- Today’s main news: SoFi invests in Apex Clearing. Zopa chairman steps down. Ratesetter ISA tops 17M GBP in first year. Assetz Capital surpasses 700M GBP in lending. Revolut denies getting Lithuanian bank license to influence politics.
- Today’s main analysis: OnDeck’s Q4 earnings review.
- Today’s thought-provoking articles: What’s happening with auto loans. How Amazon controls small businesses with lending. Banks tighten credit card borrowing standards. Europe’s financial markets 30 under 30. Is the next global financial meltdown around the corner?
- SoFi invests in Apex after acquisition talks fall through. SoFi has said all along it wants to be more than a lender and has made several moves to compete with banks by introducing innovative products. Custody and clearing is another step toward that goal. Investing in Apex keeps their foot in the door for a potential future buyout.
- OnDeck Q4 2018 earnings review. An excellent analysis. OnDeck is looking better all the time.
- BB&T, SunTrust merge, banks tighten credit card standards. A PeerIQ analysis.
- Auto loans. A study from the New York Fed.
- Amazon lending perpetuates control over small businesses. This is probably one of the smartest things Amazon has ever done, but can smaller online lenders compete?
- Goldman Sachs, Point72 invest in Nav.
- Wells Fargo outage highlights opportunity for digital banks.
- Interview with Susan Ehrlich of Earnest.
- Government shutdown slows SBA lending volume.
- Citi rolls out new personal loan, online savings account.
- Square’s banking bid avoids backlash that doomed Walmart’s.
- Almost 60% of small businesses launch with less than $25,000.
- LoanStreet adds commercial lending features for financial institutions.
- Velocity Investments sues woman for breach of contract.
- Online loan companies are no easy fix for desperate borrowers.
- More single women own homes than single men.
- Thoma Bravo to buy digital mortgage company.
- INSIKT changes name to Aura.
- Roostify expands advisory board.
- LendIt Fintech 2019 keynote speakers.
- Giles Andrew steps down as Zopa chairman.
- Zopa appoints new chairman.
- Ratesetter ISA tops 17 million GBP in first year. Congratulations!
- Assetz Capital surpasses 700 million GBP in lending. Congratulations.
- Former Assetz Capital founder launches fintech consultancy.
- People will get P2P lending over time.
- Starling Bank secures 75 million GBP to expand through Europe.
- Monzo launches first 100 business accounts.
- Main Street banks say challenger banks are their biggest threat.
- Tandem Bank CEO calls for rate cut to boost economy.
- Brexit and P2P lending.
- Mojo Mortgages secures 7 million GBP.
- Mortgage Brain had a great year last year.
- UK inflation at lowest in two years.
- Arbuthnot Commercial ABL delivers 12 million GBP refinancing facility.
- Revolut denies getting Lithuania bank license to influence politics.
- 30 under 30 in financial markets.
- auxmoney overtakes midsize banks in consumer loan originations. Congratulations.
- Auxmoney has .5% of German consumer loan market.
- Gymshark partners with Klarna on pay later service.
- How machine learning is revolutionizing credit risk management.
- Is the next global financial meltdown around the corner?
- GBG to acquire IDology.
- Nexo Lending to offer crypto-backed loans through Blockport.
- Australia: The next fintech growth wave. Some interesting Australian firms on the rise.
- Indonesia: Hundreds of unlicensed P2P lender are operating today.
- India: Fintech looks bright, but it needs a reason.
- Canada: Finastra hires new head of technology enabled managed services.
- India: Reserve Bank could change Rs 10 lakh lending cap on P2P platforms.
- Indonesia: An overview of P2P lending.
- Australia: Labor’s negative gearing policies could hurt first-time home buyers.
