- Today’s main news: SoFi to get its name on a football stadium. Petal raises $300M. Funding Circle closing in on 1-year anniversary of float. Zopa sends warning of imitation scams. Cumulative UK alt lending hits 11.3B GBP. Companies to get social credit in China.
- Today’s main analysis: Student loan refinancing rates are down.
- Today’s thought-provoking articles: Economy is top concern for small businesses, says OnDeck survey. Why HUD would get a disparate impact rule. Fintechs give SMBs more credit choices than banks. Singapore at top of Euromoney Country Risk rankings.
- SoFi to pay $20 million a year for name on stadium. SoFi strikes a deal with Rams and Chargers. This will catapult SoFi into household name status.
- Economy is top concern for SMBs. An OnDeck survey reveals that most small business owners are Trump supporters.
- Student loan refinancing rates are down. This Credible study show some interesting trends in student loan refinancing.
- Petal raises $300 million from Jefferies. This is a debt round from the credit card company.
- Why HUD could get a disparate impact rule. This is an interesting read with a head nod toward Lending Club.
- Fintechs give SMBs more credit options than banks. This isn’t surprising, but did you know 61% of small businesses had cash flow issues last year? So says Intuit QuickBooks.
- Taylor Swift to open SoFi Stadium.
- Plaid adds credit card data to liabilities product.
- GoCardless launches debt payments solution, opens office in San Francisco.
- Nav launches new feature to boost business credit.
- BlueVine hires new chief commercial officer.
- Money360 closes $170 million in commercial real estate loans in July, August.
- Groundfloor allows real estate developers to get pre-approval on loans.
- Stripe lending and College Ave securitization. From PeerIQ.
- OppLoans secures first bank-led credit facility.
- Aura completes social bond issuances totaling $145 million.
- Challenger banks to begin lending. It was just a matter of time.
- Prevu raises $2 million in seed round.
- Prodigy Network CEO to step down.
- EquityMultiple offers opportunity zones.
- Litecoin Non-Profit chooses crypto lender Celsius Network as preferred crypto wallet.
- Walmart’s new credit card to boost e-commerce.
- ConsenSys to launch Codefi for decentralized finance.
- Finicity releases new verification of income and employment solution.
- Sallie Krawcheck says ‘don’t buy daily coffee’ is bad financial advice.
- ApplePie Capital partners with LSQ Funding.
- Funding Circle nears 1-year anniversary of float.
- Zopa warns of imitation scams.
- Cumulative lending hit 11.3 billion GBP.
- Monzo halts cash referrals, hits 3 million users.
- Transferwise books third consecutive year of profits.
- Klarna appears at London Fashion Week with T-shirts.
- OakNorth provides 3.7 million GBP loan to Clearview Developments.
- Smarterly, OakNorth partner on Notice Cash ISA.
- China to take social credit to companies. This is a big deal, especially for U.S. companies doing business in China. Also, it has major implications for P2P lenders in China in the wake of China’s crackdown on the sector.
- Hexindai reports unaudited Q1 of FY2020 financial results.
- CreditEase SVP see credit demand on the rise.
- Privacy concerns in Hong Kong fintech.
- How Singapore became top of the financial class. Very interesting read about how Singapore rose to No. 1 on the Euromoney Country Risk list.
- Trulioo raises $70 million with Goldman’s help.
- Equifax partners with Urjanet on alternative data.
- 5 reasons to consider tokenized assets as investments.
- Europe: Binance enters phase 5 of crypto lending. And introduces new coins XRM, ZEC, and DASH. Crypto lending is getting to be a big deal. It’s on the rise, and Binance, the largest crypto exchange in the world, is on the cutting edge. As soon as crypto is legitimized, crypto lending will become one of the largest segments in alternative lending.
- India: Ribbit leads Series B round for Groww.
- MENA: Now Money offers alternative for Gulf’s unbanked expats.
- India: RBI looks at NBFC and HFC lending rates. With some very clear restrictions.
- South Korea: Terafunding raises $18 million.
- India: RBI restricts access to consumer credit data.
- Indonesia: Julo raises $10 million.
- India: Flexiloans co-founder says there is no dearth of credit demand.
- Germany: creditshelf to acquire Valendo.
- Vietnam: Chinese P2P lenders move into country.
- India: RBI not in favor of teaser loans.
- India: Cash Suvidha to raise up to $10 million.
