- Today’s main news: RateSetter enrolls 5K IFISA accounts in first month. OnDeck makes CFO transition. Augmentum set to IPO. TD Auto Finance, AutoGravity partner. Ranger Direct arbitration proceedings come to a halt. Investly secures 500K GBP through Seedrs.
- Today’s main analysis: A visualization of America’s personal loans.
- Today’s thought-provoking articles: UBS banned from sponsoring Hong Kong IPOs. China’s credit crunch. Credit scoring with big data.
- OnDeck makes CFO transition.
- America’s personal loans visualized. AT: “Interestingly, the average loan amount Americans take to the grave with them is almost the same as the average loan amount of LendingClub subprime personal loans. I’m not sure what this is saying, but I’m pretty sure it isn’t saying there is any causative effect between the two.”
- TD Auto Finance partners with AutoGravity. AT: “AutoGravity continues to expand its footprint. This is another example of a partnership that will benefit both parties, and I’m still looking forward to AutoGravity continuing to expand. They’re doing great things.”
- Santander Consumer USA partners with AutoGravity.
- BBVA Compass Express Personal Loan goes digital.
- Interview with PayPal CIO.
- FinFit makes $35M senior credit facility with Ares Management.
- Lend Academy interview with Varo Money’s Colin Walsh.
- Women are the target market.
- Cloud Lending Solutions recognized by Salesforce.
- Numerated gets two new bank clients.
- Fundbox rolls out new credit, payments solution.
- Caliber Home Loans launches mobile platform.
- Home Invest opens rental property renovation platform.
- Augmentum all set for IPO. AT: “Congratulations.”
- RateSetter enrolls over 5K IFISA accounts in first month. AT: “Congratulations.”
- Ranger Direct arbitration comes to a halt.
- Starling, TrueLayer integrate for open banking.
- HSBC plans to launch open banking app.
- Direct lending fund beats dividend target.
- Open APIs pave the way for personal finance firms’ European success.
- Interest, ROI top priorities for savers.
- Investly secures 500K GBP through Seedrs.
- CryptoLoan to offer loans against crypto assets.
- BNP Paribas Fortis partners with Tink on digital banking.
- Credit scoring with big data.
- New business models, technology enable financial inclusion.
- How Celsius intends to disrupt P2P lending on the blockchain.
- United States
- OnDeck Announces Chief Financial Officer Transition (PRNewswire), Rated: AAA
- America’s personal loans visualized: income, principal, and credit scores (mediathinknum), Rated: AAA
- TD Auto Finance Partners with AutoGravity to Provide Enhanced Digital Car Buying and Financing Option (Business Wire), Rated: AAA
- Santander Consumer USA And AutoGravity Work To Transform The Car-Buying And Financing Journey (PRNewswire), Rated: A
- BBVA Compass Express Personal Loan goes digital, opens to consumers in multiple states (BBVA Compass), Rated: A
- The CIO Of The First Global Fintech Company On The Future Of Finance (Forbes), Rated: A
- U.S. Fintech FinFit Announces $ 35 Million Senior Credit Facility With Ares Management (Crowdfund Insider), Rated: A
- Colin Walsh of Varo (Lend Academy), Rated A
- ‘Women are not a target market’: Confessions of a former finance marketer (Tearsheet), Rated: A
- Cloud Lending Solutions Recognized as Top 10 Best Performing Salesforce Solution Provider (Business Wire), Rated: B
- Eastern Bank-created fintech Numerated lands two new bank clients (American Banker), Rated: B
- Fundbox Announces New Credit And Payments Solution To Bring $ 4.5 Trillion SMB2B Transactions Into 21st Century (Fundbox email), Rated: A
- Caliber Home Loans Launches Mobile Platform (PRNewswire), Rated: A
- Home Invest: When Did Investing in Rental Property Online Become Cool? (Digital Journal), Rated: B
- United Kingdom
- Zopa investor set to enter £94m fintech fund onto London Stock Exchange (Peer2Peer Finance), Rated: AAA
- RateSetter sees over 5,000 IFISA accounts opened in first month (Peer2Peer Finance), Rated: AAA
- Ranger Direct Arbitration Proceedings Halted After Bankruptcy Filings (Interactive Investor), Rated: AAA
- Starling and TrueLayer integrate for open banking (Finextra), Rated: A
- HSBC hopes to launch ‘open banking’ app within months (Financial Times), Rated: B
- Direct lending fund beats dividend target, launches new fundraise (AltFiNews), Rated: A
- How open APIs are paving the way for PFMs to succeed in Europe (Tearsheet), Rated: A
- Savers highlight interest and ROI as top priorities (Bridging & Commercial), Rated: A
- UBS Hit With IPO Ban In Hong Kong (PYMNTS), Rated: AAA
- China’s Credit Crunch (The Diplomat), Rated: AAA
- European Union
- Estonian P2P lender Investly Secures £500,000 Through Seedrs Campaign (Crowdfund Insider), Rated: AAA
- Sweden’s VIA SMS to offer loans against crypto holdings (Finextra), Rated: A
- BNP Paribas Fortis partners with Swedish fintech Tink for digital banking (AltFiNews), Rated B
- Scoring with big data (The Edge Markets), Rated: AAA
- New Business Models and Emerging Technologies are Enabling Fintech Companies to Improve Financial Inclusion (The Financial), Rated: A
- This serial entrepreneur wants to disrupt peer-to-peer lending, using blockchain (The Next Web), Rated: B
- Fintech vs Banking: Which sector controls the future of money? (Small Caps), Rated: AAA
OnDeck Announces Chief Financial Officer Transition (PRNewswire), Rated: AAA
OnDeck today announced that the Company will appoint Kenneth (Ken) A. Brause as its Chief Financial Officer effective March 26, 2018, as part of a mutually agreed upon transition process between the Company and current Chief Financial Officer, Howard Katzenberg. Katzenberg will serve as an advisor to OnDeck until April 13, 2018, working closely with Brause to facilitate a smooth transition.
