- Today’s main news: PeerIQ wraps up $12M Series A financing, expands into traditional lending. LendInvest 5.25% bond offer closes Friday. Confirmed: LendInvest pulls out of P2P Finance Association. RateSetter enter hire purchase market with new partner. Yirendai’s Q2 results. Dianrong raises $220M from Asian investors. Lending Loop launches auto-invest, raises $2M.
- Today’s main analysis: Consumers prefer digital banking capabilities over branch proximity.
- Today’s thought-provoking articles: Consumers prefer digital banking capabilities over branch proximity. Why Yirendai’s stock crashed. Dubai regulators set raise limit to $5M.
- PeerIQ raises $12M for expansion into traditional lending. AT: “This is not only a big boon to PeerIQ, but for the entire alternative lending industry. As the alternative and traditional lending ecosystems grow integrate more, consumers will benefit, lenders will benefit, and tech solutions providers will benefit. The financial services industry will become more efficient on the whole and the global financial system will normalize again as all players settle into marketplace-driven and agreed-upon terms for conducting transactions.”
- Consumers prefer digital banking capabilities over branch proximity. AT: “As a consumer, I can validate this. Having opted to use my local bank’s mobile check deposit feature, I’ve discovered some frustrations with banks that I hadn’t noticed before (probably because I’ve been a loyal credit union customer for 15 year, but that’s another story). More and more, I’m contemplating an online bank. I do 100% of my business online and spend 90% of my time connected. Why do I need a physical bank?”
- Juvo raises $40M in Series B. AT: “Not a great raise, but not too shabby. For fintech, it’s a pretty good Series B. Congratulations.”
- Reverse Mortgage Funding named one of LendingTree’s top reverse mortgage lenders.
- Microsoft rolls out Surface Plus financing.
- Blackmoon to launch Ethereum token management platform. AT: “Suddenly, Ethereum is becoming a hot item.”
- Even Financial launches tool to semi-automate compliance for online ads. AT: “Most of their customers are lenders. Martech is another area where technology is making some interesting and innovative developments. I’m glad to see alternative lenders integrating these tools.”
- How legacy financial institutions are deepening financial inclusion.
- Tuesday’s 15 biggest mid-day losers.
- LendInvest bond offer closes Friday.
- Yes, LendInvest is out of the P2P Finance Association.
- RateSetter enters hire purchase market with new partner.
- Neyber raises 21M GBP.
- FCA answers questions on robo-advice.
- Oxford U. gets into fintech. AT: “Short courses I get. I’m not sure what the benefit to students is in a university offering a full degree program for fintech, just as I don’t understand the reason for a degree in digital marketing.”
- UBS COO says banking jobs are in for a change.
- Rethinking the bank-fintech puzzle.
- Morgan Tucker owed creditors, including Funding Circle, 3M GBP.
- Yirendai reports Q2 2017 results.
- Here’s why Yirendai stock crashed. AT: “Great analysis. Everyone must be wondering, if Yirendai is doing so well, why isn’t their stock?”
- Lending Loop raises $2M, launches auto-invest. AT: “Canada has a long way to go, but there are some interesting things going on in the P2P lending landscape. Lending Loop is one of them.”
- Flexiti Financial closes $6.25M convertible unsecured debentures offering.
