- 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.
Details Title: Internet 3.0: Decentralize everything Internet 1.0 is HTML websites. Internet 2.0 is a social network and user-created content. Internet 3.0 is the decentralization of everything: decentralization of marketplaces, of resources usage and allocation, etc. Is Internet 3.0 the P2P of everything? Examples of decentralization include: Decentralized exchanges (Ether Delta) Decentralize computing power (Golem) […]
Title: Internet 3.0: Decentralize everything
Internet 1.0 is HTML websites.
Internet 2.0 is a social network and user-created content.
Internet 3.0 is the decentralization of everything: decentralization of marketplaces, of resources usage and allocation, etc.
Is Internet 3.0 the P2P of everything?
Examples of decentralization include:
Decentralized exchanges (Ether Delta)
Decentralize computing power (Golem)
Decentralize IP address allocation (JACS)
Decentralize file storage (Filecoin)
Decentralize domain naming (Namecoin)
Decentralize cloud storage (Storj)
Decentralize databases (BigchainDB, IPFS)
Decentralize financial services (Bitcoin, Litecoin, etc.)
Decentralize protocol approval (Tezos)
Date and time:
- 5pm – 5:30pm networking, light cocktail
- 5:30pm – 6:30pm panel and Q&A
- 6:30pm – 7pm networking, light cocktail
Greg J. Nowak, Partner, Pepper Hamilton law firm
Mohamed El Dessouki, CEO, JACS – decentralization of IP address allocation
Amer Justice, Senior Project Manager, Tezos Commons,
Salvatore Buccellato, Partner, Ether Delta, Moderator: George A. Popescu is Editor in Chief, Blockchain Times and Lending Times.
Salvatore Buccellato, Partner, Ether Delta, Moderator: George A. Popescu is Editor in Chief, Blockchain Times and Lending Times.
Moderator: George A. Popescu is Editor in Chief, Blockchain Times and Lending Times.
News Comments Today’s main news: Funding Circle closes $198M ABS for U.S. SMBs. KBRA assigns preliminary ratings to Consumer Loan Underlying Bond Credit Trust 2019-P2. SoFi to create 300 jobs in Jacksonville, Florida. LendInvest postpones IPO until at least 2020. Binance offers crypto lending. Today’s main analysis: The nonbank and alternative lending industry in 2019. […]
- Today’s main news: Funding Circle closes $198M ABS for U.S. SMBs. KBRA assigns preliminary ratings to Consumer Loan Underlying Bond Credit Trust 2019-P2. SoFi to create 300 jobs in Jacksonville, Florida. LendInvest postpones IPO until at least 2020. Binance offers crypto lending.
- Today’s main analysis: The nonbank and alternative lending industry in 2019.
- Today’s thought-provoking articles: Cities with the most swimming pools. Prospa full year results. IOU Financial financial results through June 30, 2019. Why and how P2P lending became marketplace lending. 2019 Finder awards.
- Funding Circle closes $198 million ABS to support U.S. SMBs. This is significant in more than one way. One of the best ways is that it signifies the continued encroachment of European alternative finance firms into the U.S. market. Funding Circle is a major player.
- KBRA assigns preliminary ratings to CLUB Credit Trust 2019-P2. Issued by Lending Club.
- SoFi to create 300 jobs in Jacksonville, Florida. The company is seeking $1.5 million in state and city incentives.
- Cities with the most swimming pools. LendingTree continues to publish the most interesting reports. This one isn’t trivial. A swimming pool can add significant value to a property. For real estate investors, this is a must-read.
- Nonbank and alternative lending in 2019. Business Insider has several interesting reads today. This one leads the pack.
- Court activity on SoFi v. Cindy Luu.
- Brex partners with BigCommerce on merchant financing.
- N26’s plan to win Americans over.
- Digital banking and branches is not an either/or proposition.
- Fifth Third is banking on alternative power.
- A BlueVine report suggests half of SMBs are not prepared for recession.
- How students avoid college loans.
- Fund That Flip raises $11 million.
- New tools for mortgage lenders.
- Pagaya closes $115 million consumer credit ABS.
- Blooma launches AI loan origination platform with $2.75 million seed funding.
- Cred hires former PayPal exec as CFO.
- iCapital Network expands executive team.
- Klarna sponsors fashion week event.
- White Oak Commercial Finance originates revolving credit facility for The Good Kitchen.
- California lenders moving away from small-dollar loans.
- LendInvest to postpone IPO at least until 2020. They’re seeking private money instead.
- Mobile banking apps surge ahead of investment, insurance apps.
- Klarna launches VAR campaign created by 72andSunny.
- Celsius Network sees 20x increase in deposits.
- P2P growth is cannibalizing High Street bank market share.
- Revolut hires from traditional banking for executive team.
- Numbrs becomes a unicorn.
- P2P Global Investments sells largest position for 250 million euros.
- How the EU is trying to understand AI apps.
- Binance offers crypto lending. Crypto lending is already growing and expanding in popularity. This could catapult it into becoming a larger part of the alternative lending industry. Why? Because Binance is the largest cryptocurrency exchange by volume.
- Alt finance is booming.
- Real estate crowdfunding trends.
- How and why the cryptocurrency market center moved to Asia.
- Australia: Prospa’s full year results. Prospa is looking good all around.
- Canada: IOU Financial’s results through June 30, 2019. A positive sign for Canada’s alt finance market.
- Australia: Finder awards. Congratulations to Harmoney, Tic:Toc, and other alt finance winners.
- Africa: Why and how P2P lending had to become marketplace lending.
- India: Future trends in the startup ecosystem.
- India: Xiaomi moves into India’s consumer lending market.
- India: RentoMojo gets injection from Renaud Laplanche.
- United States
- Funding Circle Closes $ 198 Million Securitization to Support US Small Businesses (Valdosta Daily Times), Rated: AAA
- KBRA Assigns Preliminary Ratings to Consumer Loan Underlying Bond (CLUB) Credit Trust 2019-P2 (Benzinga), Rated: AAA
- DeSantis says SoFi, SS&C Technologies will create 498 jobs in Jacksonville (Jax Daily Record), Rated: AAA
- Court activity on Aug. 27: Sofi Lending Corp. vs Cindy Luu (SE Texas Record), Rated: B
- Swimming Pools Are a Highly Prized Amenity Amid the Summer Heat (LendingTree), Rated: AAA
- Brex Teams With BigCommerce To Offer Merchant Financing (PYMNTS), Rated: A
- German challenger bank N26’s plan to win over Americans (American Banker), Rated: A
- Digital Banking And Branches Not An Either/Or Proposition (PYMNTS), Rated: A
- Why Fifth Third is raising its bet on alternative power (American Banker), Rated: A
- How to Get Your Small Business Ready for a Recession (Successful Meetings), Rated: A
- How students are trying to avoid college loans (Marketplace.org), Rated: AAA
- A look at the nonbank and alternative lending industry in 2019 (Business Insider), Rated: AAA
- Fund That Flip Raises Another $ 11M to be the Funding Solution for Real Estate Speculators (Alley Watch), Rated: A
- New Tools Help Mortgage Lenders Build Stronger Relationships with Borrowers’ Real Estate Agents (SimpleNexus), Rated: A
- Pagaya Expands PAID Shelf with Prosper: Closing $ 115 Million Consumer Credit ABS (BusinessWire), Rated: A
- Tech startup Blooma launches out stealth with $ 2.75 million seed funding for its loan origination AI platform (Tech Startups), Rated: A
- Former PayPal executive joins crypto lending startup Cred as CFO (The Block Crypto), Rated: B
- iCapital Network expands exec team with four New hires (PE Hub), Rated: B
- “STYLE360” Celebrates 15 Years At New York Fashion Week With New Title Sponsor Klarna (PRWeb), Rated: B
- White Oak Commercial Finance Originates a Revolving Credit Facility to The Good Kitchen (Financial Content), Rated: B
- Lenders Moving Away From Small-Dollar Loans to High-Interest Installment Loans (Lexology), Rated: B
- United Kingdom
- LendInvest reportedly shelves IPO plans for now (AltFi), Rated: AAA
- Mobile banking apps in the UK are surging ahead of investment and insurance apps (Business Insider), Rated: A
- Klarna launches VAR campaign created by 72andSunny (Prolific London), Rated: A
- Celsius Network Sees A 20x Increase In Deposits, However, Many Analysts Are Concerned (Bitcoin Exchange Guide), Rated: A
- New data reveals rapid growth in Peer-To-Peer lending is cannibalising High st bank market share (ResponseSource), Rated: A
- Revolut Boosts Executive Leadership with New Hires from Traditional Banking (Crowdfund Insider), Rated: B
- European Union
- Zurich-based Numbrs is the latest fintech to join the unicorn club (Business Insider), Rated: AAA
- P2P Global Investments sells largest position for €250m (AltFi), Rated: A
- What is the EU doing to understand if Artificial Intelligence apps are trustworthy? (Open Access Government), Rated: B
- Binance Launches Crypto Lending Service (CryptoGlobe), Rated: AAA
- Alternative Finance is Experiencing an Unprecedented Boom Worldwide (Crowdfund Insider), Rated: A
- The latest crowdfunding trend is in real estate (Born2Invest), Rated: A
- How and why the global centre of cryptocurrency moved back to Asia (Finder), Rated: A
- Australia/New Zealand
- Prospa Full Year 2019 Results (Scoop), Rated: AAA
- 2019 Finder Awards winners (Finder), Rated: AAA
- What future trends do you foresee in the startup ecosystem? (New India Express), Rated: AAA
- Xiaomi is moving into India’s consumer-lending market (Business Insider), Rated: A
- Furniture rental startup RentoMojo to raise Rs 27.7 Cr led by Samsung VC arm (YourStory), Rated: B
- IOU Financial Inc. Releases Financial Results for the Three and Six- Month Period Ended June 30, 2019 (PR Newswire), Rated: AAA
- Why and how peer-to-peer lending had to become market place lending (Business Live), Rated: AAA
Funding Circle Closes $ 198 Million Securitization to Support US Small Businesses (Valdosta Daily Times), Rated: AAA
Funding Circle today closed its first asset-backed securitization (ABS) of US small business loans originated through its platform. The $198 million deal marks the debut of Funding Circle’s US securitization sponsorship capability, and is the fifth securitization of Funding Circle business loans globally.
KBRA Assigns Preliminary Ratings to Consumer Loan Underlying Bond (CLUB) Credit Trust 2019-P2 (Benzinga), Rated: AAA
Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by Consumer Loan Underlying Bond (CLUB) Credit Trust 2019-P2 (“CLUB 2019-P2”). This is a $287.80 million consumer loan ABS transaction.
Preliminary Ratings Assigned: Consumer Loan Underlying Bond (CLUB) Credit Trust
Initial Class Principal
Swimming Pools Are a Highly Prized Amenity Amid the Summer Heat (LendingTree), Rated: AAA
A new LendingTree study ranks the 50 largest cities by its share of homes with a swimming pool. We found that about 10% of homes have pools, ranging from nearly 33% in Phoenix to 1% in Portland, Ore. We also looked at the values of homes with and without swimming pools to show how much this amenity is worth. Let’s dive in.
- You’ve gotta pay to play: The median home with a pool is valued at $469,187, while the median home without a pool is valued at $305,152 — a 54% premium. The highest premium is in Memphis at a whopping 157%.
- Go West: It’s no surprise that six of the top 10 cities for swimming pools are in the West — four in California and one each in Arizona and Nevada.
- Hot, hot, hot: Phoenix, which experiences more than 100 days above 100 degrees a year, leads the way with 32.7% of homes having a swimming pool.
- Sunshine State: Florida is not far behind California with three cities in the top 10. Miami, Tampa and Orlando rank second, third and fourth, respectively.
- Rain and water don’t mix: Two of the cities with the least swimming pools are in the rainy Northwest. Portland is in last place with just 1% of homes with pools, while Seattle is not far ahead with 1.3%.
Brex Teams With BigCommerce To Offer Merchant Financing (PYMNTS), Rated: A
Corporate eCommerce card company Brex has announced a partnership with leading SaaS eCommerce platform BigCommerce, according to a release.
Brex’s open credit line, three-month payment terms and interest-free financing are now available to all BigCommerce merchants through the BigCommerce App Store.
White Oak Commercial Finance Originates a Revolving Credit Facility to The Good Kitchen (Financial Content), Rated: B
White Oak Commercial Finance (“White Oak”), an affiliate of White Oak Global Advisors, announced today the origination of a new revolving credit facility to healthy meal service company The Good Kitchen. Originally founded as a meal delivery service, The Good Kitchen will use the proceeds of the credit facility to expand its business into packaged meals sold at 1,500 stores across the United States.
Lenders Moving Away From Small-Dollar Loans to High-Interest Installment Loans (Lexology), Rated: B
California non-bank consumer lenders are moving away from small-dollar short term payday loans and are, instead, embracing longer-term installment…
LendInvest reportedly shelves IPO plans for now (AltFi), Rated: AAA
Mobile banking apps in the UK are surging ahead of investment and insurance apps (Business Insider), Rated: A
Over three-quarters of consumers in the UK use a finance app, according to a new study from Speedie Consultants that surveyed 200 people in the country. Twenty-four percent of those surveyed use their finance apps around twice a week, and 23% said they use it daily. The most common finance app users were aged 25-45, in addition to consumers over 65.
Klarna launches VAR campaign created by 72andSunny (Prolific London), Rated: A
Swedish fintech payments firm Klarna has launched a new campaign focused around the introduction of Video Assistant Referee technology in the UK’s Premiere League.
Celsius Network Sees A 20x Increase In Deposits, However, Many Analysts Are Concerned (Bitcoin Exchange Guide), Rated: A
According to the latest press release, leading crypto lending firm Celsius Network has seen an increase of 2,165% growth in deposits. The network has already surpassed 20,000 BTC through mobile app deposits during the first year of operations.
New data reveals rapid growth in Peer-To-Peer lending is cannibalising High st bank market share (ResponseSource), Rated: A
Know Your Money data revealed that:
• Peer to Peer and Challenger lenders comparison searches have more than doubled in 3 years
• Alternative lending interest more than doubled in the last 2 years
Revolut Boosts Executive Leadership with New Hires from Traditional Banking (Crowdfund Insider), Rated: B
According to Revolut, the Fintech bank has hired Philip Doyle as Director of Financial Crime Risk, Wolfgang Bardorf as Treasurer and Stefan Wille as Deputy Chief Financial Officer.
Zurich-based Numbrs is the latest fintech to join the unicorn club (Business Insider), Rated: AAA
The Zurich-based fintech, whose investors include former Deutsche Bank CEO Josef Ackermann, raised $40 million at a valuation of over $1 billion, reports Bloomberg. The latest investment brings Numbrs’ total raise to date to almost $200 million, CEO Martin Saidler told the outlet.
Notably, in contrast to many of its peers, Numbrs has joined the unicorn club not by focusing on venture capital and private equity funding, but instead by relying mostly on individuals and families — 50 have invested in the company thus far. The startup’s app enables users to aggregate their various bank accounts and manage their finances, and offers a marketplace for consumers to purchase various financial products.
P2P Global Investments sells largest position for €250m (AltFi), Rated: A
The £1bn P2P Global Investments has sold one of its largest positions, in Castlehaven Finance, an Irish alternative development and bridging finance lender.
Castlehaven typically provides loans of between €1m – €20m in the property space, an increasingly big proportion of P2P GI’s portfolio.
The investment trust has provided financing in excess of €385m to Castlehaven since 2016.
What is the EU doing to understand if Artificial Intelligence apps are trustworthy? (Open Access Government), Rated: B
The University of Oxford received an immense £150 million donation to create a centre studying the ethics surrounding AI in the modern world, whilst global audiences continue to be fascinated by shows like Black Mirror which explore the worst-case consequences of AI accessing personal data.
The project is composed of three distinct, albeit related, parts, run in sequence from January 2019 to December 2020:
Part 1: Application of AI for risk management in bank and peer to peer lending
Part 2: Application of AI for risk management in financial investments and robot advisory
Part 3: Application of AI for risk management in blockchain payments and crypto assets
Binance Launches Crypto Lending Service (CryptoGlobe), Rated: AAA
Binance has launched a lending service allowing its users to earn cryptocurrency without trading, in a passive way. Currently the service is open for only a few tokens – its Binance Coin (BNB), Tether’s USDT stablecoin, and Ethereum Classic (ETC). Annualized interest rates are of 15% for BNB, 10% for USDT, and 7& for ETC.
Alternative Finance is Experiencing an Unprecedented Boom Worldwide (Crowdfund Insider), Rated: A
Ten years after the financial crisis, Alternative Finance continues to exhibit strong growth. The sector is estimated to account for nearly €300 billion of inflows worldwide, a market exhibiting 25% annual growth and largely dominated by the Chinese (75%), which percentage was already recorded in 2015 by a study conducted jointly by KPMG and the University of Cambridge.
The United States takes second place with 19% of the market, while Europe currently represents just 6%, 60% of which comes from the United Kingdom. In France, alternative finance raised €1.4 billion in 2018, a year-on-year increase of 39% according to the annual report of KPMG and the non-profit group Financement Participatif France (FPF).
The latest crowdfunding trend is in real estate (Born2Invest), Rated: A
The global crowdfunding market is estimated to be expanding from 2018 to 2022 to $89.72 billion. From the first recorded successful crowdfunding in 1997, to how the first dedicated crowdfunding platform ArtistShare had come about in the year 2000, crowdfunding has indeed disrupted many industries in different levels.
How and why the global centre of cryptocurrency moved back to Asia (Finder), Rated: A
The problem of investment scammers is much bigger than cryptocurrency though, Wong pointed out, and much bigger than Invest: Asia.
“I don’t think Invest: Asia is big enough to move the needle if you’re running a scam in China,” he said. “That just speaks to the size of the population in China. In general, I think there’s lots of financial scams in general in China, right? For example, a couple years ago there was a big peer to peer lending scandal.”
“The peer to peer lending was legitimately becoming a hot growth FinTech sector in China, but then people were running these peer to peer scams. Because it was so hot, everyone’s talking about it. It creates the conditions for scammers to launch whatever scheme that they want to launch.”
Prospa Full Year 2019 Results (Scoop), Rated: AAA
• FY19 loan originations of $501.7 million up 36.6% on the prior year (FY18: $367.3 million), 3.1% ahead of prospectus forecast.
• FY19 revenue of $136.4 million up 31.2% on the prior year (FY18: $104.0 million), in line with prospectus forecast.
• FY19 pro forma EBITDA of $6.8 million, ahead of prospectus forecast by 11.5%.
• Prospa has now delivered approximately $1.2 billion in loans since inception and total customer numbers in Australia and New Zealand grew to over 20,000 in FY19, up 58% on the prior year.
• Customer satisfaction remains consistently high, with Prospa’s annual average Net Promoter Score in excess of +77 in 2019. Prospa also has a rating of 9.8/10 on independent review platform TrustPilot.
• Business expansion has continued with the successful launch of new cash flow products and services and diversification into New Zealand.
• Further investment in executive strength, with new Chief Technology Officer, Chief Commercial Officer and Executive General Manager, Growth Channels appointed.
2019 Finder Awards winners (Finder), Rated: AAA
The 2019 Finder Awards recognise the market’s most competitive offerings across credit cards, home loans, personal loans, car insurance, banking, insurance, technology and superannuation.
What future trends do you foresee in the startup ecosystem? (New India Express), Rated: AAA
P2P lending has also become increasingly popular as an alternative lending route as small businesses find it easier to obtain loans directly from other individuals. Going forward, we can expect more cloud-based services backed by advanced analytics that offer personalized loan limits and payback schedules, based on the borrower’s credit history.
Traditional players will also get into online lending and emulate the strategies of P2P lending companies. More businesses will start adopting work-from-home policies to increase cost savings and productivity. On the tech front, businesses will start investing more in AI and analytics to get a deeper insight into customer behaviour.
– Kewal Kapoor, director and creative strategist of CHAI Kreative and Return of Million Smiles
Xiaomi is moving into India’s consumer-lending market (Business Insider), Rated: A
The fourth-largest mobile phone vendor plans to launch a consumer-lending business, dubbed Mi Credit, in India in the next few weeks, according to Reuters. It will offer loans of up to 100,000 rupees ($1,451), with interest rates starting at 1.8%.
Xiaomi is positioned as a leading smartphone manufacturer in India, with 70 million mobile phones in use throughout the country. It already launched its payment app, dubbed Mi Pay, in the country in March, which is reportedly “doing well,” per Reuters. For context, in China, Xiaomi’s lending business shows a loan book worth $8 billion.
Furniture rental startup RentoMojo to raise Rs 27.7 Cr led by Samsung VC arm (YourStory), Rated: B
In July 2019, the company secured Rs 1.16 crore from Renaud Laplanche, the Co-founder and CEO of Upgrade, who earlier participated in the startup’s Series C funding round of Rs 77 crore in May, along with Accel Partners, Chiratae Ventures, IDG Ventures, and Bain Capital. At that time, the startup said the funds will be used for accelerating its growth and expansion to new cities.
IOU Financial Inc. Releases Financial Results for the Three and Six- Month Period Ended June 30, 2019 (PR Newswire), Rated: AAA
- Loan originations increased 31.8% to US$38.5 million in Q2 2019 compared to Q2 2018.
- Total loans under management increased 36.4% to $101.0 million as at June 30, 2019 compared to the same period in 2018.
- Adjusted gross revenue increased 25.1% to $5.5 million in Q2 2019 compared to Q2 2018.
- Adjusted Operating Expense Ratio decreased to 10.0% in Q2 2019 compared to 11.9% in Q2 2018.
- Adjusted net earnings amounted to $0.3 million in the second quarter of 2019, representing the sixth consecutive profitable quarter. Adjusted net earnings amounted to $0.8 million year-to-date.
Why and how peer-to-peer lending had to become market place lending (Business Live), Rated: AAA
The linked dangers of an inverted yield curve and a slowing economy have hammered banks stocks in recent months, and profit margins are already compressing. But the banks’ worries pale in comparison to challenges confronting the peer-to-peer or “market place” lenders — the start-ups that have set out, over the past decade or so, to upturn the banking industry.
News Comments Today’s main news: Equifax to pay up to $700M in data breach settlement. MoneyLion raises $160M. Monzo, Starling win top rankings among banking apps. Harmoney makes maiden profit. Today’s main analysis: Peter Renton’s quarterly MPL results – Q1 2019 (A MUST-READ). Today’s thought-provoking articles: Metro areas with the biggest jump in private million-dollar […]
- Today’s main news: Equifax to pay up to $700M in data breach settlement. MoneyLion raises $160M. Monzo, Starling win top rankings among banking apps. Harmoney makes maiden profit.