America’s personal loans visualized: income, principal, and credit scores (mediathinknum), Rated: AAA
Consider this: The average personal loan given out by loan giant Lending Club is for $15,000 given to a person with a sub-700 credit score and an income of $6,000 per month.
According to Experian, 73% of Americans die with an average debt balance of $61,554. This – on average – includes mortgage, credit card, auto, personal, and student loans. The average personal loan Americans take to the grave is $14,793.
That data is below and the results are fascinating and even daunting, especially for the apparent 73% of Americans who have a monthly payment to make. Read it and weep. Or make some payments.
Lending Club offers personal loans of up to $40,000. But that doesn’t mean everyone is asking for that much. Not does it mean that Lending Club is offering that much.
Interest rates are largely determined by credit score, but the average rate given out ranges from 12-14% with a peak high point in the 2013-2014 timeframe.
TD Auto Finance Partners with AutoGravity to Provide Enhanced Digital Car Buying and Financing Option (Business Wire), Rated: AAA
TD Auto Finance (TDAF), a subsidiary of TD Bank, America’s Most Convenient Bank, today announced a partnership with AutoGravity, a fintech provider modernizing the way consumers buy and finance automobiles. Through this partnership, indirect financing offers through TDAF will be made available to qualified auto buyers using AutoGravity’s digital platform to search for and finance their next vehicle from the convenience of their desktop or mobile device.
Santander Consumer USA And AutoGravity Work To Transform The Car-Buying And Financing Journey (PRNewswire), Rated: A
Santander Consumer USA Holdings Inc. (NYSE: SC) today announced it has reached an agreement with automotive technology leader AutoGravity to streamline and simplify the car-buying process for consumers. Through this agreement, Santander Consumer USA’s indirect finance offers will be available to AutoGravity customers nationwide through the AutoGravity mobile app.
BBVA Compass Express Personal Loan goes digital, opens to consumers in multiple states (BBVA Compass), Rated: A
BBVA Compass, the U.S. subsidiary of the global financial services group BBVA, now offers near instantaneous decisioning and potential same day funding for both customers and non-customers with the footprint wide1 opening of the fully digital BBVA Compass Express Personal Loan.
With the Express Personal Loan, customers and prospects can consolidate debt or fund large purchases with a low-interest personal loan that provides near instantaneous decisioning. Applicants with a BBVA Compass checking account can get same day funding upon loan approval. The loan, which represents months of effort across the entirety of the bank, underscores BBVA Compass’ drive to digital transformation and achieving excellence in customer experience.
The CIO Of The First Global Fintech Company On The Future Of Finance (Forbes), Rated: A
I recently caught up with the company’s chief information officer Bradley Strock, who has been in his role for three and a half years. We discussed PayPal’s transformation into a more customer-centric company, giving customers more choices of funding vehicles. We also covered how PayPal has successfully navigated the shift to mobile finance, resulting in a 50 percent increase in mobile payment volume in 2017.
In January of this year, Strock joined the ranks of board-level CIOs, as he commenced a directorship with $700 million revenue Elevate Credit, Inc., which provides online credit solutions to non-prime consumers, typically defined as those with credit scores of less than 700.
Peter High: Could you provide an overview of your role as CIO of PayPal?
Brad Strock: Most people are probably familiar with PayPal. We operate in over 200 markets around the globe. We are on a mission to democratize money and have had a great deal of success over the last couple of years. 2017 has been a great year in particular.