- United States
- SoFi held talks to acquire a fintech company backing some of the hottest robo advisors as it eyes expansion beyond its lending roots (Business Insider), Rated: AAA
- OnDeck Q4 2018 Earnings Review (Lend Academy), Rated: AAA
- BB&T and SunTrust merger; Tech in Bank Earnings (PeerIQ), Rated: AAA
- Auto Loans in High Gear (Liberty Street Economics), Rated: AAA
- Amazon’s lending perpetuates the tech giant’s control over small businesses (Tearsheet), Rated: AAA
- Goldman Sachs, Point72 and others invest $ 44 million in business credit startup Nav (Reuters), Rated: A
- Well Fargo Outage Points to Opportunity in Digital Banking (Lend Academy), Rated: A
- Susan Ehrlich of Earnest (Lend Academy), Rated: A
- Government Shutdown Slows SBA Lending Volume, Approval Percentage Dipped Slightly in January (GlobeNewswire), Rated: A
- Citi rolls out new personal loan, online savings account (American Banker), Rated: A
- Square’s banking bid avoids backlash that doomed Walmart’s (American Banker), Rated: A
- Almost 60% of small business owners launch with less than $ 25,000 (CNBC), Rated: A
- LoanStreet Adds Commercial Lending Features for Financial Institutions (Crowdfund Insider), Rated: A
- Velocity Investments sues woman for breach of contract, seeks $22,500 in damages (Louisiana Record), Rated: A
- Online Loan Companies Are No Easy Fix for Desperate Borrowers (Real Daily), Rated: A
- Best News We’ve Heard All Day: More Single Women Own Homes Than Single Men (Pure Wow), Rated: A
- Thoma Bravo Is Buying Digital-Focused Mortgage Company (WSJ), Rated: A
- INSIKT Changes Name to Aura (Business Wire), Rated: B
- Roostify Expands Advisory Board with Investment Virtuoso (Roostify), Rated: B
- LendIt Fintech USA 2019 (LendIt), Rated: B
- United Kingdom
- Zopa chairman Giles Andrew to step down after 15 years (Independent), Rated: AAA
- Zopa appoints Virgin veteran McCallum as chairman (Finextra), Rated: A
- Ratesetter ISA tops £175m in first year (AltFi), Rated: AAA
- Assetz Capital surpasses £700m lending mark (Bridging and Commercial), Rated: AAA
- Former Assetz Capital founder launches fintech consultancy (AltFi), Rated: A
- ‘There is no magic bullet, people will get P2P over time’ (FT Adviser), Rated: A
- UK challenger bank Starling secures £75m for European expansion (Fintech Futures), Rated: A
- Monzo Launches First 100 Business Accounts (Crowdfund Insider), Rated: A
- Main Street banks say fintechs like Monzo, N26 and Chime pose the biggest disruptive threat to their businesses (Business Insider), Rated: A
- Tandem Bank boss calls for rate cut to kick-start UK economy (AltFi), Rated: A
- Peer-to-Peer Lending and Brexit (4th Way email), Rated: A
- Mojo Mortgages secures £7million to revolutionise the UK mortgage experience (Manchester Digital), Rated: A
- Mortgage Brain boosts user numbers (Mortgage Introducer), Rated: A
- UK inflation below official target for first time in 2 years (Miami Herald), Rated: A
- Arbuthnot Commercial ABL delivers £12m refinancing facility (Bridging Loan Directory), Rated: B
- European Union
- UK fintech unicorn Revolut forced to deny links to Russia (Business Insider), Rated: AAA
- German Lending Marketplace auxmoney Overtakes Midsize Banks in Consumer Loan Origination (Crowdfund Insider), Rated: AAA
- Auxmoney Now Stands for 0.5% of the Market of German Consumer Loans (P2P-Banking), Rated: A
- Gymshark teams up with Klarna to announce pay later service (RLI), Rated: B
- Instantor releases report on how machine learning is revolutionising credit risk management in Europe (Fintech Finance), Rated: B
- 30 Under 30 Europe: The Young Money Merchants Shaping Financial Markets In 2019 (Forbes), Rated: AAA
- The Next Global Financial Meltdown Is Just Around the Corner (Equities.com), Rated: AAA
- Atlanta-based IDology to Be Acquired by GBG for $ 300m (PR Newswire), Rated: A
- Nexo lending to offer crypto-backed loans with Blockport exchange (Bankless Times), Rated: B
- Next Growth Wave: Fintech (Seeking Alpha), Rated: AAA
- Labor’s negative gearing policies could hurt first-home buyers (Your Mortgage), Rated: A
- India’s fintech future looks bright, but it needs to find its raison d’être (India Times), Rated: AAA
- RBI may change Rs 10 lakh lending cap on P2P platforms, say P2P players (India Times), Rated: A
- Hundreds of unlicensed P2P lenders still operating in Indonesia (The Jakarta Post), Rated: AAA
- An Overview on Peer-To-Peer Lending in Indonesia (Legal Business Online), Rated: A
- Finastra announces Siobhan Byron as new Head of Technology Enabled Managed Services (Finastra), Rated: A
OnDeck Q4 2018 Earnings Review (Lend Academy), Rated: AAA
The company achieved much of what they set to do in 2018 and posted another solid quarter as they rounded out the year. Q4 2018 net income came in at $14 million on gross revenues of $109.5 million. The company ended the year with a total of $27.7 million in net income. Below is a snapshot of their Q4 and 2018 full year highlights.