- Today’s main analysis: Peter Renton’s quarterly MPL results – Q1 2019 (A MUST-READ).
- Today’s thought-provoking articles: Metro areas with the biggest jump in private million-dollar businesses. In-house marketing at Klarna. The Chinese millionaire who canceled lunch with Warren Buffett. Hedge funds help fuel consumer lending in southeast Asia.
- Equifax to pay $700 million in data breach settlement. Data breaches are serious in today’s online business environment. As online business models expand, this will become a more serious issue.
- MoneyLion secures $160 million funding. Congratulations.
- Q1 marketplace lending results. Peter Renton of Lend Academy has been open about his marketplace lending investments for years. As usual, this is a must-read.
- Metro areas with the biggest jump in private million-dollar businesses. LendingTree undergoes the most interesting studies.
- OnDeck makes key hire in sales and strategy.
- Lendio pairs SMB loan management with accounting.
- How artificial intelligence can make fair lending better.
- Aura closes $28.7 million.
- Credible announces more student loan options.
- How fintech speeds up mortgage close times.
- Cross River blurs the line between fintech and banking.
- Questions increase for fringe ABS players.
- Should fintechs be regulated like banks?
- Financial services business ideas.
- NASAA on initial loan procurements.
- Online business ideas.
- Mynd Property Management acquires HomeUnion.
- Think Finance settles with Pennsylvania.
- Monzo, Starling take top rankings among banking apps. Congratulations! That’s No. 1 and No. 2, respectively.
- Lord Myners puts more pressure on FCA over Lendy failings.
- More lessons from Lendy.
- Innovate Finance adds three regions to network.
- Growth Street pledges 75 million GBP overdraft funding for East Anglia.
- Does your business need short-term financing?
- Superdry partners with Klarna.
- OakNorth lends 11.4 million GBP to Ocea.
- LendInvest hires for business development team.
- Meet the Chinese millionaire who cancelled lunch with Warren Buffett. Justin Sun is a cryptocurrency entrepreneur who paid $4.6 million to have lunch with Buffett. This is a very interesting read.
- Why huge VC rounds are common in fintech.
- YouHODLer exposed unencrypted user credit cards and transactions.
- Genesis Capital sees expansion in crypto lending.
- What does ‘DeFi’ mean?
- Decentralized finance in a centralized world.
- Is it time to rethink securities finance?
- Finacity facilitates $115 million in receivables securitization for UK entities.
- In-house marketing at Klarna. Interesting interview.
- AdviceRobo launches open banking API for lenders.
- Australia: Harmoney makes maiden profit. Congratulations. Off to a good start.
- Southeast Asia: Hedge funds fuel consumer lending boom.
- Australia: Are bank hybrids too expensive? A good read.
- India: Cube Wealth expands into UK, Hong Kong.
- Indonesia: OJK condemns Incash for indecent post of debtor online.
- United States
- Equifax will pay up to $ 700 million to settle data breach lawsuits (CBS News), Rated: AAA
- MoneyLion Announces $ 160M in Funding (Finanzen), Rated: AAA
- OnDeck Taps Bank Veteran to Lead ODX Sales and Strategy (OnDeck), Rated: A
- My Quarterly Marketplace Lending Results – Q1 2019 (Lend Academy), Rated: AAA
- Metros With the Biggest Jump in Private Million-Dollar Businesses (LendingTree), Rated: AAA
- Lendio Marries SMB Loan Management With Accounting (PYMNTS), Rated: A
- How AI can advance the cause of fair lending (American Banker), Rated: A
- Aura Closes $ 28.7 Million Expansion Loan from Angel Island Capital (Business Wire), Rated: A
- More options to save on student loans at Credible (Credible), Rated: A
- This is how fintech solutions are speeding up mortgage closing times (Housingwire), Rated: A
- Financial services newcomer Cross River blurs line between fintech, banking (ROI), Rated: A
- Fitch Ratings: Questions Increase Around Fringe Players in U.S. ABS (ABL Advisor), Rated: A
- Should fintechs be regulated like banks? (BAI.org), Rated: A
- Examples of Financial Services Business Ideas (Entrepreneur), Rated: A
- NASAA Warning on Initial Loan Procurements: “Crowdfunding Meets Blockchain” (Crowdfund Insider), Rated: A
- Examples of Online Business Ideas (Entrepreneur), Rated: A
- Mynd Property Management Acquires HomeUnion, a Real Estate Investing Portal (Yahoo! Finance), Rated: B
- Pa. Attorney General Announces Payday Loan Relief Settlement (CBS Local), Rated: B
- United Kingdom
- Monzo and Starling took first and second place in a ranking of banking apps (Business Insider), Rated: AAA
- Lord Myners heaps further pressure on FCA over Lendy failings (P2P Finance News), Rated: A
- Lessons from Lendy (Brismo), Rated: A
- Innovate Finance expands national network with three regions added (ComputerWeekly), Rated: A
- Growth Street pledges £75m overdraft funding for East Anglia (P2P Finance News), Rated: A
- Is Short-Term Financing Right For Your Business? (Nav), Rated: A
- Superdry collaborating with Klarna (Fibre2Fashion), Rated: B
- OakNorth completes £11.4m loan to Ocea for major new residential development in Redhill, Surrey (Fintech Finance), Rated: B
- LendInvest boosts business development team with new hires (P2P Finance News), Rated: B
- European Union
- In-house marketing at Klarna: Interview with Elin Svahn (BannerFlow), Rated: AAA
- AdviceRobo has launched an open banking capability for lenders (Business Insider), Rated: A
- Who Cancels Lunch With Warren Buffett? A Chinese Tycoon Did, but Why? (The New York Times), Rated: AAA
- Embedded finance, or why fintech mega VC rounds have become so common (TechCrunch), Rated: A
- Cryptocurrency loan site YouHodler exposed unencrypted user credit cards and transactions (TechCrunch), Rated: A
- Crypto Lending Market ‘Continues to Experience Sustained Growth’ (CryptoGlobe), Rated: A
- What Is DeFi? (Bitcoin Market Journal), Rated: A
- Decentralised Finance in a centralised world (Business Times), Rated: A
- Time for a rethink? (Securities Lending Times), Rated: A
- Finacity Facilitates the Addition of UK Entities to USD $ 115 Million Receivables Securitization (Virtual Strategy Magazine), Rated: A
- Harmoney makes maiden profit (MSN), Rated: AAA
- Why bank hybrids are far too expensive (Cuffelinks), Rated: AAA
- India’s FinTech Cube Wealth expands asset management biz in UK, Hong Kong (IBS Intelligence), Rated: AAA
- Southeast Asia
- Hedge Funds Help Fuel Southeast Asia Consumer Lending Boom (Bloomberg), Rated: AAA
- OJK Condemns Fintech Lender over Indecent Post of Debtor (Tempo), Rated: A
Equifax will pay up to $ 700 million to settle data breach lawsuits (CBS News), Rated: AAA
Equifax will pay up to $700 million to settle with the Federal Trade Commission and others over the massive 2017 data breach that exposed the private data of nearly 150 million people. Consumers are eligible to claim as much as $20,000 in cash payments, the FTC said.
MoneyLion Announces $ 160M in Funding (Finanzen), Rated: AAA
MoneyLion today announced $160 million in funding — $60 million in previously unannounced financing and a $100 million Series C funding round.
The round was co-led by Edison Partners and Greenspring Associates and included strategic investment from Capital One, a diversified bank that offers a broad array of financial products and services to over 45 million consumers. The round also included investment from MetaBank and FinTech Collective. Upon completion of the Series C round, the company will have raised over $200 million in equity financing.
OnDeck Taps Bank Veteran to Lead ODX Sales and Strategy (OnDeck), Rated: A
OnDeck today announced the appointment of Lonnie Hayes as the Head of Sales and Strategy for ODX, a wholly owned subsidiary of OnDeck that assists banks with streamlining and digitizing small business credit origination.
My Quarterly Marketplace Lending Results – Q1 2019 (Lend Academy), Rated: AAA
My overall returns for the twelve months ending March 31, 2019 was 6.09%. This is up from 5.35% that I reported in Q4 and 4.77% in Q3. My original six LendingClub and Prosper accounts had another full percentage point jump. Last quarter I reported the returns on those six accounts had jumped from 3.19% in Q3 to 4.16% in Q4. We see this quarter they are at 5.18%. This is quite a remarkable turnaround and while I still think 5% is not a high enough return for unsecured consumer lending, it is certainly moving in the right direction.
Metros With the Biggest Jump in Private Million-Dollar Businesses (LendingTree), Rated: AAA
- Austin, Texas topped the list with a 15.1% increase in privately held companies surpassing $1 million in revenue between 2014 and 2016. The number of Austin firms in that category rose by 1,857.
- Jacksonville, Fla. and Riverside, Calif. came in a nose behind, with an increase just under 15%. The number of firms rose by 963 and 2,359, respectively.
- Buffalo, N.Y. was the only metro on our list to lose businesses with seven figure revenues: The city in upstate New York was down by four such firms, a reduction of 0.1%.
- Baltimore and Oklahoma City made the smallest gains, at just over 1%, or 187 and 117 businesses, respectively.
- Los Angeles had the largest number of firms to pass the million-dollar mark – 6,664 – followed closely by New York at 6,568. Those large numbers represent increases of almost 8% and 5.2%, respectively, leaving them in the 16th and 29th spots on the list.
Lendio Marries SMB Loan Management With Accounting (PYMNTS), Rated: A
Small business loan marketplace Lendio has announced the acquisition of bookkeeping software provider Billy.
A press release Tuesday (July 23) said Lendio is rebranding Billy to Sunrise, a small business bookkeeping solution that integrates accounting, cash flow management, loan management and credit data into a single solution.
How AI can advance the cause of fair lending (American Banker), Rated: A
The rightful prohibition of ZIP codes in underwriting is one example of how financial regulators ensure fairness by protecting against discriminatory lending. But the increasing reliance on artificial intelligence and machine learning, or “automated insights” as I prefer to call it, has made testing a wide variety of inputs for specific outcomes a sophisticated, scientific process carried out by companies. Lawmakers should consider these varied new data options when they evaluate machine learning during a hearing later this week.
Aura Closes $ 28.7 Million Expansion Loan from Angel Island Capital (Business Wire), Rated: A
Aura, a mission-driven financial technology company that offers affordable loans to hard-working families, today announced it has closed $28.7 million in residual debt financing from Angel Island Capital (“AIC”) to help the company grow and keep pace with the demand for its loans.
Drip Capital raises $ 25 mn from Accel, Sequoia (IBS Intelligence), Rated:
Drip Capital, a technology-enabled cross border trade financier, has raised $25 million in Series B funding from investors led by Accel Partners. Existing investors Sequoia Capital, Wing VC and Y Combinator also participated in the round.
More options to save on student loans at Credible (Credible), Rated: A
With Ascent and MEFA on board, Credible’s student loan marketplace now provides access to eight lenders, including traditional banks, online lenders, and state student loan authorities.
This is how fintech solutions are speeding up mortgage closing times (Housingwire), Rated: A
Financial technology is transforming the mortgage industry by making the origination process more convenient and secure for borrowers.
In 2018, BOK began leveraging Roostify’s digital platform to provide its customers a secure way to upload, send and receive loan documents remotely.
Few would expect it was a good idea to start a bank right as the recession raged a decade ago.
Fewer still would say any bankers eager to do that, as Cross River Bank did, would go on to become one of the state’s most impressive growth stories.
Fitch Ratings: Questions Increase Around Fringe Players in U.S. ABS (ABL Advisor), Rated: A
While U.S. core ABS performance remains strong due largely to low unemployment, many investors are zeroing in their questions on some of the sector’s non-core assets, according to Fitch Ratings in its 2019 Virtual Investor Video Series for structured finance.
Should fintechs be regulated like banks? (BAI.org), Rated: A
According to the U.S. Treasury report, more than 3,330 new technology-based financial services industry were founded from 2010 to the third quarter of 2017, creating industry investment worth more than $22 billion: a thirteen-fold increase since 2010. Lending by these firms now makes up more than 36 percent of all U.S. personal loans, up from less than 1 percent in 2010.
Examples of Financial Services Business Ideas (Entrepreneur), Rated: A
If you’re financially savvy, you can start your own peer-to-peer lending business. This is when you give small amounts of money to a business or private person, while collecting interest on the returns. Before you start lending out money, here is a successful business you can learn some strategies from:
Business Name: RainFin
Established date: 2012 About the business: RainFin offers an online marketplace that enables borrowers to access affordable debt capital and investors to access new asset classes. RainFin is a registered credit provider and aims to remove traditional costs and barriers for borrowers and investors through innovative technology, designed to create a transparent and fair marketplace.
Established date: 2012
About the business:
RainFin offers an online marketplace that enables borrowers to access affordable debt capital and investors to access new asset classes. RainFin is a registered credit provider and aims to remove traditional costs and barriers for borrowers and investors through innovative technology, designed to create a transparent and fair marketplace.
NASAA Warning on Initial Loan Procurements: “Crowdfunding Meets Blockchain” (Crowdfund Insider), Rated: A
NASAA describes initial loan procurements as a crowdfunding method that allows borrowers and creditors to enter into loan agreements through legally binding smart contracts stored on the blockchain.
To quote NASAA:
“Companies using blockchain technology need to raise capital just like any other company. One way these companies accomplish that is through initial coin offerings (ICOs), which require the new company to create tokens that can be sold to investors and used for the development of new projects. An alternative fundraising method is catching the interest of investors. Initial loan procurements allow companies to raise capital without the added burden of creating tokens.”
Examples of Online Business Ideas (Entrepreneur), Rated: A
Online real estate investing platforms now exist, and they enable anyone to invest a percentage into a property instead of the whole amount. If you have the right skills, you can start your own online business.
Before you launch your business, learn a few strategies from this example of an online business:
Business Name: Real Estate Crowdfunding
About the business: Real Estate Crowdfunding offers its clients lower fees, the option to invest in a development nearby and transparency, which enables their customers to find out more about projects before investing.
About the business:
Real Estate Crowdfunding offers its clients lower fees, the option to invest in a development nearby and transparency, which enables their customers to find out more about projects before investing.
Mynd Property Management Acquires HomeUnion, a Real Estate Investing Portal (Yahoo! Finance), Rated: B
Mynd Property Management, a modern property management company powered by on-the-ground experts and technology, has acquired HomeUnion, a company that enables investing in small residential properties in 20 U.S. markets. The acquisition comes on the heels of Mynd’s recent merger with RentVest, which doubled Mynd’s property management footprint to more than 8,000 small residential rental units in a total of 16 markets.
Monzo and Starling took first and second place in a ranking of banking apps (Business Insider), Rated: AAA
UK-based Monzo has taken the top spot in a ranking of bank apps by MoneySavingExpert.com, beating out both peers and incumbents, The Irish News reports. Seventy-eight percent of the consumers surveyed said the neobank’s app had plenty of features and strong usability.
Competing neobank Starling picked up second place, with 70% of consumers approving of its app’s features and usability. The rest of the top five was rounded out by Barclays (57%), Lloyds Bank (49%), and NatWest (47%).
Lord Myners heaps further pressure on FCA over Lendy failings (P2P Finance News), Rated: A
FORMER City minister Lord Myners is keeping the pressure on the Financial Conduct Authority over its decision to authorise now-collapsed peer-to-peer lending platform Lendy.
A series of written parliamentary questions show Lord Myners is seeking answers on whether better regulation is needed and the creditor status of Lendy investors.
Lessons from Lendy (Brismo), Rated: A
Innovate Finance expands national network with three regions added (ComputerWeekly), Rated: A
Last week Innovate Finance announced the addition of Fintech Northern Ireland, Fintech Wales and Fintech West to the national network.
Growth Street pledges £75m overdraft funding for East Anglia (P2P Finance News), Rated: A
GROWTH Street has pledged to commit £75m of overdraft-style financing to small- and medium-sized enterprises (SMEs) in East Anglia.
The peer-to-peer business lender, which provides a revolving credit facility for borrowers, said it is already 10 per cent towards its target having lent £7.5m in the region.
Is Short-Term Financing Right For Your Business? (Nav), Rated: A
If you need a short-term capital boost, there are a number of options available to you. Here are a few short-term financing examples that you may want to consider.
Superdry collaborating with Klarna (Fibre2Fashion), Rated: B
British contemporary fashion brand Superdry and leading payments provider Klarna have entered into a collaboration, enabled by Adyen. Superdry customers can now use the Pay later or Pay in 3 in the UK, and later this month will be able to Pay in 4 in the US. This will make everything from jackets to jeans more accessible to Superdry customers globally.
OakNorth completes £11.4m loan to Ocea for major new residential development in Redhill, Surrey (Fintech Finance), Rated: B
LendInvest boosts business development team with new hires (P2P Finance News), Rated: B
Nigel Robbins has joined LendInvest from specialist mortgage lender Magellan to source deals across the South West of England.
In-house marketing at Klarna: Interview with Elin Svahn (BannerFlow), Rated: AAA
In-house marketing is transforming the industry. It is a movement rising in popularity year on year, with over 91% of European decision-makers moving operations in-house.
How do you structure your in-house marketing at Klarna?
When I started, Klarna was in the process of a complete restructuring of their in-house operations. The brand was divided into many separate domains, with different teams having different priorities, and ‘issues’ to solve.
Today, we have four marketing domains: Branding, Merchant Aquisition and Growth, Communications and PR, Consumer Growth and Loyalty. Within each of these domains, we have different competencies. So for example, within the Branding domain, we have a mix of marketers, designers, and copywriters.
AdviceRobo has launched an open banking capability for lenders (Business Insider), Rated: A
AdviceRobo focuses on offering credit risk management solutions, and its latest API product enables lenders to categorize transactional data and predict defaults to make sound credit decisions.
The Netherlands-based fintech’s new API, dubbed CatRobo, is powered by PSD2 — a regulation that came into effect in January 2018 forcing banks to open up their data to third-parties.
Here’s what it means: The API will help lenders make better use of their data, better compete with alt lenders, and lend out more cash to underserved consumers.
Who Cancels Lunch With Warren Buffett? A Chinese Tycoon Did, but Why? (The New York Times), Rated: AAA
Justin Sun denied reports that he had postponed a charity lunch with the investing guru after attracting regulatory scrutiny. In China, where executives sometimes vanish, such reports are not unusual.
Embedded finance, or why fintech mega VC rounds have become so common (TechCrunch), Rated: A
This morning, it was personalized banking app MoneyLion, which raised $100 million at a near unicorn valuation. Last week, it was N26, which raised another $170 million on top of its $300 million round earlier this year. Brex raised another $100 million last month on top of its $125 million Series C from late last year. Meanwhile, companies like payments platform Stripe, savings and investment platform Raisin, traveler lender Uplift, mortgage backers Blend and Better, and savings depositor Acorns have also raised massive new rounds this year.
Cryptocurrency loan site YouHodler exposed unencrypted user credit cards and transactions (TechCrunch), Rated: A
A cryptocurrency loan startup exposed reams of customer credit cards and user transactions for almost a month — because it forgot to protect the server with a password.
Security researchers Noam Rotem and Ran Locar found the database belonging to YouHodler, a lending platform designed for cryptocurrency, which claims to have processed $10 million in loans to more than 3,500 customers.
The database contained 86 million lines of daily updating records of the lending platform, containing streams of logs and computer commands based on users’ interactions on the front-end website. That also included sensitive information such as every time a transaction or a loan went through.
Crypto Lending Market ‘Continues to Experience Sustained Growth’ (CryptoGlobe), Rated: A
In the Q2 2019 edition of its quarterly ‘Digital Asset Lending Snapshot’ report, Genesis Capital made several interesting observations:
- At the end of Q2 2019, the total value of “active loans outstanding” was $452 million versus $181 million in Q1 2019, i.e. a quarter-over-quarter (QoQ) increase of 149%.
- Originations went up 48% QoQ, which means that Genesis Capital has just experienced its fifth straight quarter of “strong growth.”
- Genesis Capital has originated over $2.3 billion in “loans and borrows” since the business was launched in March 2018.
What Is DeFi? (Bitcoin Market Journal), Rated: A
DeFi platforms leverage smart contract technology to provide decentralized financial solutions, such as digital currency-based peer-to-peer lending, dollar-pegged stablecoins, or investable tokenized asset baskets. The existing DeFi market is still at an early stage so we can expect more decentralized financial services that operate on a permissionless, transparent, and efficient manner on the blockchain to materialize soon.
Decentralised Finance in a centralised world (Business Times), Rated: A
THE growth of global financial markets has created enormous wealth, especially benefitting a few players who are closely connected to the world’s main financial centres.
The centralised nature of the industry has enabled these powerful intermediaries to position themselves in the middle of the system and thus extract rents from other participants.
This oligopolistic structure has stifled competition and decreased efficiency, while increasing the cost of financial services.
Time for a rethink? (Securities Lending Times), Rated: A
David Lewis of FIS discusses the dip in the securities finance industry’s global revenues and explains the factors changing the dynamics of the industry
Finacity Facilitates the Addition of UK Entities to USD $ 115 Million Receivables Securitization (Virtual Strategy Magazine), Rated: A
Finacity Corporation (“Finacity”), a member of the Greensill family of companies, and DZ Bank AG Deutsche Zentral-Genossenschaftsbank (“DZ Bank”) announces the addition of Volt Information Sciences, Inc. (“Volt”) United Kingdom subsidiaries as sellers of receivables to Volt’s existing trade receivables securitization. The 2-year facility supported by Volt’s US and UK receivables allows for up to USD $115 million in funding with a $35 million sublimit for letters of credit.
Harmoney makes maiden profit (MSN), Rated: AAA
The company, which is partly owned by Heartland Bank (17 percent share) and Trade Me (15 percent), made a net profit of $7.2 million in the year ended in March, compared with a loss of $1.8m the year earlier.
Its revenue was up 25 percent to $32.9m, with net interest income of $728,000 – nearly 10 times more than the year before.
Why bank hybrids are far too expensive (Cuffelinks), Rated: AAA
Yield chasing has spilled into nearly every asset class, with Australian listed bank hybrids no exception. The current average margin of bank bills at +2.40% is close to the lowest level for at least seven years.