- United States
- PeerIQ Secures $ 12M in Series A Financing to Expand Leading Data and Analytics Platform for Lending Markets (Globe Newswire), Rated: AAA
- Consumers Prefer Digital Banking Capabilities Over Branch Proximity (The Financial Brand), Rated: AAA
- Juvo Raises $ 40M In Series B Funding Led By NEA And Wing Venture Capital (PR Newswire), Rated: A
- Reverse Mortgage Funding Named One of LendingTree’s Top Reverse Mortgage Lenders (BusinessWire), Rated: A
- Microsoft rolls out Surface Plus financing, support programs (ZDNet), Rated: A
- Marketplace Lender Blackmoon to Launch Ethereum Token Management Platform (Coindesk), Rated: A
- Even Financial launches tool to semi-automate financial compliance for online ads (Martech Today), Rated: A
- How Legacy Financial Institutions Are Deepening Financial Inclusion Through Fintech Partnerships (PR Newswire), Rated: A
- 15 Biggest Mid-Day Losers For Tuesday (Benzinga), Rated: B
- United Kingdom
- LendInvest 5.25% bond offer closes on Friday (Citywire), Rated: AAA
- LendInvest leaves the P2PFA (Bridging&Commercial), Rated: AAA
- RateSetter unveils partner as it enters hire purchase market (P2P Finance News), Rated: AAA
- British fintech start-up Neyber secures £21m in funding (Financial Times), Rated: A
- FCA answers your questions on robo-advice (FT Adviser), Rated: A
- Oxford University is getting into fintech (Business Insider), Rated: A
- Banking jobs ‘will completely change’ (Business Insider), Rated: A
- Evolving For Symbiosis: Rethinking The Bank-Fintech Puzzle (The Financial Brand), Rated: A
- Collapsed engineer Morgan Tucker owed creditors £3m (Construction News), Rated: B
- Yirendai Reports Second Quarter 2017 Financial Results (PR Newswire), Rated: AAA
- Here’s Why Yirendai Stock Is Crashing Today (The Motley Fool), Rated: AAA
- European Union
- European fintechs are ‘valued too highly’ and consolidation is coming (Business Insider), Rated: A
- JPMorgan to Unveil Robot to Execute Stock Trades (Newsmax), Rated: AAA
- Anshu Jain-backed InCred on the hunt for buyout deals to grow lending biz (VC Circle), Rated: A
- Singapore’s GIC Leads $ 220 Million Funding Round for Chinese P2P Firm Dianrong (U.S. News), Rated: AAA
- Middle East
- Dubai Regulations for Crowdfunding: Issuers May Raise Up To $5 Million (Crowdfund Insider), Rated: AAA
- Fintech in Iran: An Overview (Fintech News), Rated: A
- LENDING LOOP RAISES $ 2 MILLION, LAUNCHES AUTOMATED INVESTMENT PLATFORM (Betakit), Rated: AAA
- Flexiti Financial Announces Closing of $ 6.25M Convertible Unsecured Debentures Offering (Newswire), Rated: A
- Oriente-Express joint venture to address financial inclusion through fintech (Inquirer.net), Rated: AAA
PeerIQ Secures $ 12M in Series A Financing to Expand Leading Data and Analytics Platform for Lending Markets (Globe Newswire), Rated: AAA
PeerIQ, a provider of data and analytics for the lending sector, today announced that it has closed a $12 million Series A funding round, co-led by TransUnion, Hearst’s Financial Venture Fund and Macquarie Group, along with existing investors Uprising and former Morgan Stanley CEO John Mack. With the new capital, PeerIQ will expand its core platform to unlock more value for its clients, extend beyond online into traditional lending markets, and collaborate on new product initiatives with its strategic partners.
Already a core data partner to PeerIQ, TransUnion is deepening its relationship, with Steve Chaouki, executive vice president and head of TransUnion’s financial services business unit, joining the PeerIQ board. Shea Wallon, managing director of Hearst’s Financial Venture Fund, which invests in early-stage financial information, service and technology companies, is joining the board as well.
Consumers Prefer Digital Banking Capabilities Over Branch Proximity (The Financial Brand), Rated: AAA
- A significant shift from branch dependence to digital preference
- A redefinition of the drivers of bank consideration and purchase
- An increase in demand for digital account opening
A Shift in Dependence on Branches
The research found that segments that placed the highest importance on branches for their checking relationship shrunk significantly in the past year, at the same time that those segments with the lowest branch attachment grew. The same was true for segments that were the most dependent on branches for ongoing transactions. These segments also shrunk significantly over the past year.