U.S. Fintech FinFit Announces $ 35 Million Senior Credit Facility With Ares Management (Crowdfund Insider), Rated: A
FinFit, a U.S.-based fintech that provides more than 80,000 American companies with a financial wellness benefit platform, announced on Monday the closing of a $35 million senior credit facility with Ares Management. The company stated it has the ability to increase the senior credit facility to $70 million and this capital raise follows a $16 million investment from Bison Capital Partners. Keefe, Bruyette & Woods was the exclusive financial advisor for the senior credit facility.
Colin Walsh of Varo (Lend Academy), Rated A
In this podcast you will learn:
- How Colin’s background helped prepare him for his banking startup.
- The differences he saw between what consumers wanted and what incumbent banks were delivering.
- Why you need to offer a range of core products to move the needle on financial health.
- How their banking partnership today enables Varo to offer banking products.
- What banks are not doing well and how Varo is addressing this.
- The profile of their typical customer.
- How they are finding these customers.
- How they are specifically helping their customers get a better handle on their finances.
- Why Varo applied for a full national bank charter.
- Details of the personal loan product they are offering today.
- The traction that Varo has been getting.
- Who Colin views as the main competition for Varo.
- His vision for the future of Varo.
‘Women are not a target market’: Confessions of a former finance marketer (Tearsheet), Rated: A
Retail banks are missing out on $15 billion in global revenue thanks to a gender gap in access to checking and savings accounts.
A BNY Mellon report published last week in collaboration with the UN, cites flaws in design and marketing that make financial products less accessible to women than they are to men.
The report identifies gender gaps on other products; financial institutions are missing out on another $7 billion in credit card revenue, $14 billion in personal loans and $4 billion in housing, the report says.
Cloud Lending Solutions Recognized as Top 10 Best Performing Salesforce Solution Provider (Business Wire), Rated: B
Cloud Lending Solutions was recognized as a “Top 10 Best Performing Salesforce Solution Provider” of 2017 by Insight Success Magazine.
Eastern Bank-created fintech Numerated lands two new bank clients (American Banker), Rated: B
Numerated Growth Technologies, the online lending software startup that started life as an incubator within Eastern Bank, announced Monday it has two new clients, Franklin Synergy and MidFirst Bank.
These two additions bring the number of bank clients Numerated Software has landed to seven.
Fundbox Announces New Credit And Payments Solution To Bring $ 4.5 Trillion SMB2B Transactions Into 21st Century (Fundbox email), Rated: A
Today Fundbox announced the launch of Fundbox Pay, a new payment and credit solution servicing the $4.5 trillion small business-to-business (SMB2B) transactional market in the U.S. By addressing SMB’s lack of credit access and by facilitating credit payments between buyers and sellers, Fundbox Pay provides the 21st-century infrastructure to unlock the trapped value in the SMB2B economy.
Caliber Home Loans Launches Mobile Platform (PRNewswire), Rated: A
Caliber Home Loans, Inc. (“Caliber”) today announced the launch of a new mobile platform. Featuring three mobile phone apps customized for three user groups – borrowers, the Caliber sales force and their business associates – all users receive real-time information and the ability to respond from virtually anywhere. Caliber processes data from all three apps on the back end, which enables efficient and effective communication across the loan process.
Home Invest: When Did Investing in Rental Property Online Become Cool? (Digital Journal), Rated: B
When Home Invest entered the picture, that’s when. Home Invest allows you to run your next renovation from your laptop only, never having to walk your rental investment property.
Zopa investor set to enter £94m fintech fund onto London Stock Exchange (Peer2Peer Finance), Rated: AAA
A NEW investment trust dedicated to backing fintech start-ups is set to list on the London Stock Exchange on Tuesday.
Augmentum Fintech has raised £94m through an initial public offering (IPO) alongside a Seedrs crowdfunding round that raised £695,000.
The company’s investment objective is to generate capital growth over the long term through investment in a focused portfolio of fast-growing and/or high potential private financial services technology businesses based predominantly in the UK and wider Europe.
RateSetter sees over 5,000 IFISA accounts opened in first month (Peer2Peer Finance), Rated: AAA
RATESETTER has revealed that over 5,000 Innovative Finance ISA (IFISA) accounts were opened in the first month since the product’s launch.
Ranger Direct Arbitration Proceedings Halted After Bankruptcy Filings (Interactive Investor), Rated: AAA
Ranger Direct Lending Fund PLC said on Monday Princeton Alternative Income Fund LP and Princeton Alternative Funding LLC filed voluntary petitions of bankruptcy last Friday, after arbitration proceedings following a provisional take over of a loan portfolio.
The company said that it was “disappointed” the bankruptcy filing has stopped the first phase of the arbitration, but believes Princeton’s portfolio will be investigated and the investments the fund has made will be compensated.