Alternatives to bank hybrids
2. Marketplace lending
Institutional and retail investors can both access marketplace lending (also known as peer-to-peer lending) via a growing number of online platforms. There’s a mixture of residential and commercial property secured loans available, as well as unsecured business and personal loans. For more conservative investors, loans backed by residential property with an LVR of 60% or less typically yield 5-7%. Commercial property loans, business loans and personal loans usually come with higher yields. Investors in riskier loans should be expecting to lose a portion of their total return when some of the borrowers default and should set their return expectations accordingly.
India’s FinTech Cube Wealth expands asset management biz in UK, Hong Kong (IBS Intelligence), Rated: AAA
Cube Wealth, an Indian FinTech start-up for financial planning and wealth management, is entering the global markets in this quarter (July-September) of 2019. The plan is to set up a tech-enabled asset management company in the UK, Hong Kong and Switzerland to start with so that customers in those markets can get an access to some leading fund managers in the emerging markets, including India.
Hedge Funds Help Fuel Southeast Asia Consumer Lending Boom (Bloomberg), Rated: AAA
A small but rising number of hedge funds are being established to help finance the boom in online and peer-to-peer lending across Southeast Asia.
Pilgrim Asia Consumer Finance Fund, founded by Brian Yonghui Tan and Paul Sheng, aims to raise up to $20 million in its first year and generate a return for investors of around 8% per annum. It will charge a 2% management fee.
OJK Condemns Fintech Lender over Indecent Post of Debtor (Tempo), Rated: A
The Financial Services Authority (OJK) condemns fintech lender Incash for posting a photo of one of its debtors online, with captions saying she was willing to have sex for money so she could pay her debts to the online lender.
Artificial Intelligence, fondly known as AI, is the approach and research field of creating machines that are able to replicate human intelligence. Although we aren’t yet teeming with robots as intelligent as humans, we have managed to build: Intelligent programs that can beat reigning Go world champs Virtual assistants like Siri and Google Assistant to […]
Artificial Intelligence, fondly known as AI, is the approach and research field of creating machines that are able to replicate human intelligence.
Although we aren’t yet teeming with robots as intelligent as humans, we have managed to build:
- Intelligent programs that can beat reigning Go world champs
- Virtual assistants like Siri and Google Assistant to get our questions answered instantly, and
- Advanced chatbots that can make customer service a snap
With the passing of time, more and more fields are benefiting from AI and machine learning (ML). The latter is a specific form of AI that deals with devising strategies and methods for allowing a machine to learn from the available and historical data, all to find better solutions for existing problems.
Among the various markets growing by leaps and bounds with machine learning is marketplace lending. AI and machine learning have enabled this sector to automate a variety of processes, shrink operating costs, and make life easier for both lenders and borrowers.
In the past two decades, there has been a tremendous surge in people interested in learning ML as a hobby as well as a professional career choice. Before diving deeper into the subject of how machine learning will transform P2P lending in the future, let’s first get ourselves a brief understanding of ML.
The Craft of Machine Learning a.k.a. ML
Machine learning, or ML, is a subfield of artificial intelligence that follows the notion that machines can learn and adapt better from experience rather than from extensive programming.
Although machine learning is a subset of AI, there are several notable differences between AI and ML. Hence, both fields are considered to be distinct. This analogy is followed by deep learning and machine learning too, where the former is the subfield of the latter.
Today, we are surrounded by many instances of ML, varying from Apple’s Face ID and facial recognition in general to navigational and shopping recommendations generated by virtual assistants. ML also had a profound impact on the financial industry, especially the lending sector, which we are going to discuss in the upcoming sections.
The Present Impact of Machine Learning on P2P Lending
The ongoing evolution of technology and the emergence of tech innovation is having a greater impact on the financial services industry. From designing impactful business models and enhancing the customer experience to cutting costs, the benefits are many.
Fintech firms and the Internet are providing platforms to even niche products to get interested financial supporters as well as potential customers to grab their side. Peer-to-peer financing isn’t only about crowdfunding, but also includes P2P lending.
A bank offers P2P lending by allocating capital from the lending party to the borrowing party while acting as the broker, as well as the risk mitigator. The higher the risk, the higher is the imposed interest rate. Fintech organizations have made this simpler and more effective.
Several Fintech P2P lending firms like LendingClub and Prosper offer a platform where individuals gain interest by lending money to the ones who require it. These firms make money by taking a small fee for making the connection among the two parties possible.
As an alternative to submitting a traditional application, borrowers present compelling stories about why they need the capital via fintech platforms.
Other than the aforementioned, here are some of the most important benefits presently enjoyed by the P2P lending industry thanks to adding the art of machine learning to its arsenal:
1. Easy Identification of Defaulters
As the financial sector grows, so does the number of defaulters and bad loans. This has led the financial institutions to be more careful than ever to spot and avoid defaulters.
Machine learning, with its predictive analysis, can help lenders identify early the borrowers who are highly likely to default later. An early deduction of defaulters can significantly lessen the credit risks, which, in turn, reduces the total number of actual defaulter cases.
2. Hastening the Loaning Process
Of course, lending is one of the most complex business processes. This is the prominent reason why it is a long and tiresome process to accomplish. Thanks to its intuitive analysis, machine learning can remove the redundant parts and, hence, speed up the whole process.
An automated workflow offers lenders a competitive edge against the competition as there is less space for human error. Thus, lenders can process mammoth workloads in shorter time periods. This helps them not only to maximize profit, but also to better serve their clientele.
3. Lessening/Eradicating Errors
Lending involves a lot of documentation. From the very early stage of loan origination to underwriting, most of the steps involved demand preparing and verifying several documents. Doing it manually not only increases the overall time required but also makes it prone to errors.
Machine learning comes in handy here by adding automation to the process, prompting for human intervention where required the most, and thus, streamlining the complete loan cycle.
4. Reducing Operating Costs by Automating Several Aspects of the Lending Process
There are several aspects contributing to the operating costs of a financial institution. Among them, the most notable aspect is loan decisioning. In most cases, the loan arrives at a positive lending decision irrespective of the loan amount.
Machine learning is able to automate the process, consolidate the entire data, and process the same by taking into account a number of factors. Moreover, ML performs a credit check and enhances the overall experience and quality of the process while reducing the overall costs.
5. Simplifying the Whole Process
The traditional way of lending is a very complex process. Hence, it is obvious for lenders to look for options that can simplify the conventional lending workflow (i.e. decreasing the total time required, lowering the overall cost involved, and smoothing out the whole process).
Machine learning helps in simplifying the whole lending process by:
- Automating various aspects of the business process with customizable rules engine
- Easing the borrowing process
- Ensuring straightforward processing of loan applications
- Standardizing the entire process
The Upcoming Impact of Machine Learning on P2P Lending
With time, artificial intelligence and machine learning are getting bigger and better. This is evident by the fact that there’s a continuous rise in candidates interested in learning AI in general, and ML in particular.
Although machine learning has already started revolutionizing the way P2P lending works, it will continue getting better and more beneficial for the craft. Following are some projections about how ML will impact lending in the near future:
- Ability to self-modify with little to no requirement for human intervention
- Better means of filtering irrelevant data from relevant data
- Completely automating the underwriting process
- Even faster application, approval, and funding processes
- Helping lenders to see the bigger picture by insights drawn using efficient ML algorithms
- Increasing the outreach of lenders and identifying potential lenders
- Introducing younger people to the lending-borrowing culture
- More stringent safety protocols to safeguard sensitive information
- Offering insightful decisions with a higher probability of success
- Providing capital to more and more honest borrowers
- Recognize patterns in a specific dataset to help build effective business models
- Using more number of data points to better check the likelihood of the borrower repayment and estimating the time period of the lender getting the amount back
Challenges Posed by Machine Learning Algorithms
Although machine learning provides access to a variety of avenues for financial institutions, it still needs to do the heavy lifting in some areas to further improve. Three of the most important aspects of ML requiring effort are discussed as follows:
1. Concealed and Undesired Bias
Bias is an inseparable aspect of machine learning algorithms. No ML algorithm can exist bias-free. Although a small degree of bias can be easily managed, the bigger it becomes, the more difficult it gets to fix the same.
Chances for machine learning algorithms to develop concealed and undesired biases from the same data used to train them do exist. Hence, human intervention becomes absolutely necessary to ensure that apposite suggestions or predictions are made by the ML systems.
2. Undetected Errors
Machine learning aims to minimize human interference as much as possible. Hence, it kind of makes humans dependent on machines. Most times, they are free from errors. However, there is room for some errors to slip through.
In case of errors that the machines aren’t able to correct themselves, human intervention becomes mandatory. However, manually identifying and correcting complex algorithms can be arduous and time-consuming.
As lending is an important aspect of the economy, even the smallest of errors being unintentionally passed through can propagate through the system and lead to a huge, undesirable consequence.
3. Time Requirement for Developing Precise Predictions
Machine learning algorithms rely greatly on historical data. The accuracy of the predictions developed by ML algorithms is directly proportional to the total time they spend interacting with the data. Therefore, making precise predictions instantly isn’t possible.
It is mandatory to feed historical data as well as the new data to the ML system continuously for ensuring that the predictions produced by the same are accurate and reliable.
There is no denying the fact that the advent of artificial intelligence and machine learning has completely altered the way the lending sector works today. It has become faster, bigger, and better than ever with continuous improvement.
Borrowers and lenders, irrespective of the capital involved, aim to have as few formalities as possible. Though it seems unachievable with the traditional form of lending, the technology-backed lending strives to move as much closer to it as possible.
Fintech firms leverage the latest technological innovations to offer a quicker, smoother, and reliable experience to the lenders and borrowers. There are lots of challenges faced by the industry as of now. Developing better machine learning algorithms might be the key to solving them all.
News Comments Today’s main news: Kabbage secures $200M. Funding Circle plummets 20%. Zopa to raise 200M GBP pre-IPO. RateSetter Isa attracts over 250M GBP in subscriptions. OakNorth doubles staff. Funding Societies tied up in SME financing. Today’s main analysis: Recession talk, global easing, and SoFi rated pass-thru innovation. Today’s thought-provoking articles: 10 years of marketplace […]
- Today’s main news: Kabbage secures $200M. Funding Circle plummets 20%. Zopa to raise 200M GBP pre-IPO. RateSetter Isa attracts over 250M GBP in subscriptions. OakNorth doubles staff. Funding Societies tied up in SME financing.
- Today’s main analysis: Recession talk, global easing, and SoFi rated pass-thru innovation.
- Today’s thought-provoking articles: 10 years of marketplace lending investing. Is Funding Circle a barometer for Brexit opinions? China’s credit card debt sees breakneck growth. International P2P lending volumes.
- Kabbage nabs $200 million in funding. Congratulations!
- Recession talk, global easing, and SoFi rated pass-thru innovation. Talk of recession is picking up speed.
- Ten years of MPL investing. A great analysis of the last 10 years from Peter Renton at Lending Academy.
- Home affordability in the original 13 colonies. From LendingTree.
- Embracing the digital lending revolution.
- Direct Lending funds raise concerns.
- Capital One closes branches.
- Policing the Internet is critical to protecting online lending consumers.
- How Brex secured $860 million.
- Provident Financial partners with Fundation.
- Funding Circle plummets 20 percent. The most interesting news this week is out of the UK, as Americans spent the week celebrating their independence from Great Britain.
- Funding Circle bins the boasts as Brexit bites.
- Is Funding Circle a Brexit barometer?
- Fintech’s big bang.
- Zopa to raise $200 million GBP ahead of bank launch, IPO.
- RateSetter Isa attracts over 250 million GBP in subscriptions.
- OakNorth doubles staff.
- Moneybox partners with OakNorth.
- FIBA to publish lender default rates.
- Growth Street runs past 500 million GBP in matched loans.
- LendingCrowd partners with Brismo.
- Purplebricks to retreat from U.S.
- P2P lenders aren’t doing enough to protect investors.
- Lendingblock partners with Caspian.
- International P2P lending volumes for June 2019.
- Generic to launch tokenized P2P lending platform.
- More than half of consumers are regular users of fintech.
- Funding Societies tied up in SME financing.
- India: Union Budget 2019 expectations.
- P2P lending hopes for policy changes.
- Helios P2P secures second round of funding.
- P2P lending is a model for many small businesses.
- Visa Indonesia opens applications for innovation competition.
- China: Breakneck growth in credit card debt.
- Germany: Creditshelf doubles loan volume in first half of 2019.
- Australia: Loans.com.au passes on full rate cut.
- Canada: Bank of Montreal launches digital-only line of credit.
- China: The rashness of expecting stock market booms.
- Ireland: PropertyBridges attracts first tranche of P2P loans housing project.
- China: Regulators curb market irregularities.
- United States
- Kabbage secures $200M to fuel its AI-based loans platform for small businesses (Tech Crunch) Rated: AAA
- Recession Talk and Global Easing; SoFi Rated Pass-Thru Innovation (PeerIQ), Rated: AAA
- Ten Years of Investing in Marketplace Lending (Lending Academy) Rated: AAA
- Home Affordability in the “13 Original Colonies” (DS News) Rated: A
- Embracing The Digital Lending Revolution (Monja Blog) Rated: A
- Direct Lending Funds Raise Cash and Concerns (Bloomberg) Rated: A
- Capital One keeps closing branches, even as rivals open them (American Banker) Rated: A
- Policing The Internet Is Critical To Protecting Online Lending Consumers (Forbes) Rated: A
- How Two College Dropouts Made $ 860 Million by the Time They Were 23 (Fortune) Rated: A
- A ‘turtle bank’ plays catch-up in small-business lending (American Banker) Rated: B
- United Kingdom
- Funding Circle shocks the City, plummeting 20% after slashing growth forecasts thanks to Brexit (Evening Standard) Rated: AAA
- Funding Circle bins the boasts as Brexit bites (Brinkwire) Rated: A
- Companies & Markets show: Fintech’s big bang (Investors Chronicle) Rated: A
- Is Funding Circle the barometer for SME opinions on Brexit? (Daily Fintech) Rated: AAA
- Zopa plans £200m fundraise ahead of bank launch and IPO (P2P Finance) Rated: AAA
- RateSetter’s Isa attracts more than £250m in subscriptions (Bridging & Commercial) Rated: AAA
- FINTECH UNICORN OAKNORTH DOUBLES STAFF (Business Cloud) Rated: AAA
- Moneybox launches ISA partnership with OakNorth Bank (AltFi News) Rated: A
- FIBA to publish default rates of lenders (Bridging & Commercial) Rated: A
- Growth Street rockets past £500m of matched loans (Business Love London) Rated: A
- LendingCrowd partners with Brismo for verified returns data (Fintech Finance) Rated: A
- Purplebricks $ 5m US retreat shows startups need to slow down (Sifted) Rated: A
- The peer-to-peer industry isn’t doing enough to protect investors (City AM) Rated: A
- Lendingblock partners with institutional crypto platform Caspian (Institutional Asset Manager), Rated: B
- Breakneck growth in China’s credit-card debt since 2012 raises worries about a potential bust (South China Morning Post) Rated: AAA
- It is rash to expect a rerun of past stock market booms in China (Financial Times) Rated: A
- Regulators curb market irregularities (Ecna) Rated: A
- European Union
- Fintech Lender creditshelf Doubles Loan Volume in First Half of 2019 (Crowdfund Insider) Rated: AAA
- PropertyBridges attracts first tranche of peer-to-peer loans for Limerick housing project in record time (Irish Examiner) Rated: A
- International P2P Lending Volumes June 2019 (P2P Banking) Rated: AAA
- Generic Looks to Launch Tokenized Peer to Peer Lending Platform (Crowdfund Insider) Rated: A
- FinTech is ‘new normal’ as majority are regular users (FS Tech) Rated: B
- Loans.com.au passes on the full rate cut, now offers mortgage rates as low as 3.03% (Mozo) Rated: AAA
- Expectations of the Fintech Industry From the Union Budget of 2019 (Entrepreneur) Rated: AAA
- ‘P2P model is a solution for many small businesses’ (Deccan Herald) Rated: A
- BMO LAUNCHES DIGITAL-ONLY LINE OF CREDIT SERVICE (Betakit) Rated: AAA
- Funding Societies in SME Financing Tie-Up (Finews) Rated: AAA
- Helios P2P Sri Lanka’s First Peer-To-Peer Lending Platform Secures Second Round Funding (Daily Mirror) Rated: A
- Budget Expectations 2019: P2P lending hopes for these policy changes (Banking & Finance) Rated: A
- Visa Indonesia opens applications for fintech innovation competition (Jakarta Post) Rated: B
Kabbage secures 0M to fuel its AI-based loans platform for small businesses (Tech Crunch) Rated: AAA
Kabbage, the AI-based small business loans platform backed by SoftBank and others, is adding more firepower to its lending machine: the Atlanta-based startup has secured an additional $200 million in the form of a revolving credit facility from an unnamed subsidiary of a large life insurance company, managed and administered by 20 Gates Management, and Atalaya Capital Management.
The money comes on the heels of a $700 million securitization Kabbage secured just three months ago and it is notable not just for its size but its terms: it’s a four-year facility, a length of time that underscores a level of confidence in the company’s performance.
Recession Talk and Global Easing; SoFi Rated Pass-Thru Innovation (PeerIQ), Rated: AAA
In FinTech financing news, Ocrolus, led by CEO Sam Bobley, successfully raised $24 million in their Series B led by Oak HC/FT.
SoFi Pass Thru Security
SoFi this week secured a provisional A-rating from DBRS on a $200 MM pass-thru security consisting of student refi loans [ PSR and announcement ]. Notably, the structure is the first CUSIP that does not rely on over-collateralization or subordination to provide credit enhancement for investors. This is a promising innovation from the first FinTech to crack open the securitization market for student refi loans.
Ten Years of Investing in Marketplace Lending (Lending Academy) Rated: AAA
This month marks ten years since I made my first investment in what was then called peer to peer lending.
Ten Ways Marketplace Lending Has Changed Since 2009
- The Rise of Institutional Investors
- The Rise of Automation
Home Affordability in the “13 Original Colonies” (DS News) Rated: A
To celebrate the Fourth of July, LendingTree, the nation’s largest online loan marketplace, has taken a look at the states that were present at the birth of the country,” said LendingTree Chief Economist Tendayi Kapfidze.
New Hampshire is the most affordable of the original 13 states, with a median home value of $244,900 and a median salary of $71,305. New Hampshire capital Concord is also the most affordable capital, with a median home value of $212,600, and a median salary of $61,310.
The least affordable state is New York, with a median home value of $293,000, which is less than Massachuset’s median value of $352,600, but New York’s median income is slightly less, at $62,765, plus an affordability surplus of just $292.
Embracing The Digital Lending Revolution (Monja Blog) Rated: A
A recent report by McKinsey & Company pointed out that in the traditional lending process of most banks, the “time to decision” for small business loans is usually from three to five weeks, while the “time to cash” can take up to three months. Personal loans usually have shorter processing times but still, take days or even weeks.
Digital lending helps banks retain individual and business customers by making the process more convenient and faster. According to an extensive survey by the American Bankers Association in 2018, an overwhelming majority of banks agree that some level of digitalization is vital to keeping their loan customers from going elsewhere.
Direct Lending Funds Raise Cash and Concerns (Bloomberg) Rated: A
Funds raised for direct lending hit a fresh high this year, raising concerns the market could be running a little hot amid the deluge.
Capital One keeps closing branches, even as rivals open them (American Banker) Rated: A
The McLean, Va., company, with roughly $373 billion of assets, has shuttered more than half of its branches over the past decade, including nearly 50 in the second quarter alone, according to a recent analysis by Sandler O’Neill & Partners. It now has fewer than 500 branches in eight states and the District of Columbia.
Policing The Internet Is Critical To Protecting Online Lending Consumers (Forbes) Rated: A
How Two College Dropouts Made $ 860 Million by the Time They Were 23 (Fortune) Rated: A
They are the founders and top executives of Brex Inc. a fintech startup recently valued at $2.6 billion, with an unlikely origin story.
Brex, which launched its first product last year, has become a fintech darling, catapulting its founders into the ranks of the richest entrepreneurs — on paper at least. Today their stakes in the company are worth an estimated $430 million each, according to an analysis by EquityZen, a marketplace for shares of tech firms that haven’t yet gone public.
A ‘turtle bank’ plays catch-up in small-business lending (American Banker) Rated: B
Provident Financial in Iselin, N.J., has partnered with a fintech to become a stronger small-business lender.
The $9.8 billion-asset company is working with Fundation to offer unsecured small-dollar loans to commercial clients. While available in Provident’s more than 80 branches, applications for loans as big as $250,000 are also being accepted online.
Funding Circle shocks the City, plummeting 20% after slashing growth forecasts thanks to Brexit (Evening Standard) Rated: AAA
The FTSE 250 company now expects 20% revenue growth this year, half its previous guidance of 40%, amid slumping demand for loans from small businesses.
The latest miserable update sent its shares down 20%, or 34p, to 129.6p and piles more pain on investors after a torrid nine months on the stock market. Since going public the shares have fallen 70% amid wider concerns about the peer-to-peer lending model.
Funding Circle bins the boasts as Brexit bites (Brinkwire) Rated: A
Few businesses, even fintech operators with smart kit and a big marketing budget, can sustain that pace, but Funding Circle still reckoned 40% was on the cards this year.
Companies & Markets show: Fintech’s big bang (Investors Chronicle) Rated: A
Digital editor Graeme Davies in discussion with James Norrington and Alex Newman on the latest problems for Funding Circle, Jupiter’s fund manager departure and the massive opportunities in the fin tech space both now and in the future.
Is Funding Circle the barometer for SME opinions on Brexit? (Daily Fintech) Rated: AAA
Loans under management on the platform are up 37% for the first half of 2019 compared to the same period in 2018, currently sitting at £3.5 billion. Originations are up 14% on the prior corresponding period, at £1.2 billion. All healthy figures in their own right.
A separate study by academics at St Andrew’s University found that in 2016, 25% of businesses viewed Brexit as a major obstacle to their success. This number had jumped from 16% in the year prior, when they were surveyed right after the referendum.
Zopa plans £200m fundraise ahead of bank launch and IPO (P2P Finance) Rated: AAA
ZOPA is reportedly looking to raise up to £200m as it gears up for its bank launch and a possible stockmarket flotation.
The peer-to-peer consumer lender is in talks with private equity firms and sovereign wealth funds about the fresh funding, which could be secured in the next few months, chief executive Jaidev Janardana (pictured) told Bloomberg.
RateSetter’s Isa attracts more than £250m in subscriptions (Bridging & Commercial) Rated: AAA
The P2P lender’s RateSetter Isa — which was launched in February 2018 — received £50m of Isa inflows in the last three months alone.
