- Today’s main news: Lending Club’s Q1 2017 results: a little disappointing. SmartFinance to IPO in U.S. Prosper says system error overstated returns. Details on NAV’s raise of $38mil Series B. Next Insurance secures $29M during Series A. Metro Bank hits 1 million accounts. LendIt Europe to meet in London this year. Mexican fintech raises $4M in Series A.
- Today’s main analysis: Lending Club’s Q1 earnings deck. Square Q1 2017 shareholder letter.
- Today’s thought-provoking articles: LC slowly woos investors back. Sand. Meet Head.
- LC reports Q1 2017 results. GP:”I am surprised to see a net loss of $3omin in Q1 2017 , same loss as in Q4 2016. The good news: origination is in line with Q4 2016 at about the same number. Bad news: give LC had stabilized losses should be smaller and origination volume should be higher. Other interesting point: their core revenue is origination fee, or 5% of origination. In Q1 2016 they originated $750mil more and 5% of 750mil is $37.5mil whish is the difference between making $4mil profit in Q1 2016 and losing $30mil in Q1 2017. So if they can increase their origination by $750mil more, where they were 1 year ago, they should be back into profit assuming everything else remains constant. “AT: Originations up from last quarter while down from one year ago. This spells LC’s slow climb back to the top.”
- LC’s quarterly loss the smallest in a year. GP:”A first analysis of the report.”AT: “Lower net revenue than last quarter with a $29.8M net loss.”
- LC reports adjusted loss per share of $.0.02. GP:”And the per share pure number without the story.”
- The LC Q1 2017 earnings deck. AT: “Sequential growth for the next year is at least 15 percent. See it for yourself.”
- LC slowly woos investors back after last year’s scandal. AT: “You can’t keep a good company down. LC is winning back the trust of banks, and that’s a good start.”
- Prosper says system error overstated returns. GP:”Unfortunate mistake. A lot of bloggers already recommended not trusting the return numbers on Lending Club and Prosper and using the Excel function for it already as you can see here. So this comes to no surprise to us. It will probably trigger a series of verifications now. “AT: “This represents the downside to technology. There will be glitches. Kudos to Prosper for catching it early and getting it out in the open.”
- Square Q1 2017 shareholder letter. GP:”Very interesting statistics. A reminder that Square is also doing SME lending.”AT: “This is a great read. Square is doing quite well.”
- Details on NAV’s raise of $38mil Series B. GP:”Interesting insights into how FT Partners advised them and a good context for the raise.”
- PeerStreet hits $300M loans funded milestone. AT: “Congratulations.”
- Next Insurance secures $29M during Series A. AT: Congrats.”
- Can alternative data solve online lenders’ algoracism problem? AT: “There has been some excellent research into how computers can pick up on human bias through machine learning programming. This is an interesting read about how alternative data can help to solve that problem, but I don’t think alternative data alone will do it. You have to fix a problem at the source, and that require some creative approaches to programming. Oh, and the rest of The Alternative Lending Report is worth reading, as well. I encourage you to subscribe.”
- How Lending Club differentiates itself. AT: “An excellent interview with Scott Sanborn.”
- OCC fintech charter plans in jeopardy as Curry departs. GP:”We knew this will be the case since the OCC charter for fintech was announced as we knew Curry will be moving on in April 2017. The question is what will the new OCC head decide on the charter.”
- Crowdfunding real estate isn’t just for millionaires anymore.
- Major CUs to unveil new blockchain technology.
- Fintech, digital wallets are core of financial inclusion.
- Metro Bank hits one million accounts. GP:”This is a very large number of accounts. I am very impressed.”AT: “Great achievement. Congratulations.”
- Sand. Meet Head. GP:”Certainly worth a read.”AT: “I love Anand’s sense of humor, but his insights are prescient, as well. I’m always amazed at the hubris of incumbents in any industry. Any time there is market disruption, the surest path to survival is humility, not boasting.”