A New Definition of Convenience
The biggest news is that the drivers of ‘perceived convenience’ start with an organization’s digital capabilities. In fact, the importance of branch-centric factors have dropped in each of the past three years of the study. This is especially true for consumers aged 18-54.
Another significant trend of note is the increasing importance of being able to access cash without a fee, irrespective of primary bank proximity.
The Novantas shopping survey found that 79% of consumers are doing at least some of their shopping for new checking accounts digitally, with 54% using only digital channels. These digital-only shoppers are both older and wealthier, with the size of the digital-only shopper category increasing in size.
Juvo Raises $ 40M In Series B Funding Led By NEA And Wing Venture Capital (PR Newswire), Rated: A
Juvo, a pioneer in mobile Identity Scoring, today announced a $40 million USD Series B funding round led by New Enterprise Associates (NEA) and Wing Venture Capital. Also included in the round are investments from SignalFire as well as add-on investments from existing investors. Juvo will leverage these new funds to drive global growth and scale, with a particular emphasis on Asia, Latin America and Europe, and broaden its suite of financial service offerings targeting the financially excluded. The company also announced the appointment of Peter Wagner, founding partner of Wing, to Juvo’s board of directors.
Juvo, who came out of stealth mode 10 months ago, was founded with an overarching mission: to establish financial identities for the billions of people worldwide who are creditworthy, yet financially excluded. By partnering with mobile operators and financial institutions around the world, Juvo uses sophisticated, data science-based credit algorithms to identify previously anonymous prepaid subscribers, enabling them to build financial identities and gain access to basic financial services.
Juvo currently partners with seven mobile operators around the world, with a reach of over 500 million subscribers across 25 countries and four continents. Juvo’s operator partners have reduced churn by 50 percent or greater, while lifting average revenue per user (ARPU) numbers by as much as 15 percent. Most importantly, operators across the board are seeing an average increase in subscriber lifetime value of 65 percent.
Reverse Mortgage Funding Named One of LendingTree’s Top Reverse Mortgage Lenders (BusinessWire), Rated: A
Reverse Mortgage Funding LLC (RMF), a leading national reverse mortgage lender dedicated to helping older Americans achieve financial peace of mind, today announced that it has been named one of the nation’s top reverse mortgage lenders by LendingTree, a leading online lending exchange that connects consumers with multiple lenders, banks, and credit partners. Based on loan volume from the top reverse mortgage lenders for the third quarter of 2016 analyzed by LendingTree, RMF was chosen for consistently scoring high approval ratings and reviews among consumers.
Microsoft rolls out Surface Plus financing, support programs (ZDNet), Rated: A
Called Surface Plus and Surface Plus for Business, the two programs are available in the US only as of noon ET on August 1. The plans can be purchased in the US Microsoft brick-and-mortar stores or online at Microsoft.com.
Students seem to be one of the primary, if not the main, target of the new Surface Plus program.
Microsoft’s Surface Plus page is now live. It notes that new Surface Pros will go for $34 per month for 24 months; Surface Laptops for $42 per month for 24 months and Surface Books for $63 per month for 24 months under the plan. Payment plans are arranged with Klarna Inc.
Marketplace Lender Blackmoon to Launch Ethereum Token Management Platform (Coindesk), Rated: A
Released by Blackmoon Financial Group today, Blackmoon Crypto is designed to enable verified asset managers to create and manage tokenized funds in a legally compliant manner. Operating in nine countries, Blackmoon has attracted $2.5 million to date in investment from firms including Target Global and Flint Capital.
Even Financial launches tool to semi-automate financial compliance for online ads (Martech Today), Rated: A
For the financial industry, which has long dealt with compliance requirements, New York City-based Even Financial is out with a Programmatic Compliance Tool that helps to semi-automate the process of staying within boundaries.