More than 600,000 customers have used RateSetter to invest or borrow and it has originated £3.3bn of loans, which has generated over £135m in returns for investors to date.
FINTECH UNICORN OAKNORTH DOUBLES STAFF (Business Cloud) Rated: AAA
Challenger bank OakNorth has doubled its staff after securing more than $1 billion in funding.
The London-based unicorn has also signed a five-year deal to provide its technology platform, OakNorth Analytical Intelligence, to Dutch lender NIBC Bank.
With a valuation of $2.8bn, it has rapidly grown to become one of Europe’s most valuable companies, having raised more than $1bn, a record for a European FinTech, from the likes of Japan’s SoftBank Group.
Moneybox launches ISA partnership with OakNorth Bank (AltFi News) Rated: A
OakNorth’s growing role as the go-to ISA partner to the digital disruptors of UK fintech has been further cemented. The bank, which was briefly Europe’s most valuable fintech earlier this year, has today joined forces with Moneybox to offer the latter’s 200k-strong, and growing, user base a Cash Lifetime ISA.
The Moneybox Cash Lifetime ISA, with an interest rate of 1.4 per cent, is designed to help customers who are saving for their first home with its government-backed 25 per cent bonus up to £1,000 per year. Users can open an account with £1.
Nutmeg is another fintech offering the Lifetime ISA while, Skipton – the UK’s fourth largest building society – says it has had over 130,000 accounts opened to date.
OakNorth also powered tax-wrapped savings accounts for Monzo’s c.2m customers in March, although they were not Lifetime ISAs. OakNorth reported a 220 per cent increase in profits last year to £33.9m.
FIBA to publish default rates of lenders (Bridging & Commercial) Rated: A
Adam Tyler, executive chairman at FIBA, said the move followed concerns about the transparency of default rates in the industry, which was raised by members and lender partners.
Mark Posniak, managing director at Octane Capital, initiated the conversation about default interest last week via LinkedIn.
Growth Street rockets past £500m of matched loans (Business Love London) Rated: A
Growth Street, which is reinventing the business overdraft, has hit a big milestones in June. It has now matched over £500m worth of investor funds on its platform since launch in 2014.
LendingCrowd partners with Brismo for verified returns data (Fintech Finance) Rated: A
LendingCrowd, Scotland’s only fintech lending platform, has today announced that it is the latest leading marketplace to partner with Brismo to provide sophisticated and independently verified performance metrics for investors.
Brismo is a London-based provider of lending performance data that uses detailed loan information to analyse and verify returns, allowing investors to perform like-for-like analysis.
Purplebricks $ 5m US retreat shows startups need to slow down (Sifted) Rated: A
Britain’s online estate agent Purplebricks this week said it would pull out of the US to focus on its hometurf.
The peer-to-peer industry isn’t doing enough to protect investors (City AM) Rated: A
Many peer-to-peer lenders target unsophisticated retail investors, who can invest as little as £100. And yet, there is a relatively high cost to on-board small investors, because platforms have to handle customer calls, and anti-money laundering requirements.
There have been dozens of failures, but the closure of Lendy has shocked the industry. The high-profile peer-to-peer lender accrued more than £160m on its loan book, and by the time the administrators were called, £90m was believed to be in default.
Lendingblock partners with institutional crypto platform Caspian (Institutional Asset Manager), Rated: B
Lendingblock, a regulated, open exchange for institutional borrowing and lending of digital assets, has partnered with Caspian, the institutional crypto trading platform.
This partnership enables essential market infrastructure for borrowing and lending digital assets to be scaled to institutions globally.
Breakneck growth in China’s credit-card debt since 2012 raises worries about a potential bust (South China Morning Post) Rated: AAA
Credit-card debt has grown more than sixfold in China since 2012, mirroring booms in other Asian markets that ended badly and raising concerns about the potential risks to Chinese banks, according to a new report from S&P Global Ratings.
The credit rating agency said that unsecured consumer lending in the mainland is expected to increase at a rate of 20 per cent annually for the next two years, a slight slowdown, but reminiscent of problematic booms in Hong Kong, South Korea and Taiwan.
It is rash to expect a rerun of past stock market booms in China (Financial Times) Rated: A
One way to profit from Chinese equities is to play a familiar paradox. Market participants know that when economic growth ebbs significantly, Shanghai share prices tend to rally.
The key to this incongruity might be called the “Communist party put”. In the same way that Alan Greenspan, former chairman of the US Federal Reserve, used to relax US monetary policy when dynamism stalled, a tactic known as the “Greenspan put”, China’s ruling party often steps in when commerce starts to wilt.
Regulators curb market irregularities (Ecna) Rated: A
China has spared no efforts to carry out supply-side reform and fight against financial market irregularities by better regulating high-risk institutions to make overall risk manageable, officials of the China Banking and Insurance Regulatory Commission said on Thursday.
In the past two years, China reduced high-risk assets worth 13.74 trillion yuan ($2 trillion), restraining the flow of resources from the real economy — the part of the economy that produces goods and services — to the virtual economy, said Zhou Liang, vice-chairman of the CBIRC, at a news conference.
Fintech Lender creditshelf Doubles Loan Volume in First Half of 2019 (Crowdfund Insider) Rated: AAA
creditshelf Aktiengesellschaft, a Germany based online lender, says it lending volume has more than doubled in volume during the first 6 months of 2019. In comparing the first half of 2019 versus the first six months of 2018, creditshelf reports that the volume of arranged loans was € 35.8 million or 132 % higher year-on-year (prior at € 15.4 million).
June 2019 was the strongest month in creditshelf’s history with arranged loans of € 12.2 million.
The company says the pipeline for the second half of the year is well filled.
PropertyBridges attracts first tranche of peer-to-peer loans for Limerick housing project in record time (Irish Examiner) Rated: A
A project to develop 16 houses in Pallaskenry, Co Limerick, is well on track to raise the €2.4m in funding that it pitched out to peer-to-peer investors just a few weeks ago, having very quickly raised the first tranche of €665,000.
PropertyBridges.com, who are leading the financial management of the project, will raise the remainder in three further tranches when the development progresses over the next 12 months.
International P2P Lending Volumes June 2019 (P2P Banking) Rated: AAA
Arboribus is listed for the last time, as the platform will cease to originate new loans.
Generic Looks to Launch Tokenized Peer to Peer Lending Platform (Crowdfund Insider) Rated: A
Blockchain startup Generic wants to create a tokenized bridge for peer to peer lending/merchant cash advanced credit, according to a note from the company. While not live yet, Generic claims it will “create a direct bridge between users and companies looking for funds, without an intermediary.”
FinTech is ‘new normal’ as majority are regular users (FS Tech) Rated: B
A global survey of 883 consumers from the UK, Europe, Asia, Africa, Latin America and Australasia, by financial advisory company deVere Group found that 55 per cent were using FinTech services online or via mobile on a regular basis to access and manage their money.
Loans.com.au passes on the full rate cut, now offers mortgage rates as low as 3.03% (Mozo) Rated: AAA
This afternoon, however, loans.com.au will be bucking the trend. The online lender announced it will be passing on the cut in full to its variable home loan customers, effective immediately.
The changes will apply to both new and existing customers, and will see owner occupiers looking at rates as low as 3.03% (3.05% p.a. comparison rate*) – among the more impressive on the market. Below, we’ve compiled some stellar loans.com.au home loans for you to check out.
Expectations of the Fintech Industry From the Union Budget of 2019 (Entrepreneur) Rated: AAA
The online lending industry has emerged as a massive relief for both individuals and small businesses that have historically been facing a lack of funds and were rendered underserved by traditional financial institutions. But for the digital model to truly thrive, fintech lenders need to have ready access to the credit guarantee schemes being initiated by the government to build a supportive financial structure. For instance, recent government initiatives like that of SIDBI wherein loans can be provided in under an hour, or its subsidiary MUDRA have only been supporting banks, NBFCs, and micro-finance institutions. But their penetration levels are relatively low, because of which a substantial portion of these funds remain unutilized. Therefore, the fintech industry expects the government to extend credit and allow the players to participate in these recent initiatives and other measures being undertaken.
‘P2P model is a solution for many small businesses’ (Deccan Herald) Rated: A
P2P model is a solution for many small businesses that are struggling for funds. Digital lending has changed the face of many developing countries’ economies because of the transparent environment and paperless approvals.
So, from the perspective of Peer-to-Peer (P2P) industry in India, it has tremendous opportunities because this industry is still at a nascent stage and requires encouragement through tax benefits.
BMO LAUNCHES DIGITAL-ONLY LINE OF CREDIT SERVICE (Betakit) Rated: AAA
Bank of Montreal is launching a new digital-only lending solution, allowing customers to apply for a personal line of credit directly from their mobile devices.
Through the new solution, BMO said customers can apply for credit by taking a short application, receiving a decision on their loan within minutes. Customers will get a real-time decision on their application, as well as faster access to credit, allowing them to tap into their loans within 48 hours of approval.
Funding Societies in SME Financing Tie-Up (Finews) Rated: AAA
Funding Societies has entered into a partnership with Lazada Malaysia to offers merchants on the e-commerce marketplace short-term financing, Malaysian newspaper «The Star» reported on Thursday.
As part of the tie-up, the peer-to-peer lending platform will leverage alternative data from Lazada as part of its risk assessment, which will provide more opportunities for online businesses to get tailor-made financing products conveniently, the firm said in a joint press statement.
Helios P2P Sri Lanka’s First Peer-To-Peer Lending Platform Secures Second Round Funding (Daily Mirror) Rated: A
Helios P2P – Sri Lanka’s First Peer-To-Peer Lending Platform secured their second round of funding from John Keells X which is the corporate accelerator of John Keells Holdings PLC. Helios P2P were winners of the 2017 John Keells X accelerator programme and the first startup to receive funding for the second stage of the accelerator.
The peer-to –peer lending industry, valued globally at $64 billion in 2015, is growing at a compound annual growth rate of approximately 50%.
Budget Expectations 2019: P2P lending hopes for these policy changes (Banking & Finance) Rated: A
So what will it be – fiscal consolidation or a focus on growth? Getting the balance right is the key here. The top priority according to Abhishek Gandhi, Co-Founder & CFO, RupeeCircle from this budget is to tackle consumption slowdown and boost it by cutting taxes which will increase the spending power of the people, especially in rural areas and the lower income groups. The subliminal effect of this step will boost investments as well. This will especially be a shot in the arm for the Peer-to-peer (P2P) the lending landscape which has been affected by the sluggish pace of policy changes in the past several months (understandably due to the impending general elections of 2019).
Visa Indonesia opens applications for fintech innovation competition (Jakarta Post) Rated: B
Visa Indonesia, a subsidiary of California-based payment systems provider Visa, opened on Wednesday applications for its Visa Everywhere Initiative competition, which is designed to crowdsource financial inclusion solutions from local financial technology (fintech) start-ups.
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 […]
- 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 40% less than traditional lenders. 3 big P2P lending overperformers, 1 underperformer. How Klarna helps the world shop like a queen.
- LendingClub expands borrower program. LendingClub’s network consists of more than 1,700 credit card, bank, and loan companies.
- Turning LendingClub’s worst loans into investment gold.
- Inflation miss. A PeerIQ analysis.
- Fintech lending algorithms discriminate 40% less than traditional lenders. A very interesting read.
- Buttigieg worries artificial intelligence may add racial bias to credit decisions.
- Commercial real estate crowdfunding eyes 18-hour cities for small investors.
- HSBC launches digital mortgage platform with Roostify’s help.
- The world doesn’t need another high-price lender. A Tearsheet podcast.
- Dave is launching a checking account to help users build credit score.
- CoreLogic launches Marketrac Platinum.
- Zirtue revolutionizes P2P lending.
- Sprout Mortgage launches ACORN automated underwriting system.
- Finicity integrates with LendingQB to optimize mortgage origination process.
- Cardholders sue Capital One.
- Fundbox tapped by OroCommerce to power net terms.
- Cross River poaches Laurel Road executives.
- Optimizely closes $105 million funding round.
- Quicken Loans Mortgage Services names EVP.
- Self Lender included in Fintech 50.
- No sign of breaking the circle. An interesting read on Funding Circle’s valuation.
- Three big P2P overperformers an 1 underperformer. According to 4th Way.
- British Business Bank funds Simply with 60 million GBP.
- One fifth of UK investors up exposure to debt investments.
- OakNorth completes loan to Oncore IT for Fuse Technologies acquisition.
- Brexit, drive for growth cause fintech IT salaries to surge.
- Lloyds launches open banking app for credit cards, savings.
- JPMorgan works on secretive digital banking project.
- FCA hints at more scrutiny of big tech, fintech.
- Yirendai revenues come from suspect haircut loans. I’m not sure what this will mean for China’s P2P lending industry. Could it lead to further setbacks?
- Chinese P2P lenders look to southeast Asia. Naturally.
- IMF recognizes 6 outstanding fintech companies.
- Canada: Borrowell passes 1 million members, raises $20 million. Congratulations!
- Australia: Five ASIC findings on marketplace lending. This is a must-read, an excellent analysis.
- International: Klarna helps the world shop like a queen. Literally, Klarna is a global company, taking ‘buy now, pay later’ to new places.
- India: All you need to know about P2P lending and commodities (video).
- Indonesia: Small companies turn to P2P lenders.
- Europe: Snask helps Klarna communicate with film, photography.
- Estonia: LHV Bank integrates with Estateguru.
- Canada: AltFi heads to Toronto in October.
- United States
- LendingClub Expands Program to Help Borrowers Actually Pay Off Debt (Lend Academy), Rated: AAA
- Turning Lending Club’s Worst Loans into Investment Gold (Towards Data Science), Rated: A
- Inflation Miss (PeerIQ), Rated: AAA
- Fintech algorithms discriminate 40% less than traditional lenders (Quartz), Rated: AAA
- Buttigieg worries tech may add racial bias to credit decisions (American Banker), Rated: A
- Commercial Real Estate Crowdfunding Eyes ’18-Hour Cities’ for Small Investors (The Street), Rated: A
- HSBC launches digital mortgage platform with help from Roostify (HousingWire), Rated: A
- Mirador’s Trevor Dryer: ‘The world doesn’t need another high price lender’ (Tearsheet), Rated: A
- Dave is launching a checking account that helps users build their credit score (Business Insider), Rated: A
- CoreLogic Launches Marketrac Platinum (CoreLogic), Rated: A
- Zirtue Revolutionizes Peer-to-Peer Lending (IT Business Net), Rated: A
- Sprout Mortgage Launches ACORN Automated Underwriting System (Yahoo! Finance), Rated: A
- Finicity Integrates with LendingQB to Optimize Mortgage Origination Process (PR Web), Rated: B
- Cardholders Seek to Capital-ize on Madden (The National Law Review), Rated: A
- Fundbox Tapped By Top B2B E-Commerce Software Provider OroCommerce to Power Net Terms (Fundbox Email), Rated: A
- Cross River poaches execs from student refinancing firm Laurel Road (American Banker), Rated: A
- Optimizely Closes $ US105M Financing Round (Which-50), Rated: A
- Austin Niemiec Named New Executive Vice President of Quicken Loans Mortgage Services (Yahoo! Finance), Rated: B
- Self Lender Awarded Inaugural Inclusive Fintech 50 (PR Newswire), Rated: B
- United Kingdom
- No sign yet of breaking out of circle (The Times), Rated: AAA
- Three Biggest Overperformers And One Underperformer In Peer-To-Peer Lending (4th Way Email), Rated: AAA
- British Business Bank adds £60m firepower to non-bank lender (AltFi), Rated: A
- One fifth of UK investors upping exposure to debt investments (Investment Week), Rated: A
- OakNorth completes loan to Oncore IT for the acquisition of Fuse Technologies (Fintech Finance), Rated: A
- Brexit and drive for growth sees IT fintech salaries surge (AltFi), Rated: A
- Lloyds first to launch open banking app for credit cards and savings (Fintech Futures), Rated: A
- J.P. Morgan working on a secretive digital banking project based out of London (TechCrunch), Rated: A
- Following Facebook’s Libra launch, UK regulator hints at greater Big Tech scrutiny (AltFi), Rated: A
- Yirendai Revenues Come From Suspect Haircut Loans (Seeking Alpha), Rated: AAA
- Chinese P2P lending platforms look to Southeast Asia amid industry purge back home (Technode), Rated: AAA
- XW Bank Welcomed by IMF as One of 6 Outstanding FinTech Companies From China (Yahoo! Finance), Rated: A
- European Union
- Snask helps Klarna to communicate its ‘smooth’ banking offer with off-the-wall film and photography (Creative Boom), Rated: A
- LHV Bank Integrates Estateguru Investments in Online Banking Dashboard (P2P-Banking), Rated: A
- How Klarna is Helping the World Shop Like a Queen (Power Retail), Rated: AAA
- Five key ASIC findings on marketplace lending (Cuffelinks), Rated: AAA
- All you need to know about P2P lending and Commodities (India Times), Rated: AAA
- Indonesian firms turn to P2P lenders for funds (Asia-First), Rated: AAA
- Borrowell passes one million members, raises $ 20 million in new capital (Zone Startups), Rated: AAA
- AltFi Toronto Summit 2019 (AltFi), Rated: B
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.
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
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.
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.
Three Biggest Overperformers And One Underperformer In Peer-To-Peer Lending (4th Way Email), Rated: AAA
- 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.
- £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).
- £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
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.
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.
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.
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.
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.
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: 2017–18. The 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.
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.
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.
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.
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.
News Comments Today’s main news: LendingClub restructures SME lending. Funding Circle lowers return projections. RateSetter receives Queen’s Award for Enterprise. SoFi could get $500M funding from Qatar. Today’s main analysis: How personal loans impact credit scores a year into repayment. Today’s thought-provoking articles: Employer payday loans and continuous billing using today’s technology. Interview with Deserve’s […]
- Today’s main news: LendingClub restructures SME lending. Funding Circle lowers return projections. RateSetter receives Queen’s Award for Enterprise. SoFi could get $500M funding from Qatar.
- Today’s main analysis: How personal loans impact credit scores a year into repayment.
- Today’s thought-provoking articles: Employer payday loans and continuous billing using today’s technology. Interview with Deserve’s Kalpesh Kapadia. Fertility insurance and employment (AN EXCELLENT READ). Top 10 hottest fintechs in 2019.
- LendingClub shuts down SME lending arm. This restructuring partners the platform with Funding Circle and Opportunity Fund. An interesting arrangement.
- How personal loans impact debt, credit scores a year into repayment. Another interesting study from LendingTree.
- How to get an early paycheck. The audience here is clearly employees, but it’s an interesting read for lenders too. It mentions several employers using technology to pay employees by the day, and there’s an interesting segment on continuous billing at utility companies. Some interesting insights into using technology to deliver innovative services that 20th century technology was limited by.
- An interview with Deserve’s Kalpesh Kapadia. A Tearsheet podcast interview. Deserve wants to be the credit card of choice for young people.
- Would you take a job for the fertility insurance. A lot of women would. This is an excellent story with a lot of insight into fertility lending programs and employer insurance plans.
- Resolve introduces automated net payment terms for ecommerce.
- The pros and cons of online auto loans.
- Solving the $1.5 trillion student debt problem.
- dv01 launches credit risk transfer market surveillance offering.
- Why the post office should offer lending and financial services.
- Equifax acquires PayNet.
- Marketplace lending update #5: Colorado’s long arm of the law.
- Berman Tabacco secures win for victims of Plain Green online lending scheme.
- 2nd Circuit says tribal officers not immune in payday loan suit.
- White Oak Global Advisors completes $30 million loan for Danimer Scientific Holdings.
- Upgrade named top place to work in San Francisco.
- Funding Circle lowers return projections.
- RateSetter receives Queen’s Award for Enterprise.
- Tandem to double headcount.
- Consumer P2P loans weigh on P2PGI fund returns.
- Societe Generale issues $112 million bond on Ethereum. This is big news. As more companies use blockchains for lending and issuing bonds such as this, it moves the technology closer to mainstream adoption.
- N26 opens tech hub in Vienna.
- Marqeta signs up three new customers in Europe. One is POS lender Aplazame.
- CoinLoan plans initial exchange offering, looking for partners.
- SoFi is in talks with Qatar for $500 million in funding. SoFi is making major moves to become the most trusted alternative finance company in the world.
- Top 10 hottest fintech startups. America still leads in funding rounds, but Asia is not far behind. This list includes big names like Raisin and SoFi. And interesting inclusion is Lending Express.
- Oaknorth is planning to enter the U.S. market.
- BlockFi pays interest on $53 million of crypto deposits. Crypto lending keeps growing. It’s going to be a major force before we know it.
- BlockFi client base rises 50% in one month.
- Digital lending is making endroads into traditional lending.
- ConsenSys Labs has put up bounties for P2P lending, decentralized credit.
- ZestMoney raises $20 million.
- Money Loji app lends to salaried professionals within five minutes.
- Blockfi launches in India.
- China: How leverage turns market corrections into crashes. An interview with professor Kelly Shue on shadow banking and other stock market movements.
- Asia: Nuo Network becomes Asias biggest crypto lender with $2 million in reserves.
- MENA: Banks use fintech to make up for lost time on financial inclusion.
- Canada: Toronto is ninth of top 15 fintech markets in North America.
- Brazil: FinanZero raises $11 million USD in Series B round.
- China: P2P lending is seen as part of economic threat.
- Iraq: Financial inclusion drive boosted by homegrown fintech.
- Indonesia: Why Ping An OneConnect chose Indonesia for expansion.
- Asia: YouHodler adds Dash for crypto lending.
