Thursday June 20 2019, Weekly News Digest

ASIC borrowers

News Comments Today’s main news: LendingClub expands borrower program. Funding Circle forced to narrow range of valuation. Yirendai revenues come from haircut loans. Chinese P2P lenders explore southeast Asia. Borrowell passes 1M members, raises $20M. Today’s main analysis: 5 ASIC findings on marketplace lending. Today’s thought-provoking articles: US Core, inflation ease. Fintech lending algorithms discriminate […]

The post Thursday June 20 2019, Weekly News Digest appeared first on Lending Times.

ASIC borrowers

News Comments

United States

United Kingdom

China

Other

News Summary

United States

LendingClub Expands Program to Help Borrowers Actually Pay Off Debt (Lend Academy), Rated: AAA

LendingClub shared a few stats on borrowers who choose this method:

  • Save an average of nearly $900 over the course of their loan
  • Cut their credit card interest rate nearly in half
  • Increase their credit score in just three months

The product has been tested for over a year and LendingClub is working with a partner network of over 1,700 credit card, bank and loan companies to make the process seamless. What’s interesting is borrowers can add up to 12 creditors per loan which is an important feature since borrowers often hold balances across many cards.

Turning Lending Club’s Worst Loans into Investment Gold (Towards Data Science), Rated: A

This is a writeup of a machine learning project I completed. In this post I hope to:

  • Describe my algorithm for predicting loan defaults.
  • Use the algorithm to construct a portfolio of clean loans

Inflation Miss (PeerIQ), Rated: AAA

US Core CPI rose by 2% YoY in May, just at the Fed’s target rate but below economists’ expectations. Consistently low inflation is boosting calls for a rate cut next week. The market is pricing in a 24% probability of a rate cut next week and a 76% probability of a rate cut in September.

Source: Bloomberg, PeerIQ

Fintech algorithms discriminate 40% less than traditional lenders (Quartz), Rated: AAA

Algorithmic fintech lending is less discriminatory against minorities than traditional loan officers, according to a recent study of US mortgages. The findings signal hope that technology could provide financing that’s more fair, but the research also underscores how widespread discrimination remains.

The US housing market has long been prejudiced against minorities. When Latino and Africa-American borrowers are looking to buy a home, they usually end up paying 7.9 basis points (0.079 percentage points) more than whites to take out the mortgage, and 3.6 basis points more when they refinance the debt, according to a National Bureau of Economic Researchworking paper published this month.

Buttigieg worries tech may add racial bias to credit decisions (American Banker), Rated: A

Pete Buttigieg said the way credit scoring is done in the U.S. is fraught with inequality and he’s worried the process may get worse with systems based on artificial intelligence.

Commercial Real Estate Crowdfunding Eyes ’18-Hour Cities’ for Small Investors (The Street), Rated: A

When Clear Point Gardens, a 604-unit apartment complex in Columbus, Ohio, recently changed hands, it produced a nearly 43% gain in 16 months, an amazing windfall for investors in the deal.

All 68 of them.

The sale of Clear Point, financed with help from investors on CrowdStreet’s online platform, is the latest example of how online syndication is revolutionizing the way deals are financed in the $6 trillion commercial real estate market.

HSBC launches digital mortgage platform with help from Roostify (HousingWire), Rated: A

One of the world’s largest banks is about to join the digital mortgage revolution, as HSBC Bank USA, the U.S. arm of HSBC Group, announced that it is partnering with Roostify to launch a digital mortgage platform.

Mirador’s Trevor Dryer: ‘The world doesn’t need another high price lender’ (Tearsheet), Rated: A

Trevor started Mirador to fill this void of bank-originated small business lending. We talk about why he started Mirador with a lending as a service model and what painpoints he was addressing.

Dave is launching a checking account that helps users build their credit score (Business Insider), Rated: A

The Los Angeles-based company, backed by investors including Mark Cuban, the DJ Diplo, and hedge fund Mark 2 Capital, said on Tuesday it’s rolling out a new checking account product that reports all rent payments to credit agencies. The new feature, added to Dave’s original app, helps customers to build their credit. Dave plans to begin reporting utility payments later this summer.

CoreLogic Launches Marketrac Platinum (CoreLogic), Rated: A

With Marketrac Platinum, lenders and title companies can utilize the interactive platform to identify top performing real estate agents and brokerage firms to prioritize professional relationships based on market trends.