- LendIt Europe returns to London. GP:”I think there was no doubt it will be in London and stay in London. “
- Robo-advisor to provide full retirement advice in two hours. GP:”I am not sure why it takes 2 hours to compute such a simple algortihmic solution. “AT: “This sounds like a joke, but I know it isn’t. I think most people will want the robot’s advice checked by a human until they are 100% comfortable with the technology.”
- Octopus-backed Moola goes live.
- What is fintech and why Google and Facebook will be the banks of the future. GP:”Google is already struggling to defent against monopole attacks and Facebook is avoiding carefully to be turned into a credit bureau. I doubt they will move in that direction. Also banks don’t have a good image with the public and aren’t that profitable so I see no reason for Google or Facebook to come even close to being banks.”AT: “The headline is misleading and somewhat overstated.”
- Fintech: What will bring the most change? AT: “A poll indicates that blockchain may be the most disruptive fintech technology in fintech. I think it certainly has the potential to be, but we haven’t seen it yet.”
- What does rising inflation mean for your money? AT: “A blog post at Funding Circle.”
- SmartFinance targets U.S. IPO. AT: “China Rrapid Finance’s IPO was expected, but it looks like smaller Chinese companies are going to get in on the U.S. stock market. Is this the beginning of a new trend?”
- Ping An to launch first fintech, healthcare fund.
- The coming IPO boom, Ant Financial to buy MoneyGram.
- i-lend to venture out with funds from 50K.
- Why Nomura, Google, IBM, and Amazon are investing in Indian fintech.
- Sr. Pago raises $4 million in Series A. AT: “You don’t hear much about Central America, and certainly not Mexico, but this is encouraging.”
- United States
- Lending Club Reports First Quarter 2017 Results (Crossroads Today), Rated: AAA
- Lending Club’s $ 30M quarterly loss is its smallest in the last year (American Banker), Rated: AAA
- BRIEF-Lending Club reports Q1 adjusted loss per share $ 0.02 (Reuters), Rated: AAA
- Here is the Lending Club Q1 Earnings Deck (Crowdfund Insider), Rated: AAA
- Lending Club slowly woos investors back after last year’s scandal (Financial Times), Rated: AAA
- Online Lender Prosper Says System Error Overstated Returns (Bloomberg), Rated: AAA
- Q1 2017 Shareholder Letter (Square), Rated: AAA
- FT Partners Advises NAV on Series B Financing (FT Partners), Rated: AAA
- PeerStreet Hits New Milestone: $ 300 Million in Loans Funded (PeerStreet), Rated: A
- Next Insurance Secures $ 29 Million During Series A Funding Round (Crowdfund Insider), Rated: A
- CAN ALTERNATIVE DATA SOLVE ONLINE LENDERS’ ‘ALGORACISM’ PROBLEM? (The Alternative Lending Report), Rated: A
- How Lending Club Is Differentiating Itself From Other Online Lenders (Forbes), Rated: A
- OCC fintech charter plans in jeopardy as Curry departs (Finextra), Rated: A
- Crowdfunding Real Estate Isn’t Just For Millionaires Anymore. (Yes Magazine), Rated: A
- Major Credit Unions Will Unveil New Blockchain Tech Next Week (Coindesk), Rated: A
- FinTech and Digital Wallets are the Core of Financial Inclusion (Due), Rated: B
- United Kingdom
- Challenger bank hits one million accounts (AltFi), Rated: AAA
- Sand. Meet head. (CB Insights), Rated: AAA
- Europe’s largest lending and fintech event, LendIt Europe, returns to London this autumn (LendIt Email), Rated: AAA
- Robo-adviser to provide full retirement advice in 2 hours (FT Adviser), Rated: A
- Octopus-backed robo advisor Moola goes live (AltFi), Rated: A
- What is FinTech and why Google and Facebook could be the banks of the future (Manchester Evening News), Rated: A
- Fintech: What Will Bring the Most Change? (City A.M.), Rated: A
- Read between the lines: What does rising inflation mean for your money? (Funding Circle), Rated: B
