today announced a partnership to provide Upserve’s restaurant customers with online financing options from OnDeck. Over 10,000 restaurants currently use Upserve’s restaurant management platform and Point of Sales (POS) software to manage relationships with more than 57 million active diners.
Quicken Loans Has Best Quarter in Company’s 34-Year History (PR Newswire), Rated: AAA
Detroit-based Quicken Loans, America’s largest mortgage lender, today announced that the second quarter of 2019 was the best in the 34-year-old company’s history.
The second quarter of the year was the first three times the company has originated more than $10 billion in a single month, with each month setting a new record for the highest closed loan volume – culminating in June being the best month in Quicken Loans history. In June, the company closed nearly $11 billion in mortgage volume, contributing to the $32 billionoriginated for the quarter.
Over 57% of Purchase Borrowers Received Mortgage Rates Under 4.25% Last Week (LendingTree), Rated: AAA
Mortgage Rate Distribution
- For 30-year, fixed-rate mortgages, approximately 56.8% of purchase borrowers received offers of 4.25% or less. That is down from 60.1% of borrowers the previous week. A year ago, 0.07% of offers were under 4.25%.
- Across all 30-year, fixed-rate mortgage purchase applications on LendingTree, 4.0% was the most common interest rate. This rate was offered to 15.4% of borrowers.
- Of 30-year, fixed-rate mortgage refinance borrowers, 70.6% received offers of 4.25% or less, which is down from 72.8% the previous week. A year ago, no refinance offers were under 4.25%.
- Across all 30-year, fixed-rate mortgage refinance applications, the most common interest rate was 4.0%, offered to 17.95% of borrowers.
Mortgage Rate Competition Index
- Across all 30-year, fixed-rate mortgage purchase applications on LendingTree, the index was 0.99, down from 1.19 the previous week.
- How big of a deal is it to get a mortgage APR that’s 0.99 percentage points lower than the competition? Over 30 years, that could translate to $47,073 in savings on a $300,000 loan (see Mortgage Savings Tracker graphic below).
- The index was wider in the refinance market at 1.10, down from 1.35 the previous week. Refinance borrowers could have saved $52,554 by shopping for the lowest rate.
Rate Cuts; Digital Banks (PeerIQ), Rated: AAA
Digital Banks – The Future of FinTech Lending?
FinTechs lenders meanwhile are white-labelling banking services to complete the customer product roadmap while awaiting a charter. SoFi Money, WSFS, Radius Bank and its deposit partnerships with FinTechs are great examples of this.
This week, Boston-based Radius Bank is looking to adopt the user-friendly style set forth by the aforementioned European banks.
European Challenger Banks Launch U.S. Invasion – Is America Ready? (The Financial Brand), Rated: AAA
At a time when U.S. consumers are increasingly becoming comfortable with branchless banking and alternative financial providers, is there room for alternative digital-only banks with zero name recognition? Recent announcements by Germany-based N26 and U.K.-based Monzo that they will be entering the highly competitive U.S. in the next few months will provide a good test of the viability of foreign-based banking competition.
N26 Invites 100,000 Wait-Listed U.S. Consumers To Open Accounts
According to N26, there will be a staged rollout beginning immediately, with the 100,000 people on the U.S. wait list being invited to sign up and have full access to the product.
Is Monzo the ‘Bank of the Future’?
Referring to itself as the “bank of the future,” Monzo has also begun marketing efforts in the U.S., hoping to disrupt the traditional banks and credit unions in a way similar to what they have done in the U.K. Valued at more than $1 billion, Monzo has a mobile-only customer base in the U.K. of 2.2 million customers.
Varo files application for bank charter that will differentiate it (Business Insider), Rated: A
Challenger bank Varo, which has raised $179 million from Warburg Pincus and TPG, just took a big step that might separate it from competitors like Chime and Monzo.
In the past year Varo has tripled its customer base and is expected to reach 750,000 registered customers this month, Walsh said.
Moven’s Plan B after buyout bid stalls: Expansion into lending (American Banker), Rated: A
Obstacles remain in Moven’s path to a charter in the U.S., even as its private-label banking offering expands across Africa and Asia.
JPMorgan Chase’s Dimon: Finn app was not a failure (bank innovation), Rated: A
Specifically, Dimon said the bank learned how to conduct digital account openings through Finn and that the process was shaved down to just a few minutes. CFO Jennifer Piepszak added that 25% of new account openings at Chase are now digital signups rather than through a bank branch. The bank reported it has opened 2 million accounts digitally.
The bank had pulled the plug on the digital-only offering in June, just a year after its launch, and rolled some of Finn’s most popular features into Chase’s main mobile banking app.
JPMorgan warns that lending income will fall in the second half (American Banker), Rated: A
The largest U.S. bank on Tuesday reported a drop in bond trading and cut its full-year outlook for net interest income — revenue from customers’ loan payments minus what the bank pays depositors — by $500 million. NII accounted for about half the New York-based company’s revenue last year.
Navient plans full-Earnest loan pool in $ 535.2M student-loan ABS (Asset Securitization Report), Rated: A
Navient Solution’s next securitization of private student-loan refinancing will involve only loans primarily issued to advanced-degree professionals by online lender Earnest – which Navient acquired in 2017.
The $535.2 million Navient Private Education Refi Loan Trust 2019-E will include two tranches of Class A notes with preliminary triple-A ratings from DBRS and S&P Global Ratings. The Class A-1 fixed-rate notes total $263 million, while the $228 million in Class A-2 notes will be divided into fixed- and variable-rate tranches.
Technology’s Inescapable Impact on Real Estate Investments – (MarketCurrents Wealth Management), Rated: A
Research-driven, professional investments in real estate have traditionally been reserved for family offices and institutional investors. Now, a swathe of new technology platforms and consumer products are revolutionizing the industry, opening up access and shifting valuations.
Millennials say real estate investing is one of the best ways to build wealth (Business Insider), Rated: A
According to a new survey from Bankrate, over one-third of millennials say real estate is the best way to invest money they won’t need for at least 10 years, more than the share of millennials surveyed who prefer stocks, savings accounts and certificates of deposit (CDs), gold, bonds, and cryptocurrency.
Real Estate Investing in a “1-Click” World (Propmodo), Rated: A
The plain truth is that there will never been such a thing as “Amazon 1-Click for real estate.” The end-to-end logistics solution for buying and managing property has not yet been perfected. Whilst there are a lot of great technology solutions being developed for the property industry they typically tackle just one or two specific pain points in a broader transaction. In isolation, these solutions have less impact on the overall customer experience because their piece is just one of a much larger puzzle. As an example, there’s not much point streamlining the purchase itself if the legal documents and mortgage approval take weeks of frustrating back-and-forth, duplicating much of the same process and paperwork.
Krista Morgan of P2Binvestor Overcomes Naysayers To Fund Growing Small Businesses (Forbes), Rated: A
With all the attention given to angel and venture capital, you might think that these financing options are the most likely to be used. To the contrary, debt is by far the dominant form of outside funding used: for example, 86% of $1 — $10 million companies seeking outside financing applied for a loan compared to 5% seeking equity financing, according to The 2018 Small Business Credit Survey.
However, since the late 1990s, as banks have consolidated and sought out more profitable sectors of the credit market, they have been shifting activity away from the small business credit market, according to Why Small Business Lending Isn’t What It Used to Be.
Lendbuzz, AI Auto Startup That Steps in When FICO Fails, Raises $ 150M (Xconomy), Rated: A
The Boston-based software company announced Monday it has raised $150 million in new funding to expand its team and issue more financing backed by its machine learning algorithms.
Most of the cash—$130 million—for Lendbuzz is in the form of debt financing from four banks and an insurance company to fund car loans through the startup’s platform. The rest is an equity investment led by venture capital investor 83North.
Soros, Innovation Endeavors Provide Fresh Funding for AlphaSense (Institutional Investor), Rated: A
AlphaSense has attracted $50 million from investors including Soros Fund Management and Innovation Endeavors, in a fresh round of funding that will help the company expand its artificial-intelligence-powered offering for asset managers.
House Democrats draft bill to keep big tech out of financial services (Yahoo! Finance), Rated: A
According to the draft bill, titled “Keep Big Tech Out Of Finance Act,” companies in violation would face a $1 million daily fine.