- United States
- LendingClub shuts down SME lending arm (Banking Tech), Rated: AAA
- How Personal Loans Impact Debt and Credit Scores a Year Into Repayment (LendingTree), Rated: AAA
- How To Get Your Paycheck Early (Forbes), Rated: AAA
- Deserve’s Kalpesh Kapadia: ‘We promise the best credit card for our customer’s profile and life stage’ (Tearsheet), Rated: AAA
- Resolve Accelerates Shift to B2B eCommerce with Automated Net Payment Terms (GlobeNewswire), Rated: A
- Online Auto Loans: The Pros and Cons (U.S. News), Rated: A
- It’s Not Easy Solving For $ 1.5 Trillion In Student Debt (PYMNTS), Rated: A
- Would You Take a Job Just for the Fertility Insurance? (Glamour), Rated: AAA
- dv01 Launches Credit Risk Transfer Market Surveillance Offering (dv01 Email), Rated: A
- Let’s give post offices another job (The Student Life), Rated: A
- Equifax acquires PayNet to help expand access to capital for small and mid-sized businesses (PR Newswire), Rated: A
- Marketplace Lending Update #5: The Very Long Arm of Colorado Law (The National Law Review), Rated: A
- Berman Tabacco Announces Major Win for Victims of Plain Green Online Lending Scheme (BusinessWire), Rated: A
- 2nd Circ. Says Tribal Officers Not Immune In Payday Loan Suit (Law360), Rated: B
- White Oak Global Advisors Completes $ 30M Loan for Danimer Scientific Holdings (AP News), Rated: B
- Online Lender Upgrade Recognized as Top Place to Work in San Francisco (Crowdfund Insider), Rated: B
- United Kingdom
- Funding Circle lowers return projections (P2P Finance News), Rated: AAA
- Peer to Peer Lender RateSetter Receives Queen’s Award for Enterprise (Crowdfund Insider), Rated: AAA
- Challenger bank Tandem to double headcount as CEO warns of Brexit brain drain (Yahoo! Finance), Rated: A
- Consumer P2P loans weigh on P2PGI fund returns (P2P Finance News), Rated: A
- How Leverage Turns Market Corrections into Crashes (Yale Insights), Rated: AAA
- Trade war with US could lead to economic ‘cold war’ for China, Beijing researchers say (SCMP), Rated: A
- European Union
- French Lender Societe Generale Issues $ 112 Million Bond on Ethereum (CoinDesk), Rated: AAA
- N26 opens tech hub in Vienna with a focus on security (TechCrunch), Rated: A
- API card platform Marqeta signs up three customers in Europe (Verdict), Rated: B
- CoinLoan Plans IEO and Seeks Partners (Digital Journal), Rated: B
- SoFi Is in Talks With Qatar for $ 500 Million Funding Round (Bloomberg), Rated: AAA
- These are the top 10 hottest fintech startups and companies in the world (Business Insider), Rated: AAA
- U.K. fintech now has war chest to push stateside (American Banker), Rated: A
- BlockFi Is Now Paying Interest on $ 53 Million of Crypto Deposits (CoinDesk), Rated: A
- No crypto winter for BlockFi as client base reaches 50% (CoinGeek), Rated: B
- Funds at your disposal: Digital lending making inroads into traditional lending (Finextra), Rated: A
- Microsoft Will Pay You To Develop… Ethereum? (CryptoBriefing), Rated: B
- Indian lendtech ZestMoney raises $ 20m (Banking Tech), Rated: AAA
- ‘Money Loji’ launches App that offers loans to salaried professionals within 5 Minutes (Business Standard), Rated: A
- Blockfi Launches High-Interest Crypto Lending Program in India (Bitcoin.com), Rated: A
- Nuo Network Crypto Lending Platform Becomes Asia’s Biggest with $ 2 Million in Reserves (Bitcoin Exchange Guide), Rated: AAA
- Why China’s Ping An OneConnect picks Indonesia for expansion (The Asset), Rated: A
- Banks use fintech to make up for lost time on financial inclusion (Financial Times), Rated: AAA
- Iraq’s financial inclusion drive boosted by homegrown fintech (Financial Times), Rated: A
- YouHodler Cryptocurrency Lending Platform Adds Dash (Dash News), Rated: A
- 7 ways emerging fintech hubs are taking on the giants (PaymentsSource), Rated: AAA
- Latin America
- Brazilian Credit Marketplace FinanZero raises USD 11 Million in Series B Round (Yahoo! Finance), Rated: AAA
LendingClub shuts down SME lending arm (Banking Tech), Rated: AAA
Opportunity Fund, a non-profit small business lender; Funding Circle, one of the largest alternative small business lending platforms in the US; and Lending Club have teamed up to offer Lending Club’s small business clients’ access to credit. Businesses can now borrow up to $300,000 for rates as low as 5%.
How Personal Loans Impact Debt and Credit Scores a Year Into Repayment (LendingTree), Rated: AAA
- One year after taking on a personal loan, 52% of borrowers owed less overall on credit cards and personal loans. These borrowers’ balances — the sum credit card and personal loan balances — fell $811 on average.
- Among baby boomers who took out personal loans, 56% lowered their overall balances after their first year of repayment, compared with 52% of Generation X and 48% of millennials.
- Boomers also lowered their balances by much larger amounts, owing an average $2,048 less after a year. Balance reductions of younger borrowers were more modest: Generation X lowered their overall balance by $338, and millennials reduced their overall balance $250.
- A year into repaying a personal loan, credit scores declined slightly for all age groups. Boomers’ credit scores declined the least, with the median falling just 1 point from 669 to 668. The median score of Generation X personal loan borrowers fell 7 points, from 659 to 652. Millennial credit scores fell 10 points, dropping from 661 to 651.
- Credit utilization rates — the ratio of the sum of credit card balances to the sum of credit card limits — show a similar trajectory. One month after taking a personal loan, the median utilization rate fell from 35% to 26%. But after the first month, utilization increased. The median utilization rate one year after taking a loan increases to 44%.
How To Get Your Paycheck Early (Forbes), Rated: AAA
Speaking of Walmart, the retailer has partnerships with two fintech startups–Even Responsible Finance and PayActiv–that enable its US workers get part of their salary paid before payday.
Employees can get up to eight drawdowns (called Instapays) on their salary ahead of scheduled payouts. The first eight drawdowns are free to the employees, and then in subsequent use, fees are levied across a personal finance app available through Even.
There’s no reason why billers can’t provide continuous information about what a customer owes, in real time, online or through mobile apps.
Deserve’s Kalpesh Kapadia: ‘We promise the best credit card for our customer’s profile and life stage’ (Tearsheet), Rated: AAA
The financial system has always struggled with young people. Because the system uses credit history, young people were frequently excluded from credit products because they’re new to the system. If you’re an immigrant or foreign student studying in the US, it’s way worse. Kalpesh Kapadia set out to change a system that was skewed against young people. He’s the co- founder and CEO of Deserve, which offers credit cards to college students at 2500 universities in the US.
To do this, he’s created an analytics-based lending platform that’s also branching out into powering credit cards as a service. We talk about how Deserve is able to underwrite credit-thin files and why he thinks his firm is at an advantage when it comes to competing against Marcus’s credit products and Apple’s new credit card.
Resolve Accelerates Shift to B2B eCommerce with Automated Net Payment Terms (GlobeNewswire), Rated: A
According to Forrester Research, business-to-business (B2B) eCommerce is poised to reach over $1.8 trillion by 2023. To help power this explosive growth, Resolve today announced that it has formally spun out of Affirm to launch an automated payments platform offering extended net terms. Early customers using Resolve’s payment automation technology have realized significant increases in B2B sales, growth in order size, and faster sales cycles.
Online Auto Loans: The Pros and Cons (U.S. News), Rated: A
Things are different now. Almost every financial institution has an online presence, and most offer information about car loans on their site. Most also provide an opportunity to apply for financing online, with a growing number able to take car buyers through the entire auto loan process without ever having to visit a bank or credit union branch.
It’s Not Easy Solving For $ 1.5 Trillion In Student Debt (PYMNTS), Rated: A
There is $1.5 trillion worth of student loan debt outstanding in the U.S. and it is creating problems.
Admittedly the plan is quite a bit more complex than that, as detailed by Sen. Warren in a Medium post that went live yesterday (April 22). In broad strokes, for students from families with less than $100,000 a year in annual income, $50,000 in student loan forgiveness would be available. The post also calls for “substantial debt cancellation for every person with household income between $100,000 and $250,000.” The Warren plan also calls for the elimination of tuition at all two-year and four-year public institutions of higher learning, and would create a fund of at least $50 billion specifically for historically black colleges and universities. Federals subsidies for for-profit colleges would be banned.
Would You Take a Job Just for the Fertility Insurance? (Glamour), Rated: AAA
dv01 Launches Credit Risk Transfer Market Surveillance Offering (dv01 Email), Rated: A
dv01 today announces the launch of its Credit Risk Transfer (CRT) Market Surveillance offering, which will be showcased on April 25 at the 4th Annual Credit Risk Transfer Symposium in New York.
dv01’s latest offering adds $1.8 trillion of Freddie Mac (STACR) and Fannie Mae (CAS) CRT securitizations to dv01’s modern web-based data analytics platform, furthering their goal of bringing greater transparency to capital markets. Building on the success of dv01’s Market Surveillance offering for consumer loans (launched in 2017), the CRT offering will allow investors to analyze historical performance of CRT deals both individually or as combined deals, perform whole market analysis, and run cash flow scenarios.
Let’s give post offices another job (The Student Life), Rated: A
As of 2017, approximately 6.5% of households in the U.S., totaling more than eight million, don’t have an account open at an insured bank, according to the Federal Deposit Insurance Corporation. An additional 24.2 million households utilize non-traditional financial services that often make them vulnerable to usurious lending rates.
The USPS has 59% of its locations in zip codes that have one or fewer banks, according to a 2011 government report. This could help people to overcome a geographic boundary.
Equifax acquires PayNet to help expand access to capital for small and mid-sized businesses (PR Newswire), Rated: A
Equifax Inc., a global data, analytics and technology company has acquired PayNet, a company that provides commercial credit risk underwriting and management solutions to online and alternative finance lenders, and commercial finance and leasing companies in the U.S. and Canadian markets.
Marketplace Lending Update #5: The Very Long Arm of Colorado Law (The National Law Review), Rated: A
Recently a state court in Colorado ruled that securitization trusts that acquire marketplace lender loans originated to Colorado consumers are subject to Colorado jurisdiction. The court’s ruling derailed the attempt by the securitization trusts to escape the ongoing battle between the State of Colorado and marketplace lenders over rates and fees that can be charged to Colorado residents.
Berman Tabacco Announces Major Win for Victims of Plain Green Online Lending Scheme (BusinessWire), Rated: A
In a long-awaited opinion, the U.S. Court of Appeals for the Second Circuit today ruled that borrowers who took out loans from the Native American-affiliated online lender Plain Green can proceed with their nationwide RICO class action in Vermont federal court. The Second Circuit affirmed a May 2016 ruling by District Judge Geoffrey W. Crawford and comes nearly two years after oral argument on Defendants’ appeals. Berman Tabacco and Gravel & Shea PC are Lead Counsel in the case, Gingras, et al. v. Rosette, et al., No. 5:15-cv-00101-gwc (D. Vt.).
2nd Circ. Says Tribal Officers Not Immune In Payday Loan Suit (Law360), Rated: B
The Second Circuit on Wednesday rejected a bid by officers of tribe-owned lending company Plain Green LLC to escape a suit claiming they charged exorbitant interest rates on so-called payday loans,…
White Oak Global Advisors Completes $ 30M Loan for Danimer Scientific Holdings (AP News), Rated: B
White Oak Global Advisors, LLC (“White Oak”) today announced it acted as sole lender and administrative agent to provide a $30 million senior credit facility to Danimer Scientific Holdings, LLC (“Danimer”), a manufacturer of specialty compostable and biodegradable plastics. This transaction expands on White Oak’s ESG-lending platform, which aims to finance small and medium-sized enterprises (“SMEs”) that are developing solutions to help address environmental and social issues around the world.
Online Lender Upgrade Recognized as Top Place to Work in San Francisco (Crowdfund Insider), Rated: B
Online Lender Upgrade, a Fintech serving the consumer credit market, has been named a “Best Place to Work in the Bay Area’”by the San Francisco Business Times and Silicon Valley Business Journal. Upgrade is the creation of CEO Renaud Laplanche, the founder of publicly traded marketplace lending platform LendingClub. This is the second time Upgrade has been recognized as a nice place to work in the notoriously work focused bay area.
Funding Circle lowers return projections (P2P Finance News), Rated: AAA
FUNDING Circle has revised down its annual return projections in the face of a weaker environment for consumer credit.
The peer-to-peer business lender now predicts investors in its Balanced portfolio will achieve a return of 4.5 to 6.5 per cent a year.
Investors in its Conservative portfolio, meanwhile, could achieve 4.3 to 4.7 per cent a year.
Peer to Peer Lender RateSetter Receives Queen’s Award for Enterprise (Crowdfund Insider), Rated: AAA
Peer-to-peer investment platform RateSetter has been recognized with a prestigious Queen’s Award for Enterprise for excellence in innovation.
Challenger bank Tandem to double headcount as CEO warns of Brexit brain drain (Yahoo! Finance), Rated: A
Tandem Bank said on Tuesday it had moved into a new 16,000 square foot office in London as part of plans to double headcount this year to 230 and grow to 300 people by the end of 2020.
“Last year we hit 500,000 customers when we had an expectation for 150,000,” Knox told Yahoo Finance UK.
Consumer P2P loans weigh on P2PGI fund returns (P2P Finance News), Rated: A
P2P Global Investments (P2PGI) has warned that its legacy peer-to-peer lending portfolio continues to be more volatile than expected despite posting an improved net asset value (NAV) return for 2018.
P2PGI – the world’s first P2P-focused investment trust – revealed in its annual report that its NAV for 2018 was 5.2 per cent, up from three per cent in 2017.
How Leverage Turns Market Corrections into Crashes (Yale Insights), Rated: AAA
Q: Is shadow borrowing unique to China?
It’s difficult to study the phenomenon very precisely. We do observe shadow lending in various forms growing throughout the world, including in the U.S., and, if left unregulated, this type of lending could mean that household and financial institution leverage keeps rising in a way that is both unregulated and undocumented.
Because the Chinese government believed that the shadow sector was partly responsible for the crash, it seized the data from some shadow lending platforms and allowed us to analyze it.
Q: Who’s providing the financing in these situations?
The exact sources of financing are not well known. Some of it could be other stock investors that have put up their own holdings as collateral and borrowed against it and then lend out the proceeds on the shadow market. It could also be peer-to-peer lending platforms. It’s also believed that some of the financial institutions and brokerage firms within China may have also lent out within the shadow sector.
Trade war with US could lead to economic ‘cold war’ for China, Beijing researchers say (SCMP), Rated: A
The tit-for-tat tariff war with the US and the broad hostility is seen as a major risk endangering China’s “economic security”, along with a property bubble, local debt, unemployment and online financing including peer-to-peer lending, according to the latest edition of China’s Economic Security Outlook.
French Lender Societe Generale Issues $ 112 Million Bond on Ethereum (CoinDesk), Rated: AAA
French financial services giant Societe Generale Group has issued about $112 million worth of bonds in the form of a security token on the public ethereum blockchain.
Announced today, a subsidiary called Societe Generale SFH used the OFH token (obligations de financement de l’habitat, or home financing obligations) to represent 100 million euros of covered bonds, a type of security that is backed by specific assets but remains on the issuer’s balance sheet.
The bond has a five-year maturity with a 12-month extension period, Moody’s said.
N26 opens tech hub in Vienna with a focus on security (TechCrunch), Rated: A
Fintech startup N26 is opening an office, its fourth, in Vienna. Eventually, the company plans to hire 300 software engineers, product managers and IT specialists.
API card platform Marqeta signs up three customers in Europe (Verdict), Rated: B
The platform has been signed up by French digital bank Morning, Swiss digital bank Yapeal, and Spanish POS lender Aplazame.
CoinLoan Plans IEO and Seeks Partners (Digital Journal), Rated: B
CoinLoan crypto-backed lending platform declares its intention to launch an Initial Exchange Offering and invites discussion with major crypto exchanges interested in the listing.
SoFi Is in Talks With Qatar for $ 500 Million Funding Round (Bloomberg), Rated: AAA
Fintech startup Social Finance Inc. is in the final stages of closing a funding round from the Qatar Investment Authority and others, according to four people familiar with the matter.
The new round, which could close as soon as this week, is said to value the startup at an amount similar to the $4.3 billion valuation of its 2017 funding round, led by Silver Lake. Two of the people said that in order to achieve the same valuation, investors were asking for more protections should the company raise money or sell itself for a lower price tag in the future. The terms of the deal have not been finalized and could still change, the people said. All of the people asked not to be identified because the discussions are private.
These are the top 10 hottest fintech startups and companies in the world (Business Insider), Rated: AAA
Fintech industry funding has already reached new highs globally in 2018, with overall funding hitting $32.6 billion at the end of Q3.
What it does: Brex is a US-based corporate credit card provider, which initially focused on serving startups.
Why it’s hot in 2019: Raisin became a fintech unicorn after raising $114 million in January, and has since then formed partnerships with Commerzbank and ClearScore. Additionally, the startup partnered with Starling Bank in 2018 to launch bank accounts in the UK
Why it’s hot in 2019: While the company previously focused on loans, including student loans, in 2019 it has made some significant moves into the wealth management space, and launched both free ETFs and an investment product, dubbed SoFi Invest. As it becomes a more rounded financial product, SoFi will be worth watching in the next few years.
What it does: Lending Express is a US-based lending platform, which focuses on SMBs, and helps them gain access to more funding by providing them with advice.
Why it’s hot in 2019: In January, Volt became Australia’s first fully licensed neobank. The challenger bank will first offer a suite of retail banking products, as well as budgeting and account aggregation tools, and plans to enter the SMB banking sector in 2020.
U.K. fintech now has war chest to push stateside (American Banker), Rated: A
Fresh off a $100 million funding round last year, the British startup OakNorth is preparing to license its business lending technology to U.S. banks and beyond.
The 3-year-old small-business lender is entering the U.S. at a time when fintechs and banks have stepped up their digital business lending efforts. Though OakNorth has not announced any official partnerships in the U.S., CEO Rishi Khosla said there’s appetite for what the firm is offering.
BlockFi Is Now Paying Interest on $ 53 Million of Crypto Deposits (CoinDesk), Rated: A
Crypto lending startup BlockFi has gathered another $18 million of bitcoin and ether deposits since last month, bringing its total interest-earning accounts to $53 million.
The company also lowered its minimum balance to earn interest on bitcoin from 1 BTC to 0.5 BTC and expanded its operations to India, meaning its service is now available globally, except for territories sanctioned by the U.S., U.K. and E.U.
No crypto winter for BlockFi as client base reaches 50% (CoinGeek), Rated: B
Crypto lending startup BlockFi has been growing, and now claimed that it has grown its client base by 50% in just one month.
Funds at your disposal: Digital lending making inroads into traditional lending (Finextra), Rated: A
The penetration of the internet of things and devices such as smartphones has brought in many advancements. This has made economic activities available at the touch of a button. Among the various sectors, the digital world has evolved the way traditional banking processes are being carried out. A growing number of businesses and individuals are filling applications online for taking loans rather than getting into the lengthy lending process.
Microsoft Will Pay You To Develop… Ethereum? (CryptoBriefing), Rated: B
“[ConsenSys Labs] has put up a few bounties in the vein of rethinking the lending market, and thinking about a peer-to-peer lending and a decentralized credit score system,” explains ConsenSys’ Operations Lead Vivek Singh. Instead of relying on centralized credit agencies, such a system—if successful—could allow borrowers to leverage their social connections into a sort of decentralized credit score.
Indian lendtech ZestMoney raises $ 20m (Banking Tech), Rated: AAA
ZestMoney, a start-up that helps consumers with no credit history get loans to buy online, has raised a $20 million Series B.
‘Money Loji’ launches App that offers loans to salaried professionals within 5 Minutes (Business Standard), Rated: A
Money Loji, a modern money ending platform, has launched its App, which offers quickest and the most secure loans to salaried professionals for an immediate requirement with flexible repayment options starting from 7 days to a maximum of 90 days. They follow a unique three-step process – application, approval, disbursement which is carried out within 3-4 minutes. The eligibility criterion is a minimum in-hand salary of Rs 20,000/month and a minimum age of 23 years. The application requires the users to upload an identity proof, an address proof, last 3 months bank statement alongside the salary slips.
Blockfi Launches High-Interest Crypto Lending Program in India (Bitcoin.com), Rated: A
New Jersey-based crypto startup Blockfi announced Tuesday that it has expanded service to users in India. Its flagship Blockfi Interest Account (BIA) for BTC and ETH is now available in 65 countries.
Nuo Network Crypto Lending Platform Becomes Asia’s Biggest with $ 2 Million in Reserves (Bitcoin Exchange Guide), Rated: AAA
ConsenSys ventures backed Nuo.Network, which is a non-custodial lending platform recently made it to the top 5, dollar Defi (Decentralized Finance) projects and it presently the largest lending platform based in Asia. In the past month, the value of loans given has doubled, this is partly due to the growth of DAI reserves, which is now about 500,000 USD and the surge in Maker stability fees.
Why China’s Ping An OneConnect picks Indonesia for expansion (The Asset), Rated: A
The archipelago is viewed as an ideal market to benefit from the services offered by the enterprise. According to the Ping An Group, Indonesia, at around US$27 billion in 2018, is the largest and fastest-growing internet economy in Southeast Asia.
Banks use fintech to make up for lost time on financial inclusion (Financial Times), Rated: AAA
It fell to a mobile phone company more than a decade ago to financially empower tens of millions of Africans who found themselves passed over by the traditional banking sector. Now, some 12 years after Vodafone co-founded M-Pesa, the mobile payments venture that took east Africa by storm, banks are upping their game to improve financial inclusion rates across Africa and the Middle East, as technology widens their ability to deliver banking services at lower costs.
In east Africa, the Catalyst Fund has backed Sokowatch, a three-year-old Kenya-based fintech that enables small retailers to order goods from suppliers registered on the mobile-focused platform and receive same-day deliveries. It also offers access to credit. The platform has already expanded into Tanzania and Rwanda.
In the Middle East, Citigroup has given $5m to a microloans fund in Jordan that helps give women access to credit. The financial support will help provide loans to around 10,000 additional women.
Iraq’s financial inclusion drive boosted by homegrown fintech (Financial Times), Rated: A
Around 7m Iraqis are now receiving welfare benefits or public sector salaries electronically, as the government replaces cumbersome cash dispersals with biometric debit cards that can be used at ATMs and in shops.
Only 23 per cent of Iraqis aged 15 and over held an account with a financial institution in 2017, according to the World Bank — although that figure has doubled since 2011.
YouHodler Cryptocurrency Lending Platform Adds Dash (Dash News), Rated: A
Users will now be able to borrow in EUR, USD, or Stablecoin against their Dash as well as use the site to covert Dash to any crypto or fiat on the platform and withdraw to their crypto or fiat wallet. If a user enters their credit/debit card on the platform then they can “convert DASH to fiat and instantly withdraw that amount onto their personal cards, adding a unique “real world” utility for crypto”.
7 ways emerging fintech hubs are taking on the giants (PaymentsSource), Rated: AAA
Toronto is another significant fintech force in North America, and the leading fintech zone in Canada, because of the high concentration of financial organizations and technology development in Ontario. Last year Toronto accounted for CA$221 million (US$165 million) in total fintech investments across 25 deals, according to a recent report from Toronto Financial International (TFI).