- Chinese online lender SmartFinance targets IPO in US (Deal Street Asia), Rated: AAA
- China’s Ping An to launch first overseas fintech and healthcare fund of $ 1 bln (Reuters), Rated: A
- P2P Industry News (Xing Ping She Email), Rated: A
- European Union
- Altisource Launches Enhanced Vendor Oversight Platform to the Market (Yahoo! Finance), Rated: AAA
- i-lend plans to venture out with funds from 50K (India Times), Rated: A
- Why Nomura, Google, IBM and Amazon are Investing in Indian Fintech (Edgy Labs), Rated: A
- Middle East
- Responsible finance summit focus on Islamic fintech (Middle East Association), Rated: AAA
- Central America
- Sr. Pago raises 4 million dollars in its Series A investment round (Crossroads Today), Rated: AAA
Lending Club Reports First Quarter 2017 Results (Crossroads Today), Rated: AAA
($ in millions)
Net Income (Loss)
Adjusted EBITDA (1) (2)
Key accomplishments and developments in the first quarter across the Lending Club platform include:
- Banks further increased their purchasing, funding 40% of total originations for the quarter, up from 31% in the fourth quarter, and retail investors expanded to 15%, up from 13% in the prior quarter
- Developed a retail investor mobile application, now available in the App Store
- Lending Club initiated activities to support the securitization of Lending Club loans with external partners
- Achieved another nearly $2 billion originations, surpassing $26 billion in total loans since inception almost ten years ago
- Continued the Company’s lead as the largest personal loan provider in the U.S. with a borrower base of almost 2 million individuals
- Introduced an enhanced version of our Joint Application loan program, giving borrowers the ability to jointly apply for a personal loan
Adjusted EBITDA (3) – Adjusted EBITDA was $0.2 million in the first quarter of 2017, improving $1.0 million from the fourth quarter of 2016, resulting from the decrease in revenue noted above, and a decrease of $10.3 million in other general and administrative expenses. The decrease in other general and administrative expenses was primarily driven by an insurance recovery of $9.6 million. Adjusted EBITDA also includes $10.6 million of expenses primarily associated with the Board Review that was disclosed in 2016.
Lending Club’s $ 30M quarterly loss is its smallest in the last year (American Banker), Rated: AAA
Lending Club, the online consumer lender whose fortunes were hurt by scandal last year, lost $29.8 million in the first quarter amid lower revenues and rising expenses.
BRIEF-Lending Club reports Q1 adjusted loss per share $ 0.02 (Reuters), Rated: AAA
- LendingClub corp – qtrly originations $1,958.7 million versus $2,750.0 million
- Q1 adjusted loss per share $0.02
- Q1 loss per share $0.07
- Q1 earnings per share view $-0.03 — Thomson Reuters I/B/E/S
- Q1 revenue $124.5 million versus i/b/e/s view $122.8 million
Here is the Lending Club Q1 Earnings Deck (Crowdfund Insider), Rated: AAA
Below is the Lending Club Q1 earnings deck. The company is predicted Q2 growth of 6% to 10%. Full year sequential growth is expected to be 15% to 19%.
See the Lending Club Q1 2017 results in full here.
Lending Club slowly woos investors back after last year’s scandal (Financial Times), Rated: AAA
In the first quarter the San Francisco-based company originated $1.96bn of loans, it said on Thursday, down slightly from the $1.99bn of the fourth quarter. Banks bought 40 per cent of the loans, up from 31 per cent in the fourth quarter, indicating that many are now satisfied that the company has ironed out its problems.
But net revenues for the quarter were $125m, down 5 per cent from the fourth quarter. The quarterly net loss was $29.8m, slightly less than the previous period.
According to data from Orchard, a technology provider to the industry, total returns from an index of US consumer loans came to 3.95 per cent last year, down from 8.71 per cent in 2014.