The legislation would apply to companies with $25 billion or more in annual revenue.
San Jose payday-advance startup faces racial discrimination, retaliation lawsuit (The Mercury News), Rated: A
A former manager at PayActiv, a San Jose startup that provides payday advances, is accusing the company of racial discrimination and questionable business practices.
Ibarra said in his lawsuit that he was the only Hispanic employee when he was hired in 2014, the year the company was founded. The co-founders are of Pakistani descent, the suit said.
Pedro Ibarra said he was fired because he complained about being harassed by the company’s founders over his ethnicity, and because he raised concerns about PayActiv’s handling of user data and whether the company is acting like a regular payday lender and therefore should be classified as a creditor.
New apps competing for your money can have hidden costs (ABC Action News), Rated: A
A new crop of digital wallets, apps and financial tech companies are fighting for customers’ banking business. The push comes as federal data shows the Tampa Bay region hit a six-year high for the number of people living without banking accounts or easy access to credit.
CrediVia Brings New Experience to Multifamily Financing (BusinessWire), Rated: A
CrediVia launched last fall as a hospitality financing marketplace intent on driving smarter decisions and stronger engagement in the loan process. Today the company has announced expanded platform capabilities to execute multifamilydeals as well, part of its ongoing mission to become the preferred source for more effective and transparent commercial real estate lending.
SEC Posts Final Judgement in Enforcement Action Against Founders of iFunding (Crowdfund Insider), Rated: A
The Securities and Exchange Commission (SEC) has posted final judgments in the case of real estate crowdfunding platform iFunding and co-founders William Skelley and Sohin Shah. The two founders were charged last year by the SEC Enforcement Division regarding allegations of fraud in the misappropriation of over $1.17 million from investors. The final judgments against Skelley and Shah were obtained this month.
Lending Express evolves into Become (Become email), Rated: B
Lending Express has rebranded to businesses withopportunities to improve fundability, secure funding, and ultimately become more.
Cross River Names Global Finance Veteran Melissa Ballenger As CFO (Yahoo! Finance), Rated: B
Cross River Bank (“Cross River”) today announced that it has appointed Melissa Ballenger as its Executive Vice President and Chief Financial Officer, effective immediately.
SecurCapital Acquires Breakout Capital Finance’s Lending Business (PR Newswire), Rated: B
SecurCapital Corp, an expanding supply chain and financial services provider headquartered in California, today announced the acquisition of the lending business of Breakout Capital Finance, a fintech company and nationwide small business lender. SecurCapital is also providing additional equity capital to drive growth in Breakout Capital Finance’s two primary lending products: its highly regarded and innovative term-loan product and its FactorAdvantage lending solution for small businesses that utilize factoring to finance their business. The acquired lending business assets will be operated by a subsidiary of SecurCapital that will conduct business as Breakout Capital.
CheapAir.com Expands “Travel Now, Pay Later” Option (Yahoo! Finance), Rated: B
Online travel agency CheapAir.com today announced an expansion of its travel budgeting tool in partnership with Affirm, giving customers the opportunity to prequalify for a travel budget and then book and pay for all elements of their trip over time.
Each year the online loan marketplace LendEDU ranks programs based on its 50-point scale. This year, the Sokolov-Miller Family Center moved up two positions, tying for 13th place.
Community Capital Appoints New Board Member, Camden R. Fine (Yahoo! Finance), Rated: B
Community Capital Technology Inc. (“CCT”), a digital loan transaction marketplace for community banks, regional banks, and other non-bank originators and credit investors, today announced the appointment of Camden (“Cam”) R. Fine, former President & CEO of the Independent Community Bankers Association (ICBA), to its Board of Directors.
Curve raises $ 55M at a $ 250M valuation (TechCrunch), Rated: AAA
Curve, the London-based “over-the-top banking platform,” has raised $55 million in new funding. The startup lets you consolidate all of your bank cards into a single Curve card and app to make it easier to manage your spending and access other benefits.
Curve’s Series B round is led by Gauss Ventures, the London-HQ’d fintech investor, alongside Creditease, IDC Ventures and previous backer Outward VC (formerly Investec’s INVC fund).
What will the appropriateness test actually look like? (P2P Finance News), Rated: AAA
IT’S OFFICIAL – the Financial Conduct Authority (FCA) will soon make it mandatory for all peer-to-peer platforms to introduce an “appropriateness test” for new investors.
The purpose of the test will be to weed out any unsuitable lenders, and any potential lenders who do not fully understand the risks associated with P2P.
Uber, Lyft share prices: as tech IPOs disappoint, how can investors spot winners? (CMC Markets), Rated: AAA
Funding Circle [FCH], an online lending platform that enables individuals and companies to lend to small businesses, is the latest example of a hyped IPO from a business yet to turn a profit. A few lacklustre earnings announcements later, it appears the stock was indeed overvalued.
What metrics can traders look out for when weighing up a stock amid such an increasing amount of cash-burning companies looking to go public?
Lendy administrator outlines the state of collapsed P2P lender’s loanbook (P2P Finance News), Rated: A
LENDY investors are likely to receive an average of 57p on the pound for development finance and 58p for every pound from bridging loans funded on the collapsed peer-to-peer lending platform.
The document shows that 22 of the 29 bridging loans made via the platform are in insolvency proceedings, with 14 out of 25 development loans in the same situation.
The document reveals the outstanding value of the bridging loans is £36m, secured against assets historically valued at £81m.
Rishi Khosla of OakNorth (Lend Academy), Rated: A
In this podcast you will learn:
- The incident that was the seed of the idea for OakNorth.
- Why fast growth companies have trouble raising debt capital.
- The range of loan sizes, terms and interest rates that OakNorth offers.
- Why they started with building a tech platform first.
- How their underwriting process works and what they have automated.
- Rishi’s thoughts on defaults and his famous “zero defaults to date” quote.
- How they are funding their loans in the UK.
- Why the US is a core market for OakNorth’s international expansion.
- Who they are offering the platform to in the US.
- Why the “ai” in Oaknorth.ai stands for analytical intelligence.
- The geographies where they are live today.
- Why they will not be getting a banking license in markets outside the UK.
- Why OakNorth launched a mortgage product for UK entrepreneurs.
- How SoftBank is helping OakNorth beyond providing capital.
- How OakNorth is attacking the Chinese market.
- How Rishi is spending his time these days.
OAKNORTH LENDS £19.5M TO CARE CONCERN GROUP TO SUPPORT ALPHA REAL CAPITAL OPERATING CARE HOMES (Business Leader), Rated: B
OakNorth Bank has provided a £19.5m loan to Care Concern Group, a UK-based care home operator.
$ 2.9 Billion in Deals in 2019 on Track to Top Year Prior (Crowdfund Insider), Rated: A
Innovate Finance has just published its Q2 UK Fintech investment report tallying activity for the first half of 2019.
The most recent report from Innovate Finance, covering Q1 of 2019, indicated that overall investment into Fintech, including venture capital, angel investing, private equity etc., topped $1 billion. In brief, Fintech boomed in Q1 as the industry experienced a 41% growth versus the prior quarter (Q4). Comparing to Q1 of 2018 it quadrupled.
Latest UK fintech investment figures reflect the evolution of the sector (ComputerWeekly), Rated: A
Investment in UK fintechs in the first half of this year was £2.9bn, which is 85% of the total invested in 2018, according to figures from fintech industry body Innovate Finance. It is also 45% higher than the same six month period last year. London based companies took 90% of this.
For example challenger banks including OakNorth ($440m), Monzo ($147m) and Starling Bank ($98m) got the most significant investments. In payments and foreign exchange sectors Checkout.com ($230m), WorldRemit ($175m) and GoCardless ($76m) were major recipients.
Could ‘bad credit’ credit cards be more expensive than a payday loan? (Which?), Rated: A
Around four million people in the UK have subprime credit cards, charging interest ranging from 30% to 70% – compared to the average 20% APR on mainstream deals.
P2PFA looks to woo intermediaries (P2P Finance News), Rated: A
THE PEER-TO-PEER Finance Association (P2PFA) is looking at ways of boosting distribution for members.