Zirtue Revolutionizes Peer-to-Peer Lending (IT Business Net), Rated: A

Sprout Mortgage Launches ACORN Automated Underwriting System (Yahoo! Finance), Rated: A

Sprout Mortgage, the innovative force in Non-QM lending, today announced the launch of its ACORN automated underwriting system (AUS) as part of an ongoing effort to deliver value-added services to its third-party origination clients.

Finicity Integrates with LendingQB to Optimize Mortgage Origination Process (PR Web), Rated: B

Finicity announced today an integration with LendingQB. LendingQB’s platform now uses Finicity’s digital Verification of Assets (VoA) solution to allow lenders to free up resources, increase processing speed and reduce mortgage fraud while providing borrowers with a more efficient and positive experience.

Cardholders Seek to Capital-ize on Madden (The National Law Review), Rated: A

Last week, three Capital One cardholders filed a putative class action in the Eastern District of New York, Cohen v. Capital One Funding, LLC,1 alleging that the rates of interest they paid to a securitization trust unlawfully exceed the sixteen percent threshold in New York’s usury statutes.  The Plaintiffs seek to recoup the allegedly excessive interest payments and an injunction to cap the interest rates going forward.

Fundbox Tapped By Top B2B E-Commerce Software Provider OroCommerce to Power Net Terms (Fundbox Email), Rated: A

According to a 2019 research study by

Cross River poaches execs from student refinancing firm Laurel Road (American Banker), Rated: A

Cross River Bank, a Teaneck, N.J.-based bank that focuses most of its energy on supporting fintechs, is hiring several people from the student loan refinancing company Laurel Road to its capital markets team.

Cross River’s fintech partners include Affirm, Circle, Best Egg, Coinbase, Rocket Loans, Stripe, Upstart and Transferwise.

Optimizely Closes $ US105M Financing Round (Which-50), Rated: A

Optimisation platform Optimizely has closed US$105 million in financing, including US$50 million in Series D funding. The funding, led by Goldman Sachs Private Capital Investing, also included Accenture Ventures.

Austin Niemiec Named New Executive Vice President of Quicken Loans Mortgage Services (Yahoo! Finance), Rated: B

Quicken Loans Mortgage Services (QLMS), the second largest mortgage lender serving the needs of brokers, regional banks and credit unions, today announced that Austin Niemiec has been named Executive Vice President.

Self Lender Awarded Inaugural Inclusive Fintech 50 (PR Newswire), Rated: B

Self Lender is pleased to announce its inclusion in the inaugural list of winners of the Inclusive Fintech 50. The Inclusive Fintech 50 is a competition launched in February to help early-stage fintech companies attract capital and resources to benefit the world’s 3 billion financially underserved people. The competition was organized by MetLife Foundation and Visa Inc., with global nonprofit Accion and World Bank Group member IFC.

United Kingdom

No sign yet of breaking out of circle (The Times), Rated: AAA

The early days of a company’s life on the stock market tends to set the tone for what follows. The grief around Funding Circle’s listing began even earlier and has continued to plague it.

Days before trading in shares of the specialist online lender began at the end of September, Funding Circle and its bankers were gunning for a valuation of up to £1.75 billion, only to be forced to narrow the expected range shortly before it came to market, and then to price the shares at the lower level of 440p apiece.

Source: Refinitiv

Three Biggest Overperformers And One Underperformer In Peer-To-Peer Lending (4th Way Email), Rated: AAA

Landbay

  • Over £300 million lent.
  • Maximum loan size to property valuation (LTV) 80% – better than all the major high-street banks.
  • Average LTV: 72% – highly suitable for these kinds of mortgages.
  • Average rent: 190% of the monthly mortgage payment.
  • Over 90% of mortgages are to experienced and professional landlords.
  • Reserve fund: 0.6% of outstanding mortgages – modest but useful.
  • Type of lending: residential BTL.
  • Typical risk of this type of bank lending: very low.
  • P2P bad debts: none.
  • Interest rate: 3.54% after expected bad debts.