In real time and via an API, the tool looks at the blog, web or app page where a client’s ad for a financial product will appear. Image recognition analyzes daily screen grabs to assess ad placement. The tool also parses the surrounding text on the page to detect any issues that could pose problems with US federal or state regulations, as well as any nearby content that could be embarrassing for the advertising financial service.
CEO and co-founder Phillip Rosen told me that Even’s clients are financial companies — including Lending Club and Discover Loans — which run ads and offer affiliate links for loans, credit cards or other products on about 200 sites, blogs and apps.
How Legacy Financial Institutions Are Deepening Financial Inclusion Through Fintech Partnerships (PR Newswire), Rated: A
The Center for Financial Inclusion at Accion (CFI) and the Institute of International Finance (IIF), with the support of MetLife Foundation, today released a new report examining how partnerships between mainstream financial institutions and fintechs are expanding access to the formal financial economy to the unserved and underserved, particularly in emerging markets.
The report, “How Financial Institutions and Fintechs Are Partnering for Inclusion: Lessons from the Frontlines” is based on 24 in-depth interviews with firms and experts from around the world, and highlights 14 partnerships in as many countries. The report identifies four key financial inclusion challenges in emerging markets that mainstream financial institutions address through fintech partnerships:
- gaining access to new market segments
- creating new offerings for existing customers
- data collection, use, and management
- deepening customer engagement and product usage
15 Biggest Mid-Day Losers For Tuesday (Benzinga), Rated: B
- Yirendai Ltd – ADR YRD shares dropped 10.7 percent to $34.18. Yirendai posted Q2 earnings of $0.66 per share on revenue of $174.5 million.
Get the full scoop on Yirendai under the China heading today.
LendInvest 5.25% bond offer closes on Friday (Citywire), Rated: AAA
Peer-to-peer lending group LendInvest is offering investors exposure to the property market and a 5.25% return from through a retail bond.
The LendInvest bond is offering a return of 5.25% with a maturity date of 2022, the first time a bond has been listed on Orb paying over 5% since April 2016. Neither has there been a retail bond listed on Orb that has a maturity of five years since Orb opened in 2010.
The bond can be held in ISAs and self-invested personal pensions (Sipps) and the minimum investment is £2,000. It can be purchased through a number of investment platforms including, Hargreaves Lansdown, AJ Bell Securities, Alliance Trust Savings, Barclays Bank, Equiniti Financial Services, Interactive Investor, Redmayne Bentley, and Syndicate Room.
LendInvest leaves the P2PFA (Bridging&Commercial), Rated: AAA
The Peer-to-Peer Finance Association (P2PFA) has confirmed that LendInvest has withdrawn its membership of the self-regulatory body.
The P2PFA said communication of LendInvest’s intention to withdraw from the P2PFA with immediate effect had been received and the lender is no longer a member of the association.
“As we continue to scale the business, we’re increasingly looking to diversify our funding model and expand our capacity to lend to underserved borrowers, as well as to create new entry points to an attractive asset class that suits a broader range of investors seeking competitive risk-adjusted returns,” said Christian Faes, co-founder and CEO of LendInvest.
RateSetter unveils partner as it enters hire purchase market (P2P Finance News), Rated: AAA
RATESETTER has named leasing and asset finance specialist Corporate Asset Solutions (CAS) as its partner in the launch of new hire purchase loans on the peer-to-peer platform.
Businesses will be able to access hire purchase agreements for up to £750,000, processed by CAS.
British fintech start-up Neyber secures £21m in funding (Financial Times), Rated: A
What do several thousand police officers, two former Goldman Sachs executives and an Indian investment company have in common?
They all are central players in a £21m fundraising set to be announced this week by a British fintech start-up, which provides loans that are repaid out of people’s salaries.
Neyber is a kind of digital credit union.
The police officers — more than 5,000 of them — make up the majority of borrowers on Neyber’s platform, which has lent more than £65m over two-and-a-half years.