- United States
- Sundays at SoFi: NFL Stadium in Inglewood Lands a Corporate Name (Commercial Observer), Rated: AAA
- Taylor Swift to Open SoFi Stadium Next Summer (KFI AM 640), Rated: B
- Economy is Top Concern for Small Businesses Ahead of 2020 Election (OnDeck), Rated: AAA
- Student Loan Refinancing Rates Down Sharply (Credible), Rated: AAA
- Credit card start-up Petal raises $ 300 million debt round from Jefferies (CNBC), Rated: AAA
- Plaid adds credit card data to Liabilities product (Tearsheet), Rated: A
- GoCardless launches US debit payments solution and opens San Francisco office (TechCrunch), Rated: A
- Nav Launches New Feature to Help Business Owners Boost Business Credit (PR Newswire), Rated: A
- Why would HUD gut its own disparate impact rule? (The Times Weekly), Rated: AAA
- BlueVine Appoints Dosh & PayPal Vet Brad Brodigan As New Chief Commercial Officer (Crowdfund Insider), Rated: A
- Money360 Closes $ 170 Million in Commercial Real Estate Loans in July and August (GlobeNewswire), Rated: A
- Groundfloor Now Allows Real Estate Developers to Gain Pre Approval on Loans (Crowdfund Insider), Rated: A
- ABS East; Stripe’s Lending Arm; Madden Decision (PeerIQ), Rated: A
- Fintech Firm OppLoans Announces Its First Bank-Led Credit Facility (GlobeNewswire), Rated: A
- Aura Completes Three Social Bond Issuances Totaling $145 million Over Last 4 Months (Yahoo! Finance), Rated: A
- Challenger banks insist they’re equal to the task of lending (American Banker), Rated: A
- Cash-flow data shows promise as predictor of credit risk (American Banker), Rated: A
- Prevu Raises $ 2 Million in Seed Funding to Grow its Digital Home Buying Platform (Digital Journal), Rated: A
- Embattled Prodigy Network CEO Rodrigo Niño to step down (The Real Deal), Rated: A
- EquityMultiple Provides Investors with Options to Take Advantage of Unique Tax Benefits (Crowdfund Insider), Rated: A
- How to Recession-Proof Your Investments (U.S. News), Rated: A
- Litecoin Non-Profit to Hold Undisclosed Treasury Sum with Crypto Lender (CoinDesk), Rated: A
- Fintechs give small business more choice for credit than just banks (PaymentsSource), Rated: AAA
- Walmart’s New Credit Cards Have One Big Goal: Boost E-Commerce (Bloomberg), Rated: A
- Finicity Releases New Verification of Income and Employment Solution for Lenders (PR Web), Rated: B
- Sallie Krawcheck: Why ‘don’t buy daily coffee’ is terrible advice (CNBC), Rated: B
- Ethereum Development Studio ConsenSys Announces Codefi, A New DeFi Software Suite (Crowdfund Insider), Rated: A
- ApplePie Capital Partners with LSQ Funding on A/R Franchise Financing (Monitor Daily), Rated: B
- United Kingdom
- Funding Circle nears one-year anniversary of London float (P2P Finance News), Rated: AAA
- Zopa warns over imitation scam firms (P2P Finance News), Rated: AAA
- Record numbers of investors and borrowers as cumulative lending hits £11.3bn (P2P Finance News), Rated: AAA
- Monzo halts cash referrals as it hits three million users (AltFi), Rated: A
- Transferwise Books Its Third Consecutive Year of Profits (Lendit), Rated: A
- Payment provider Klarna appearing at London Fashion Week has everybody talking (MyLondon), Rated: A
- Klarna expands partnership with Mothercare (The Paypers), Rated: B
- OakNorth Bank provides £3.7m loan to Clearview Developments (London Loves Property), Rated: A
- Smarterly and OakNorth Bank partner to offer new Notice Cash ISA range to Smarterly customers (Fintech Finance), Rated: B
- China/Hong Kong
- Coming Soon: ‘Social Credit’ for Companies, Too (WSJ), Rated: AAA
- Hexindai Reports Unaudited First Quarter of Fiscal Year 2020 Financial Results (PR Newswire), Rated: A
- CreditEase’s Zhang Sees China’s Credit Demand Rising (Bloomberg), Rated: A
- Securing privacy concerns in FinTech in Hong Kong (Lexology), Rated: A
- European Union
- Binance Announces Phase Five of Crypto Lending Featuring Privacy Coins XMR, ZEC, and DASH (Crypto-Economy), Rated: AAA
- P2P Lender creditshelf to Acquire SME Finance Provider Valendo (Crowdfund Insider), Rated: A
- How MAS propelled Singapore to the top of the class (Euromoney), Rated: AAA
- Goldman Leads Trulioo’s $ 70M Raise To Expand Global Digital ID (PYMNTS), Rated: A
- Equifax Continues Leadership In Alternative Data With Worldwide Urjanet Partnership (PR Newswire), Rated: A