Proplend

  • £65 million lent.
  • Maximum loan size to property valuation (LTV) 75% and investors can choose to limit to 50% – lower than all high-street banks.
  • Average LTV  60% – highly suitable for these kinds of mortgages and loans.
  • Minimum rent on rental properties usually 110% of the monthly mortgage payment.
  • Type of lending: residential and commercial rented properties up to five years; some development lending; a mix of senior and junior debt (junior means other lenders get repaid first if the borrower’s property has to be forcibly sold to repay the loans).
  • Typical risk of this type of bank lending: low to moderate for shorter-term rental properties; moderate to high for developments and junior debt.
  • P2P bad debts: none.
  • Interest rate: 7.32% to 9.43% after expected bad debts (7.32%-12.13% before bad debts).

CrowdProperty

  • £35 million lent.
  • Maximum loan size to property valuation (LTV) 70% and investors can choose to limit to 50% – lower than all high-street banks.
  • Average LTV  61% (against starting value of property) – very low for these kinds of loans.
  • Type of lending: property development lending.
  • Typical risk of this type of bank lending: moderate to high.
  • P2P bad debts: none.
  • Interest rate: 8% after expected bad debts (7.32%-12.13% before bad debts).

Rebuildingsociety – the Underperformer

  • £15 million lent.
  • Type of lending: unsecured small business lending to sub-prime.
  • Typical risk of this type of bank lending: moderate to high.
  • P2P bad debts: 17% of total lent in pounds
  • Interest rates: estimate an average 5% after heavy losses.

British Business Bank adds £60m firepower to non-bank lender (AltFi), Rated: A

Simply, a non-bank lender, focused on SME asset financing has scored a a third financing tranche of £60m from the British Business Bank.

One fifth of UK investors upping exposure to debt investments (Investment Week), Rated: A

One-fifth of UK investors are increasing their exposure to debt amid low interest rates and Brexit uncertainty, according to research from FJP Investment, which found this number climbs to 34% when 18-to-35 year-olds are considered in isolation.

However, the independent survey – which comprises 950 investors – discovered 44% of participants are more focused on short-term debt investments over this financial year due to both political and economic uncertainty; this figure rose to 68% among under 35s.

OakNorth completes loan to Oncore IT for the acquisition of Fuse Technologies (Fintech Finance), Rated: A

OakNorth – the bank for entrepreneurs, by entrepreneurs – has provided a loan to Oncore IT, a managed service and cloud platform provider.

The finance has been used for the acquisition of Fuse Technologies, a London based provider of unified communications tools.

Brexit and drive for growth sees IT fintech salaries surge (AltFi), Rated: A

London-based java developers lead the pack, commanding starting salaries of up to £60,000, followed by software developers in the capital on up to £55,000.

Intense competition between UK-based fintechs – lead by Revolut, TransferWise, OakNorth and Funding Circle – and high street banks attempting to upgrade their services has led to bidding wars in order to gain top level IT professionals, said the report called The UK Fintech Revolution.

Lloyds first to launch open banking app for credit cards and savings (Fintech Futures), Rated: A

Customers of Lloyds Bank, Halifax and Bank of Scotland are the first to see their savings accounts and credit cards in one place, thanks to open banking technology, reports Jane Connolly.

J.P. Morgan working on a secretive digital banking project based out of London (TechCrunch), Rated: A

A number of incumbent banks are known to be developing new digital-first products in a bid to keep the new wave of challenger banks at bay and now it appears that the latest to make that move is J.P. Morgan.

According to sources, the investment bank has begun recruiting for a secretive skunkworks project within London’s booming fintech industry. Very few details are known about what exactly J.P. Morgan plans to build, although TechCrunch understands the bank is busy hiring high level developers with full-stack and cloud-based dev skills for the new project, along with other personnel.

Following Facebook’s Libra launch, UK regulator hints at greater Big Tech scrutiny (AltFi), Rated: A

The FCA says technology is dramatically changing the markets it regulates and blurring regulatory boundaries in a new report into its activities.

China

Yirendai Revenues Come From Suspect Haircut Loans (Seeking Alpha), Rated: AAA

Over 60% of YRD’s FY 2018 revenues stem from “haircut loans” (P2P service fees charged to borrowers) that are prohibited by Chinese regulation. Recent developments in the P2P lending sector with regards to questionable lending practices, unethical collections, and usury are not being disclosed in YRD’s SEC filings, leaving U.S., Canadian, and international investors completely in the dark.