Collapsed engineer Morgan Tucker owed creditors £3m (Construction News), Rated: B
Failed engineer Morgan Tucker collapsed owing an estimated £3m, according to the administrators’ latest report.
The Newark-based company was estimated by administrator FRP Advisory to owe a total of £3,038,952 to creditors when it entered administration on 30 May.
The biggest unsecured creditor was the Funding Circle, one of the country’s biggest peer-to-peer funding firms, which was owed a total of £218,911.
Yirendai Reports Second Quarter 2017 Financial Results (PR Newswire), Rated: AAA
In the second quarter of 2017, Yirendai facilitated RMB 8,189.6 million (US$1,208.0 million) of loans to 138,529 qualified individual borrowers on its online marketplace, representing a year-over-year growth of 80%; 70.9% of the borrowers were acquired from online channels; 51.2% of the loan volume was originated from online channels and nearly 100% of the online volume was facilitated through mobile.
In the second quarter of 2017, Yirendai facilitated 199,591 investors with total investment amount of RMB 11,446.7 million (US$1,688.5 million), 100% of which was facilitated through its online platform and 90% of which was facilitated through its mobile application.
For the second quarter of 2017, total net revenue was RMB 1,183.1 million (US$174.5 million), an increase of 61% year over year; net income was RMB 269.1 million (US$39.7 million), an increase of 3% year over year.
Here’s Why Yirendai Stock Is Crashing Today (The Motley Fool), Rated: AAA
Shares of Yirendai (NYSE:YRD) are plunging today, down by 16% as of 12:25 p.m. EDT, after the peer-to-peer lender reported second-quarter earnings.
The company’s loan volume grew 80% year over year, and is up by 18% from the first quarter, continuing an amazing streak of growth. Revenue grew by 61% year over year (16% from last quarter), and both loans and revenue handily surpassed the company’s own expectations.
Loans and revenue increased by 18% and 16%, respectively, during the quarter, but total expenses shot up by 29%, including a 32% rise in sales and marketing expenses. This is the main reason net income fell 23% from last quarter, and grew by just 3% from last year, despite the 61% revenue growth.
European fintechs are ‘valued too highly’ and consolidation is coming (Business Insider), Rated: A
Victor Basta, cofounder and CEO of London-based Magister Advisors, wrote in a blog post shared with Business Insider ahead of publication: “Many fintech companies are valued too highly in financing rounds, and need years of performance for their ‘cash value’ to catch up to the financing round valuations.
TransferWise was reportedly valued at $1.1 billion in its funding round last year. It said earlier this year that it is on track for revenues of £100 million in 2017 and should make its first ever operating profit.Revolut was reportedly valued at £300 million in a recent $66 million funding round. Its first year of full accounts show it lost £7.1 million on £2.3 million of revenue.
JPMorgan to Unveil Robot to Execute Stock Trades (Newsmax), Rated: AAA
JPMorgan reportedly plans to develop a robot to execute stock trades, essentially replacing the human touch in the process.
Daniel Ciment, JPMorgan’s head of global equities electronic trading, told the Financial Times that the AI — known as LOXM — has been used in the bank’s European equities algorithms business since the first quarter and will be launched across Asia and the U.S. by year’s end.
Anshu Jain-backed InCred on the hunt for buyout deals to grow lending biz (VC Circle), Rated: A
InCred Finance, a non-banking financial company backed by private equity firms and former Deutsche Bank co-CEO Anshu Jain, is looking to make acquisitions to start microfinance and vehicle loan businesses as part of efforts to expand its loan book.
Singapore’s GIC Leads $ 220 Million Funding Round for Chinese P2P Firm Dianrong (U.S. News), Rated: AAA
Chinese peer-to-peer lending platform Dianrong said on Wednesday it raised $220 million from a group of investors led by Singapore sovereign wealth fund GIC Pte Ltd, looking to step up research of new technology as it expands across China and explores ventures in other countries in the region.