As of Q4 2018 the company still had $246 million of excess debt capacity.
BB&T and SunTrust merger; Tech in Bank Earnings (PeerIQ), Rated: AAA
The Fed’s January 2019 Senior Loan Officer Survey showed that banks tightened standards for commercial real estate (CRE) loans. Overall, banks tightened standards for credit card borrowers. However, lending standards for most categories of consumer loans and C&I loans remained unchanged. Banks also reported weaker demand for both business and household loans.
BB&T agreed to buy SunTrust for $28.2 Bn – the first major mega-bank deal in a decade. This deal will create the sixth-largest US retail bank. The M&A is supported by a constructive regulatory environment fostered by the OCC and CFPB, among others. The previous large acquisition was the JP Morgan acquisition of Bank One in 2004.
A major motivation for the deal was the ability of both banks to pool resources to build better digital offerings. SunTrust has a FinTech focused fund and has partnered with FinTech lenders to provide home improvement and small business loans. Banks are investing billions in digital tech spend to maintain relevance with customers that are increasingly eschewing bank branches for a seamless, online, full-service banking and wealth management customer experience.
Auto Loans in High Gear (Liberty Street Economics), Rated: AAA
Total household debt increased modestly, by $32 billion, in the fourth quarter of 2018, according to the latest Quarterly Report on Household Debt and Credit from the New York Fed’s Center for Microeconomic Data. Although household debt balances have been rising since mid-2013, their sluggish growth in the fourth quarter was mainly due to a flattening in the growth of mortgage balances. Auto loans, which have been climbing at a steady clip since 2011, increased by $9 billion, boosted by historically strong levels of newly originated loans. In fact, 2018 marked the highest level in the nineteen-year history of the loan origination data, with $584 billion in new auto loans and leases appearing on credit reports, up in nominal terms from 2017’s $569 billion. In this post, we take a closer look at the composition and performance of outstanding auto loan debt using the New York Fed’s Consumer Credit Panel (CCP), which is based on anonymized Equifax credit data and also the source for the Quarterly Report.
Amazon’s lending perpetuates the tech giant’s control over small businesses (Tearsheet), Rated: AAA
Amazon runs a marketplace with 2.5 million sellers, 24,000 of which had more than $1 million in sales on the platform in 2018. These sellers represent the potential customer base for the company’s lending model.
From this base of borrowers, Amazon has been able to reportedly lend over $1 billion in 2017, exceeding $3 billion in total lending volume from its inception in 2011 to 2017. As for 2018, in its annual report, the company reported receivables outstanding from their lending program of $710 million, up from $692 million a year prior.
With access to detailed information and data on each seller, Amazon is able to mitigate lending risk substantially. Seller metrics only available to Amazon are utilized to determine a small business’s creditworthiness. Sales history, product offerings, customer service feedback, and shipping metrics enable Amazon’s lending business to have better insight into how to accurately issue loans. This allows Amazon to have an understanding of the health of each small business on its seller marketplace.
Goldman Sachs, Point72 and others invest $ 44 million in business credit startup Nav (Reuters), Rated: A
Nav, a startup that gives small businesses free access to their credit reports, said on Monday that it had raised $44 million from investors including Goldman Sachs Group Inc (GS.N), Point72 Ventures and Experian Ventures (EXPN.L).
Well Fargo Outage Points to Opportunity in Digital Banking (Lend Academy), Rated: A
Wells Fargo is still digging out from a PR disaster last week when the bank went offline for a large segment of customers due to a fire alarm triggered in a server facility in Minnesota. Customers could not access the mobile app, the website or ATMs. The incident has been used to highlight how big an opportunity there is for fintech firms or more nimble banks.