- 5 Reasons Investors Should Consider Tokenized Assets (Benzinga), Rated: A
- Ribbit leads Series B funding in online investment platform Groww (VC Circle), Rated: AAA
- RBI looking at how NBFCs, HFCs set their lending rates (livemint), Rated: AAA
- RBI restricts access to credit data of consumers (Economic Times), Rated: A
- RBI not in favour of ‘teaser’ loans, examines rate-setting mechanism of NBFCs, HFCs (CNBCTV18), Rated: B
- No dearth of demand on credit side, disbursed credit worth INR 5 billion: Flexiloans Co-founder (IBS Intelligence), Rated: A
- Online SME lender Cash Suvidha plans to raise upto $ 10 million (IBS Intelligence), Rated: B
- Terafunding Closes US$ 18M Series B Financing Round (FINSMES), Rated: AAA
- Julo raises $ 10M to expand its P2P lending platform (TechCrunch), Rated: A
- Chinese P2P Firms Seeks Business in Vietnamese Market (W7 News), Rated: A
- Now Money offers alternative for Gulf’s unbanked expats (Financial Times), Rated: AAA
Sundays at SoFi: NFL Stadium in Inglewood Lands a Corporate Name (Commercial Observer), Rated: AAA
Online lender SoFi Lending Corp. has secured the naming rights and a 20-year deal with the Rams and Chargers, according to the Los Angeles Business Journal. The firm agreed to pay around $20 million per year, reports say.
SoFi Stadium, which will be the largest in the NFL, is the centerpiece to the much larger $5-billion Hollywood Park project developed by Rams Owner/Chairman E. Stanley Kroenke. Construction is 75 percent complete, and the stadium is expected to open next summer for other events before the NFL preseason begins in August.
Economy is Top Concern for Small Businesses Ahead of 2020 Election (OnDeck), Rated: AAA
Key Findings from the OnDeck Small Business Survey:
- Economic concerns arise in several dimensions, including tax policy, job growth, support for small businesses, government spending and the overall economic climate. These issues were cited as the top concerns of more than 33% of those surveyed;
- Immigration was an issue of interest for 11.3% of small business owners surveyed, ranking second behind the economy as a concern.
- 57% of small businesses surveyed said they were either ”Very Optimistic” or ”Somewhat Optimistic” about the economic outlook for their businesses;
- 93% of those surveyed said they plan to vote in the 2020 election.
- 60% of small business owners surveyed said they already know who they plan to vote for in the 2020 presidential election.
President Donald Trump was the choice of 37% of small businesses surveyed, followed by Joe Biden at 18%. When combined, the top five Democratic candidates were the preference of 44% of respondents.
Student Loan Refinancing Rates Down Sharply (Credible), Rated: AAA
- Rates on 10-year fixed-rate loans averaged 4.70%, down 22% from a July 2018 peak of 6.05%
- Rates on 5-year variable-rate loans averaged 4.03%, down 14% from September
- $20,927 by refinancing into a 5-year variable rate loan
- $8,327 by refinancing into a 10-year fixed-rate loan
Credit card start-up Petal raises $ 300 million debt round from Jefferies (CNBC), Rated: AAA
The New York City-based company announced a $300 million debt round from Jefferies on Tuesday, adding to existing venture capital investments from names like Peter Thiel’s Valar Ventures.
Plaid adds credit card data to Liabilities product (Tearsheet), Rated: A
In July, Plaid launched its Liabilities product that gives developers access to real time information about what consumers owe. Expanding beyond student loan data, the company has added support for credit card information, so firms can build better debt management solutions.
GoCardless launches US debit payments solution and opens San Francisco office (TechCrunch), Rated: A
GoCardless, the London fintech that aims to become the one-stop shop globally for businesses that want to let customers pay via recurring bank payments, has launched a U.S. debit solution.
Specifically, GoCardless’ new U.S. product supports debit payments on the ACH (Automated Clearing House) network.
The company has also opened an office across the pond in San Francisco’s financial district, headed up by Andrew Gilboy, general manager, North America, who was previously the company’s chief revenue officer.