Brazilian Credit Marketplace FinanZero raises USD 11 Million in Series B Round (Yahoo! Finance), Rated: AAA
FinanZero, a Brazilian fintech that operates as a consumer loan broker, received a new round of investment, raising USD 11 millionfrom Atlant Fonder, Dunross & Co and Vostok Emerging Finance, among other investors.
News Comments Today’s main news: FTC makes final decision on SoFi. OnDeck extends two revolving credit facilities. LendingPoint sees drop in debt management loans, increase for new purchases. LendInvest to float 500M GBP. Lufax hits $39.4B valuation. Klarna adds GooglePay as payment option. Today’s main analysis: Unemployment rate and GreenSky’s earnings. Today’s thought-provoking articles: Earnest vs. SoFi for student loan […]
- Today’s main news: FTC makes final decision on SoFi. OnDeck extends two revolving credit facilities. LendingPoint sees drop in debt management loans, increase for new purchases. LendInvest to float 500M GBP. Lufax hits $39.4B valuation. Klarna adds GooglePay as payment option.
- Today’s main analysis: Unemployment rate and GreenSky’s earnings.
- Today’s thought-provoking articles: Earnest vs. SoFi for student loan refinancing. Millennials don’t hate big banks. Fintechs vs. banks on lending. U.S. Amabassador warns Australia on China’s ‘payday loan diplomacy’.
- FTC makes final decision on SoFi case. Read the full FTC complaint against SoFi and the full decision and order.
- OnDeck extends two revolving credit facilities. With Credit Suisse and Deutsche Bank.
- Unemployment rate drops 3.8%, GreenSky’s earnings results. An excellent analysis from PeerIQ.
- Earnest vs. SoFi on student loan refinancing. A great comparison.
- LendingPoint borrowers use loans for debt management less, new purchases more.
- What millennials really want from big banks. Excellent Forbes article discussing millennials’ banking expectations. They really don’t hate banks.
- Green Dot targets social media influencers.
- How online lenders attract, service the SMB borrower.
- Small business owners are paying themselves last.
- PayNet strategic insights.
- Salt Financial ETF to pay investors.
- Equifax allegedly deleted key data breach documents.
- Alt lenders threaten HELOC providers.
- Prodigy Network crowdfunds 13-story hotel in Chicago.
- PeerStreet expands executive team.
- CoreLogic intros employment verification and income solution.
- And also integrates CondoSafe with Ellie Mae.
- ArborCrowd makes new equity offer on 707-uni multifamily portfolio.
- LendInvest plots 500 million GBP float.
- Fintechs vs. banks in the lending revolution.
- Zopa says Burnham residents are most thrill-seeking.
- P2P firms to to improve wind-down arrangements.
- Augmentum Capital signs up to Innovate Finance.
- Folk2Folk relaunches P2P products.
- Wonga compensation claims 4 times higher than expected.
- IFISAs for 100 GBP or less.
- Environmental benefits of ISA.
- Over 100 Finastra customers upgrade to new SWIFT standards.
- Klarna adds GooglePay option.
- CreditEase invests in wefox Group.
- Luna Connect disrupts lending in Ireland.
- U.S. ambassador warns of China’s ‘payday loan diplomacy’.
- A new way to borrow.
- NAB’s UBank launches green deposits.
- How marketplace lending meets investor need.
- Financial Markets Authority exec steps down.
- China: Lufax hits $39.4 billion valuation.
- India: PaisaDukan raises 1st round from JITO.
- Indonesia: Investment Task Force suspends operations of 168 fintechs.
- China: Lufax in no rush to IPO.
- India: Vivriti Capital raises 2nd round of Rs 110 Cr.
- India: Digitization fuels MSME lending.
- Indonesian Fintech Lenders Association to help develop P2P lending.
- Vietnam: Government moves to legalize P2P lending.
- United States
- Deal Final in FTC’s Action Against Online Lender (Manatt), Rated: AAA
- OnDeck Announces Extension of Two Revolving Credit Facilities With Credit Suisse & Deutsche Bank (Crowdfund Insider), Rated: AAA
- Unemployment Rate Drops to 3.8%; GreenSky’s Strong Earnings (PeerIQ), Rated: AAA
- How to Decide Between Earnest and SoFi for Student Loan Refinancing (Credible), Rated: AAA
- The rate of borrowers using loans for debt management drops; growing proportion of borrowers use loans for new purchases (LendingPoint), Rated: AAA
- What Do Millennials Want From Banks? Non-Financial Products (Forbes), Rated: AAA
- Green Dot targets social media influencers in banking-as-service push (American Banker), Rated: A
- How online lenders attract and service the evolving SMB borrower (Tearsheet), Rated: A
- Pay Yourself First? Last Is How Small Biz Often Works (Newsmax), Rated: A
- PAYNET STRATEGIC INSIGHTS MARCH 2019 (PayNet), Rated: A
- Less Than Zero? This Proposed ETF Would Pay Investors, But There’s A Catch (Benzinga), Rated: A
- Equifax Deleted Key Data Breach-Related Docs, Senators Say (Law360), Rated: A
- Home Equity Line of Credit Providers Face Growing Threat from Alternative Lenders, J.D. Power Finds (JD Power), Rated: A
- This week in Chicagoland real estate: One Chicago Square, Woodlawn and more (Chicago Agent Magazine), Rated: A
- PeerStreet Expands Executive Leadership with Two Senior Hires in Finance Team (BusinessWire), Rated: B
- CoreLogic : Introduces Verification of Employment and Income Solution to Expedite Borrower Verification Process (MarketScreener), Rated: A
- CORELOGIC INTEGRATES CONDOSAFE WITH THE ELLIE MAE ENCOMPASS ALL-IN-ONE MORTGAGE MANAGEMENT SOLUTION (CoreLogic), Rated: B
- ArborCrowd Announces New Equity Offering in 707-Unit Multifamily Portfolio (AP News), Rated: B
- United Kingdom
- Property finance hub Lendinvest plots £500m London float (Sky.com), Rated: AAA
- Lending revolution: fintechs vs banks (Raconteur), Rated: AAA
- Burnham residents are the most thrill-seeking in the UK according to new study (Windsor Observer), Rated: A
- Peer-to-peer firms told to improve wind-down arrangements (Out-Law), Rated: A
- Augmentum Capital signs up to Innovate Finance (P2P Finance News), Rated: A
- PEER TO PEER LENDER RELAUNCHES PRODUCTS (Insider Media), Rated: A
- Wonga compensation claims four times higher than expected (TechRound), Rated: A
- The IFISAs you can open for £100 or less (P2P Finance News), Rated: A
- Environmental benefits of ISA investment (The Ecologist), Rated: A
- Over 100 Finastra customers upgraded trade software in time to meet new SWIFT standards (RealWire), Rated: B
- China’s Lufax hits huge $ 39.4bn vaulation thanks to Primavera Capital-led Series C (Alt Assets), Rated: AAA
- Chinese fintech unicorn Lufax in no rush to IPO (Technode), Rated: A
- European Union
- Google Pay Added to Klarna’s Bank of Payment Options (WWD), Rated: AAA
- CreditEase Invests in wefox Group, the European Largest Insurtech Platform (PR Newswire), Rated: AAA
- Luna Connect: A new digital disrupter in the lending landscape (Irish Times), Rated: A
- Australia/New Zealand
- New US ambassador warns of China’s ‘payday loan diplomacy’ (The Washington Post), Rated: AAA
- New way to borrow takes Australia by storm (Mozo), Rated: A
- NAB’s UBank launches ‘green’ deposits to chase Millennials’ savings (Financial Review), Rated: A
- How marketplace lending meets investor needs (Cuffelinks), Rated: A
- Financial Markets Authority executive steps down over employment matter (NZ Herald), Rated: B
- P2P startup PaisaDukan raises 1st round of investment from JITO (UNI India), Rated: AAA
- Vivriti Capital raises second round of funding of Rs 110 Cr from Creation Investments (YourStory), Rated: A
- MSME Lending fuelled by Digitisation (Free Press Journal), Rated: A
- Investment Task Force suspend operation of 168 illegal fintech firms (Antara News), Rated: AAA
- Fintech group to help develop P2P lending (The Jakarta Post), Rated: A
- Government moves to legalise P2P lending (Vietnam Vet), Rated: A
Deal Final in FTC’s Action Against Online Lender (Manatt), Rated: AAA
The Federal Trade Commission (FTC) has finalized its deal with SoFi, an online lender that the agency had accused of making false statements about student loan refinancing.
According to the FTC, the California-based personal finance company misrepresented how much money student loan borrowers have saved or could save by refinancing.
Read the FTC complaint here.
Read the FTC decision and order here.
OnDeck Announces Extension of Two Revolving Credit Facilities With Credit Suisse & Deutsche Bank (Crowdfund Insider), Rated: AAA
OnDeck, a small business online lending platform, announced on Wednesday extensions to its existing credit facilities with Credit Suisse and Deutsche Bank on improved terms. According to OnDeck, the amended facilities provide an aggregate of $360 million of committed funding capacity and are available to finance OnDeck’s term loans and revolving lines of credit. The scheduled maturity dates for the facilities were extended three years to March 2022.
Unemployment Rate Drops to 3.8%; GreenSky’s Strong Earnings (PeerIQ), Rated: AAA
The unemployment rate dropped to a near five decades low of 3.8% even as nonfarm payrolls only rose by 20K. Average hourly earnings rose by 3.4%, above economists’ expectations.
GreenSky’s Strong 4Q2018 Earnings
GreenSky’s 4Q revenue grew by 22% YoY to $109 Mn, although net income fell by nearly 43% YoY to $23 Mn. The stock rose by ~6% post earnings.
- Transaction volume increased by 23% YoY to $1.3 Bn.
- Loan servicing portfolio increased by 36% YoY to $7.3 Bn.
- GSKY had aggregate commitments of $11.8 Bn from its nine bank partners, of which $4.8 Bn were unused.
- 30+ DQ rates rose slightly YoY from 145 bps to 148 bps.
- GreenSky now has nearly 12 k home improvement merchant partners and nearly 3 k elective healthcare partners.
How to Decide Between Earnest and SoFi for Student Loan Refinancing (Credible), Rated: AAA
Earnest and SoFi are two of the best student loan refinancing companiesout there. They both offer fixed as well as variable rate loans, a 0.25% autopay rate discount, and certain unemployment protections to help in the event of involuntary job loss, but they also have their differences.
Here’s a side-by-side comparison of both lenders to help you make an informed decision.
The rate of borrowers using loans for debt management drops; growing proportion of borrowers use loans for new purchases (LendingPoint), Rated: AAA
It turns out that, over the past two years, the proportion of our borrowers who say they are earmarking their loans for debt consolidation has decreased markedly, from about 60% in 2017 to about 54% in 2018. The percent using loans to pay for new merchandise or services has grown during those two years. Home improvement jumped from 6% to 8%; loans for medical expenses rose from 2% to 7%.
In 2017, the percent of millennial consolidators was about 61%. In 2018, that dropped a full 10%, down to 51%, a bigger decrease than any other age cohort.
What Do Millennials Want From Banks? Non-Financial Products (Forbes), Rated: AAA
If they haven’t, then why are 56% of Millennials giving megabanks (the four largest US banks) their
Green Dot targets social media influencers in banking-as-service push (American Banker), Rated: A
A new affinity banking service developed by Green Dot proposes to tap one of the most potent — and controversial — sources of distribution in the digital economy: social media influencers.
The digital banking and payments provider is developing what it calls Bank OS, a simpler version of its enterprise banking-as-a-service platform already used by the likes of Intuit, Stash, Uber and Walmart. It would enable partners to develop their own financial products just as those brands do, including offering credit cards, debit cards with loyalty programs or even a mobile app.
How online lenders attract and service the evolving SMB borrower (Tearsheet), Rated: A
But while small businesses still struggle with cash flow, how they shop for loans and their level of financial education about their options are changing. On Tearsheet’s recent webinar with leaders at Kabbage, BlueVine, and Intuit’s QuickBooks Capital, we discussed the changing nature of the SMB borrower and how their firms have evolved to keep up.
Pay Yourself First? Last Is How Small Biz Often Works (Newsmax), Rated: A
Everyone knows the Golden Rule of business is to pay yourself first. But more than half of small business owners are going months without pay – if they are taking any at all.
About a quarter of these entrepreneurs go two to six months without pay, and another quarter have gone more than six months without salary, according to a recent survey from Kabbage (), a cash flow optimization platform.
PAYNET STRATEGIC INSIGHTS MARCH 2019 (PayNet), Rated: A
The PayNet Small Business Lending Index (SBLI) rebounded with a 17.2 point jump to 150.7 in January, climbing to its second-highest level ever. On an annual basis, the SBLI increased 4.9%. The SBLI 3-month moving average also rose in January and currently stands 1.5% above its year-ago level.
The PayNet Small Business Delinquency Index (SBDI) 31–90 Days Past Due edged up one basis point to 1.45% in January, and is up six basis points on an annual basis — its 33rd consecutive year-over-year increase. The SBDI 91–180 Days Past Due was unchanged at 0.38% but is three basis points above its year-ago level.
Less Than Zero? This Proposed ETF Would Pay Investors, But There’s A Catch (Benzinga), Rated: A
Salt Financial, which currently offers one ETF, has filed plans with regulators to launch a low volatility that would pay investors, but there’s a catch.
“During the first year, holders will receive 50 cents for every $1,000 in a new low-volatility stock ETF — until it grows to $100 million when the cash-back benefit will be capped and shared with all investors,” reports Bloomberg. “The rebate is until at least April 2020, when a $2.90 management fee could kick in.”
Equifax Deleted Key Data Breach-Related Docs, Senators Say (Law360), Rated: A
Equifax Inc. failed to preserve key internal discussions over its massive 2017 data breach, U.S. senators said Thursday at a hearing where elected officials grilled the credit reporting giant’s CEO and the…
Home Equity Line of Credit Providers Face Growing Threat from Alternative Lenders, J.D. Power Finds (JD Power), Rated: A
Despite record-high levels,new home equity line of credit (HELOC) originations have been steadily declining as a perfect storm of rising interest rates, new tax laws and growing competition from alternative lenders has crimped traditional HELOC growth. According to the J.D. Power 2019 U.S. Home Equity Line of Credit Satisfaction Study, released today, HELOC customers are more likely than ever to shop for alternative sources of funding and HELOC providers are falling short on digital offerings.
This week in Chicagoland real estate: One Chicago Square, Woodlawn and more (Chicago Agent Magazine), Rated: A
New York-based DDG, Chicago-based Marc Realty and Ruttenberg Gordon announced plans for a 13-story hotelwith 250 rooms in Fulton Market. The developers are raising $55 million to fund the project through Prodigy Network, a New York-based real estate crowdfunding platform. The hotel will be located at 1234 West Randolph Street and will be operated by New York-based Standard Hotels. It’s set to be completed within two years.
PeerStreet Expands Executive Leadership with Two Senior Hires in Finance Team (BusinessWire), Rated: B
PeerStreet has announced the hiring of two executives with extensive experience in the financial services and real estate sectors: Ellen Coleman and Bob Brown. Ms. Coleman joins as Executive Vice President of Finance, and Mr. Brown joins as Executive Vice President of Finance & Corporate Development.
CoreLogic : Introduces Verification of Employment and Income Solution to Expedite Borrower Verification Process (MarketScreener), Rated: A
CoreLogic, a global property information, analytics and data-enabled solutions provider, today released an enhanced Verification of Employment and Income(VOE/I) product. The comprehensive new VOE/I product takes time, touch and cost out of traditional employment and income verification through a three-step ‘waterfall workflow’ process, ensuring that every mortgage applicant can be verified.
The enhanced VOE/I product features a three-step ‘waterfall workflow’ that ensures each borrower’s employment and income is verified as efficiently as possible.
- Step One: Instant verification via a direct integration to The Work Number (TWN)
- Step Two: Automated verification leveraging dozens of third-party data sources
- Step Three: Manual verification by a team of dedicated CoreLogic verification experts
CORELOGIC INTEGRATES CONDOSAFE WITH THE ELLIE MAE ENCOMPASS ALL-IN-ONE MORTGAGE MANAGEMENT SOLUTION (CoreLogic), Rated: B
CoreLogic today announced the integration of its CondoSafe product with the Ellie Mae Encompass® all-in-one mortgage management solution. CondoSafeis a one-stop condo project review tool that enables lenders to have a single, consistent, standardized review process, allowing them to determine eligibility earlier in the process, resulting in quicker approvals.
ArborCrowd Announces New Equity Offering in 707-Unit Multifamily Portfolio (AP News), Rated: B
ArborCrowd, the first crowdfunding platform launched by a real estate institution, today announced a new offering that allows investors to acquire equity interests in the Sioux Falls Multifamily Portfolio, a collection of class-B apartment communities located in Sioux Falls, S.D. The properties exhibit strong upside potential due to Sioux Falls’ sound multifamily real estate fundamentals and notable lack of professionally managed workforce housing product.
The investment has a targeted internal rate of return (IRR) of 12 to 14 percent over a three- to five-year hold period. Tzadik has budgeted $5.2 million to perform a comprehensive capital improvement plan that will include upgrades to all renovated units, common areas and public spaces.
LendPro’s Female Leaders Celebrated on International Women’s Day (LendPro Email), Rated: B
As the financial technology (fintech) industry continues to grow, innovators are increasingly looking for leadership and expertise to grow their companies and stand out from competitors. LendPro, a Lending-As-A-Service (LaaS) fintech company, prides itself in hiring strong talent. Women make up 50% of staffing at LendPro’s Charlottesville corporate office, versus 37% female staffing at most fintech companies.
Property finance hub Lendinvest plots £500m London float (Sky.com), Rated: AAA
The online property finance hub Lendinvest is plotting a £500m stock market flotation that will provide a fresh test of investors’ faith in a fast-growing but volatile area of the non-bank lending market.
Sky News has learnt that Lendinvest, which was set up in 2008 and has so far lent roughly £2bn to help buy, build or renovate British homes, has appointed Lazard, the investment bank, to advise on its strategic options.
Lending revolution: fintechs vs banks (Raconteur), Rated: AAA
Eight out of ten SME loan applications were approved by banks in the third quarter of 2018, according to the latest figures from trade association UK Finance. While this is a far cry from the days of the global financial crisis, when SME lending all but dried up in part due to regulatory pressures to shore up capital, smaller companies are still citing challenges in securing funding from traditional players, according to Stuart Chalmers, commercial banking lead for Accenture UK.
Alternative lenders understand the hunger for a seamless customer experience and have built credit journeys that align to business expectations
Almost 30,000 companies used non-traditional channels over the year, with peer-to-peer lending and equity-based crowdfunding now established investment vehicles for seed, startup, early-stage and fast-growth companies seeking capital. In fact, CCAF estimates that 29 per cent of all new loans issued in 2017 to small businesses with annual turnovers less than £2 million came from alternative finance.
Burnham residents are the most thrill-seeking in the UK according to new study (Windsor Observer), Rated: A
It may come as somewhat of a surprise, but according to research from Zopa, Burnham has been revealed to be the most thrill-seeking town.
Peer-to-peer firms told to improve wind-down arrangements (Out-Law), Rated: A
In a letter to chief executives (4 page / 352KB PDF) sent last week, the FCA said a recent supervisory review of firms’ current arrangements against current requirements “strongly suggests” some P2P firms were falling short of the standards required by its rules.
Augmentum Capital signs up to Innovate Finance (P2P Finance News), Rated: A
AUGMENTUM Capital has joined Innovate Finance as its first investor member.
It is currently planning to issue extra ordinary shares in its investment trust as it looks to fund around £300m of potential opportunities in the sector.
PEER TO PEER LENDER RELAUNCHES PRODUCTS (Insider Media), Rated: A
A South West-based peer to peer lender is to re-launch its lending products aimed at individuals and businesses.
Folk2Folk is to offers 9 per cent interest rates for investors with a loan to value ratio of up to 60 per cent.
The business has so far brought £275m into rural businesses in Britain over the past six years.
Wonga compensation claims four times higher than expected (TechRound), Rated: A
It has been recently revealed that the number of compensation claims made against the failed payday lender Wonga, which filed for administration in August 2018, has ended up increasing four-fold. The initial figure given by the Financial Ombudsman Service in a Treasury Committee in January this year suggested that there were around 10,500 customers who had open complaints with the short-term credit, high-interest company.
Now, it turns out that the number of redress claims that have been made against Wonga is considerably higher, totalling over 40,000. It is potentially the case that these people will not end up getting their money back after having been mis-sold loans.
The IFISAs you can open for £100 or less (P2P Finance News), Rated: A
According to the most recent HMRC statistics, overall ISA savings fell from £79.8bn in 2015/16 to £61.5bn in 2016/17. Meanwhile, Bank of England statistics found that the amount of money that Brits were saving (both within and outside of the ISA wrapper) fell by £7bn in 2018 alone.
Minimum investment: £5
- Assetz Capital
Minimum investment: £1
Minimum investment: £10
Minimum investment: £10
- Octopus Choice
Minimum investment: £10
Environmental benefits of ISA investment (The Ecologist), Rated: A
Crowdfunding and peer to peer lending grew out of the banking crisis of 2008. According to the European Central Bank, the availability of bank loans to SMEs declined 23 percent immediately following the crash, causing a devastating impact on the economy.
Over 100 Finastra customers upgraded trade software in time to meet new SWIFT standards (RealWire), Rated: B
Over 100 Finastra customers were upgraded to the latest compliant versions of its transaction banking software, Fusion Trade Innovation, ahead of the new SWIFT standards deadline of 17 November 2018. The new ‘Standards MT Release’ included significant changes to category 7 messaging standards used in trade finance – the most significant set of changes to the SWIFT trade finance messaging interface in over 30 years.
China’s Lufax hits huge $ 39.4bn vaulation thanks to Primavera Capital-led Series C (Alt Assets), Rated: AAA
Chinese peer-to-peer lending business Lufax has confirmed it has reached an enormous $39.4bn valuation thanks to a Series C round led by private equity house Primavera Capital.
Chinese fintech unicorn Lufax in no rush to IPO (Technode), Rated: A
Chinese peer-to-peer (P2P) lender Lufax is not in a hurry to list on the stock markets, said an executive of its biggest shareholder, Ping An Insurance, during its earnings call, Chinese media reported (in Chinese) on Wednesday.