What the outage shows is that bank infrastructure is still stuck in the past, analysts rightly askedwhy Wells Fargo did not have the bank running on a cloud based system.
A new survey by Fraedom says 80 percent of banks believe challengers have impacted their business and 30 percent say they are their biggest threat.
Susan Ehrlich of Earnest (Lend Academy), Rated: A
Our next guest on the Lend Academy Podcast is Susan Ehrlich, the CEO of Earnest. They are one of the largest student loan refinancers in the country and they also offer personal loans. Back in 2017 Earnest was acquired by the student loan servicer Navient which was itself spun out from Sallie Mae in 2014.
Government Shutdown Slows SBA Lending Volume, Approval Percentage Dipped Slightly in January (GlobeNewswire), Rated: A
Business loan approval rates dropped three-tenths of a percent at regional and community banks in December 2018. Small bank approvals dropped a full percentage point from 49.9% in December 2018 to 48.9% in January.
Small business loan approval rates for big banks remained at a record high 27% in January 2019, according to the Biz2Credit Small Business Lending Index, which examines more than 1,000 small business credit applications made via its online lending platform.
Goldberg added that since reopening on January 28, her office has guaranteed more than 200 SBA loans worth $59.3 million.
Institutional lenders climbed up to 65.1 %, a jump of three-tenths of a percent from December’s mark of 64.8%.
Loan approval rates among alternative lenders rose from 56.6% in December to 57.3% in January, a jump of seven-tenths of a percent.
Citi rolls out new personal loan, online savings account (American Banker), Rated: A
Citigroup has launched a new consumer loan product and a new high-yielding savings-account as part of its rollout of its new digital bank.
The New York bank recently introduced Citi Flex Loan, which allows select existing Citi credit card customers to convert part of their credit lines to a loan with a fixed annual percentage rate, Mark Mason, Citigroup’s incoming chief financial officer, said Tuesday at an investor conference.
Roostify Expands Advisory Board with Investment Virtuoso (Roostify), Rated: B
Roostify, the San Francisco-based digital lending platform provider, announced today the addition of financial services consultant Marshall Lux to its advisory board. Lux, a distinguished consultant, advisor and educator, brings more than 30 years’ experience in private equity to the rapidly expanding business and reflects Roostify’s commitment to perfecting a scalable operational model and further developing an ecosystem of technology partners and strategic alliances.
LendIt Fintech USA 2019 (LendIt), Rated: B
CEO & Co-Founder
CEO & Co-Founder
Zopa chairman Giles Andrew to step down after 15 years (Independent), Rated: AAA
Zopa’s co-founder Giles Andrew is to step down as chairman after 15 years at Britain’s oldest peer-to-peer lender.
Zopa appoints Virgin veteran McCallum as chairman (Finextra), Rated: A
P2P lender Zopa has appointed former Virgin Management CEO Gordon McCallum as chairman as it gears up for the forthcoming launch of its new banking venture.
Ratesetter ISA tops £175m in first year (AltFi), Rated: AAA
The peer-to-peer lending platform said its ISA accounts for one-fifth of its £830m of funds under management.
Peer-to-peer lending platform Ratesetter said it has been “blown away” by the popularity of its first ISA product, which has hit £175m of subscriptions a year after launch.
Assetz Capital surpasses £700m lending mark (Bridging and Commercial), Rated: AAA
The P2P lending platform has enjoyed significant progression, providing over £200m of funding in the eight months since it surpassed the £500m lending milestone in June 2018.
Former Assetz Capital founder launches fintech consultancy (AltFi), Rated: A
The co-founder of one of Europe’s largest peer-to-peer lenders has launched a fintech consultancy to help young firms “avoid some of the mistakes made by the early incumbents of the industry”.
Former Assetz Capital chief credit officer Andrew Holgate will lead a team of City veterans at consultancy Equitivo, which will help growing fintech firms raise cash, focus on strategy, trim operations and boost performance.
‘There is no magic bullet, people will get P2P over time’ (FT Adviser), Rated: A
The chief operating officer of peer-to-peer platform Relendex, Max Lehrain, has concerns about the Financial Conduct Authority’s crack down on P2P lenders and crowdfunding platforms.
UK challenger bank Starling secures £75m for European expansion (Fintech Futures), Rated: A
Life is sweet for UK challenger bank Starling as it has raised £75 million in funding for its expansion plans in Europe.