LendIt Fintech Europe 2019 Preview (Lend Academy), Rated: A
LendIt is returning to London again for the sixth annual LendIt Fintech Europe event. It will be held on 26 – 27 September at the same location as last year, the Business Design Centre. We are expecting well over 1,000 people at the event this year.
Some of the featured keynote speakers this year will be:
- Rishi Khosla – CEO, OakNorth
- Jaidev Janardana – CEO, Zopa
- Anne Boden – CEO, Starling Bank
- Rhydian Lewis – CEO, Ratesetter
- Husayn Kassai – CEO, Onfido
- Tamaz Georgadze – CEO, Raisin
How Jules B uses tech to stay ahead online (Essential Retail), Rated: B
Independent luxury fashion retailer Jules B has six stores across the Lake District an Newcastle, as well as a strong online presence.
To that end it has been working with fintech company Klarna to provide more payment options, which he says allows it to “compete in that marketplace for the younger generation.”
Ping An-backed Lufax to ditch P2P lending on regulatory woes (Reuters), Rated: AAA
Lufax, one of China’s largest online wealth management platforms that is backed by financial giant Ping An Insurance (601318.SS), plans to exit its once-core peer-to-peer lending (P2P) business, three sources with direct knowledge of the matter told Reuters.
China slowdown, trade dispute hurt global carmakers (DW.com), Rated: A
The Chinese auto sector has been under a lot of pressure over the past 18 months, hurt by an economic slowdown that has dented consumer confidence, the ongoing trade dispute between Beijing and Washington, and the government’s crackdown on peer-to-peer lending. Looming stricter emissions rules are also causing Chinese buyers to wait to buy new cars.
China rich with opportunity for fintech talent (China Daily), Rated: A
China is on the cutting edge of the fintech industry and promises great opportunities for fintech talent, fuelled by a rising demand for financial services and technology professionals, according to Hays plc, a global professional recruiting group.
Bitcoin Suisse Applies for Banking License with Swiss Regulators (BTC Manager), Rated: A
As stated in its press release, the leading Swiss-based regulated cryptocurrency broker and financial services provider, has applied for a banking license with FINMA, following the Swiss Banking Act Art. 1a.
The firm claims it has also achieved several significant milestones in recent months, including the expansion the number of tradable digital assets, with more than 6,000 trading pairs, as well as the provision of a large scale collateralized crypto lending service to its institutional clients.
Goldman, UK’s Lendable Strike £200M Deal (PYMNTS), Rated: AAA
Goldman Sachs and personal loan startup Lendable from the U.K. have reached a £200m deal, in a sign of Goldman’s confidence in the startup, according to a report by the Financial Times.
A conversation with Zac Prince, Founder, CEO, BlockFi (The Block Crypto), Rated: A
Zac Prince is CEO of BlockFi, which helps crypto investors manage digital assets and grow their net worth through services such as Bitcoin loans. Frank Chaparro and Ryan Todd discuss the complexity of crypto loans and the future of the industry.
P2P lender joins another aggregator’s panel (Australian Broker), Rated: AAA
RateSetter’s personal loans and secured automotive offering will be made available to Australian Finance Group’s (AFG) broker network of over 2,900 from 22 July.
The P2P lender provides risk-based pricing for its personal loans, with interest rates starting at 5.49%. The loans range from $2,001 to $45,000 for terms between six months to five years. Creditworthy borrowers typically gain access to finance within 24 hours of filling out the five-minute application.
SME lender expands presence within Australia (Australian Broker), Rated: A
OnDeck Australia has joined the lending panel at Finance & Systems Technology (FAST), in an arrangement that will help facilitate more opportunities for FAST brokers interested in expanding into the SME lending channel.
X factor mortgages: The lenders offering more than just hot rates (Mozo), Rated: A
With the official cash rate sitting at just 1.00% following two RBA rate cuts, you may have noticed a flurry of home loan rate drops, with some lenders slashing rates towards the 3.00% mark and below.
Smaller Banks in Singapore Are at Risk As Fintechs Eye Digital Banking License (Fintech News), Rated: AAA
Competition is heating up in Singapore’s digital banking landscape as an increasing number of fintechs including e-wallet operators and payment services providers are looking to apply for when applications open in August.
Strong contenders for the Singapore’s digital bank licenses
Liquid Group, Xfers, MatchMove Pay, FOMO Pay, Razer and Singtel would be competing against the likes of Grab, Southeast Asia’s ride-hailing giant and the region’s first “decacorn,” Validus Capital, a peer-to-peer lending platform, and InstaReM, a remittance startup, which are also eyeing a digital bank license.
In June, the Monetary Authority of Singapore (MAS) said that it will issue up to five new digital bank licenses, comprising up to two digital full bank licenses and up to three digital wholesale bank licenses.
Accountants have critical role in helping businesses fight cybercrime (Channel News Asia), Rated: A
Finally, accountants should also focus on financial crime compliance, which must evolve to keep up with new business models such as peer-to-peer lending, the minister said.
Give your BBQ the royal treatment (The Daily Courier), Rated: AAA
Ramsey will also introduce HousingHub, a new initiative for B.C. Housing to provide more affordable rental and ownership housing for middle-income individuals and families.
Small businesses can apply for a short-term loan of up to $250,000 online, and if they qualify, the funds can be delivered electronically to the business in as little as one business day.
The agreement will use OnDeck’s data analytics and digital technology to make real-time lending decisions and Coast Capital Savings to provide the financing.
News Comments Today’s main news: FDIC opens comments on Special Purpose National Bank charters. Plaid raises $250M. P2PFA member lending exceeds 10B GBP. ThinCats raise 200M GBP. Bondora originates almost 8M euro in loans in November. Klarna joins Shopify Plus Partner Program. Nubank launches debit card. Today’s main analysis: Trends in credit card debt. Today’s thought-provoking articles: Consumer credit market poised […]
- Today’s main news: FDIC opens comments on Special Purpose National Bank charters. Plaid raises $250M. P2PFA member lending exceeds 10B GBP. ThinCats raise 200M GBP. Bondora originates almost 8M euro in loans in November. Klarna joins Shopify Plus Partner Program. Nubank launches debit card.
- Today’s main analysis: Trends in credit card debt.
- Today’s thought-provoking articles: Consumer credit market poised for 2019 growth. Single women own more homes than single men. How subprime personal loans will fare under Trump. Payday lending woes in Australia.
- FDIC seeks comments on fintech bank charters. The Trump Administration may have just opened the door wide for OCC bank charters. They want to encourage more bank startups, which is good if they are the right bank startups. More of the same won’t cut it.
- Plaid raises $250 million at $2.65 billion valuation. Congratulations!
- Consumer credit market poised for more growth in 2019. This is welcome news, but how will this play against a recession if pundits’ predictions for an economic slump play out?
- Trends in credit card debt. From Wallet Hub, some excellent insight into credit card debt. Some great charts showing the trends.
- Subprime personal loans are expected to flourish in 2019. Unsecured personal debt is on the rise.
- Cities with highest, lowest credit card debt.
- Single women own more homes than single men.
- Large banks service few mortgages.
- How underwriters view mortgage lending.
- Galaxy Digital leads $30 million funding round for Good Money. Crypto lending is in.
- Investors’ Harbour launche new real estate fund.
- Bloqboard launches new feature for lenders.
- Wyre, bZx partner on decentralized margin lending.
- P2PFA member lending exceeds 10 billion GBP. Excellent milestone. It should continue to go higher.
- ThinCats raises 200 million GBP. Congratulations.
- iwoca partners with Barclay, HSBC on open banking.
- Tide has 1% of SME banking market.
- Challenger banks are more appealing than traditional banks for employees.
- Sancus tightens credit processes.
- OakNorth to launch operation in Manchester.
- Starling Bank dds Onedox to marketplace.
- Bondora originates almost 8 million euro in loans in November. Congratulations. Another great achievement.
- LendIt Fintech Europe 2018 slide presentations.
- Spotcap increases credit lines.
- YouHodler tops the crypto lending market.
- Alt finance is vital to SMEs.
- Brazil: Nubank launches debit card.
- Australia: Payday loan applicants asked to hand over bank account passwords.
- Indonesia: 400 online lending sites shut down.
- South Korea: Toss raises $80 million.