Online Lender Prosper Says System Error Overstated Returns (Bloomberg), Rated: AAA
Prosper Marketplace Inc., one of the largest U.S. online-lending platforms, notified the majority of the investors that buy its loans that it had overstated their annual returns due to a system error, a spokeswoman said.
The error has been fixed, according to spokeswoman Sarah Cain. Some of the investors that were affected saw their annual returns fall in half, but in most cases returns fell less than 2 percentage points, Cain said. The issue has been going for “several quarters,” she said.
The glitch didn’t affect the cash that investors received, tax documents, expected future returns, or any other information the startup provided to loan buyers. In a small number of cases, returns were understated, Cain said.
Q1 2017 Shareholder Letter (Square), Rated: AAA
Our first-quarter results demonstrate our continued ability to grow the business at scale while balancing investment and margin expansion. Improvements in net loss and Adjusted EBITDA reflect strong top-line growth, coupled with ongoing operating leverage and improvements in transaction loss rates. Similar to previous quarters, we saw strong momentum across our products, with revenue growth driven by both transaction-based and subscription and services-based monetization.
We launched in the UK, our fourth international market, where small and medium businesses (SMBs) generated £1.8 trillion of revenue in 2016.
Square is a great fit for the UK market, which has 5.5 million SMBs2 and a thriving entrepreneurial scene. The annual revenue of SMBs in 2016 was £1.8 trillion, which is 47% of all private sector UK revenue. In the UK, the average adult now carries less than £25 in cash and 70% of shoppers prefer to pay by card, yet industry research estimates that half of UK small businesses still do not take card payments. Our contactless and chip reader aims to meet the needs of the UK market, where there are more than 100 million contactless cards.
See Square’s full Q1 2017 report.
FT Partners Advises NAV on Series B Financing (FT Partners), Rated: AAA
Read the full announcement here.
PeerStreet Hits New Milestone: $ 300 Million in Loans Funded (PeerStreet), Rated: A
Under a year ago, we announced PeerStreet had funded $75 Million, October we rounded $150 Million and now, thanks to the ongoing support from our investors and lenders, we’ve just surpassed $300 Million with zero losses to date.
The number of lenders PeerStreet works with has grown from 25 to 89. The loans we’ve recently made available for investment are more diverse than ever, with 11 new states added since this time last year, now totaling coverage across 28 states and Washington D.C. Currently, we are publishing triple the number of loans we did a year ago. To support this growth, our underwriting and portfolio management teams have doubled since last year.
Next Insurance Secures $ 29 Million During Series A Funding Round (Crowdfund Insider), Rated: A
Next Insurance, an insurtech company that specializes in small to medium businesses, announced on Wednesday it secured $29 million during its Series A funding round, which was led by Munich Re/HSB Ventures with participation from Markel, Nationwide, and other existing investors.
The funding from the Series A funding round will go towards continuing to grow Next Insurance’s insurance products and expand the company’s offering to new business sectors. The announcement follows Next Insurance’s recent release of the first ever Facebook chatbot for small business insurance.
CAN ALTERNATIVE DATA SOLVE ONLINE LENDERS’ ‘ALGORACISM’ PROBLEM? (The Alternative Lending Report), Rated: A
A March 2017 letter written by Congressman Emanuel Cleaver, II (D-Mo.), to Consumer Financial Protection Bureau Director Richard Cordray raises fresh concerns about “algoracism” tainting the creditrisk-scoring models used by online lenders.
Cleaver’s letter highlighted five predatory practices cited by the HBS paper as pervasive in the “Wild West” of online lending and alleges that risk-scoring algorithms may be designed to discriminate against minorityowned, small business borrowers.
Minority-owned businesses comprise roughly 15% of the 28.8 million small businesses in the United States, according to a 2016 Small Business Administration report.