Nav Launches New Feature to Help Business Owners Boost Business Credit (PR Newswire), Rated: A
Today Nav, a fintech company that matches business owners with their best financing options for free, announced new offerings to help small business owners boost their business credit scores, giving an easy solution to developing a strong business credit profile that alternative and traditional lenders can trust and finance.
Why would HUD gut its own disparate impact rule? (The Times Weekly), Rated: AAA
Since 2013, the disparate impact rule has objectively examined the effects of business practices with lenders, landlords, insurers, and real estate professionals against the provisions of the 1968 Fair Housing Act. The rule required that first a plaintiff must establish a discriminatory effect in policies and/or practices, before the defendant(s) would bear the responsibility of proving their own practices were nondiscriminatory.
During delivery of Capitol Hill testimony earlier this spring, Nikitra Bailey, an EVP with the Center for Responsible Lending (CRL) also underscored the importance of disparate impact in fair housing.
“Disparate impact analysis encourages creative approaches that both increase effectiveness and inclusion,” testified Bailey. “This process and the value of disparate impact analysis was recently pointed out and endorsed by the largest personal loan company in the country, Lending Club.”
Online lender BlueVine announced on Wednesday it has appointed Brad Brodigan as its new Chief Commercial Officer. BlueVine reported that through this role, Brodigan will be responsible for overseeing revenue-generating functions including sales, customer service, and partner management.
Money360, a technology-enabled direct lender specializing in commercial real estate (CRE) loans, announced today it closed approximately $170 million in loans during July and August. This benchmark brings Money360 close to $500 million in loans closed this year.
Groundfloor, a real estate lending and investing platform that allows anyone to participate directly in real estate investments, has launched a new product to make the lending process more easier for real estate investors. Groundfloor now allows certain developers to gain pre-approval on loans with a new program called “QC Maxx.”
ABS East; Stripe’s Lending Arm; Madden Decision (PeerIQ), Rated: A
In financing news, student loan fintech “College Ave” locked down a $300MM securitization and a AAA rating this week. The securitization was co-led by both Barclays and Goldman Sachs. Affirm, led by Max Levchin, is reportedly close to wrapping up a $1.5 Bn debt and equity financing with Thrive Capital and Spark Capital leading.
Stripe is mirroring other payments companies that have since built lending capabilities – notably, Square and PayPal. Stripe believes it can compete in an already crowded small business lending market (OnDeck, Kabbage, Fundera, Funding Circle, etc.) due to its data & channel advantages stemming from its payments business.
Fintech Firm OppLoans Announces Its First Bank-Led Credit Facility (GlobeNewswire), Rated: A
OppLoans, a growing fintech and top rated direct-to-consumer online lending platform, announced today that it has secured its first bank-led asset-backed revolving credit facility. This facility structure will enable OppLoans to further its mission by broadening access to online personal lending products for more middle-income consumers with credit challenges.
Aura Completes Three Social Bond Issuances Totaling 5 million Over Last 4 Months (Yahoo! Finance), Rated: A
M&G Investments and Community Capital Management, a mutual fund that specializes in impact and Community Reinvestment Act (CRA) related investments, have joined with U.S. and international banks to invest $145 million in Aura’s social bonds to finance the origination of affordable, small dollar installment loans to working families in the United States.
Challenger banks insist they’re equal to the task of lending (American Banker), Rated: A
Almost all U.S. challenger banks offer no-fee checking, savings accounts and enhanced personal financial management tools. Now some of the most popular have taken, or are poised to take, their next step: making loans.
Personal loans and credit cards are lucrative but inherently risky, and these young companies — like MoneyLion, Varo and others — will have to prove to regulators, investors and the public that they have the wherewithal to weather downturns in the credit cycle.
Cash-flow data shows promise as predictor of credit risk (American Banker), Rated: A
Melissa Koide, co-founder and CEO of FinRegLab, analyzed loan data from six lenders that use cash-flow data in their underwriting. She shares what she found.
Prevu, a customer-focused digital home buying platform delivering industry-leading efficiency and savings, announced today the closing of its $2 million seed funding round. The round was led by Corigin Ventures, a prominent seed-stage venture capital firm with expertise in the real estate technology and consumer industries as well as a history of backing startups disrupting residential brokerage business models.
Embattled Prodigy Network CEO Rodrigo Niño to step down (The Real Deal), Rated: A
Prodigy Network founder Rodrigo Niño is stepping down from his position as CEO amid mounting financial and legal issues, The Real Deal has learned.