The Chinese P2P Lending Market

Unlike in developed countries, there are no administrative bodies (such as the U.S. Securities Exchange Commission) which regulate peer to peer lending exchanges in China. Instead, such services are regulated by self-organized internet associations and retail banks. The lack of meaningful oversight has caused the Chinese P2P lending market to bubble into $178.9 Billion in FY2018, almost 22 times the size of the P2P lending market in the United States and 447 times that of Japan’s.

Over 850+ fraudulent/ponzi lending platforms were exposed in FY 2018 alone.

Source: iiMedia Research

But the bad numbers don’t end here:

– The total loan volume amounted to 245.9 billion in Q12019, down -55.5% Y/Y.

– 85.7 in new loans were lent in March 2019, down -53.5% Y/Y.

– Principal balance of all loans: 8,029 CNY billion, down -3.6% Y/Y.

– sum of P2P lenders and borrowers, up 21%.

Chinese P2P lending platforms look to Southeast Asia amid industry purge back home (Technode), Rated: AAA

A slew of Chinese fintech and peer-to-peer (P2P) lending platforms are looking to more lenient markets in Southeast Asia (SEA), following a prolonged industry crackdown in China that has left the sector reeling.

Over the past year, China’s regulatory clampdown on risky financial practices has wiped out more than half of the country’s P2P lending platforms. As of May, just 900 survived, down from almost 1,900 recorded a year ago.

In early June, Indian daily newspaper the Economic Times reported that Chinese fintech companies, including WeShare, 9F Group, and CashBUS, are exploring investment opportunities in the country’s burgeoning online lending sector, particularly in the P2P lending space.

XW Bank Welcomed by IMF as One of 6 Outstanding FinTech Companies From China (Yahoo! Finance), Rated: A

The International Monetary Fund (IMF) welcomed 6 outstanding FinTech companies from China including Ant Financial, WeBank and XW Bank.

European Union

Snask helps Klarna to communicate its ‘smooth’ banking offer with off-the-wall film and photography (Creative Boom), Rated: A

When Stockholm studio Snask was approached by Klarna, one of Europe’s biggest banks, to help communicate how its revolutionary payment solutions make life easier for its customers, it set out to create seven “never-seen-before” worlds.

LHV Bank Integrates Estateguru Investments in Online Banking Dashboard (P2P-Banking), Rated: A

You might wonder why that is relevant as most readers are unlikely to be LHV Bank customers. LHV Bank is a bank in Estonia.

I think it is highly interesting, as it is – to my knowledge – the first time a bank has integrated p2p lending investments in its customer interface. So the LHV bank customers, not only see their accounts and stock depots, but also their Estateguru investments conveniently listed in their online bank dashboard. Much has been talked about what role could banks have in p2p lending (mere transaction banks? providing credit lines?) and also there is a lot of speculation if PSD2 (open banking) will help fintechs to seize the access to the customer from banks because they could control the user interface in the future. But this is actually a first step a bank takes in the opposite direction. By aggregating “non-bank” information inside the dashboard, they aim to make the banking interface more useful for the customers.

International

How Klarna is Helping the World Shop Like a Queen (Power Retail), Rated: AAA

Klarna is the latest Buy Now Pay Later (BNPL) app to sweep through the world. Originating in Sweden, the BNPL platform allows users to purchase goods and schedule repayments in timeslots. At this point in time, Klarna is the first and only BNPL platform that’s available in the U.S. It’s also available in the UK, Denmark, Norway, Belgium and many other European countries.

Australia

Five key ASIC findings on marketplace lending (Cuffelinks), Rated: AAA

In April 2019, the Australian Securities and Investments Commission (ASIC) released its third report on marketplace lending, the Survey of marketplace lending providers: 2017–18The report paints a clear picture of a once-nascent industry enjoying growth with new borrowing increasing by nearly 45% in the 2017-18 financial year. The report notes that this growth is moderating compared to the near doubling in funds borrowed the previous year (from $156 million to $300 million). By contrast, the Australian Bureau of Statistics (ABS) reports that overall personal lending has declined by an astonishing 24% in the 12 months to March 2019.

Source: Cuffelinks

The ASIC report found that the average interest rate charged for marketplace loans entered into during the 2017–18 financial year was 11.5%, up from 10.5% in the 2016–17 financial year.

Source: Cuffelinks
India

All you need to know about P2P lending and Commodities (India Times), Rated: AAA

Vinay Mathews, Founder and COO, Faircent and Sanjay Gakhar, Vice President, MCX talks about the benefits of investing via the P2P platform and Commodities, ET Wealth investment Workshop in Delhi Listen in!