Biased algorithm design can occur if engineers code data correlation parameters with attributes that make inadvertently discriminatory assumptions, which could be violating the Equal Credit Opportunity Act. ECOA prohibits creditors from discriminating against borrowers on the basis of race, color, religion, national origin, sex, marital status, age or because they receive income from a public assistance program.
In fact, FastPay’s loan algorithm is over 80% weighted towards the credit risk of the brand counterparties, which typically average 90-days sales outstanding before they pay their creative and advertising technology vendors. Despite prolonged payment terms, Proctor & Gamble and other Fortune 500 brands pose extremely low credit-default risks to invoice financiers like FastPay.
Ultimately, Arora attributes flawed credit-risk modeling in fintech to the big banks that refuse to share data. But banks in the U.S., unlike in Singapore and the UK, where lenders are opensourcing their loan algorithms, see no incentive to make accountholder data available to third parties.
Regardless, Mills said Kabbage, which charges an annual percentage rate, ranging from 24% to 99%, is an interesting fintech small business lender because they factor variables like borrower credit card data and the company’s Facebook page into their risk scoring models.
See the full report at SmallBusinessLending.io.
How Lending Club Is Differentiating Itself From Other Online Lenders (Forbes), Rated: A
In less than a year, Sanborn cut and rehired 179 jobs and hired a new CFO, COO, general counsel and chief capital officer. In addition, the company launched a new auto refinance product and an investor mobile application, Lending Club Invest.
Sanborn: Nearly 75% of borrowers also say that their FICO score has increased by 19 points after consolidating debt or paying off credit cards, which can help put them on a better financial track.
Sanborn: Today we have more than 148,000 retail investors – more than any other online lender. Part of the evolution of our marketplace is growing and balancing the mix of investors – having the right mix of investors strengthens our marketplace and makes us more resilient, scalable, and better able to serve a wide range of borrowers of all credit profiles.
Sanborn: Our mission has been to transform the banking system to make credit more affordable and investing more rewarding. So, everything that we do comes from this goal and with the intention of delivering a great experience for everyone who comes to our marketplace. With 10 years of experience and incredibly powerful data and insight that informs us on our customers’ behaviors, choices and needs. We’re also able to calibrate this data into our models to price credit risk and better manage our marketplace and the success of both our borrowers and investors.
A traditional bank uses government-guaranteed deposits to lend to make a spread and can only give loans to a narrow spectrum of borrowers. Our credit marketplace attracts investors that span retail, asset managers, funds and banks, all with different risk appetites, to invest in loans across the credit spectrum so we can say yes to more borrowers. Our diverse investor base also means we’re not reliant on any one type of investor to fund our loans, so we have the agility to pivot funding channels to meet changing market conditions.
OCC fintech charter plans in jeopardy as Curry departs (Finextra), Rated: A
Proposals by the US Office of the Comptroller of the Currency to issue special purpose banking charters to fintech firms are up in the air following the departure of leading advocate Thomas Curry and his replacement as acting head of the Federal agency by Simpson Thacher & Bartlett partner Keith Noreika
Challenger bank hits one million accounts (AltFi), Rated: AAA
Metro Bank surpasses one million customer accounts less than seven years removed from launch.
Metro Bank, which became the first new high street bank in the UK for over one hundred years in 2010, now has more than a million customer accounts. The milestone was reached, fittingly, on the bank holiday Monday, when the majority of incumbent banks are closed.
Some stats from the last seven years include: being open 75 per cent longer than the average bank, saving customers over 4 million days by printing over 1 million cards instantly in-store, and preventing over 20,000 cards from being cancelled unnecessarily.
Sand. Meet head. (CB Insights), Rated: AAA
It goes by many names.
It’s also worth understanding that there is no upside to saying stuff like this.
Cuz more often than not, you’ll find yourself on the wrong side of history like so many of these CEOs.
And then we’ll make slides to immortalize your cluelessness.