- China Lending intros B2B supply chain financing.
- Singapore: Points helps the unbanked with the blockchain.
- Africa: Experian to acquire Compuscan.
- China: The best and worst of fintech.
- Indonesia: Authorities asked to expose identities of violating online loan services.
- United States
- FDIC Embraces FinTech (PeerIQ), Rated: AAA
- Fintech startup Plaid raises $ 250M at a $ 2.65B valuation (TechCrunch), Rated: AAA
- U.S. Consumer Credit Market Poised for More Growth in 2019 (TransUnion), Rated: AAA
- Credit Card Debt Study: Trends & Insights (Wallet Hub), Rated: AAA
- 2019’s Cities with the Highest & Lowest Credit Card Debts (Wallet Hub), Rated: A
- A Different Kind of Gender Gap: Homeownership Is More Common Among Single Women Than Single Men (LendingTree), Rated: AAA
- OCC sees sharp drop in mortgages serviced by large banks (American Banker), Rated: A
- How Do Underwriters View Mortgage Lending? (Progress in Lending), Rated: A
- Subprime personal loans will flourish in 2019 thanks to startups and Donald Trump (Quartz), Rated: AAA
- Galaxy Digital Leads $ 30 Million Funding for Social-Crypto Startup Good Money (CoinDesk), Rated: A
- Half of Americans think using sharing services is risky (Biz Journals), Rated: A
- Investors’ Harbour Launches New Fund That Will Finance the Development of Hawaii’s Newest Master-Planned Community (Investors’ Harbour), Rated: B
- Dharma-based Crypto Lending Platform Bloqboard Launches New Feature to Empower Lenders (Crypto Coin Spy), Rated: B
- Wyre partners with bZx, the protocol that powers decentralized margin lending (Cryptoninjas), Rated: B
- United Kingdom
- P2PFA member lending exceeds £10bn (P2P Finance News), Rated: AAA
- Peer-to-peer platform ThinCats secures £200m funding deal (AltFi), Rated: AAA
- Iwoca adds Barclays and HSBC to Open Banking connections (Finextra), Rated: A
- Tide accounts for 1 per cent of UK’s SME banking market (AltFi), Rated: A
- UK recruiters say challenger banks and fintech businesses are now more appealing to candidates than traditional banks (Onrec), Rated: A
- Sancus tightens credit processes amid no-deal Brexit fears (P2P Finance News), Rated: A
- OakNorth to launch lending operation in Manchester as demand for its SME loans in the North of England continues to rise (Fintech Finance), Rated: B
- Starling Bank Adds Onedox to Its Marketplace (coverageR), Rated: B
- China Lending Expands B2B Offerings With Supply Chain Service (PYMNTS), Rated: AAA
- Best/Worst Bets In Chinese Fintech (Seeking Alpha), Rated: A
- European Union
- P2P Lender Bondora Reports Almost €8 Million in Originations for November (Crowdfund Insider), Rated: AAA
- LendIt Fintech Europe 2018 Slide Presentations Now Live (LendIt.com), Rated: A
- Spotcap increases credit lines to EUR 300M (Spotcap email), Rated: A
- YouHodler – Top Crypto Lending Platform on the Market (NewsBTC), Rated: A
- Alternative finance ‘becoming vital’ for SMEs in north (The Irish News), Rated: A
- Klarna Joins Shopify Plus Partner Program To Power High-Growth Merchants (PR Newswire), Rated: AAA
- Cred Opens Crypto Corporate Lending Platform To Developers (PYMNTS), Rated: A
- Payday loan applicants asked to hand over bank passwords, inquiry hears (The Guardian), Rated: AAA
- 400 Online Lending Sites, Fintech Platforms Being Shut Down (Tempo.co), Rated: AAA
- LBH Urged to Expose Identities of Violating Online Loan Services (Tempo.co), Rated: B
- South Korea is getting its first fintech unicorn (Business Insider), Rated: A
- How these Amazon and Xiaomi alums are helping the unbanked with blockchain (Tech in Asia), Rated: A
- Latin America
- Brazilian Fintech Nubank Launches Debit Card To Reach 120M Clients (Forbes), Rated: AAA
- Experian to acquire African credit info firm Compuscan for $ 263m (Fintech Futures), Rated: AAA
FDIC Embraces FinTech (PeerIQ), Rated: AAA
Formation of new banks post-crisis is historically low. More banks have failed since 2009 than have new banks opened.This trend could leave some communities severely underbanked.
The FDIC wants to encourage new banks to startup and wants innovative FinTech firms to be part of that process. The agency wants to streamline its application process and is seeking comments on how that can be done.
The OCC’s Special Purpose National Bank (SPNB) charter allows FinTechs to operate as banks.
Fintech startup Plaid raises $ 250M at a $ 2.65B valuation (TechCrunch), Rated: AAA
The company is today announcing a $250 million Series C investment led by famed venture capitalist and the author of the Internet Trends reportMary Meeker, who will join its board of directors as part of the deal. The funds were raised at a valuation of $2.65 billion, according to sources close to the company. Capital from Meeker’s investment came from Kleiner Perkins’ growth fund — where Meeker has been a partner since 2010 — not from the reported billion-dollar-plus solo fund she’s in the process of raising.
U.S. Consumer Credit Market Poised for More Growth in 2019 (TransUnion), Rated: AAA
Low unemployment rates and continued positive growth in both GDP and real disposable income are among the key drivers that will propel the U.S. consumer credit market in 2019. Partly due to the strong performance of these economic indicators, TransUnion’s (NYSE: TRU) 2019 consumer credit forecast found that originations and consumer balances are expected to increase for most credit products, while serious delinquency rates will likely decline or remain steady.
A few outliers in the forecast come by way of serious credit card delinquency rates and originations as well as mortgage originations. Credit card delinquency rates are expected to rise from 1.94% in Q4 2018 to 2.04% in Q4 2019 as a shift toward more non-prime consumers with access to credit cards will likely negatively impact originations and consequently the serious delinquency rate.
TransUnion Forecast: Top Consumer Credit Trends for ‘19
Trend #1: There’s Room for Growth in Personal Loans
Personal loans continue to display signs of strength, and total balances are expected to climb 20% to an all-time high of 156.3 billion by the end of 2019.
Trend #2: Affordability May Impact the Auto Industry
It’s also worth noting that the number of auto loan originations is expected to end 2018 at 28.5 million and grow to 29.4 million in 2019. This is a significant increase from recent years (27.5 million in 2017, 28.3 million in 2016, 28.0 million in 2015). This growth is expected to be driven from both ends of the risk spectrum. Yet as the growth continues, the serious delinquency rate is anticipated to remain muted, ticking up to 1.44% in Q4 2019, an increase from the expected 1.43% in Q4 2018 and the 1.43% mark observed in Q4 2017.
Trend #3: Homes Becoming More Expensive, but Home Equity Increases Could Be a Boon to Consumers
Mortgage originations have declined the past several quarters, a trend that is expected to continue into 2019. Rising interest rates, increasing home prices, and supply constraints are driving lower origination numbers. Average balances will continue to trend upward in 2019, growing from an anticipated $208,831 at the end of Q4 of this year to $218,490 by the end of Q4 2019, a 4.6% increase.
Trend #4: More Near Prime Consumers will Carry a Credit Card
Near prime consumers are expected to increase their origination share to 19.1% in 2019, up from 18.3% in 2018.
Credit Card Debt Study: Trends & Insights (Wallet Hub), Rated: AAA
Americans repaid $40.8 billion in credit card debt during Q1 2018 – the second-largest quarterly payoff ever. But we added almost $38 billion back to our tab in Q3 and Q2 2018. We also began the year owing more than $1 trillion in credit card debt for the first time ever, after adding $87.3 billion to our tab in 2017.
The $38 billion in credit card debt added during Q2 and Q3 2018 has nearly wiped out consumers’ large first quarter pay-down.
We ended 2017 with $87.3 billion in new credit card debt, and WalletHub projects a $70 billion increase in 2018 by the end of the year.
2019’s Cities with the Highest & Lowest Credit Card Debts (Wallet Hub), Rated: A
A Different Kind of Gender Gap: Homeownership Is More Common Among Single Women Than Single Men (LendingTree), Rated: AAA
- Single women own considerably more homes than single men do. On average, single women own around 22% of homes, while single men own less than 13% of homes.