Watch the video here.

Asia

Indonesian firms turn to P2P lenders for funds (Asia-First), Rated: AAA

Small companies in Asia-Pacific are tapping new funding sources, according to the Economist Intelligence Unit (EIU) study commissioned by Mastercard, with peer-to-peer (P2P) lending platforms in Indonesia reportedly posting USD1.4bn worth of transactions in 2018, an increase from USD20m in 2016.

Canada

Borrowell passes one million members, raises $ 20 million in new capital (Zone Startups), Rated: AAA

RFI alumni company Borrowell announced that it had reached significantly more than a million users, making it Canada’s largest consumer fintech company by that measure.

In addition to this membership milestone, Borrowell also confirmed that it has received $20 million in Series B funding.

AltFi Toronto Summit 2019 (AltFi), Rated: B

WED, 9 OCTOBER 2019, 08:30 – 17:30 EDT

Blind Bird tickets are now on sale at a 50% discount ahead of the Summit’s agenda being announced later this Summer.

Authors:

George Popescu
Allen Taylor

The post Thursday June 20 2019, Weekly News Digest appeared first on Lending Times.

Tuesday October 11th 2016, Daily News Digest

Tuesday October 11th 2016, Daily News Digest

News Comments Today’s main news: The end has come for UK banks declining small business loans outright; American Consumer Lending Holdings seeks to securitize Lending Club’s Near-Prime Loans; Prosper’s new credit card optimizer. Today’s main analysis : The SEC is unsure if marketplace loans are securities or whole loans. Today’s thought-provoking articles: The relationship between stock market prices and […]

Tuesday October 11th 2016, Daily News Digest

News Comments

United States

United Kingdom

European Union

China

India

News Summary

 

United States

Demarketizing fintech About Us pages, (Tradestreaming), Rated: A

Companies describe themselves as doing the financial equivalent of curing cancer when they’re just taking a splinter out.

Even fintech companies preaching transparency are culprits, shoving so much marketing material into the page you can’t tell what they actually do.

New summary:
“Fiserv is an organization with solutions for mobile and online banking, payments, risk management, data analytics and core account processing.”
Old: 128 words
New: 20 words

Ron Suber, President of Prosper Marketplace, Delivers Keynote at Context Summits Alt Lending 2016, (Youtube Video), Rated: A

 

Hubzu Enhances Investor Experience by Adding RentRange Rental Income Estimates, (Email), Rated: A

Hubzu, a real estate auction marketplace, has launched a new feature to support investors seeking to purchase rental properties. The Hubzu® Real Estate Marketplace now displays low, median and high estimates of potential rental income through its integration with RentRange, one of the premier providers of market data and analytics for the single-family rental industry. Since 2009, Hubzu has facilitated the sale of over 159,000 homes via a transparent online sales and auction process.

Newest Marketplace Lender Launches In Turbulent Times (PYMNTS.com), Rate: A

The alternative lending market’s newest market entrant, Plousio, made its debut with an announcement on Thursday (Oct. 6), revealing plans to launch a platform connecting lenders to small business borrowers. Run by CEO Alex Chang, Plousio reportedly has more than 70 lenders already linked to its services.

Companies that are seeking funding through Plousio can obtain loans between $1,000 and $1 million, the company said, and borrowers aren’t restricted in how they can use the funds.

Classification confusion constraining MPL ABS (sci), Rated: A

Uncertainty over how to define marketplace loans – as securities or whole loans – is restricting securitisation of the assets. However, the US SEC could be considering classifying marketplace loans as securities, signalled by the announcement of its upcoming fintech forum.

Not only has this ongoing issue deterred investors from buying securitised marketplace loans, but platforms are also being dissuaded from the securitisation route as a funding tool.

As well as uncertainty about the asset class itself, there are questions about whether the platforms themselves should be redefined as investment companies. Should that happen, they would come under a whole range of different regulations, such as the Investment Company Act.

AXA IM sheds light on new alternative credit platform (altficredit), Rated: A

AXA Investment Managers has created a new alternative credit platform, with over €31bn in assets under management. The new platform has been forged through the merging of AXA’s alternative solutions and structured finance teams, and will be led by Deborah Shire (pictured above), head of structured finance.