Europe’s largest lending and fintech event, LendIt Europe, returns to London this autumn (LendIt Email), Rated: AAA
LendIt Europe 2017 launched last night with a cocktail reception for 75 of London’s fintech elite at the Dion in St. Paul’s. The 2017 event is set to be Europe’s largest lending and fintech event, with over 1,000 participants from the UK and Continental Europe as well as North America and Asia. Taking place at the Intercontinental O2 Hotel on October 9-10, this year’s conference is expanding with the industry to cover the hottest topics in fintech including blockchain, insurtech, digital banking, and much more.
Early confirmed keynote speakers are Jaidev Janardana, CEO of Zopa, Francesco Brenna, Partner at IBM Global Business Services, and Shane Williams, co-founder of UBS Smartwealth. With six tracks of content including Digital Banking, Credit & Underwriting, Policy & Regulation, The Cutting Edge in Fintech, Innovations in Lending, and Investor Insights, this year’s LendIt Europe agenda will be the most comprehensive yet, with more details being released on www.lendit.com/europe in the coming months.
A featured component to this year’s conference, and back for its second year running, is the PitchIt startup competition. PitchIt allows innovative fintech startups from across EMEA to present their solution in front of the LendIt audience of international investors and industry leaders. The PitchIt programme has been an exciting part of the LendIt series of events, with past winners and finalists going on to secure significant investment and publicity.
Robo-adviser to provide full retirement advice in 2 hours (FT Adviser), Rated: A
Robo-adviser Wealth Wizards has launched a new automated paraplanner tool to help firms provide retirement advice in less than two hours.
Wealth Wizards said the tool generates a “regulated advice solution” made up of an annuity, drawdown or a blend of the two.
The report could then be edited by an adviser to make sure it suited the client’s needs.
Octopus-backed robo advisor Moola goes live (AltFi), Rated: A
Investors have a new robo advisor to choose from following the soft launch of Moola.
The firm, which is backed by private equity specialist asset manager Octopus, announced back in December that it had received full regulatory approval from the Financial Conduct Authority (FCA) as well that it had arranged a tie-up with Blackrock-owned ETF provider iShares.
The passive only portfolios are risk targeted and cost just 0.75 per cent per year.
What is FinTech and why Google and Facebook could be the banks of the future (Manchester Evening News), Rated: A
In total, the sector generated almost £7bn revenue last year and now employs more than 60,000 people.
Not only that, but the big players are wising up to this need for disruption with Barclays opening a flagship FinTech accelerator in May, offering 500 workspaces for start-up innovators.
HSBC and Tradeshift have also confirmed that their new ‘procure-to-pay’ product will go live in summer allowing businesses to manage their entire supply chain and working capital requirements in one place, from any device.
The innovation specialist at SoftwareONE said: “Back in the 80s, when ATMs came into play, people thought it would be the end of bank branches and jobs, but instead it freed up clerks to perform other tasks, like mortgage advice, which actually added value to the customer.
“Moving on to the current day and bank branches have now become mobile phones – or apps – people can access their accounts and information at a touch of the screen.”
AccessPay, which moved from London to Manchester, is flying after a recent £2m funding boost.
Based in City Tower, the fast-growing firm is looking to recruit 60 new staff and expand into the US after securing funds from Clydesdale and Yorkshire Banks’ Growth Finance team.
The specialist in cloud-based payments and cash products has been driving innovation in the sector since it was founded in 2012.
Fintech: What Will Bring the Most Change? (City A.M.), Rated: A
Finance professionals have two basic questions about fintech and what it means for them:
- How will fintech positively affect their careers?
- How will fintech negatively affect their careers? For example, will peer-to-peer (P2P) lenders replace banks as the preferred platform or intermediary for borrowing and lending? If the answer is yes, then bank loan officers and credit risk analysts should start looking for alternative careers. The particular areas of fintech that evoke this sort of existential concern include blockchain, mobile payment, P2P lending, and robo-advisers.