- Oklahoma City was the metropolitan area where single men own the largest share of owner-occupied homes, at 16%. Even though single men own a greater proportion of homes in Oklahoma City than they do elsewhere in the country, they still own fewer homes than single women, who own 24% of residential properties in the area.
- New Orleans was the metropolitan area where single women own the largest share of owner-occupied homes. In this area, single women own nearly twice as many homes than single men do: 27% compared with 15%.
P2PFA member lending exceeds £10bn (P2P Finance News), Rated: AAA
PEER-TO-PEER Finance Association (P2PFA) platforms have cumulatively lent out more than £10bn, according to the trade body’s latest data.
Peer-to-peer platform ThinCats secures £200m funding deal (AltFi), Rated: AAA
The money comes from BAE Systems Pensions and is the second significant loan funding deal struck by ThinCats in the last few months.
Iwoca adds Barclays and HSBC to Open Banking connections (Finextra), Rated: A
iwoca, the UK’s fastest growing small business lender, today announces it has connected to Barclays and HSBC banks under Open Banking.
Tide accounts for 1 per cent of UK’s SME banking market (AltFi), Rated: A
Digital business bank Tide has reached 56,000 SME customers, accounting for one per cent the UK’s 5.6m SMEs. The bank has more than doubled the number of customers using its services in the last 12 months.
UK recruiters say challenger banks and fintech businesses are now more appealing to candidates than traditional banks (Onrec), Rated: A
- 55% of recruiters and HR managers have seen an increase in hiring rates over the last five years
- Half of UK recruiters and HR managers have seen an increase in demand for AI, cryptocurrency and blockchain skills
- 55% say the number of roles requiring these emerging tech skills has outstripped the number of available candidates
- 32% of recruiters say traditional banks are the least appealing FS organisations to candidates, whilst cryptocurrency businesses are top
Sancus tightens credit processes amid no-deal Brexit fears (P2P Finance News), Rated: A
SANCUS BMS has prepared itself for a no-deal Brexit and tightened its credit processes to protect itself from a market slowdown, its chief executive has said.
Starling Bank Adds Onedox to Its Marketplace (coverageR), Rated: B
Founded in 2015 with £1m in funding, Onedox helps people manage household bills and expenses by allowing them to connect their different accounts including gas, electric, internet, mobile, and insurance. The service – which is free of charge – allows users to stay on top of their bills while receiving personalized recommendations for saving money by switching to new providers.
China Lending Expands B2B Offerings With Supply Chain Service (PYMNTS), Rated: AAA
China Lending Corporation has announced the launch of its new supply chain financing services, which include a business factoring program.
In addition, China Lending has acquired 98.04 percent equity interest in Hangzhou Zeshi Investment Partners, which will enable China Lending to launch its new supply chain financing services in the near future, including financing products design, related corporate financing solutions, investments and asset management, and more.
Best/Worst Bets In Chinese Fintech (Seeking Alpha), Rated: A
China’s financial technology, or fintech, sector, has suffered this year due to a slowing economy and stricter financial regulation. In the peer to peer lending sector, hundreds of firms have shut down due to inability to comply with regulations or insolvency. So, what can we expect from this industry in the near future?
P2P Lender Bondora Reports Almost €8 Million in Originations for November (Crowdfund Insider), Rated: AAA
Peer to peer lending platform Bondora says loan originations almost hit €8 million during the month of November. This follows a record-breaking month of October
In November, Bondora issued €7,894,070 of new loans, just ahead of the record set for originations in the previous month of €7,802,163.
LendIt Fintech Europe 2018 Slide Presentations Now Live (LendIt.com), Rated: A
Thanks to everyone who joined us at LendIt Fintech Europe 2018. Below you will find all of the presentations from the event. You can also view the photos from LendIt Fintech Europe 2018.
- Joel Perlman, OakNorth Holdings – The OakNorth Growth Story – from Startup to Profitable Unicorn
- June Ou, Figure – Blockchain: Creating the Future of Financial Services
- John Goodall, Landbay – Misconceptions of the UK Buy-to-Let Market Today
Get the full schedule here.
Spotcap increases credit lines to EUR 300M (Spotcap email), Rated: A
YouHodler – Top Crypto Lending Platform on the Market (NewsBTC), Rated: A
YouHodler is a crypto-backed loan service provider. This established blockchain platform allows users to acquire loans instantly, by leveraging their cryptocurrencies for EUR or USD.
The company offers the highest loan-to-value ratio in the entire industry – up to 80%. And, unlike its competitors, it accepts five of the top cryptocurrencies as collateral, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ripple. Short-term loans are available at a low interest rate of just 2.5%.
Alternative finance ‘becoming vital’ for SMEs in north (The Irish News), Rated: A
THE ability for small businesses in Northern Ireland to access alternative forms of finance has become a vital factor in their successful growth, the head of a Belfast accountancy firm insists.
Since the financial crash and credit crunch, the funding void left by traditional lenders has been filled by boutique funders and alternative finance, which can allow SMEs to access finance for a variety of different needs, from long term investment through to funding for short term working capital.
Klarna Joins Shopify Plus Partner Program To Power High-Growth Merchants (PR Newswire), Rated: AAA
Klarna announced today that they are among the first payment service providers to join the Shopify Plus Technology Partner Program, focusing on high-growth and high-volume merchants. This integration will allow merchants in Germany, the UK and the US to easily implement Klarna’s smoooth payment suite and offer a superior customer experience and thereby unlock additional growth potential.
Cred Opens Crypto Corporate Lending Platform To Developers (PYMNTS), Rated: A
In a press release on Tuesday (Dec. 11), Cred revealed the rollout of its developer platform CredX (not to be confused with the new credit card accounts payable solution recently launched by Finexio). The Crypto-Lending-as-a-Service (CLaaS) solution enables other crypto companies — including exchanges, crypto wallets or mining services — to integrate Cred’s lending functionality into their own solutions. Its set of application program interfaces (APIs) enable businesses to use crypto as collateral to access corporate financing products.
Payday loan applicants asked to hand over bank passwords, inquiry hears (The Guardian), Rated: AAA
A new parliamentary inquiry has begun scrutinising the behaviour of payday lenders, buy-now-pay-later firms, and credit repair agencies.
Vulnerable Australians are agreeing to share their internet banking passwords so payday lenders can see their transaction history before lending them money, an inquiry has heard.
400 Online Lending Sites, Fintech Platforms Being Shut Down (Tempo.co), Rated: AAA
Communication and Informatics (Kominfo) Minister Rudiantara said the ministry had shut down 400 financial technologies (fintech), consisted of sites and applications, related to fraud cases on online loan services that are recently rampant in Indonesia.
LBH Urged to Expose Identities of Violating Online Loan Services (Tempo.co), Rated: B
The Indonesian Fintech Joint Funding Association (AFPI) asked the Jakarta Legal Aid Institute (LBH) to open the identities of 25 peer to peer (P2P) lending organizers or registered online loan services that are said to have made violation.
South Korea is getting its first fintech unicorn (Business Insider), Rated: A
South Korean fintech Toss has raised an $80 million funding round led by US-based firms Kleiner Perkins and Ribbit Capital, with participation from Altos Ventures, Bessemer Venture Partners, PayPal, and Qualcomm Ventures, among others. This brings Toss’ valuation to $1.2 billion, making it the latest fintech unicorn globally, and Korea’s first.
Toss started out offering peer-to-peer (P2P) payments, but has since added other services —including insurance, investments, savings accounts, credit score management, and a financial dashboard that allows users to see all of their finances in one place — by partnering with third parties. Toss already has 10 million registered users, meaning it reaches around 20% of Korea’s population with its services.
How these Amazon and Xiaomi alums are helping the unbanked with blockchain (Tech in Asia), Rated: A
“A lot of the traditional models are not applicable to onboard those people into financial systems,” says Sarah Zhang, co-founder of Singapore-based Points.
That’s where Points – also called PTS – picks up the slack. Founded last year, the blockchain-powered startup uses AI and big data to assess factors like an individual’s occupation, bill payments, and shopping activities to calculate a credit score.