Weekly Online Lending Snapshot – October 07, 2016 (Orchard Platform), Rated: A

On Monday, Orchard CEO Matt Burton spoke on a panel entitled, “Fin-Tech & Financial Inclusion: How New Technology Can Unlock Capital and Level the Investment and Lending Playing Field.” The panel was hosted by the U.S. Small Business Administration and WeWork, as part of the White House South by South Lawn Festival. Online lending is increasingly becoming an important alternative source of capital for small businesses. Just last week, small business lender OnDeck

Prosper Daily Helps Consumers Make Smarter Credit Card Decisions with the Launch of Credit Card Optimizer™ (Prosper), Rated: A

Prosper Marketplace announced today the release of Credit Card Optimizer, a new feature of the award-winning Prosper Daily app  that helps consumers make better money decisions daily by providing them with actionable insights.

Credit Card Optimizer™ aims to solve common and costly credit card mishaps by arming people with timely information including payment reminders, a breakdown of interest bearing balances by card, and other contextual advice on how to avoid potential fees.

Weekly Industry Update: October 10, 2016 (PeerIQ Email), Rated: A

Last Thursday, PeerIQ CEO Ram Ahluwalia spoke at Bloomberg

Brace for impact? (Lending Robot), Rated: A

An increase of stock market prices is only sustainable when it matches economic growth. Otherwise it’s pure speculation, and history has shown that ‘corrections’ inevitably happen. The stock market is like a game of musical chairs, everybody knows the music will eventually stops, yet nobody wants to be amongst the players sitting too early.

Tax Treatment in Peer Lending (Lending Robot), Rated: B

Demystifying Diversification (Lending Robot), Rating: A

At some point nearly every Peer Lending investor asks the question, “Which platform should I invest on?”

We use interest rate as a proxy for risk to group loans into asset classes of different risk/return profiles. The interest rates we split on are 9.10%%, 12.34%%, and 16.43%% for the 25th, 50th, and 75th percentiles respectively, which are the simple averages of the 25th, 50th, and 75th percentiles on Lending Club and Prosper. 25th_LC corresponds to the asset class of all Lending Club loans with interest rates from 0%% to 9.10%%, 50th_LC corresponds to the asset class of all Lending Club loans with interest rates from 9.11%% to 12.34%%, etc.

To determine the return series over time for each asset class, we use the adjusted net yield methodology described in this blog post. A quick summary of the methodology is that each month, we sum all interest received, subtract all fees and charge-offs, and divide that by the outstanding principal at the beginning of the month:  ∑ (interest − fees − charge−offs) / ∑ beginning outstanding principal). To account for the exponential growth rate in loan originations each month over most of the history for both platforms, we make an adjustment to treat the amounts of new loan originations each month to be equal.

Elevate Celebrates Billion in Savings for its Customers (Elevate Press Release), Rated: B

FORT WORTH, Texas – October 11, 2016 – Elevate Credit today announced cumulative savings for customers of more than $1 billion as the company continues to use advanced analytics to lower the average rates of its products.  Since 2013, the average effective rate of the company’s products has dropped over 40% and customers have saved $1.1 billion over what they would have paid for a typical payday loan with a 400% APR.

Elevate’s products represent a new generation of online credit for nonprime consumers that is a significantly lower cost than payday loans, which have an average APR of 400% and bank overdraft products that, according to an FDIC study, have an average effective rate of more than 3,500%.

United Kingdom

UK Banks Will No Longer Be Allowed to Decline Small Businesses For Loans as Alt Lending Wins, (deBanked), Rated: AAA

UK Treasury will make it obligatory for banks to refer rejected small businesses to other lenders. Nine of the country’s largest banks including Royal Bank of Scotland, Lloyds, Barclays and HSBC will be legally obligated to do so when the plan goes into effect in the next three months, The Times reported.

The applicants will be referred to three loan marketplaces — Funding Options, Funding Xchange and Bizfitech that will make referral fees for loans funded on their platforms.

Lloyds Next to Introduce Selfie Technology, (Fintech.Finance), Rated: A

Customers applying online through the new simplified application form will sometimes be required to provide ID. They will be able to complete a simple step-by-step application process to open a current account and take pictures of their UK driving licence or passport, along with selfie images to confirm their identity.