The responses of our 333 poll participants suggest that interest in blockchain technology has risen to an all-time high, with four out of 10 readers opting for that choice. Another 22% are believers in robo-advisers.
Read between the lines: What does rising inflation mean for your money? (Funding Circle), Rated: B
Inflation is rising – and is set to climb even higher by the end of the year. Official figures revealed a surprise jump in the headline rate of inflation to 2.3% in March, its highest rate for four years. And it is estimated to climb to 2.8% by the end of the year.
But there’s one area where inflation is hitting hard right now – our savings. If you can’t get a savings return higher than inflation, you’re losing money. The cash in your nest egg will be worth less and less as inflation outstrips the returns you get. And right now, no-one can get an inflation-beating rate from traditional banks and building societies with even the much-heralded new Government-backed savings bond paying less than inflation at 2.2%.
Chinese online lender SmartFinance targets IPO in US (Deal Street Asia), Rated: AAA
SmartFinance, a Chinese internet loans business that judges borrowers on factors including how often they charge their phones, has consulted banks about a possible U.S. listing that could happen as soon as this year.
The rapidly expanding company, which anticipates it will reach a $1 billion valuation by the end of 2017, has hired former Cheetah Mobile Chief Financial Officer Andy Yeung to help better manage investor relations and smooth the path to an eventual listing.
Jiao, who is known to colleagues by his English name UBee, told Bloomberg the company’s next step is an initial public offering, probably in the U.S. By the end of 2017, he expects to have more than 2,000 staff and facilitate as many as 4 million loans a month.
SmartFinance is more commonly known as Yongqianbao, which translates as “need money pal,” and taps into as many as 1,200 data points collected by its smartphone app to assign credit ratings for would-be customers. Making calls that go unanswered or failing to frequently charge your phone are all potential signs of a problematic borrower.
China’s Ping An to launch first overseas fintech and healthcare fund of $ 1 bln (Reuters), Rated: A
Ping An Insurance Group Co of China Ltd, the country’s largest insurer by market value, is launching its first overseas fund to primarily invest in financial and healthcare technology worldwide, underscoring its push beyond its home market.
The initial size of the so-called Ping An Global Voyager Fund will be $1 billion, the insurer said in a statement on Thursday. It will be managed from Hong Kong and led by Jonathan Larsen, an 18-year stalwart of Citigroup who joined Ping An as its chief innovation officer.
P2P Industry News (Xing Ping She Email), Rated: A
IPO boom of P2P Lending platforms is coming!
China Rapid Finance (CRF) has gone public in the US and it is also the second P2P Lender listed successfully in America, which may bring an IPO boom of Internet finance industry.
It was revealed that Qudian, a P2P lender focusing on providing consumer finance products for young people, has already submitted their IPO prospectus to the SEC, expecting to finish IPO process by the second quarter of this year. Fintech companies such as PPDAI, Lego Group Inc. Are also actively preparing for US IPO. Several giants are among the long waiting list of IPO candidates, including Ant Financial, Lufax, Zhongan Insurance and Jingdong Finance etc. In fact, the assessment value of Ant Financial has already reached to $60 billion, and once the IPO could be successful, the director Jack Ma may become the China’s richest person again with holding at least 5% shares.
Ant Financial planning to buy MoneyGram with $3.5 billion Loan
Recently, an insider revealed that Ant Financial is going to sign a loan contract valued $3.5 billion for the acquisition of an American company MoneyGram International.
The loan application has attracted 14 providers, including ANZ, Barclays, Citi, Credit Suisse, DBS, Goldman Sachs, HSBC, ING, J.P. Morgan, Mizuho Bank and Morgan Stanley. With Deutsche Bank and Societe Generale participated as leading banks, and BNP Paribas SA is the sponsor. Ant Financial has got the Green Light for the acquisition by raising the biding price by 1/3 and surpassed its rivals.