It got £60 million in a Series C round led by Merian Global Investors, including the Merian Chrysalis Investment Company.
Monzo Launches First 100 Business Accounts (Crowdfund Insider), Rated: A
UK challenger bank Monzo announced on Monday the launch of its first 100 business accounts. This news comes just a few months after Monzo revealed it was considered business banking, with Founder and CEO, Tom Blomfield, stating 2019 plans included business accounts. Speaking about the new accounts, Monzo reported:
Main Street banks say fintechs like Monzo, N26 and Chime pose the biggest disruptive threat to their businesses (Business Insider), Rated: A
Main Street banks believe upstarts like Monzo, N26 and Chime, known as challenger banks, pose a significant threat to their business, according to a recent survey.
Fraedom, a credit card specialist who works with companies like Visa, SunTrust, and Bank of Montreal, surveyed bankers on what some of the biggest impacts to their business will be in 2019. The vast majority (80%) believe challenger banks have an increased impact to their business, and 30% pegged the new competitors as the biggest disruptive threat to their business in 2019.
Tandem Bank boss calls for rate cut to kick-start UK economy (AltFi), Rated: A
Ricky Knox, chief executive of app-only lender Tandem Bank called on the central bank to cut rates to kick-start growth, as currently savers are locking away cash in specialist higher interest accounts.
Peer-to-Peer Lending and Brexit (4th Way email), Rated: A
Shares plunged and the pound plummeted to a 31-year low when the UK voted to leave the EU. More recently chaotic Brexit negotiations indicate a disorderly exit that could see investors avoid traditional investments in the UK, but what does this mean for peer-for-peer lending and should lenders be worried?
Bank and P2P lending is far less volatile than equity investing, because:
- It is short-term orientated.
- Lenders easily diversify widely across thousands of investments – loans – as opposed to a typical stock investor who diversifies across hundreds of shares through share funds.
- In P2P lending, buy/sell price swings, often fuelled by uncertainty, are usually irrelevant, since lenders hold loans for the full term.
- Lenders are usually in a better place in the queue compared to equity investors when recovering losses is involved, which can mean smaller losses on individual investments (loans) that go wrong.
- With lending being data driven, recession conditions are easier to plan for. A turbulent P2P Brexit would mean a tripling of defaulting loans in some kinds of lending and cut-price sales of borrowers’ assets. Interest rates and reserve funds are prepped for most disasters, leaving a very low chance of a sizeable overall loss on a well-diversified, low-risk lending portfolio.
Most investors in peer-to-peer lending are using platforms that are run by people with relevant banking experience. The banks, when we look at their bread-and-butter lending, have found it easy to maintain net profits even during multiple downturns over the past 20 years, which includes the Great Recession. This is across the spectrum of lending, from buy-to-let mortgages to personal loans and credit cards. Perhaps surprisingly, retail and small business lending combined was still profitable for the UK’s high street banks during the 2008 and 2009 crash.
Learn more about 4th Way here.
Mojo Mortgages secures £7million to revolutionise the UK mortgage experience (Manchester Digital), Rated: A
Mojo Mortgages, a fintech start up based in the North West has secured £7million in Series A funding to transform the mortgage experience.
Mortgage Brain boosts user numbers (Mortgage Introducer), Rated: A
Mortgage Brain welcomed over 2,000 new customers during 2018 with a host of national networks, corporate firms and individual adviser firms choosing to use one or more of its products and services.
A number of new customers – including Censeo, Intelligence Mortgage Solutions, Your Expert Group, Affinity Mortgages and Your Mortgage Solutions – as well as a number of contract renewals and user license increases, have all contributed to Mortgage Brain’s growth throughout 2018.
UK inflation below official target for first time in 2 years (Miami Herald), Rated: A
Lower energy costs as well as a waning impact from the pound’s sharp fall in the aftermath of the country’s Brexit vote have helped consumer price inflation in Britain fall below the Bank of England’s target of 2 percent for the first time in two years.
The Office for National Statistics said Wednesday that consumer prices rose by 1.8 percent in the year to January, down from the 2.1 percent recorded in the previous month. Inflation has been consistently falling since August as the effects of the pound’s decline drop out of annual comparisons. The latest decline was further accentuated by a fall in the price of electricity, gas and other fuels.