UK P2P Finance Association Releases Major Research on Economics of Peer to Peer Lending (Crowdfund Insider), Rated: A

The UK Peer to Peer Finance Association (P2PFA) has released a commissioned study on the economics of the peer to peer lending market in the UK.  The independent assessment, provided by the economic consulting firm of Oxera, analysed the risks, costs and benefits of peer-to-peer lending and provided an objective account of how P2P business models work. The study focused specifically on the eight-member platforms of the P2PFA – each held to high standards of transparency and operation – which collectively comprise over seventy-five per cent of the UK market.

FINTECH CEO: The government’s foreign workers crackdown ‘will be a competitive disadvantage for the UK’ (Business Insider), Rated: B

The CEO of a leading London fintech startup says the government’s planned crackdown on foreign workers would be a “competitive disadvantage” for the nascent industry.

Home Secretary Amber Rudd said in a speech earlier this month that the government would make it harder for companies to give jobs to immigrants before recruiting British people, as part of a post-Brexit crackdown on immigration.

Whatever Happened To … RateSetter (PYMNTS.com), Rated: B

RateSetter was founded in 2010 by Lewis, a former Lazard investment banker, and Pete Behrens, the current chief commercial officer, who formerly worked in law and then banking at the Royal Bank of Scotland.

RateSetter’s business is based on peer-to-peer lending, with both borrowers and lenders competing for matched loans, specifying a particular rate they’re willing to accept. Lenders can participate in four markets — one, 12, 36 or 60 months — while borrowers can apply for loans from six to 60 months.

2014 was a big year for RateSetter. In July, the British Business Bank released that it would start lending via the business in order to support individuals, traders and other business-related purposes. Later in November, RateSetter opened an office in Australia. As for the RateSetter team, it’s grown quickly from just two employees to its current 170 employees.

Looking to the future, Lewis said the plan is to achieve a system where each investor gets at least the market rate of interest to ultimately make the RateSetter system become a “benchmark.”

AMTD Group and LendIt Jointly Announce the Formal Establishment of AMTD-LendIt Joint Global Office and Signing of Strategic Partnership Agreement (LendIt Press Release), Rating: A

London, 11 October 2016 – AMTD Group Company Limited (“AMTD”) – the leading diversified financial services group based in Hong Kong with broad business coverage and network across Asia, and LendIt – the world’s largest and most influential Fintech summit organization, are pleased to formally announce the establishment of AMTD-LendIt Joint Global Office (“Joint Global Office”) as well as the signing of a strategic partnership agreement, creating a premier conduit for optimal and seamless exchange between Asian / global capital and the leading global internet / Fintech universe. In recognition of its global footprint, this announcement comes during LendIt’s Europe event in London, currently in full swing with its highest attendee numbers ever.

This latest collaboration marks the next stage of a long-term partnership between AMTD and LendIt, on the back of the resoundingly successful and unprecedented inaugural LendIt-AMTD Global Fintech Investment Summit held in Hong Kong in July 2016. AMTD and LendIt are committed to cultivating the global Fintech industry through resources sharing, capital infusion and technology development.

European Union

Slovakia P2P Lender Žltý melon Appoints Head of Risk Management & Announces Partnership With Lucron Development (Crowdfund Insider), Rated: AAA

On Monday, Slovakia-based peer-to-peer lending platform Žltý melon announced it appointed Michal Milko as Head of Risk Management. Milko joins the online lender after serving as Head of Credit Policy at mBank Czech Republic and Slovakia, a Polish internet bank. He has also held several positions in Retail risk management in VUB/Banca Intesa and CSOB.

Žltý melon also announced it formed a new partnership with real estate development company Lucron Development for the co-financing of new housing loans. The lender stated it has a similar commercial partnership is already running successfully in cooperation with the Cresco Group for the past two years and during just this short time already 25% of the group’s private customers have taken advantage of this new lending opportunity.

China

Investors protest at EY Shanghai office over P2P lender (Global Times), Rated: A

A dozen angry investors gathered in front of the Shanghai office of audit firm EY on Sunday, alleging that the firm had participated in capital fraud involving online peer-to-peer (P2P) lending platform Uprosper Assets.

 

Student ‘vanishes’ with half a million yuan in others’ loans (CRJEnglish.com), Rated: A

Fang Feiyang, a senior student in a Hunan province college was out of touch after borrowing over 500 thousand yuan from 12 online peer-to-peer (p2p) lending platforms. He utilized 18 of his classmates personal IDs to borrow the money since last October.