Ping An Insurance Group deputy CEO Jessica Tan said after Lufax’s latest round of funding, Ping An still holds approximately 41% of its shares.
Google Pay Added to Klarna’s Bank of Payment Options (WWD), Rated: AAA
Today, Klarna, the global payments provider “smoothing” out kinks in the checkout process for retailers, announced a partnership with GooglePay. Available for Klarna customers in Sweden, the intention is to make mobile payments “even easier and more secure.”
CreditEase Invests in wefox Group, the European Largest Insurtech Platform (PR Newswire), Rated: AAA
CreditEase, a Beijing-based leading FinTech conglomerate in China, announced today that its direct investment arm, CreditEase FinTech Investment Fund (CEFIF), participated in wefox Group’s $125 million USD Series B, a fast-growing Berlin-based insurtech firm together with Mubadala’s newly created European Ventures Fund. The investment is the largest Series B round for a European insurtech and Goldman Sachs International is acting as the private placement adviser to wefox Group in connection with the transaction.
The investment will help spearhead the company’s expansion into the European broker market. It also paves the way for wefox Group to accelerate growth and create the world’s most innovative product and engineering team applying advanced data analytics to create an all-in-one insurance platform in which all interactions are personalized. The company, which was founded in 2014, has grown its revenue to around $40 million USD, while serving more than 1500 brokers and over 400,000 customers, making it Europe’s number one insurtech platform.
Luna Connect: A new digital disrupter in the lending landscape (Irish Times), Rated: A
Luna Connect is a new digital lending platform primarily aimed at those lending to SMEs. It is designed to fit into the rapidly evolving financial services ecosystem and its founder, Brian D’Arcy, drew the inspiration for his business from the disruption currently underway in the financial services sector.
The company’s target market are lenders offering loans of under €200,000, whose borrowers typically require a fast decision on their application and want a more transparent lending process. The initial focus will be on Ireland and the UK with Europe and the US to follow. Investment in the project to date has been around €120,000 which was self-funded with support from the NDRC and Enterprise Ireland through the competitive start fund.
New US ambassador warns of China’s ‘payday loan diplomacy’ (The Washington Post), Rated: AAA
The new U.S. ambassador to Australia said Wednesday that he’s concerned about the way China lends money to developing Pacific nations in what he describes as “payday loan diplomacy.”
China categorically rejects accusations that it uses loans, grants and other financial inducements to extend its diplomatic and political reach, saying it is merely acting in the best interests of both sides in such transactions.
New way to borrow takes Australia by storm (Mozo), Rated: A
As distrust of the nation’s big banks and mortgage brokers swells amongst the wreckage of the banking royal commission, online lenders are emerging as real challengers in the home loan, business loan and personal lending markets.
NAB’s UBank launches ‘green’ deposits to chase Millennials’ savings (Financial Review), Rated: A
The CEO of National Australia Bank subsidiary UBank, Lee Hatton, says future retail depositors will want more control over where banks lend their money, prompting it to launch a “green” term deposit targeting environmentally concerned Millennial customers.
How marketplace lending meets investor needs (Cuffelinks), Rated: A
However, it’s also true that today’s investors face a risk environment of unprecedented complexity. In 2018, the S&P/ASX200 declined by 6.8%. Residential property values are falling and bank deposit rates fail to match inflation. In the last year, the Australian media landscape was dominated by the findings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, with its revelations of duplicitous lending practices, improper fees, and general misconduct that, by the banks’ own admission, fell far short of community expectations.
Financial Markets Authority executive steps down over employment matter (NZ Herald), Rated: B
Financial Markets Authority (FMA) executive Garth Stanish left the investment watchdog at the end of last month over an internal employment matter, a spokesman for the authority said.
Stanish was also a director of markets oversight, a group that includes oversight of NZX, crowd-funding/P2P lending platforms and frontline supervisors.
P2P startup PaisaDukan raises 1st round of investment from JITO (UNI India), Rated: AAA
Vivriti Capital raises second round of funding of Rs 110 Cr from Creation Investments (YourStory), Rated: A
Vivriti Capital, a Chennai-based lending platform for corporate entities, secured Rs 110 crore worth of equityin an additional round of funding from its existing investor Creation Investments.
This comes just within two months of the Series A funding closure in December 2018, in which the company raised Rs 200 crore from Creation Investments. With the current equity infusion, Vivriti’s overall capital stands at approximately Rs 320 crore.
MSME Lending fuelled by Digitisation (Free Press Journal), Rated: A
MSMEs play a major role in Economic development of India. There are around 63.4 million units and they contribute to 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities and 33.4% of India’s manufacturing output. They have been able to provide employment to around 120 million persons and contribute around 45% of the overall exports from India. The sector grows at a rate faster than the large ones at more than 10% pa.
About 20% of the MSMEs are based out of rural areas.They provide employment to more than 130 million people and contribute to 45% of exports. MSMEs are also the largest employment generator every year. As of Sep18, the total credit in India was Rs 105.5 Lakh crores and MSMEs had borrowed Rs 24.7 cr. Large and Mid Caps borrowed Rs 44.4 cr. Year on Year the growth of overall commercial credit was at 13.5%.
Micro loans which are less than Rs1 cr grew 22.2% year on year and SME loans between Rs1 cr – Rs 2.5 cr grew at 18.3%.The growth was faster than the overall growth. Share of NBFCs in SME credit increased from 13% in Sep 15 to 17% in Sep 18. The number of NBFCs lending more than Rs 100 cr to MSMEs stood at 77 at the end of Sep 18.
Investment Task Force suspend operation of 168 illegal fintech firms (Antara News), Rated: AAA
Fintech group to help develop P2P lending (The Jakarta Post), Rated: A
A group of financial technology (fintech) lenders wants to help develop a healthier lending industry and protect consumers by setting out a strict code of conduct for its members.The Indonesian Fintech Lenders Association (AFPI) will help stimulate the industry, which only gained government recognition three years ago, by providing risk management certification, public education campaigns and a compulsory code of conduct, which should be uploaded to the AFPI website soon.AFPI chairman Adrian Gunadi said the association had been established to ease the Indonesian Fintech Association’s (AFTECH) workload in dealing with fintech companies that provide lending services, including peer-to-peer (P2P) lending, crowdsourcing and digital credit cards.Such lenders account for 30 percent of all licensed fintech companies, whereas the remaining 70 percent are companies engaged in, among other thing…
Government moves to legalise P2P lending (Vietnam Vet), Rated: A
During a recent meeting with relevant ministries and agencies to discuss P2P lending, Hue instructed that during the pilot operation, P2P lending would be restricted to connecting lenders and borrowers as currently being run by most P2P lending companies in Viet Nam. P2P lending companies would not be allowed to mobilise capital, but act as intermediaries to connect lenders (investors) and borrowers.
The development of P2P lending will also create a new capital supply channel. Research conducted by Transparency Market Research showed that P2P lending would surge by 48.2 per cent annually in the 2016-24 period, while Morgan Stanley forecast the business model would reach a growth rate of 53.5 per cent globally by 2020.
News Comments Today’s main news: SoFi to roll out crypto trading with Coinbase. Walmart now offers Affirm loans. Funding Circle fund ups the ante on buyback strategy. Orca launches IFISA. LendDenClub cross 1 million borrowers, lenders milestone. Today’s main analysis: 2019 securitization update. How marketplace lending is a growing and dynamic global market. (A MUST-READ) Today’s thought-provoking articles: The 2009 […]
- Today’s main news: SoFi to roll out crypto trading with Coinbase. Walmart now offers Affirm loans. Funding Circle fund ups the ante on buyback strategy. Orca launches IFISA. LendDenClub cross 1 million borrowers, lenders milestone.
- Today’s main analysis: 2019 securitization update. How marketplace lending is a growing and dynamic global market. (A MUST-READ)
- Today’s thought-provoking articles: The 2009 housing market compared to today. Personal loan interest rates for February 2019. Why Midwest BankCentre created a separate digital-only bank. Some bankers are worse off than in 2009. Dragon Victory International analysis.
- SoFi to offer crypto trading through Coinbase partnership. This is the most interesting news story of the week. The largest cryptocurrency exchange partnering with one of the largest marketplace lenders to offer cryptocurrency trading will be a huge feather in the cap for both companies.
- Walmart now offers Affirm loans. We saw this one coming. In fact, I wonder why it took so long. Affirm snagging Walmart as a customer will catapult it to PayPal status fast.
- More on Affirm’s, Walmart’s partnership.
- Affirm CEO breaks it down.
- 2019 securitization update, Square charter status. Square is finally seeing some opposition to its banking aspirations. Excellent analysis from PeerIQ.
- The housing market of 2009 compared to today. A LendingTree analysis showing the markets where median home values have increased the most and the least. California is hot. The Mid-Atlantic and Eastern states are not.
- Personal loan interest rates for February 2019. A great breakdown from Nerdwallet.
- Why a small bank launched a separate digital-only branch. I think we’re going to see more of this. As more consumers demand digital banking, and Millennials are all over it, more brick-and-mortar banks will see the opportunity to launch digital-only branches as separate entities. It’s actually a smart move.
- SoFi to offer zero-fee ETFs.
- FTC orders SoFi to stop misleading consumers.
- Figure raises $65 million.
- Gen Xers have the largest auto loan burden.
- Elevate Credit posts earnings results.
- Elevate’s CIO wins award.
- Hunt Real Estate Capital buys RealtyMogul’s loan underwriting program.
- Kabbage says it’s prepared for the coming recession.
- Kabbage named one of the top workplaces among midsize companies in Atlanta.
- CrowdStreet has new self-directed IRA offering.
- Liquid P2P, Interest Radar partner.
- Direct Lending Investments suspends investor withdrawals.
- HSBC partners with Neptune Financial.
- Venmo debuts rainbow-colored card.
- Mastercard says digital identities will be very important in a few years.
- Credit Karma wants to be known for more than free credit scores.
- Brex launches credit card for e-commerce.
- YieldStreet raises $62 million.
- Guaranteed Rate listed as top loan originator.
- Americans focus on debt management more than retirement savings.
- Banking regulator challenging New York on fintech charters.
- Blockchain can be used for P2P lending.
- LoanStreet makes new hires.
- White Oak Business Capital hires new head of markets.
- Funding Circle fund adds firepower for buyback strategy.
- Orca Innovative Finance ISA launches.
- Experian backs off ClearScore merger.
- NatWest launches account aggregation.
- Open Banking could boom in 2019.
- Wonga reaches from beyond the grave.
- What you need to know about crowdfunding developments.
- Aave launches bill pay platform for crypto.
- Some bankers are worse off than in 2009. A look at global IPOs.
- Report on how marketplace lending is still a growing and dynamic market. A must-read from DBRS.
- Enova expands worldwide credit access.
- Blossom Capital gets $85 million from Robinhood, Funding Circle investors.
- How lending can earn your Bitcoin online. I’d like to see a service where small lenders can lend fiat and earn Bitcoin.
- India: LenDenClub crosses 1 million borrower, lender milestone. Congratulations! Excellent achievement.
- Mexico: PayPal to expand small business loans into country with new partnership. PayPal has begun its slow expansion internationally. Could it someday be a global powerhouse?
- China: Analysis of Dragon Victory International. A very interesting look from Seeking Alpha.
- Latin America: ID Finance Latam revenues climb 403%.
- India: Why startups, investors see big potential in lending.
- Ireland: Grid Finance suspends investments below 100,000 euro.
- Brazil: N26 expands into Brazil.
- China: Is the Chinese P2P lending boom over?
- Singapore: Fintech investments rose to $365 million USD in 2018.
- India: UDS ban will benefit P2P lending.
- Australia: How should accountants talk about fintechs?
- Singapore: Validus Capital raises $15 million for SME financing.
- China: BHB raises $20 million using fake bios of founding team.
- Africa: Fintechs inspire with mobile technology.
- China: Futu Securities downsizes U.S. IPO.
- United States
- Fintech Startup SoFi to Roll Out Crypto Trading Via Partnership With Coinbase (CoinTelegraph), Rated: AAA
- Millennial online lender SoFi to offer zero-fee ETFs, an unexpected rival for index fund giants Vanguard, iShares (CNBC), Rated: A
- FTC orders SoFi to stop misleading consumers (MPA Mag), Rated: B
- Digital lender founded by ex-SoFi CEO raises $ 65M to fuel expansion (American Banker), Rated: A
- Walmart teams with Affirm to offer point-of-sale loans (American Banker), Rated: AAA
- Affirm’s latest partnership brings its alternative financing to Walmart’s US stores and website (TechCrunch), Rated: A
- Loan app Affirm CEO breaks down new Walmart partnership (CNBC), Rated: A
- ABS Vegas – 2019 Securitization Update; Square Charter Status (PeerIQ), Rated: AAA
- The Housing Market’s 10 Year Challenge — Comparing The Housing Market of 2009 to Today (LendingTree), Rated: AAA
- Gen Xers Carry the Biggest Auto Loan Burden; Study Finds (One World Herald), Rated: A
- Personal Loan Interest Rates for February 2019 (Nerdwallet), Rated: AAA
- Elevate Credit (ELVT) Posts Earnings Results, Meets Expectations (Fairfield Current), Rated: A
- Hunt Real Estate Capital buys RealtyMogul’s proprietary loan underwriting program (Housing Wire), Rated: A
- Elevate’s Joan Kuehl Named Dallas ORBIE CIO of the Year (The Progress), Rated: B
- A Recession Coming? Small Business Lending Platform Kabbage Says It’s Prepared (Forbes), Rated: A
- Here’s more on the AJC Top Workplaces midsize companies (AJC.com), Rated: B
- Diversifying a Self-Directed IRA Made Simple with New Offering from CrowdStreet (The Progress), Rated: A
- Liquid P2P and Interest Radar Announce Strategic Partnership (Liquid P2P), Rated: A
- Direct Lending Investments Suspends Investor Withdrawals (Lend Academy), Rated: A
- Fintech deal will provide access to midsize businesses in U.S. (American Banker), Rated: A
- Venmo debuted a limited-edition rainbow-colored card (Business Insider), Rated: A
- Why digital identities will be so important in the next few years, according to Mastercard’s vice chairman (CNBC), Rated: A
- Credit Karma’s Dana Marineau: ‘We want users to think of us as more than just free credit scores’ (Tearsheet), Rated: A
- Why this small bank created a separate, digital-first brand (American Banker), Rated: AAA
- The Future Is Plastic: Fintech Unicorn Brex Launches New Credit Card For E-Commerce Merchants (Forbes), Rated: A
- YieldStreet raises $ 62M to democratise alternative investments in shipping, real estate and more (TechCrunch), Rated: A
- Guaranteed Rate Leads Mortgage Executive Magazine’s List of Top Loan Originators in America (GlobeNewswire), Rated: A
- Americans Focus On Debt Management But Lose Focus On Retirement Savings (Forbes), Rated: A
- U.S. banking regulator fights NY lawsuit over fintech charters (Reuters), Rated: A
- Blockchain and data protection: the main concerns (JDSupra), Rated: A
- LoanStreet positions for growth with new hires (LoanStreet Email), Rated: B
- White Oak Business Capital Hires Carol Bader Apicella to Expand Northeast and Mid-Atlantic Markets (GlobeNewswire), Rated: B
- United Kingdom
- Funding Circle fund adds firepower for buyback strategy (AltFi), Rated: AAA
- Orca Innovative Finance ISA Launches, Enables Diversified P2P Investment (Crowdfund Insider), Rated: AAA
- Experian, ClearScore scrap merger plans (Reuters), Rated: A
- NatWest launches account aggregation as Open Banking takes hold (AltFi), Rated: A
- Will Open Banking boom in 2019? (AltFi), Rated: A
- Aave Launches Platform to Pay Bills Using Crypto (Finance Magnates), Rated: A
- Investing in crowdfunded development projects – what you need to know (Property Investor Today), Rated: A
- Failed Lender Reaching ‘From Beyond The Grave,’ MPs Warn (Law360), Rated: A
- Some Bankers Are Doing Even Worse Than in 2009 (The Washington Post), Rated: AAA
- Marketplace Lending – A Growing and Dynamic Global Market (DBRS Email), Rated: AAA
- Bank on it: How Enova’s software expands credit access worldwide (Built in Chicago), Rated: A
- Blossom Capital scores $ 85m from Robinhood and Funding Circle backers (AltFi), Rated: A
- Eight Simple Ways to Earn Bitcoin Online Legally (The Crypto Updates), Rated: B
- European Union
- Grid Finance suspends taking investments below € 100,000 (Irish Times), Rated: AAA
- Dragon Victory International: Exposure To The Chinese Crowdfunding Market At A Regulatory-Driven Discount (Seeking Alpha), Rated: AAA
- China Fintech Today: The P2P Boom Is Truly Over (SupChina), Rated: A
- A Crypto Project That Raised $ 20 Million Is Caught Faking Its Founding Team (CoinDesk), Rated: A
- Tencent-backed brokerage firm downsizes US IPO amid weak market demand (Technode), Rated: A
- How should accountants talk to clients about fintechs? (In the Black), Rated: A
- LenDenClub crosses 1,00,000 borrowers and lenders milestone (News Barons), Rated: AAA
- Why Do Fintech Startups and Investors See a Huge Potential in Lending? (Entrepreneur), Rated: AAA
- Banning of UDS to benefit P2P Lending Industry (Inventiva), Rated: A
- Singapore fintech investments rose two-fold to US$ 365m in 2018 (SBR.com.sg), Rated: AAA
- Validus Capital raises $ 15m for SME financing (Fintech Futures), Rated: A
- Latin America
- PayPal expands its small business loans initiative to Mexico (Leaprate), Rated: AAA
- ID Finance eyes ‘pivotal moment’ for Latam fintech as revenue in region climbs 403% (Fintech Finance), Rated: A
- Challenger bank N26 expands to Brazil (Fintech Futures), Rated: A
- How FinTech Companies Inspire Africa With Mobile Technology (PYMNTS), Rated: AAA
Fintech Startup SoFi to Roll Out Crypto Trading Via Partnership With Coinbase (CoinTelegraph), Rated: AAA
Fintech startup SoFi — known for its online lending services — is partnering with major United States-based crypto exchange Coinbase to roll out crypto trading support, according to a CNBC report Feb. 26.
Millennial online lender SoFi to offer zero-fee ETFs, an unexpected rival for index fund giants Vanguard, iShares (CNBC), Rated: A
The race to zero-fee exchange-traded funds has found an unlikely competitor: Online lending and personal finance platform SoFi, which has filed for two index ETFs that will waive management fees for the first year. In making the move to zero-fee ETFs, the online lender is crashing an ETF party dominated by Vanguard and BlackRock‘s iShares.
FTC orders SoFi to stop misleading consumers (MPA Mag), Rated: B
The Federal Trade Commission has ordered online lender SoFi to stop lying about how much borrowers can save by refinancing with the company.
Digital lender founded by ex-SoFi CEO raises $ 65M to fuel expansion (American Banker), Rated: A
The new company founded by Mike Cagney, the former embattled chief executive of Social Finance, plans to announce a $65 million funding round on Wednesday, bolstering firm’s expansion into other financial services, including wealth management.
With the new venture, Cagney is using some of the strategies from his tenure at SoFi — like diversification into areas typically only occupied by traditional banks. However, the new company, Figure, is focusing on different customers, and it’s taking steps to avoid scandals similar to the ones that saw Cagney step down from the SoFi helm.
Walmart teams with Affirm to offer point-of-sale loans (American Banker), Rated: AAA
Walmart will offer its customers point-of-sale loans for the first time — both on its website and in nearly 4,000 U.S. stores — under a partnership with the Silicon Valley lender Affirm.
Under the deal, Walmart shoppers will be able to get Affirm loans of three, six or 12 months to finance purchases ranging from $150 to $2,000. The loans are already being offered in Walmart stores, and they will be available to Walmart’s online shoppers in the coming weeks.
Affirm’s latest partnership brings its alternative financing to Walmart’s US stores and website (TechCrunch), Rated: A
The companies announced this morning that Affirm’s financing options would be made available in more than 4,000 Walmart Supercenters across the U.S., and will roll out to Walmart.com in the weeks ahead.
The offering will go live across Walmart Supercenters nationwide, except in Iowa, West Virginia and Puerto Rico, and will be soon available on Walmart.com.
Loan app Affirm CEO breaks down new Walmart partnership (CNBC), Rated: A
ABS Vegas – 2019 Securitization Update; Square Charter Status (PeerIQ), Rated: AAA
In regulatory news, Square’s ILC charter application has received opposition from 37 community groups. The groups are concerned about Square’s CRA activities and have asked the FDIC to bolster Square’s CRA requirements. Before this letter from community advocates, nearly all of the 15 letters the FDIC received were in favor of Square’s bid. Square is the furthest along the path to getting an ILC charter and its experience will determine whether other FinTechs follow its lead.
Structured Credit Investor magazine explores the challenges facing the maturing marketplace lending sector. Issuers need to distinguish between the borrower experience that they provide and manage liquidity. The article also makes the point that the sector is ripe for consolidation, although we haven’t seen any M&A yet.
2019 Securitization Update
The first two months of 2019 saw 5 securitization deals totaling $1.7 Bn in new issuance. The issuance volume represents a 23% drop over that seen in the first two months of 2018, as the market recovers from the volatility in equity and credit markets seen at the end of 2018. Total securitization issuance now stands at $46.2 Bn, with 147 deals issued to date.
The Housing Market’s 10 Year Challenge — Comparing The Housing Market of 2009 to Today (LendingTree), Rated: AAA
When the real estate bubble burst in late 2008, many Americans saw their home values fall drastically, but a lot has changed in the 10 years since — housing prices have rebounded from their lows during the Great Recession. And though prices are now starting to cool, in many cases, home values have even exceeded their 2006 highs.
On average, median home values have increased by nearly $50,000 across the 50 largest metros in the United States since 2009.
Metros where housing prices have recovered the most since 2009
San Jose, Calif.
Median home value 2009: $638,300
Median home value 2017: $957,700
Median home value change: $319,400
Median unemployment rate change: -6.4%
Median household income change: $32,991
Median home value 2009: $591,600
Median home value 2017: $849,500
Median home value change: $257,900
Median unemployment rate change: -5.4%
Median household income change: $27,889
Median home value 2009: $463,600
Median home value 2017: $617,100
Median home value change: $153,500
Median unemployment rate change: -5.0%
Median household income change: $11,467
Gen Xers Carry the Biggest Auto Loan Burden; Study Finds (One World Herald), Rated: A
According to the loan comparison website, the median balance of Gen Xers who have auto loans is $18,741 is higher than other age groups. It is 9% more than baby boomers’ $17,185 median balance. This is higher than millennials’ $16,200 and 37 percent more than the lowest median balance of $13,666 held by Gen Z.