Prodigy, a real estate crowdfunding platform, has faced criticism from investors in recent months over underperforming investment properties and unpaid distributions. On Monday, an investor in one of Prodigy’s newest projects — the 13-story Standard Hotel in Chicago — filed a lawsuit alleging the firm was “insolvent” and had used investments “for purposes other than those relating to the project.”
Opportunity Zones are new, tax-advantaged vehicles for investors to earn more on their money. Created by the Tax Cuts and Jobs Act of 2017, the first qualified opportunity zones (QOZs) first hit the market in early 2018. Designated by state authorities, there are now thousands of QOZs in the US designed to boost development in selected communities. Investors receive a break on capital gains taxes which can be significant. Local officials can spur economic development which leads to more jobs. Online investment platforms immediately saw the opportunity intrinsic to QOZs with multiple platforms now offering investments in developments that benefit from these tax breaks.
Why are your Opportunity Zone Offerings better than some others available on competing investment platforms?
Soren Godbersen: There are a number of firms out there now marketing Opportunity Zone offerings to investors. We’re proud of what we have been able to offer to our investor network and there are a few things about our Opportunity Zone investments that are unique:
How to Recession-Proof Your Investments (U.S. News), Rated: A
AFTER A DECADE OF steady growth, the economic cycle is due for a reversal, with concerns of a recession.
- Consider other types of investments outside of stocks and bonds.
- Know that timing the market is difficult.
What to Invest in During a Recession?
Other less correlated assets include the real estate niche. With real estate crowdfunding, hypermarket segmentation is available. Investors can choose their property type and geographic region when investing in real estate. Two real estate crowdfunding platforms for accredited investors are CrowdFund and EquityMultiple. Fundrise and Groundfloor open targeted real estate investing to nonaccredited investors as well.
Litecoin Non-Profit to Hold Undisclosed Treasury Sum with Crypto Lender (CoinDesk), Rated: A
The Litecoin Foundation is putting its capital to work, lending at interest through another cryptocurrency program.
The Foundation has tapped the Celsius Network, a blockchain-based crypto lending program, to become its preferred crypto wallet, Celsius Network CEO Alex Mashinsky told CoinDesk.
As part of the deal, the Foundation will allocate an undisclosed portion of its treasury to the Network. LTC holders can receive up to 10.53% annually back on their crypto holdings and dollar loans as low as 4.95 percent as well.
Fintechs give small business more choice for credit than just banks (PaymentsSource), Rated: AAA
It’s no secret working capital is the lifeblood of all small businesses. It’s the fuel that keeps them running, helps them grow and take on new opportunities.
And yet, so many small businesses struggle with cash flow. In fact, according to a recent study from Intuit QuickBooks, 61% of small businesses have had cash flow issues in the past year.
Walmart’s New Credit Cards Have One Big Goal: Boost E-Commerce (Bloomberg), Rated: A
In a sign of how much Walmart Inc. is betting on e-commerce, the retailer’s revamped credit-card program with Capital One Financial Corp. offers better rewards for online shopping and checking out with its mobile app.
The new options, which become available Sept. 24 and use Mastercard Inc.’s network, offer 5% cash back for purchases made at Walmart’s website, including groceries. At the chain’s physical stores, shoppers only get that rate for a year and have to check out with Walmart Pay at the cashier. Otherwise, store customers get 2% back.
Finicity, a provider of real-time financial data access and insights, announced today the release of its new Verification of Income and Employment (VOIE) solution using patent-pending TXVerify technology that will speed up borrower verifications and further advance the industry shift toward a fully digital experience.
The Finicity VOIE solution digitally extracts a borrower’s pay statement data from the paystub and then cross-verifies that key data with their income transactions from their financial institutions. Enabled by its TXVerify technology, this detailed vetting process creates a real-time picture of an applicant’s income and employment for fast, accurate reports. The solution does this by leveraging the highest value data – direct from banks – along with a scan, photo or PDF of a borrower’s paystubs. This process significantly shifts the current paradigm from a mostly manual process to one that is fully digital, all while reducing fraud and increasing confidence in the underwriting process.
Sallie Krawcheck: Why ‘don’t buy daily coffee’ is terrible advice (CNBC), Rated: B
ConsenSys founder Joseph Lubin announced at the Ethereal Tel Aviv press conference (on September 15) that his New York-based venture studio is launching a new product, Codefi, for the emerging decentralized finance (DeFi) ecosystem.