China: WeiyangX Fintech Review (Crowdfund Insider), Rated: A

Up to 30th September, 2016, PowerEgg Drone from PowerVision has raised more than ¥86.3 million (USD $12.87 million), becoming the most funded campaign on JD.com’s crowdfunding platform.

AllPay, Taiwan’s first platform specializing in digital payments, finally hits the market. The platform now has more than 20,000 cooperative partners and 1.45 million users.

After CBRC released the official rules for online lending, the whole industry has witnessed a fiercer competition environment and an increase in operation cost. In respond to that, many platforms chose to reduce their loan yield rates.

According to a newly released regulatory document from PBOC, from the 1stDecember, one non-bank payment institution shall only open one fully-functional account for one individual or company.

According to a P2P Monthly Report (September) from Yingcan Consulting, there are now 2202 p2p lending platforms in operation in China (33 less than in August), with 43 newly added ones.

India

Show Mudra and banks can’t deny loans to small borrowers, (India Times), Rated: AAA

Mudra was established as a subsidiary of the Small Industries Development Bank of India (SIDBI) by Prime Minister Narendra Modi in April this year.

Banks which for long used the lack of data for small borrowers as an excuse to withhold loans will see that rationale evaporate with Mudra, the company formed to lend to small and medium enterprises (SME), launching a digital platform where potential borrowers can register themselves.

In the past five months, Mudra LtdBSE has disbursed Rs 42,000 crore, one fourth of its total annual target of Rs 1,80,000 crore. The lending agency’s disbursals nearly doubled in the last two months to about Rs 27,000 crore from the Rs 15,000 crore it disbursed in the first quarter of the current fiscal year.

This loan marketplace will have data which may be ten times more than what the credit bureaus have and would be accessible to all banks.

“The application forms filled by customers will go into a loan marketplace and gets pushed to preferred banks,” Jiji Mammem, MD & CEO, Mudra said. “So far we may have disbursed nearly Rs 300 crore under the scheme.”

Out of the total registrations of 9,300, loans have already been sanctioned to nearly 2,700 borrowers.

Of the planned disbursement of Rs 1.8 lakh crore this fiscal year, public sector banks would disburse Rs 77,700 crore, followed by Rs 21,000 crore by private and foreign banks, Rs 15,000 crore by regional rural banks and Rs 64,240 crore by MFIs.

Ahead of Diwali, India bitcoin startups Unocoin, Zebpay and Coinsecure mine new investments (Geektime), Rated: AAA

Zebpay, a bitcoin wallet provider based in India, is raising a new funding round of between $4 million and $5 million, following a $1 million seed investment the company got earlier this year. Like a number of new Fintech and e-commerce startups in India and Southeast Asia, the company is tying mobile payments to personal cell accounts because so many residents of that part of the world are unbanked.

Zebpay, founded as BuySellBitco.in in 2012, is integrating bitcoins into mobile payment services for Indian customers of Flipkart, Amazon and MakeMyTrip.

Some are predicting a bitcoin surge over Diwali. There are some unique factors behind the rise of the coin in Bangalore, Mumbai and New Delhi. India saw another recent bitcoin investment in the $1.5 million round of Bangalore-and-Tumkur-based Unocoin, which boasts 100,000 users and 30 employees, according to Bitcoin Magazine.

Author:

George Popescu

Monday September 11th 2016, Daily News Digest

Monday September 11th 2016, Daily News Digest

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

Monday September 11th 2016, Daily News Digest

News Comments

United States

United Kingdom

European Union

News Summary

 

United States

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Moody’s report is available here.

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

Squeeze #1: Fintech Startups Carving Out the Convenience Position

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

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

Squeeze #2: Merchants are Attacking Traditional Payments Deposits

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

Squeeze #3: Megabanks are Winning the Millennial Market

Escaping the Squeeze

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Rise of ‘Regtech’

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

SME Lending

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

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

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

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

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

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

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

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

United Kingdom

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

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

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

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

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

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

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

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

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

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

Complete speech can be found here.

 

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

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

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

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

 exploring the use of DLT in our core activities;

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

 calibrating our regulatory approach to FinTech developments.

European Union

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

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

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

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

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

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

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

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

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

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

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

Author:

George Popescu