Inflation is now at its lowest since January 2017, when inflation was also 1.8 percent.
Arbuthnot Commercial ABL delivers £12m refinancing facility (Bridging Loan Directory), Rated: B
Arbuthnot Commercial Asset Based Lending Ltd. is delighted to announce it has completed a £12m refinancing for L&C Limited, trading under Red 7 Marine (“R7M”), provider of nearshore access solutions to the UK marine construction and maintenance industry, and an investee company of Perwyn Private Equity (“Perwyn”).
UK fintech unicorn Revolut forced to deny links to Russia (Business Insider), Rated: AAA
Unicorn challenger bank Revolut has strongly denied claims that its activities in securing a banking license in Lithuania are attempts to interfere in the country’s politics.
Revolut was granted a European Banking License in Lithuania in December but has since faced claims of interfering in the country’s political processes by Lithuanian Member of Parliament Stasys Jakeliūnas, chair of the Lithuanian parliament’s budget and finance committee.
German Lending Marketplace auxmoney Overtakes Midsize Banks in Consumer Loan Origination (Crowdfund Insider), Rated: AAA
Düsseldorf-based Fintech auxmoney has surpassed its targets in 2018. Loan volume increased by 74 percent compared to 2017. Raffael Johnen, Founder and CEO of auxmoney, commented:
“While the major German banks are in crisis mode, the leading German fintechs are always setting new records. With our continuously strong growth, we managed to be the first credit marketplace to catch up with medium-sized banks in Germany.”
It issued new loans totaling €551 million last year.
Auxmoney Now Stands for 0.5% of the Market of German Consumer Loans (P2P-Banking), Rated: A
German p2p lending marketplace Auxmoney announced that it has facilitated 551M EUR in consumer loans in the year 2018. Up 74% compared to 2017. Approximately 73,000 loans were financed. That would mean Auxmoney now stands for a market share of roughly 0.5% of the market.
Gymshark teams up with Klarna to announce pay later service (RLI), Rated: B
Fitness wear brand Gymshark has announced the launch of a pay later service in the UK, Sweden, Norway, Finland and Denmark. The company is now in a partnership with Klarna, a payments provider which will offer Gymshark the new payment option. The payment service will allow online shoppers to try on items at home before paying for the order.
Instantor releases report on how machine learning is revolutionising credit risk management in Europe (Fintech Finance), Rated: B
Instantor, the 3rd. fastest growing Swedish FinTech who makes tough calls easy within credit risk management presents “Credit Risk Management 2019 – How Do You Stack Up?”, a report based on a survey conducted by Instantor across Europe among top executives within leading financial organisations. The report reveals that two-thirds of these players are well underway to implementing machine learning (ML) and the majority benefits from its implementation within credit risk management.
30 Under 30 Europe: The Young Money Merchants Shaping Financial Markets In 2019 (Forbes), Rated: AAA
Finance is hardly known for its youthfulness, yet this year’s Finance 30 Under 30s are proving that an old industry can learn new tricks. These young venture capitalists, fintech entrepreneurs, crypto enthusiasts and Millennial bankers, with an average age of just 27, are reshaping the sector and transforming our relationship with money.
The Next Global Financial Meltdown Is Just Around the Corner (Equities.com), Rated: AAA
As Bloomberg reported last year:
Shadow banking in China has ballooned into a $10 trillion ecosystem which connects thousands of financial institutions with companies, local governments and hundreds of millions of households. The practice is now at the center of a Chinese government-led regulatory crackdown aimed at defusing financial risks that threaten the wider economy. Unlike in the U.S., traditional commercial banks drive shadow banking, or unregulated lending, in China. That’s because the banks have been able to keep shadow-banking assets off their balance sheets, thereby sidestepping regulatory constraints on lending.
About 169 million Chinese, or about 12 per cent of the population, have invested in wealth management products online, a rise of 66 per cent from two years ago, according to a Moody’s report published this month. Essentially, they are putting money into the shadow banking system.
“The picture is different in the European Union. Here, the shadow sector now accounts for perhaps 30–40% of total financial intermediation. But it is growing. Between 2012 and 2016, shadow banking as broadly measured expanded by almost 40% in the eurozone.