Brazilian Fintech Nubank Launches Debit Card To Reach 120M Clients (Forbes), Rated: AAA
Brazilian fintech Nubank has launched a debit function for its card offering as well as the ability to withdraw cash from ATMs, in a move that aims to extend its reach to as many as 120 million customers.
Experian to acquire African credit info firm Compuscan for $ 263m (Fintech Futures), Rated: AAA
News Comments Today’s main news: SoFi sees $12M loss in Q3. RealtyShares not seeking new deals, lays off employees. Nested raises 120M GBP. Nubank partners with Tencent. LendingClub sets up shop in Lehi. Today’s main analysis: Earnings recap for Enova, GreenSky, LendingClub, OneMain, and OnDeck. Today’s thought-provoking articles: LendingTree personal loan offers report for October 2018. Online lenders gain from […]
- Today’s main news: SoFi sees $12M loss in Q3. RealtyShares not seeking new deals, lays off employees. Nested raises 120M GBP. Nubank partners with Tencent. LendingClub sets up shop in Lehi.
- Today’s main analysis: Earnings recap for Enova, GreenSky, LendingClub, OneMain, and OnDeck.
- Today’s thought-provoking articles: LendingTree personal loan offers report for October 2018. Online lenders gain from behaving like banks. LendInvest looks outside of London for Buy to Let opportunities. China faces P2P lending scandals dilemma.
- SoFi Q3 losses hit $12 million. It may seem that P2P lending has hit a wall with these kinds of numbers coming from several quarters, however, I tend to think of this as growing pains while the industry is standing face to face with maturity.
- RealtyShares cuts staff, places moratorium on new deals. Not a good sign, but other real estate crowdfunding sites seem to be doing well.
- Earnings recap for online lenders. PeerIQ looks at Enova, GreenSky, LendingClub, OneMain, and OnDeck. Revenues are looking good. OnDeck appears to be recovering nicely. Despite $23 million in losses, LendingClub’s stock price increased, but what happened to GreenSky’s? Was it overvalued?
- LendingTree personal loan offers report. Average loan amounts per APR are up for each level of credit score compared to one year ago, except for the 640-679 range.
- Online lending gains from behaving like banks. And this is what banks are afraid of.
- LendingClub sets up in Lehi.
- Interview with Jason Brown of Tally.
- 5 business loans available 24/7.
- AFR pays agent fees for VA loans.
- Elevate appoints chief credit officer.
- Unchained Capital boosts crypto loan security. Learn more about Unchained Capital and other crypto lenders here.
- Finitive taps CEO of First Associates to be strategic advisor.
- Nested raises 120 million GBP. Congratulations.
- LendInvest looks outside of London for Buy-to-Let opportunities.
- Starling Bank partners with post office.
- Government faces P2P lending scandals dilemma.
- Pintec partners with Evercare for installment financing.
- United States
- Online Lender SoFi Sees $ 12M Loss In Q3 (PYMNTS) Rated: AAA
- RealtyShares Is the Latest Casualty of Real Estate Finance Disrupters (Propmondo) Rated: AAA
- FinTech Earnings Recap (Peer IQ) Rated: AAA
- LendingTree Personal Loan Offers Report – October 2018 (LendingTree) Rated: AAA
- Online lending: US fintechs gain from behaving more like banks (Financial Times) Rated: AAA
- Silicon Valley company setting up shop in Silicon Slopes (Daily Herald) Rated: AAA
- Jason Brown of Tally (Lend Academy) Rated: A
- 5 Business Loans you can get 24/7 (Nav) Rated: A
- AFR Pays Agent Fees for VA Loans (PR Newswire) Rated: A
- Elevate Appoints Company and Industry Veteran as Chief Credit Officer (Business Wire) Rated: B
- Lending Platform Unchained Capital Boosts Security for Crypto Loans (BlockTelegraph) Rated: B
- Finitive Taps CEO Of First Associates As Strategic Advisor (SYS-CON Media) Rated: B
- United Kingdom
- Nested, the online estate agent that makes home sellers “chain-free”, raises further £120M (TechCrunch) Rated: AAA
- LendInvest Sees Opportunity in Buy to Let Outside London (Crowdfund Insider) Rated: AAA
- Starling Bank keeps you posted with Post Office (Fintech Future) Rated: A
- Chinese government faces peer-to-peer lending scandals dilemma (Financial Times) Rated: AAA
- Chinese Fintech Pintec Forms Partnership With Beijing Evercare For Installment Financing (Crowdfund Insider) Rated: A
- European Union
- 10 Reasons to Attend LendIt Fintech Europe 2018 (Lendit) Rated: A
- Nubank announces Tencent as new strategic partner and investor (Fintech Zoom) Rated: AAA
- Five ways banks are responding to the fintech threat (Financial Times) Rated: A
- Online fintech marketplace to launch at Singapore FinTech Festival (Channel News Asia) Rated: AAA
Online Lender SoFi Sees $ 12M Loss In Q3 (PYMNTS) Rated: AAA
Online lender Social Finance (SoFi) continues to struggle, recording an adjusted loss of around $12 million during the third quarter before interest, taxes, depreciation and amortization. The FinTech company has now recorded losses for the second consecutive quarter. In August, it posted a second quarter loss of about $200 million.
According to The Wall Street Journal (WSJ), the earnings losses follow an adjusted profit of $56 million in Q3 of 2017. Loan volume has fallen for two straight quarters under Anthony Noto, who took over as CEO in March. In fact, the company revealed in an investor letter that it had extended around $2.5 billion in refinanced student, unsecured consumer and mortgage loans in the third quarter, falling nearly 30 percent from the same period a year ago.
RealtyShares Is the Latest Casualty of Real Estate Finance Disrupters (Propmondo) Rated: AAA
One of these companies was ReatlyShares. Started in 2013 they raised $58 million from leading venture capital firms and started connecting investors with projects with as little as a $1,000 investment minimum. Five years later the company is announcing that they are laying off most of their employees and are no longer seeking new deals. The exact reason for the demise is still uncertain but a few factors could have contributed.
FinTech Earnings Recap (Peer IQ) Rated: AAA
We analyze the earnings of Enova (ENVA), GreenSky (GSKY), LendingClub (LC), OneMain (OMF) and OnDeck (ODK). All lenders delivered high-double digit revenue growth YoY. ENVA’s revenues grew 35% YoY, and GSKY’s revenue grew 29% YoY, albeit from a low base. Originations also grew by double digits YoY, with originations at GSKY growing by 33% YoY.
Lenders have raised their borrowing rates, although well below the rate of Fed Rate increases leading to margin compression. In the last 12 months, LendingClub, for instance, has raised interest rates across the credit spectrum by between 49 bps and 114 bps, while the Fed has raised short-end rates by 100 bps. The flattening yield curve is raising the cost of borrowing on lenders’ credit facilities which are benchmarked to short-term interest rates. Overall, lenders and investors are experiencing margin compression. By contrast, large banks continue to issue deposits at ultra-low rates (< 6 bps for large money center banks) and have benefitted from rising rates.
Stock price performance post earnings has been good in a relatively volatile market. Margin compression at GreenSky disappointed investors and the stock slid by over 35% after earnings. All other stocks gained post earnings with OnDeck up by nearly 33%.
- Enova’s revenues grew by 35% YoY to $294 Mn and net income was $15 Mn, compared to a loss in Q3 2017.
- Loans grew by 32% to $1 Bn, and originations grew by 23% YoY to $0.7 Bn driven by 28% YoY growth in the US subprime business. 31% of Enova’s new originations in the first nine months of 2018 came from new customers. This was the highest proportion of originations from new customers since 2004, demonstrating a large untapped market as Enova expands.
- Loan loss reserves increased by 44% YoY to $0.2 Bn. Enova is seeing charge-off rates increase from near cycle lows. Charge-offs in Q3 were $141 Mn, up by 53% YoY. The company noted that charge-offs on new customers are roughly three times those on recurring customers, and the company evaluates every loan decision based on the lifetime expected value of that customer.