Altisource Launches Enhanced Vendor Oversight Platform to the Market (Yahoo! Finance), Rated: AAA
Altisource Portfolio Solutions S.A. (“Altisource”) (ASPS), a leading provider of real estate, mortgage and technology services, today announced the expansion of the Vendorly™ platform, an innovative vendor oversight platform for financial institutions. The platform launched last year exclusively for members of the Lenders One® Cooperative, a national alliance of independent mortgage bankers, and is now available to the broader mortgage and community bankers market outside of the Lenders One network. The Vendorly platform is designed to help streamline vendor due diligence, document maintenance, monitoring and audits.
The scrutiny of vendor oversight practices continues to be a focus of regulators. It’s important for mortgage and community bankers to have a multifaceted vendor oversight program. Through the Vendorly platform, and its vendor oversight offerings, Vendorly can help strengthen its customers’ compliance management framework and increase their operational efficiencies. Vendorly offers managed vendor oversight services, including due diligence, document management, annual assessments, information security assessments, financial condition reviews and on-site audits.
Vendorly is announcing collaboration with Secure Insight, an innovator in the mortgage industry in providing settlement agent risk evaluation, rating, monitoring and database reporting on fully vetted mortgage closing professionals. Currently servicing close to 100 clients nationwide, Secure Insight will deliver real-time risk ratings and related settlement agent data to clients through the Vendorly platform. Together, Secure Insight and Vendorly intend to develop a platform that produces a transaction-based tool with risk data on each transaction prior to a closing (and just before the proceeds are wired). It is expected that this process will provide data in a more efficient, streamlined manner and give lenders greater comfort in the protection of their money, documents and consumer data at each closing.
i-lend plans to venture out with funds from 50K (India Times), Rated: A
Peer-to-peer lending startup i-lend has raised an undisclosed amount in a pre-series A round from early-stage venture capital firm, 50K Ventures. It plans to spend the money on marketing, scaling up and expanding its core team.
The Hyderabad-based company recently started operations in Bengaluru and plans to expand to a few more cities in the coming months. It is also looking to raise Series-A funds later this year.
The company has disbursed more than 600 loans since its inception in Ventures is thinking 2013 and 50K Ventures is thinking about expanding i-lend to other verticals.
Why Nomura, Google, IBM and Amazon are Investing in Indian Fintech (Edgy Labs), Rated: A
In a press release, Nomura Holdings, Inc. unveiled its initiative, called the “Voyager-Nomura FinTech Partnership in India.” Through the Voyager Program, the company invites startups and entrepreneurs with innovative Fintech solutions for the financial industry, especially capital markets and investment banking.
Responsible finance summit focus on Islamic fintech (Middle East Association), Rated: AAA
With the retail share of responsible investment doubling to 26 per cent in 2016, ethical, responsible and Islamic fintech can support further growth to deliver the financial products, experts said at a summit in Zurich, Switzerland.
The Responsible Finance & Investment (RFI) Summit opened yesterday (May 3) with leaders from across the responsible investment, impact investment and Islamic finance sectors gathering to discuss how to promote greater awareness of and engagement within responsible finance.
The first day’s sessions focused on ethical, responsible and Islamic fintech and the power they harness which can disrupt financial services and in doing so address the inequities in society and support equitable, inclusive and sustainable economic growth.
Sr. Pago raises 4 million dollars in its Series A investment round (Crossroads Today), Rated: AAA
Sr. Pago, the first 100% Mexican financial integrator for acceptance of credit and debit cards provided for the country’s non-banking population, through the placement of its Series A has successfully raised four million dollars in capital, thus ensuring the acceleration of its operations and underpinning its long-term vision.
This raising of capital is taking place thanks to the confidence of three recognized investment funds: IGNIA and EB Capital, with headquarters in Mexico City, and an international fund with its headquarters in Miami, FL, which through this capitalization have become strategic partners of Sr. Pago, supporting the business model of this Mexican Fintech company as the only one that has the country’s non-banking economically active population as its primary market and main consumer.