Atlanta-based IDology to Be Acquired by GBG for $ 300m (PR Newswire), Rated: A
GBG, the UK-headquartered Identity Data Intelligence specialist, today announces that it has conditionally agreed to acquire the entire issued share capital of IDology, a US-based provider of identity verification and fraud prevention services, for $300m (£233m) in an all-cash transaction.
Nexo lending to offer crypto-backed loans with Blockport exchange (Bankless Times), Rated: B
Blockport users will be able to use the Nexo platform to get crypto loans, offering them another alternative to selling their cryptocurrencies for fiat currencies. Instead of selling they cryptocurrency assets, Blockport users can now keep their crypto, with all potential upsides, and leverage them to get instant access to cash.
Next Growth Wave: Fintech (Seeking Alpha), Rated: AAA
In this article we look at some fintech companies, beyond investor’s normal horizon of the United States. In Australia there is a small cluster of listed fintech companies that have started to explode. Some have made gains of 400% in a year and more than 1,000% on the back of strong revenue and turnover growth. Moreover because Australian companies lack access to large scale V.C. investments, technology companies often need to capital raise through a public listing.
Zip Co. (ASX: Z1P)
Zip Co. is quite similar to Afterpay and in some ways its closest competitor with an established market position. However in addition to payment splitting, it also offers interest based loans and is different in other ways.
- Zip Co. is smaller with a market capitalization of $380 M AUD (about $266 M USD), but still has 12,600 retail partners including most of Australia’s largest retailers, however it hasn’t yet entered the U.S. or the U.K.
- Zip Co. has Zip Pay, which provides a payment splitting application with no interest, but with more flexibility in length of time or repayment amount than Afterpay’s solution.
- Zip Co. also has Zip Money also provides loans for purchases above $1,000 AUD, with a 3 month interest free period, but with an establishment fee of up to $99.
Labor’s negative gearing policies could hurt first-home buyers (Your Mortgage), Rated: A
“Despite Australia’s tight regulations on foreign investment, other overseas property markets are tighter – including China, Canada and New Zealand,” Driscoll said. “Unlike in Australia, the Chinese lack many appealing alternative investments at home and, due to government crackdowns on peer-to-peer lending, private equity funds and with the majority of their property being leasehold, many investors are forced to look elsewhere.”
India’s fintech future looks bright, but it needs to find its raison d’être (India Times), Rated: AAA
Yet there is more room for growth. The market in India is still small; far more deals are being done in China, and for far higher valuations. Last year alone, venture capital investments into Chinese fintechs were more than 10 times larger than those in India, with 75 percent more deals.
Although the value of investments in India declined by 21 percent in 2018 over the previous year, the number of deals actually rose 12 percent, making 2018 the most active year on record for fintech financing.
RBI may change Rs 10 lakh lending cap on P2P platforms, say P2P players (India Times), Rated: A
Peer to Peer or P2P players are hopeful that the comprehensive financial data sought by the Reserve Bank of India might help the regulator to take some major policy decisions concerning the industry.
Hundreds of unlicensed P2P lenders still operating in Indonesia (The Jakarta Post), Rated: AAA
The Financial Services Authority (OJK) has found that 231 illegal peer-to-peer lending (P2P) providers, including those from other countries, have been operating in the country since January.
An Overview on Peer-To-Peer Lending in Indonesia (Legal Business Online), Rated: A
Two years following the enactment of Financial Service Authority (Otoritas Jasa Keuangan/”OJK) Regulation No. 77/POJK.01/2016 of 2016 (POJK 77/2016), Peer-to-Peer Lending (P2P Lending) has grown popular in Indonesia. Based on data from OJK per Oct. 2018, a total of 15,990,143,141,355 rupiah has been distributed to the borrowers in P2P Lending. It has grown 432.5% from Jan. 2018 until Oct. 2018. Until Dec. 2018, the number of P2P Lending Platform which has been registered and supervised by OJK has reached 88 companies, one of them has been given a license.
Finastra announces Siobhan Byron as new Head of Technology Enabled Managed Services (Finastra), Rated: A
Finastra has appointed Siobhan Byron as Senior Vice President and Head of Technology Enabled Managed Services (TEMS). In this role, she oversees planning and execution, sales and marketing, research and development and product management across four lines of business including Checks, Enhanced Services, Student Lending and Canadian Mortgage Technology, all in the Canadian market. She oversees more than 1,300 employees that make up Finastra’s TEMS business.