Other investors in the funding round included CMIG Leasing, a unit of China’s biggest private investment conglomerate China Minsheng Investment Group (CMIG), and South Korean fund manager Simone Investment Managers, Dianrong said.
The Shanghai-based firm would use the funds to automate some of its new branches across China, for research and development and potential acquisitions, Soul Htite, co-chief executive of Dianrong, told Reuters.
Dubai Regulations for Crowdfunding: Issuers May Raise Up To Million (Crowdfund Insider), Rated: AAA
The Dubai Financial Services Authority(DFSA) announced the enactment of a regulatory regime designed to engender a robust crowdfunding ecosystem for the country.
At a high level, crowdfunding offers are capped at $5 million. This is in line with the UK but far higher than Reg CF in the US.
As for the specifics of the rules you may view them here.
Fintech in Iran: An Overview (Fintech News), Rated: A
Fintech is gaining steam in Iran as the country’s central bank, financial institutions and government agencies are taking steps to make Tehran a regional hub for financial innovation.
Several fintech events have been organized in Iran in recent months, including the Fintech Festival sponsored by Bank Pasargad Iran earlier this year. The bank also held the Second Fintech Trig-Up during the festival wherein 45 experts help startups develop their ideas.
The CBI is planning to launch a new regulatory body specifically for fintech firms. The authority has also been working on a regulatory framework for fintech companies since 2015.
In March, a group of Iranian fintech companies joined hands to form an association representing the industry. Called Fintech A, the organization is set to bring industry players under one roof, mainly to find a solution to their problems and boost innovators’ relations with regulatory bodies.
Online payment services provider ZarinPal, peer-to-peer payment app Bahamta, online invoicing service Hesabit, money transfer service PayPing and crowdfunding platform Mehrabane are among founding members of the association.
LENDING LOOP RAISES $ 2 MILLION, LAUNCHES AUTOMATED INVESTMENT PLATFORM (Betakit), Rated: AAA
Toronto-based Lending Loop, a peer-to-peer lending platform, has raised $2 million in funding from the MaRS Investment Accelerator Fund. The round also saw participation from a group of finance and technology investors.
Lending Loop said the funding will help the company roll out its latest product Auto-Lend, which allows lenders to automatically invest in loans through Lending Loop’s marketplace. The company also plans to invest in machine learning capabilities to assess the risk of borrowers applying for loans.
Flexiti Financial Announces Closing of $ 6.25M Convertible Unsecured Debentures Offering (Newswire), Rated: A
Flexiti Financial, a provider of point-of-sale (POS) financing and payment technology for retailers, is pleased to announce the closing of an oversubscribed $5M convertible debentures offering. Oversubscription amounts totaled an additional $1.25M of aggregate principal, for a total investment of $6.25M. These funds will allow Flexiti Financial to accelerate its rapid growth and further develop the company’s award-winning POS lending platform technology, which is currently adopted in over 1,500 merchant locations and used by over 10,000 customers across Canada.
Oriente-Express joint venture to address financial inclusion through fintech (Inquirer.net), Rated: AAA
Greater China-based Oriente and Express Holdings, Inc. (a subsidiary of JG Summit Holdings, Inc.), through an exclusive partnership, will address the financial exclusion problem of underbanked consumers and MSMEs in the Philippines.
This joint venture is setting up a digital financial services marketplace that will enable Filipinos to tap into credit facilities to bridge their ever-growing needs, whether to pay for tuition, unexpected medical expenses or even finance a small business.
According to the World Bank, close to 90 percent of adult Filipinos are not covered by a credit bureau and many people resort to informal means to borrow money. In addition, according to the Banko Sentral ng Pilipinas, of the 43 percent of the population who save money, only 14 percent of households maintain a deposit account and 68 percent keep their savings in unsecured places.