Despite not having invested in emerging DeFi platforms, Lubin described P2P lending systems such as Uniswap and MakerDAO as some of the blockchain industry’s most promising projects.
ApplePie Capital Partners with LSQ Funding on A/R Franchise Financing (Monitor Daily), Rated: B
Funding Circle nears one-year anniversary of London float (P2P Finance News), Rated: AAA
The peer-to-peer business lender began conditional dealings on the London Stock Exchange on 28 September before being officially admitted to the bourse on 3 October. It launched with an offer price of 440p per share, giving the firm a valuation of £1.5bn.
However, its market capitalisation as of 17 September has since dropped to £348.7m, with its shares now trading at just over 100p.
Zopa warns over imitation scam firms (P2P Finance News), Rated: AAA
ZOPA has warned over a growing number of scam operators targeting UK customers using the peer-to-peer lender’s name to dupe investors.
They include: asking customers directly for their Zopa login details; claiming to work with companies investing money in Bitcoin or other cryptocurrencies; or working with companies who would ask them to take out a Zopa loan to fund an investment.
MORE than 150,000 lenders were invested in 321,483 loans facilitated by Peer-to-Peer Finance Association (P2PFA) platforms at the end of the second quarter, which the trade body deemed “a record level of involvement in the sector”.
Funding Circle is the largest P2P lender among the P2PFA platform members, having lent out a cumulative total of £5.4bn as of the end of the second quarter. It is followed by Zopa at £4.5bn, with ThinCats in third place with just over £491m.
£814m of new loans were made in the second quarter, compared to £866m in the first three months of 2019.
Monzo halts cash referrals as it hits three million users (AltFi), Rated: A
Monzo has ended its cash incentivised referral system as the firm continues to grow users at a rapid pace.
Transferwise Books Its Third Consecutive Year of Profits (Lendit), Rated: A
European fintech company Transferwise has recorded its third year in a row of profits; the company reported its net profit after tax climbed to £10.3 million in the fiscal year ending March 2019, up 66% from the previous year on revenue of £179 million;
Payment provider Klarna appearing at London Fashion Week has everybody talking (MyLondon), Rated: A
UK fashion Designer Henry Holland decided to take things up a notch in Saturdays catwalk show with a T Shirt design in collaboration with Klarna.
Klarna expands partnership with Mothercare (The Paypers), Rated: B
OakNorth Bank provides £3.7m loan to Clearview Developments (London Loves Property), Rated: A
OakNorth Bank the UK bank powered by OakNorth has provided a £3.7m loan to Clearview Developments for a new residential development in Royal Tunbridge Wells.
The product range includes five Cash ISA Notice accounts, exclusive to Smarterly, ranging from 35 days at 1.05% to one year at 1.25%; Customers will not be able to apply for these products with OakNorth directly;
These five Cash ISAs Notice Accounts are:
- 35 days – 1.05%
- Three months – 1.10%
- Six months – 1.15%
- Nine months – 1.20%
- One year – 1.25%
Coming Soon: ‘Social Credit’ for Companies, Too (WSJ), Rated: AAA
A key target of China’s coming “social credit” system, which among Westerners usually triggers visions of “1984”-style monitoring of people, is actually misbehaving businesses.
Corporate America needs to prepare.
About 80% of information on the main data-sharing platform relates to companies rather than individuals, according to China consulting…
First Quarter of Fiscal Year 2020 Operational Highlights
- Total loan volume facilitated was US$ 28.2 million (RMB192.3 million) during the first quarter of fiscal year 2020, a decrease of 93.5% from the first quarter of fiscal year 2019.
- Gross billing amount (net of VAT) was US$4.7 million during the first quarter of fiscal year 2020, a decrease of 90.7% from the first quarter of fiscal year 2019.
- Gross billing ratio (net of VAT) for credit loans was 16.7% during the first quarter of fiscal year 2020, an increase from 11.7% during the first quarter of fiscal year 2019.
- Number of borrowers was 18,546 during the first quarter of fiscal year 2020, a decrease of 36.0% from the first quarter of fiscal year 2019.
- Number of investors was 9,534 during the first quarter of fiscal year 2020, a decrease of 85.9% from the first quarter of fiscal year 2019.
First Quarter of Fiscal Year 2020 Unaudited Financial Highlights
- Net revenue was US$4.9 million during the first quarter of fiscal year 2020, a decrease of 90.5% from the first quarter of fiscal year 2019.