Personal Loan Interest Rates for February 2019 (Nerdwallet), Rated: AAA
Personal loan interest rates, whether you’re considering a loan from a bank, credit union or online lender, generally range from about 6% to 36%. The actual rate you receive depends on factors such as your credit score and history, annual income, existing debt and where you get the loan.
Online lenders offer the lowest starting interest rates on personal loans to borrowers with good to excellent credit.
LightStream and Marcus both require a minimum credit score of 660. LightStream accepts joint applications, and one applicant can have a credit score lower than its minimum. SoFi has a slightly higher credit score requirement and requires at least $45,000 in annual income.
Elevate Credit (ELVT) Posts Earnings Results, Meets Expectations (Fairfield Current), Rated: A
Elevate Credit (NYSE:ELVT) announced its quarterly earnings results on Monday, February 11th. The company reported $0.09 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.09, Bloomberg Earnings reports. The business had revenue of $207.29 million for the quarter, compared to the consensus estimate of $212.42 million. Elevate Credit had a return on equity of 15.72% and a net margin of 1.59%. Elevate Credit updated its FY 2019 guidance to $0.55-0.65 EPS.
Hunt Real Estate Capital buys RealtyMogul’s proprietary loan underwriting program (Housing Wire), Rated: A
Hunt Real Estate Capital, which offers financing for all types of commercial real estate, will soon have a new underwriting system to help it originate those loans, as the company is buying a proprietary loan underwriting system from RealtyMogul.
Elevate’s Joan Kuehl Named Dallas ORBIE CIO of the Year (The Progress), Rated: B
Elevate Credit, Inc. (“Elevate”) today announced that Executive Vice President and Chief Information Officer Joan Kuehl has been named the Large Enterprise CIO of the Year by the Dallas ORBIE CIO of the Year Awards. The award honors chief information officers who have demonstrated excellence in technology leadership.
If those predictions prove true, it will be the first major economic downturn for some of the nation’s leading fintechs. Born out of the ruins of the recession, these startups have enjoyed nearly a decade of success buoyed by strong economic growth, a bull run in the stock market and low unemployment.
Here’s more on the AJC Top Workplaces midsize companies (AJC.com), Rated: B
Kabbage has been named to the list for five consecutive years and this is its first year in the top five. The private financial technology company, founded in 2009, has 489 global employes and 367 at its U.S. headquarters in Atlanta. Flexibility at work and perks, such as a daily catered lunch and snacks, are among reasons employees appreciate working for Kabbage. Wellness benefits include fitness classes, health equipment onsite, biweekly meditation classes, CPR training, an annual flu shot clinic and sponsoring sports clubs. It also fully pays health benefits for individuals and provides annual bonuses and a 401(k) match. Through its sabbatical program, employees of five years can receive six weeks of paid time off and an additional $6,000. In 2018, Kabbage participated in the Atlanta PRIDE parade and also took a stand against gun violence after the mass shooting at Stoneman Douglas High School. Workers in 2019 will build a Habitat for Humanity home as part of its Kabbage Kares program, which also has supported PAWS Atlanta, Easter Seals and the Epilepsy Foundation.
Diversifying a Self-Directed IRA Made Simple with New Offering from CrowdStreet (The Progress), Rated: A
CrowdStreet, an online marketplace for direct equity investment in commercial real estate (CRE), today launched a streamlined, investor-friendly approach to investing qualified retirement account funds into commercial real estate offerings. This new option makes it easier than ever for individuals to access CRE investments with their self-directed IRAs (SDIRA), thus reducing their investment exposure to a volatile stock market and achieving more independence in managing their investments.
Liquid P2P and Interest Radar Announce Strategic Partnership (Liquid P2P), Rated: A
Liquid P2P and Interest Radar are pleased to announce that they have entered into a strategic partnership. The two third-party investing services for online peer-lending giant Lending Club will combine strengths under a single platform to deliver a more comprehensive automated tool with a patent-pending liquidity solution.
Direct Lending Investments Suspends Investor Withdrawals (Lend Academy), Rated: A
Earlier this month Brendan Ross, the CEO of Direct Lending Investments, Inc., sent a letter to investors notifying them that they have suspended withdrawals and redemptions effective February 8, 2019. Lend Academy was able to obtain a copy of this investor letter, dated February 11, that provides some color into what happened. The reason given was the delinquency of a large holding, VOIP Guardian, a telecom receivables factoring company.
Fintech deal will provide access to midsize businesses in U.S. (American Banker), Rated: A
Add HSBC to the list of banks partnering with commercial online lenders.
The bank on Tuesday announced a partnership with Neptune Financial, a San Francisco online lender that focuses on businesses with $10 million to $100 million in assets. The bank estimates that, with the access it will get to Neptune customers, the deal represents a $1.5 trillion opportunity.
Venmo debuted a limited-edition rainbow-colored card (Business Insider), Rated: A
Venmo, the PayPal-owned peer-to-peer (P2P) giant, debuted a limited-edition rainbow-colored version of its physical card product. The card will function the same as regular Venmo cards, allowing customers to pay wherever Mastercard is accepted, split costs and tips, withdraw funds from select ATMs, and manage their Venmo balance, but it will only be available for as long as supplies last, according to Venmo.
Why digital identities will be so important in the next few years, according to Mastercard’s vice chairman (CNBC), Rated: A
The pace with which we are moving toward the internet of things is “very rapid” but we “can’t have the internet of everyone without the inclusion of everyone,” according to the vice chairman of payments giant Mastercard.
“You have to start focusing on how does the human get involved, and that’s going to be through having a digital identity,” Ann Cairns told CNBC’s Karen Tso on Monday at the Mobile World Congress in Barcelona.
Credit Karma’s Dana Marineau: ‘We want users to think of us as more than just free credit scores’ (Tearsheet), Rated: A
Today’s marketer on the hot seat is Dana Marineau, Credit Karma’s vice president of brand, creative and communications. People love Credit Karma for its free credit scores, but the company provides so many other free tools. Dana’s team is tasked with elevating the brand beyond just free credit scores, as a place to get help with financial decisions and achieve financial progress. She brings a 15 year experience at EA, working on many of the top sports games in the business.
Why this small bank created a separate, digital-first brand (American Banker), Rated: AAA
When Midwest BankCentre, a community bank in St. Louis, launched the digital-first Rising Bank in February, it joined the ranks of other financial companies —generally large players such as JPMorgan Chase, Wells Fargo and MUFG Union Bank — that have created separate, digital-only brands. Unlike them, the $1.9 billion-asset Midwest hopes to keep a community bank feel at the internet-only unit.
The Future Is Plastic: Fintech Unicorn Brex Launches New Credit Card For E-Commerce Merchants (Forbes), Rated: A
Brex, a San Francisco credit card startup that reached a valuation of $1.1 billion late last year, 22 months after its founding, is launching its second product, a physical credit card for e-commerce companies. Its first card, targeted to venture-backed tech startups, has attracted more than 3,000 customers by providing higher spending limits and simplifying the application process.
YieldStreet raises $ 62M to democratise alternative investments in shipping, real estate and more (TechCrunch), Rated: A
YieldStreet — which provides a platform for making alternative investments in areas like real estate, marine/shipping, legal finance, commercial loans and other opportunities that in the past were only open to institutional investors — is today announcing that it has raised $62 million in a Series B round of funding.
Guaranteed Rate Leads Mortgage Executive Magazine’s List of Top Loan Originators in America (GlobeNewswire), Rated: A
For the seventh consecutive year, Guaranteed Rate has the most loan originators of any lender on Mortgage Executive Magazine’s annual list of the “Top 200 Mortgage Originators in America,” including the number one originator.
Guaranteed Rate led the way with 36 originators ranking within Mortgage Executive Magazine’s Top 200, including three of the top five. Shant Banosian of Boston, Mass., was named the nation’s 2018 Top Originator by funding $536 Million in total loan volume.
Americans Focus On Debt Management But Lose Focus On Retirement Savings (Forbes), Rated: A
U.S. banking regulator fights NY lawsuit over fintech charters (Reuters), Rated: A
The U.S. Office of the Comptroller of the Currency has asked a Manhattan federal court to dismiss a lawsuit by a New York financial regulator over its plan to issue banking charters to fintech companies, saying the lawsuit is premature.
Blockchain and data protection: the main concerns (JDSupra), Rated: A
Blockchain’s usage is no longer limited to digital crypto currencies, as blockchain databases may be deployed in innumerable circumstances and scenarios, including, for instance, within the financial services and insurance sectors for money transfer, peer-to-peer lending and transfer of securities, as well as automatic execution of contracts.
LoanStreet positions for growth with new hires (LoanStreet Email), Rated: B
After the launch of LoanStreet’s commercial lending product and the announcement of their $6.5 million funding round, LoanStreet – the first fully-integrated platform that streamlines the process of sharing, managing, and originating loans – has appointed three credit union industry veterans to support LoanStreet’s aggressive growth.
These new hires include Mike Doherty, Managing Director and Head of Credit Union Sales; Tony Harter, Business Development Director; and Joe Parvin, Business Development Director.
White Oak Business Capital Hires Carol Bader Apicella to Expand Northeast and Mid-Atlantic Markets (GlobeNewswire), Rated: B
White Oak Business Capital, Inc. (“WOBC”), an affiliate of White Oak Global Advisors, LLC, has announced that Carol Apicella has joined the firm as Senior Vice President and Senior Business Development Officer. Apicella will be responsible for expanding the firm’s markets in the Northeast and Mid-Atlantic.
Funding Circle fund adds firepower for buyback strategy (AltFi), Rated: AAA
The portfolio, an investment trust, of loans originated by Funding Circle lowered its dividend expectations amid lower projected returns last year prompting a discount to its net asset value.
Following a move to a more than 10 per cent discount last year it started share buybacks in a bid to narrow its discount. It has now made additional capital available from its free cash flow to be deployed into share buybacks, the fund said yesterday.
Orca Innovative Finance ISA Launches, Enables Diversified P2P Investment (Crowdfund Insider), Rated: AAA
Orca Money is finally launching its long-anticipated Innovative Finance ISA (IFISA). Orca’s spin on the savings vehicle allows investors to spread their money across multiple peer-to-peer lenders (P2P) thus providing a heightened degree of diversification. Additionally, Orca Money conducts due diligence on behalf of IFISA investors.
Currently, the Orca IFISA allows access to 5 P2P platforms: Lending Works, Assetz Capital, Landbay, Octopus Choice and Lending Crowd.
Experian, ClearScore scrap merger plans (Reuters), Rated: A
Experian Plc, the world’s biggest credit data firm, said on Wednesday that it had agreed with rival ClearScore to abandon their proposed merger, after Britain’s competition watchdog indicated that it may block the deal.
NatWest launches account aggregation as Open Banking takes hold (AltFi), Rated: A
It’s been a long time coming, but Open Banking is finally spreading through the traditional banking industry, this week with the launch of account aggregation for NatWest customers.
The RBS subsidiary becomes the UK’s 4th bank to let customers connect rival current accounts.
Will Open Banking boom in 2019? (AltFi), Rated: A
It has been over a year since the Open Banking UK initiative under the Competition and Markets Authority order and Second Payment Services Directive (PSD2) was launched and has become one of the industry’s biggest technology and regulatory shake ups in recent years. It is no surprise that the initiative’s first year has seen a relatively low consumer uptake. This has been coupled with reports that consumers’ knowledge of the scheme appears to be markedly low.
Aave Launches Platform to Pay Bills Using Crypto (Finance Magnates), Rated: A
In an attempt to bring crypto closer to the mainstream, the London-based fintech startup has announced the launch of Aave Pay.
The app will allow its users to pay their utility bills using digital coins by converting crypto into fiat in real-time using bank transfer facility. The company is claiming that the platform can be used to business expenses as well including employee salaries, income taxes, and other commercial or corporate expenses.
Investing in crowdfunded development projects – what you need to know (Property Investor Today), Rated: A
You can invest in peer to peer development loans for the short term or in an Innovative Finance ISA for a longer commitment period, but with the potential to earn tax free returns.
By comparison, a peer to peer lending platform with its own development company will have much more control over its projects and be able to give you more detailed and trustworthy updates.
Failed Lender Reaching ‘From Beyond The Grave,’ MPs Warn (Law360), Rated: A
Failed payday lender Wonga is damaging the finances of thousands of customers “from beyond the grave” because they cannot seek redress for allegedly missold loans as the company was not covered…
Some Bankers Are Doing Even Worse Than in 2009 (The Washington Post), Rated: AAA
It may not feel like it, but some corners of banking are suffering as badly as they did during the depths of the financial crisis. Global volumes of initial public offerings and share placings in January and February have been nearly 60 percent lower than in the same period last year. The numbers are worse than the first two months of 2009. If activity doesn’t pick up soon, it would be worrying evidence of the fragility of investor sentiment.
The hope is that the lull is temporary, and technical. The government shutdown in Washington has gummed up U.S. IPOs. Uncertainty over the U.K.’s future relationship with Europe just drags on. And the December stock-market wobble probably killed off deals that were being planned for the window that traditionally opens between January and the start of the full-year earnings season in late February.
Marketplace Lending – A Growing and Dynamic Global Market (DBRS Email), Rated: AAA
I wanted to share with you a new joint report from our U.S. and European structured finance teams. The new report, attached to this email, analyzes the growth of the marketplace lending market around the globe.
The commentary includes the following topics:
— The evolution in finance, from traditional banking to FinTech.
— FinTech’s influence on marketplace lending around the globe.
— Growth hurdles.
— Securitization considerations.
Bank on it: How Enova’s software expands credit access worldwide (Built in Chicago), Rated: A
Not all credit histories are created equal.
That’s the case for a large part of the world’s population who can’t get access to a loan from a traditional credit provider — like a bank — creating a world in which the hardest working people don’t always get access to the credit they need. Enova, however, believes it has a solution. The fintech company draws on the power of machine learning and data to offer products that expand access to credit for consumers and small businesses.
Blossom Capital scores $ 85m from Robinhood and Funding Circle backers (AltFi), Rated: A
Blossom Capital, which has already backed five startups including rental marketplace Fat Lama, today raised $85m which it will use to lead Series A rounds of between $5m and $10m in Europe.
Eight Simple Ways to Earn Bitcoin Online Legally (The Crypto Updates), Rated: B
Earn Bitcoins as the interest payments: If you have earned some Bitcoins already, you can put the Bitcoins to earn for you. Lend them out at particular interest rate. You can lend the Bitcoins directly to someone known at a greed interest rate and repayment period. You need to assess trustworthiness of borrower. Peer to peer Bitcoin lending is another way to let the earned Bitcoins earn for you. There are many peer-to-peer lending websites where the borrowers post the borrowing requests. Over these websites, you can act as a lender. It is also possible to fund the small portion of numbers of loans to reduce the risk.
Grid Finance suspends taking investments below € 100,000 (Irish Times), Rated: AAA
One of the largest providers of peer-to-peer loans in the State has shut down a key part of its business aimed at smaller investors, blaming an absence of regulation in the crowdfunding space.
Grid Finance, which is backed by Enterprise Ireland, wrote to holders of its “Brick” accounts – that facilitate the investment of up to €100,000 – in recent days stating that it would withdraw the offering from the marketplace.
Dragon Victory International: Exposure To The Chinese Crowdfunding Market At A Regulatory-Driven Discount (Seeking Alpha), Rated: AAA
In recent years as China winds down its industrial and manufacturing powerhouse growth, it’s looking to other developed nations to determine which platforms it should invest in and pave the way to sustained economic growth. As most other major developed nations have done over the past century, financial services and engineering have been a very profitable platform and companies in China are quick to launch their own services to capitalize on the triple-digit growth in online financial services exhibited since 2003.
Similar to Hexindai (HX), which I’ve previously covered as a leading online lender which is capitalizing on the middle class appetite for debt to finance their lives and vacations, Dragon Victory International Limited (LYL) is taking on the crowdfunding segment in the People’s Republic of China. Similar to countless other platforms around the world, the company’s services are around financing new companies and capitalizing entrepreneurs through public funding and they already have over 4.5M users who use their services, a number nearly doubling each year.
China Fintech Today: The P2P Boom Is Truly Over (SupChina), Rated: A
This year, the government has continued to lead a reorganization of the industry:
- More companies will die: As of February 17, only 60 percent of online lending institutions had disclosed their operational information for January 2019, including five problematic platforms.
- However, the current asset quality of the online lending industry has improved significantly according the data from firms that did report.
- As of the end of January 2019, the accumulated amount of the online P2P online loan industry was about 7.78 trillion yuan ($1.16 trillion). The total loan amount in January was 91.4 billion yuan ($13.61 billion), down 55.1 percent year-on-year and down 1.3 percent from the previous month.
- Further consolidation of industry players is certain. Some experts quoted in media reports predict that the scale of future online loans will continue to shrink because of regulation.
- Some listed companies, such as Aoma Electric and Panda Financial Companies, have abandoned their P2P businesses.
- Aoma Electric issued a letter of concern to the Shenzhen Stock Exchange on February 14, attributing the decision to the broader economic slowdown, and a high number of overdue loans.
- Panda Gold Control in 2018 was also dragged down by its P2P business, and expects a net loss of 41.16 million ($6.13 million) to 57.63 million yuan ($8.58 million) in 2018. Faced with the uncertainty of the P2P sector, Panda Gold Control chose to divest.
How should accountants talk to clients about fintechs? (In the Black), Rated: A
Like the ombudsman’s office, ASIC has also made information available to educate consumers and advisers, including on its MoneySmart Borrowing Basics and Peer-to-Peer Lending sites.
Is any flexibility possible, Shiel wonders, with a peer-to-peer lending model in which the borrower likely doesn’t know who is providing the funds?
LenDenClub crosses 1,00,000 borrowers and lenders milestone (News Barons), Rated: AAA
LenDenClub, one of India’s fastest growing peer-to-peer (P2P) lending platforms, recently crossed an important landmark with more than 1,00,000 borrowers and lenders on its platform. The breakdown of borrowers to lenders is 83,300 and 16700, respectively. The company crossed this milestone by keeping up with latest market trends, and saw an increase in the use of its product InstaMoney, which was launched in June 2018.
Why Do Fintech Startups and Investors See a Huge Potential in Lending? (Entrepreneur), Rated: AAA
Today, thanks to the ongoing digitization, borrowing has become as easy as it can get in India. For contrast, all it takes now is the touch of a few buttons, answers to a few verification-related questions, and anyone can receive a loan in a matter of hours or days, if not minutes. And all of this is without any collateral and while enjoying the comfort of your home. Now, compare this with taking a day off to go to the bank, doing extensive paperwork, visiting frequently to check the progress of your loan application, and ultimately, getting your application rejected because of the loan officer’s misjudgement. All while wasting two months of time in the constant to and fro and taking multiple days off from your office.
It is beyond doubt that the advent of fintech startups has altered the game of lending in India. It has become both simpler and convenient to borrow using their revolutionary approaches driven by state-of-the-art technologies. Currently, more than 1,500 fintech startups (of all shapes and sizes) are catering to the Indian market, and more than half of these startups have been launched over the last 3 years. This gives us a clear picture of how lucrative the sector is becoming for our startup ecosystem. But what is essentially fuelling this trend? Let’s find out.
Banning of UDS to benefit P2P Lending Industry (Inventiva), Rated: A
The latest ordinance of the Banning of Unregulated Deposits (UDS) 2019, was passed by the government to provide a comprehensive mechanism to ban UDS as well as to protect the interest of depositors. This is in line with the Reserve Bank of India’s guidelines on the NBFC-P2P sector, issued in October 2017 to regulate the unorganized lending business in the country.
Singapore fintech investments rose two-fold to US$ 365m in 2018 (SBR.com.sg), Rated: AAA
US$102.2m of the total funds raised went to lending fintech companies such as the homegrown Funding Societies.
Fintech investments in Singapore more than doubled to US$365m in 2018 from US$180m in 2017, putting the country amongst the top five fintech markets by funds raised last year in Asia Pacific, behind China, India, Australia and Japan, according to Accenture’s analysis of CB Insights data. The number of deals in the country rose to 71 from 61 in 2017, making it the third busiest market in the region, behind only China and India.
Validus Capital raises $ 15m for SME financing (Fintech Futures), Rated: A
Validus Capital, a Singapore-based SME financing platform, has raised SGD 20.5 million ($15.2 million) in a Series B funding round, led by FMO, a Dutch public-private development bank.
PayPal expands its small business loans initiative to Mexico (Leaprate), Rated: AAA
Online payment giant PayPal launched its Working Capital initiative in 2013 as an alternative method for business to access working capital much faster than through traditional means. Many small and medium-sized business (SMB) clients embraced the program and since then the company has advanced more than $6 billion in loans to over 170,000 businesses in the UK, US, Germany and Australia.
PayPal also recently revealed that it has partnered with Konfio, a Mexican online lender that utilizes unconventional data sources to facilitate fast credit assessments, in a deal that will allow PayPal to extend its Business loan and working capital programs to Mexican businesses.
ID Finance eyes ‘pivotal moment’ for Latam fintech as revenue in region climbs 403% (Fintech Finance), Rated: A
ID Finance, the fintech company operating in Europe and Latin America, saw revenue of $49m in 2018. This represents growth of 236% for the business, which was formally separated from its operations in Russia and CIS region last year.
The company is enjoying particularly strong growth in Latam, one of the world’s fastest growing markets for fintech adoption thanks to high mobile penetration and a sizeable underbanked population – according to the World Bank 61% of Mexico’s population is excluded from the traditional banking system, while 40% of Brazil’s 207m population are blacklisted. The company now has 141 employees in Latam and saw revenue growth of 403% in the region last year.
Challenger bank N26 expands to Brazil (Fintech Futures), Rated: A
Germany-based mobile challenger bank N26 is powering on yet again as it has revealed its plans to expand to Brazil.
How FinTech Companies Inspire Africa With Mobile Technology (PYMNTS), Rated: AAA
With the potential for rapid growth and job creation, FinTech firms in Africa have caught the attention of global investors. According to the London Stock Exchange Group’s 2019 “Companies to Inspire Africa” report, which highlights these firms, the FinTech sector has the second highest growth rate representation of technology and telecoms as well as financial services. As it stands, companies in this space represent more than a quarter of 360 featured firms from 32 different countries. Pan-African payments firm Cellulant is among the companies that appeared in the first and second editions of the report.