- Enova had $164 Mn in cash and equivalents and $951 Mn in debt outstanding at the end of Q3. Enova issued $375 Mn of seven-year notes at 8.5%, which were used to retire existing 9.75% notes and added a new two-year $150 Mn secured facility points to grow the near prime installment product. The company also priced its inaugural $125 Mn NetCredit term securitization at a blended fixed cost of 6%.
- GreenSky’s revenues grew by 29% YoY to $114 Mn and net income increased by 20% YoY to $46 Mn. It was GreenSky’s second quarter with more than $100 Mn in revenues and $50 Mn in EBITDA.
- GSKY had record originations this quarter of $1.4 Bn, up by 33% YoY. GreenSky’s portfolio is focused on home-improvement borrowers and the company is looking to expand into elective healthcare and e-commerce financing.
- 30+ day delinquencies decreased marginally to 1.44%.
- GreenSky had $294 Mn of cash and cash equivalents and $387 Mn in term loans. Funding commitments from bank partners increased by $3.5 Bn QoQ to $11 Bn. GreenSky’s bank partners are charging higher funding spreads. GreenSky has not been able to completely offset this increase by passing on higher rates to borrowers.
- The investor presentation is here.
- LendingClub delivered another quarter of record revenue of $185 Mn, an increase of 20% YoY. LC’s net loss was $23 Mn, up from $7 Mn YoY.
- LendingClub announced a partnership with Intuit to offer loans to TurboTax customers by directly accessing their tax records. It’s a smart deal. The partnership enables LendingClub to keep customer acquisition costs low and also use alternative data to underwrite borrowers.
- Originations grew by 18% YoY to $2.9 Bn, the highest quarterly originations at LC. Net interest income was offset by fair value adjustments on loans of $20 Mn while the structured program generated revenues of $6.3 Mn, the highest to-date.
- Over the last 12 months LC has continued to tighten credit to reduce portfolio charge-off rates. The table below shows the QoQ change in the return and charge-off estimates across grades. Projected returns for grade A increased by 91 bps QoQ.
- LendingClub ended the quarter with $514 Mn of cash and equivalents and no unsecured debt. LendingClub held about $459 Mn in loans on the balance sheet, most of which will be used future securitization programs. The CLUB Certificates program has raised more than $1 Bn in capital. LC issued a $270 Mn prime securitization this quarter.
- The investor presentation is here.
- OneMain reported revenue growth of 15% YoY to $933 Mn and net income more than doubled YoY to $148 Mn.
- Originations this quarter were $2.9 Bn, of which 54% were secured, and receivables grew by 10% YoY to $15.8 Bn. OMF generated interest income of $933 Mn, up from $808 Mn YoY. OMF’s receivables portfolio yielded 23.7%, up from 23.4% YoY.
- 30 to 89-day delinquencies were 2.3% and 90+ delinquencies were 2.0%, near all-time lows. Provisions for loan losses increased by 5% YoY to $0.3 Bn and the total loss reserves increased by 1% to $0.7 Bn. The net charge-off rate dropped to an all-time low of 5.8%.
- OMF had $1.2 Bn of cash and cash equivalents and revolving conduit facilities of $5.8 Bn at the end of Q3. 50% of the company’s debt is secured. In 3Q, OMF net issued $700 Mn in unsecured notes and $900 Mn in ABS. Moody’s revised One Main’s outlook to positive.
- The investor presentation is here.
- Revenues at OnDeck grew by 23% YoY to $103 Mn, the first time that quarterly revenue exceeded $100 Mn. OnDeck also delivered net income of $10 Mn.
- OnDeck launched ODX, a Software-as-a-Service company, that will provide underwriting services to banks. ODX has already been working with JP Morgan and also announced a partnership with PNC. OnDeck is investing $15 Mn in strategic growth initiatives, two-thirds of which will be in ODX in 2019.
- OnDeck’s originations grew by 22% YoY to an all-time high of $0.6 Bn and the loan book grew by 16% to $1.1 Bn. OnDeck has navigated the rise in interest rates well with the Effective Yield on its portfolio rising by 340 bps YoY to 36.5% and the NIM increasing by 400 bps to 33%.
- OnDeck’s provision for loan losses decreased by 1% YoY to $40 Mn, while the loss reserve increased by 27% YoY to $134 Mn. Net charge-off rate decreased significantly from 16.9% to 11.1% YoY. The 15+ Day Delinquency Ratio dropped to an all-time low of 6.4% from 7.5% YoY.
- ONDK’s total debt was $771 Mn and cash and cash equivalents were $71 Mn at the end of Q3. OnDeck’s cost of funds dropped by 40 bps YoY to 6%. OnDeck closed an additional $175 Mn in credit facilities.
- The investor presentation is here.
LendingTree Personal Loan Offers Report – October 2018 (LendingTree) Rated: AAA
Despite a rising rate environment, offered APRs ticked down for borrowers with lower scores, but are up for those with higher scores. Rate and loan amount offers varied widely among consumers, depending on factors including, but not limited to, credit score, income, and current debt obligations.
Online lending: US fintechs gain from behaving more like banks (Financial Times) Rated: AAA
When Noah Breslow rang the opening bell at the New York Stock Exchange in the week before Christmas 2014, it was a high point — perhaps the high point — for the fledgling online lending industry.
OnDeck’s peak-to-trough decline in its share price was 86 per cent; Lending Club’s was 90 per cent. However much the companies protested that slower top-line growth was actually a positive — implying that they were being more selective on lending — investors were unpersuaded.
Mr Breslow is happier with the investor mix now and how results are received. In the second quarter, for example, OnDeck reported a slight fall in loan originations, from $591m to $587m. But investors welcomed a relatively low net charge-off rate — a measure of bad debt — of 11.2 per cent, from 18.6 per cent a year earlier.
Silicon Valley company setting up shop in Silicon Slopes (Daily Herald) Rated: AAA
LendingClub, an online credit marketplace based in San Francisco, announced last week that it will expand outside of California and open a second corporate office in Lehi.
“This area was the clear No. 1 choice,” said Steve Allocca, LendingClub president. He explained that the area’s access to a skilled labor force and tech talent was important. “We love the area for its tech focus, and we’re excited to tap into that talent pool.”
Jason Brown of Tally (Lend Academy) Rated: A
In this podcast you will learn:
- The story behind the founding of Tally.
- Why they thought 20 years out when starting Tally.
- How their app works to help save people money on their credit card debt.
- How their automated risk management works.
- Why they built all of their technology from scratch.
- How their new feature called Tally Advisor, the robo-advisor for debt, works.
- Why Jason believes that debt consolidation loans do not solve the underlying problem.
- The behavior they have seen with their customers.
- How their business model works.
- Why they decided to go with a more traditional underwriting model.
- The amazing percentage of customers they retain every month.
- Why they decided to go state by state when it comes to loan licenses.
- Why the second generation of fintech is about true technology innovation.
- How they are funding their lines of credit.
- Who Jason views as the competitors of Tally.
- What is next for Tally.
5 Business Loans you can get 24/7 (Nav) Rated: A
3. P2P Lenders –The term “peer to peer” is exactly what it seems. If you’re looking to apply for a loan completely online, you might want to consider any of the many lending groups available that specifically offer consumer-funded loans to any type of small business or sole proprietorship. Loan amounts vary from $2,000 to $500,00, and while many of the companies require at least two years of sales records, some (like Funding Circle) have low sales revenue requirements.
4. Invoice Financing – New to the business lending game is what is known as “instant invoice payments” or “invoice financing” services.
AFR Pays Agent Fees for VA Loans (PR Newswire) Rated: A
American Financial Resources, Inc. (AFR) announces that beginning on Veterans Day it will pay any required VA agent fees for its brokers and correspondents on all AFR-related VA loan submissions.
The Veterans Administration generally requires an annual fee of $100 per third party originator for each entity that sponsors their origination. AFR will now pay this fee on behalf of its brokers and correspondents on AFR-related VA loans.
Elevate Appoints Company and Industry Veteran as Chief Credit Officer (Business Wire) Rated: B
Elevate Credit, Inc. (NYSE: ELVT) (“Elevate” or the “Company”), a tech-enabled provider of innovative and responsible online credit solutions for non-prime consumers, today announced that it has appointed David Peterson as Chief Credit Officer, effective immediately.