- Operating costs and expenses were US$12.6 million during the first quarter of fiscal year 2020, a decrease of 18.9% from the first quarter of fiscal year 2019.
- Net loss was US$7.2 million during the first quarter of fiscal year 2020, compared to net income of US$29.7 million in first quarter of fiscal year 2019.
- Basic loss per ordinary shares in the first quarter of fiscal year 2020 was US$0.15, compared to basic earnings per ordinary shares (“EPS”) of US$0.62 in first quarter of fiscal year 2019.
- Diluted loss per ordinary shares in the first quarter of fiscal year 2020 was US$0.15, compared to diluted EPS of US$0.56 in first quarter of fiscal year 2019.
- Adjusted net loss attributable to Hexindai Inc.’s shareholders (Non-GAAP) in the first quarter of fiscal year 2020 was US$7.0 million, compared to adjusted net income attributable to Hexindai Inc.’s shareholders (Non-GAAP) of US$29.9 million in the first quarter of fiscal year 2019.
- Adjusted EBIT (Non-GAAP) in the first quarter of fiscal year 2020 was (US$5.8) million, compared to US$36.6 million in the first quarter of fiscal year 2019.
CreditEase’s Zhang Sees China’s Credit Demand Rising (Bloomberg), Rated: A
Zhang Yue, senior vice president at CreditEase, discusses the demand for credit in China, write downs in her portfolio, P2P lending, their wealth management business and their expansion plans.
Securing privacy concerns in FinTech in Hong Kong (Lexology), Rated: A
Hong Kong has built a strong environment for fostering innovation and financial technology or FinTech. With its large financial sector and its strategic role with Mainland China and gateway to the rest of Asia and the world, Hong Kong has the potential to take on an important role in being a leader in FinTech. In March 2019, for example, Hong Kong issued its first virtual banking licences, which will likely increase adoption of FinTech in the financial services sector.
Emerging technologies used in Fintech services and operations come in different forms, and include:
- data analytics that support the operations of financial institutions (for example, credit scoring, loan processing);
- peer-to-peer (P2P) financing (such as P2P lending and crowdfunding platforms);
- distributed ledger technology, such as cryptocurrency, bitcoin transactions and smart contract applications, as well as blockchain services to help reduce fraud by keeping provenance data on the blockchain; and
- financial investments, such as stock trading apps, robo-advisors and algorithmic trading and budgeting apps.
Leading cryptocurrency exchange Binance has announced its launch of the fifth phase of its cryptocurrency lending product in which it customers subscribe to an allocation to lend other users their funds for interest rates as high as 15% Apr.
the 15% interest rate was only available to Binance’s native coin lenders in the first phase. On Tuesday, the exchange revealed three coins that will be included in the crypto lending product including only privacy-centric coins Monero [XMR], Zcash [ZEC] and Dash [DASH]. Their annualized interest rates will be a constant 3.5% but the lending period is only two weeks starting from this Friday September 20th through October 4th.
P2P Lender creditshelf to Acquire SME Finance Provider Valendo (Crowdfund Insider), Rated: A
According to a company release, the purchase price was in the “low seven-digit amount.” Payment will take place in two separate tranches. creditshelf has the option of settling both tranches in the course of two capital increases via a contribution in kind.
How MAS propelled Singapore to the top of the class (Euromoney), Rated: AAA
Today, Singapore sits proudly atop the Euromoney Country Risk (ECR) rankings. Based on ECR’s blend of financial and economic data, combined with the views of leading economists, no country in the world today has a stronger financial position.
When MAS said in July 2019 that it planned to issue five new digital banking licences, analysts soon spotted that three of them were wholesale licences, open to banks and non-banks alike.
Winners will be encouraged to lend, using digital means, to small and medium-sized enterprises and other non-retail segments – further evidence that corporate banking will be the next segment to feel the hot breath of disruption on its neck.
Goldman Leads Trulioo’s $ 70M Raise To Expand Global Digital ID (PYMNTS), Rated: A
Trulioo, the global identity verification provider, has raised $70 million in new funding, eyeing growth in its core digital identification efforts, the company announced Tuesday (Sept. 17).
The company said in a release that the funding includes $60 million in a Series C round that was led by Goldman Sachs Growth Equity. Other participants included Citi Ventures, Santander InnoVentures and existing investor American Express Ventures. The remaining $10 million came as unannounced follow-on financing from early investors, including BDC Capital and Blumberg Capital.
Equifax Inc. (NYSE: EFX) and Urjanet today announced a global partnership that empowers consumers and businesses to share their payment data from thousands of utility, telecom and cable providers worldwide for a more complete picture of individual payment history, easier identity verification and the potential for better access to credit. This partnership builds on Equifax’s leadership in alternative data, using the Urjanet Utility Data Platform to incorporate consumer-permissioned data into the Equifax differentiated data approach.
5 Reasons Investors Should Consider Tokenized Assets (Benzinga), Rated: A
According to Deloitte, we shouldn’t view DLT as just a new type of “database ” but rather as a new way to organize the security value chain from issuance to custody. But what exactly can be transmitted through this chain?
Fractional ownership – take as much as you want
Digitizing shares makes them highly divisible, meaning that investors can buy very small percentages of tokenized assets.
So long, intermediaries!
Security tokens have a simpler investment structure and lower fees.
On the way to maximum liquidity
Cherry on top
A security token is basically a digital signature connected with a smart contract responsible for facilitation and verification of ownership rights transactions.
Ribbit leads Series B funding in online investment platform Groww (VC Circle), Rated: AAA
Groww, an online investment platform that sells mutual fund products, has raised $21.4 million (Rs 152.5 crore at current exchange rate) in a Series B funding round led by Silicon Valley-based venture capital firm Ribbit Capital.
Groww said existing investors Sequoia India and Y Combinator also participated in the funding round.
RBI looking at how NBFCs, HFCs set their lending rates (livemint), Rated: AAA
The Reserve Bank of India (RBI) is studying how non-bank lenders and home financiers price their loans, close on the heels of directing commercial banks to link their loan rates to external benchmarks.
RBI restricts access to credit data of consumers (Economic Times), Rated: A
The Reserve Bank of India has ordered commercial banks and non-banking lenders to stop providing unregulated entities access to consumer data held by credit bureaus, dealing a blow to scores of fintech startups that have based their business models on such information.
The banking regulator is not in favour of hybrid loan products or ‘teaser loans’, a senior Reserve Bank of India (RBI) official today clarified. The remark gains significance in the light of State Bank of India chairman Rajnish Kumar’s recent comment that SBI would seek the regulator’s view on whether banks can introduce fixed-cum-floating rate products.
FlexiLoans.com, an online lender for MSMEs in India, said that it has crossed a milestone number of disbursing over INR 5 billion of unsecured business loans across the country with its unique digital-only model. The Mumbai-based company, which has disbursed over 16000 loans across 1000 cities and towns in the country, says that there is no dearth of demand on the credit side. The company caters primarily to micro, small and medium-sized businesses.
How has the online lending market shaped up in the last few years?
Digital Lending market is currently at about USD 2 billion, up from about USD 1 billion in 2016. Significant traction and market niches discovered by various FinTech startups across the country have made this space very exciting, holistic and game-changing.
Online SME lender Cash Suvidha plans to raise upto $ 10 million (IBS Intelligence), Rated: B
The online lender for business and personal loans, Cash Suvidha, is planning to raise $5 million -$10 million equity funds in the next six months.
Terafunding Closes US$ 18M Series B Financing Round (FINSMES), Rated: AAA
Terafunding, a Seoul, South Korea-based Peer-to-Peer (P2P) lending platform, raised US$18M in Series B funding.
Backers included KB Investment, Hana Ventures, IBK Industrial Bank and Woomi Construction.
Julo raises $ 10M to expand its P2P lending platform (TechCrunch), Rated: A
Julo, a peer-to-peer lending platform in Indonesia, said on Wednesday it has extended its $5 million Series A raise to $15 million as it looks to scale its business in the key Southeast Asian market.
Chinese P2P Firms Seeks Business in Vietnamese Market (W7 News), Rated: A
The declining demand for peer-to-peer (P2P) lending in China has prompted firms to find business elsewhere. LearnBonds report that Chinese P2P companies are eyeing Vietnam, which alarmed local lending companies.
Now Money offers alternative for Gulf’s unbanked expats (Financial Times), Rated: AAA
About 70 per cent of the population in the Middle East and north Africa do not have access to banking services, says Ian Dillon, co-founder of Now Money, a Dubai-based financial technology group.
The GCC recorded outbound remittances of $120bn in 2017, according to World Bank data. However, Gulf banks tend to exclude workers earning less than $1,400 a month, leaving most of them reliant on exchange houses to remit cash home.