Peterson’s background includes 15 years’ experience in financial services, primarily in credit risk. He joined the company in 2010 and has held a number of roles of increasing responsibility in areas including credit strategy, risk, portfolio management and fraud. Previously he was with Americredit Financial Services. He holds a BBA in Finance and an MBA from the M.J. Neeley School of Business at Texas Christian University.
Lending Platform Unchained Capital Boosts Security for Crypto Loans (BlockTelegraph) Rated: B
Unchained Capital, the crypto lending platform, is boosting security for crypto-backed loans. They have partnered with Citadel SPV, who provides governance, administration, and accounting solutions. The solution includes Multisig components. Multi-institution features will add to the security.
Peer-to-peer (P2P) lending market is massive. Cision PR Newswire projects a US $897.85 billion P2P lending market by 2024 in a recent report. Can crypto startups make a splash in this burgeoning market?
Finitive Taps CEO Of First Associates As Strategic Advisor (SYS-CON Media) Rated: B
Finitive (www.finitive.com), a financial technology platform providing institutional investors with direct access to alternative lending investments, announced today that David Johnson, CEO of First Associates, has joined its advisory board. First Associates is the fastest growing loan servicer in the country and a leader in the application of AI strategies in private credit markets. As an industry leader in the loan servicing and fintech sectors, Johnson will advise Finitive on artificial intelligence, strategic initiatives and operations.
Nested, the online estate agent that makes home sellers “chain-free”, raises further £120M (TechCrunch) Rated: AAA
Nested, the London-based “data-driven” estate agency that provides a cash advance to help you buy a new home before you’ve sold your old one, has raised a further £120 million in funding. The new round is a mixture of equity and debt: £20 million and £100 million, respectively. Leading the equity round is Northzone, and Balderton Capital, while the debt finance comes from an unnamed institutional investor.
It is noteworthy that Balderton has only just invested in Nested several rounds into the company’s existence, considering that the London-based venture capital firm typically invests earlier at Series A. Balderton is also a backer of GoCardless, the payments company previously co-founded by Nested founder Matt Robinson. That said, Balderton General Partner Tim Bunting did invest in Nested in a personal capacity very early on.
LendInvest Sees Opportunity in Buy to Let Outside London (Crowdfund Insider) Rated: AAA
LendInvest, an online marketplace for mortgages, has published the latest LendInvest Buy-to-Let Index report. The quarterly BTL Indes reviews 105 postcodes in England and Wales ranking four different characteristics: Rental Price Growth, Rental Yield, Transaction Volume, Capital Value Growth.
According to LendInvest, key findings for this most recent report indicate:
- Colchester (#1) again tops the charts as number one spot for BTL investment
- Stockport (#2) overtakes regional leader Manchester (#3), followed closely by Leeds at #11 signaling the increasing scope of investment opportunity in the North
- Midlands and Central England postcodes continue to climb the table as Wolverhampton (#7) and Peterborough (#8) break into the Top 10
- South Eastern cities lose momentum as long-term table topper Luton falls to #10 place
Starling Bank keeps you posted with Post Office (Fintech Future) Rated: A
Starling Bank, which is now offering Banking-as-a-Service and payment services white label offerings, has partnered with the Post Office to allow Starling current and business account customers to deposit and withdraw cash through the Post Office’s branches.
Starling has been a mobile-only bank so far, and has been renowned for that fact alone, compared to banks like Monzo and Revolut. This move, although still not offering full in-branch services, does set it apart by allowing cash deposits. It had already been announced earlier in the year.
Chinese government faces peer-to-peer lending scandals dilemma (Financial Times) Rated: AAA
In late 2015, investors in one of China’s largest peer-to-peer lending companies, Ezubao, found themselves unable to retrieve their deposits. By September the next year, 26 Ezubao employees had been sentenced for effectively running a Ponzi scheme and failing to repay as much as Rmb38bn ($5.5bn) to investors.
China’s P2P lending industry recorded transactions valued at $445bn in 2017, according to Online Lending Club, a data company.
Even this gentle regulation has started to take a toll on P2P lending platforms. Numbers have thinned from 2,205 platforms at the beginning of this year to 1,590 platforms as of this August, according to Online Lending Platform, a website that tracks P2P data. Since the beginning of this year, the iOS app store and certain Chinese Android app stores have begun culling the number of P2P platforms available for download.
Chinese Fintech Pintec Forms Partnership With Beijing Evercare For Installment Financing (Crowdfund Insider) Rated: A
Chinese fintech Pintec Technology Holdings Limited (PINTEC) announced on Monday it has formed a new partnership with Beijing Evercare, a company that provides medical aesthetic treatments and health management service. Pintec reported that it will provide Beijing Evercare with an efficient and customized installment payment solution, enabling Beijing Evercare to better serve its consumers with installment options.
According to Pintec, Beijing Evercare offers its services to more than 200,000 consumers year, with the majority of its customers are white-collar workers aged 20 to 35, and females aged 36 to 50. Due to the relatively high price of such treatments, many consumers prefer installment payments to lower the financial burden. With Pintec’s customized installment payment solution, consumers of Beijing Evercare can easily apply for installment financing.
10 Reasons to Attend LendIt Fintech Europe 2018 (Lendit) Rated: A
Here are 10 solid reasons to attend LendIt Fintech Europe:
- Meet your new partner. Commercial and Regional bank execs come to identify the best potential fintech partners to help them remain competitive in this new customer-focused digital banking era.
- Find your new funding partner.
- Hear keynote Des McDaid, Head of UK for Marcus by Goldman Sachs. He’ll be speaking on how Goldman is targeting the masses, and leading innovation in banking.
- Expand your family office network and learn how four families and their advisors including are currently allocating into fintech.
- Find out what’s next for fintech unicorn Funding Circle from CEO, Samir Desai.
- Discover your next big investment opportunity.
- Explore the ins and outs of open banking.
- Understand how to bring assets to the blockchain with SoFi’s former CTO, June Ou, and take advantage of all the content that the inaugural Blockchain track has to offer.
- Source new cutting-edge solutions providers in our 2,500 square metre expo hall.
- Maximize your time at the show with our smart networking tools!
Nubank announces Tencent as new strategic partner and investor (Fintech Zoom) Rated: AAA
A leader in financial services technology in Latin America, Nubank has just raised a $ 90 million investment from Tencent Holdings Limited (“Tencent”), China’s leading Internet services portal.
With this round, the company reaches about $ 420 million raised in seven rounds of investment since it was founded in 2013.
A leader in financial services technology in Latin America, Nubank has just raised a $ 90 million investment from Tencent Holdings Limited (“Tencent”), China’s leading Internet services portal. With this round, the company reaches about $ 420 million raised in seven rounds of investment since it was founded in 2013.
Five ways banks are responding to the fintech threat (Financial Times) Rated: A
1. Digital attackers – Those in this group consider that the best form of defence is attack. Banks with the most advanced digital strategies, like DBS, have launched their own digital banks to enter new markets or defend their patch.
2. Acquisitions – Hampered by the vast cost and complexity of maintaining their old systems, sometimes banks find it easier to buy or invest in a start-up that has built a digital platform from scratch.
3. Partnerships – Bank bosses complain loudly of an uneven playing field that allows big technology groups to offer financial services without the burdensome regulation that traditional lenders face. That has not stopped some banks teaming up with Big Tech groups.
4. Diversification – While their core payments and lending businesses may be under pressure from digital competitors, some banks are using new technologies to move into new markets.
5. ‘If you can’t beat them, join them’ – Sometimes banks decide that the threat from digital competition is so great that they just have to amend their business models.
Online fintech marketplace to launch at Singapore FinTech Festival (Channel News Asia) Rated: AAA
An online fintech marketplace, the API Exchange (APIX), will be launched on Wednesday (Nov 14) by the ASEAN Financial innovation Network (AFIN) in a bid to increase financial inclusion in hard-to-reach markets.
The AFIN is spearheaded by the Monetary Authority of Singapore (MAS), the ASEAN Bankers Association and the World Bank’s International Finance Corporation.
There are about 1.7 billion adults globally who are unbanked, and one in three of them come from four countries in Asia – China, India, Pakistan and Indonesia, said the managing director of MAS, Ravi Menon, at the opening of the third Singapore FinTech Festival 2018 on Monday.