Starling and TrueLayer integrate for open banking (Finextra), Rated: A
Upstart challengers continue to lead the way in the UK’s open banking space, as API specialist TrueLayer integrates with Starling to enable businesses to access customer account data.
HSBC hopes to launch ‘open banking’ app within months (Financial Times), Rated: B
HSBC will launch a new app that centralises information about customers’ accounts — even those held with rival lenders — as early as next month, becoming the first major UK bank to take advantage of new regulations designed to boost competition and make it easier to switch providers.
The bank has set a target of the first week of May to release the “Connected Money” app, but Stuart Haire, HSBC’s UK head of retail banking and wealth management, told the Financial Times that he was hoping to make it widely available by mid-April.
Direct lending fund beats dividend target, launches new fundraise (AltFiNews), Rated: A
The RM Secured Direct Lending fund is looking to raise new capital through the issuance of new C shares and Zero Preference shares, according to regulatory filings.
Launched back in December 2016 raising £50.6m, the fund has raised another £30m through a C share issue in October 2017 but its managers have said on several occasions that the strategy can be scaled up significantly. The fund has clocked up a 4.2 per cent dividend pay out last year beating its 4 per cent target.
How open APIs are paving the way for PFMs to succeed in Europe (Tearsheet), Rated: A
On Thursday, U.K. personal finance app Emma — which just launched in beta in December — announced a data-sharing agreement with challenger bank Starling Bank. It’s the second such agreement this year after a similar one with challenger bank Monzo in January.
The company’s two key revenue streams are based off interactions with customer data: referral fees from product recommendations and revenue from future financial products it could launch, including premium features within the app, he added.
UBS Hit With IPO Ban In Hong Kong (PYMNTS), Rated: AAA
The publication cited UBS’s annual report, which revealed the 18-month ban from the Hong Kong Securities and Futures Commission. The regulator also fined UBS $119 million following an investigation into its sponsorship of IPOs for companies listing on the Hong Kong Stock Exchange.
According to reports, the ban comes two years after UBS warned it was also facing a suspension of corporate advisory services in Hong Kong. The bank also faced an investigation in Belgium in 2016 for money laundering allegations.
China’s Credit Crunch (The Diplomat), Rated: AAA
China Rapid Finance is one of thousands of private online micro-lending companies in China which, in recent years, have filled a critical gap in the country’s economy by extending credit to members of the lower and lower-middle classes, who traditionally have not had access to borrowing under the state-owned banking system.
Proponents of the payday and peer-to-peer loans offered by these companies assert that they offer borrowers upward financial mobility and the opportunity to achieve the trappings of a middle-class lifestyle. But the rapid proliferation of lending companies in an unregulated market has also led to widespread over-borrowing and a spate of predatory debt collection practices. More and more borrowers began to default on loans, and financial analysts and government regulators both worried that a growing debt bubble at the basement rungs of the Chinese economy might threaten the general stability of the country’s financial system.
Estonian P2P lender Investly Secures £500,000 Through Seedrs Campaign (Crowdfund Insider), Rated: AAA
Estonian peer-to-peer (P2P) lending platform Investly has successfully secured its initial £500,000 funding target through Seedrs. The equity crowdfunding round has so far attracted more than 375 investors.
Sweden’s VIA SMS to offer loans against crypto holdings (Finextra), Rated: A
CryptoLoan is a smart lending product offering Bitcoin-secured online loans that will allow Bitcoin investors to enjoy the value of crypto assets without selling them. The new product initially will be available for Swedish residents only, but the company is planning to open registration for other European countries shortly.
In the first phase of product development, CryptoLoan will offer online loans with Bitcoin collateral only to Swedish residents, but company development plans include expanding to other European markets shortly as well as enriching the list of accepted collateral with adding other cryptocurrencies. Customers from other European countries are welcome to sign up for news and get an exclusive opportunity to be the first to try the product as soon as it is available in the particular country.
BNP Paribas Fortis partners with Swedish fintech Tink for digital banking (AltFiNews), Rated B
Belgian bank BNP Paribas Fortis has announced it will be integrating tech from Swedish firm Tink to power its mobile banking applications.
Scoring with big data (The Edge Markets), Rated: AAA
The use of non-traditional data to churn out credit scores is now expanding beyond the underbanked and unbanked to reach even well-banked individuals who already have a credit score. This pool of data, which is used to discover patterns of users’ repayment behaviour based on their mobile phone and social media usage, is playing an increasingly important role in Asia alongside traditional credit scores.
Based on studies that have drawn a correlation between mobile phone usage and repayment rates, algorithms have been created to predict an individual’s potential for defaults. LenddoEFL is one of the pioneers in this field. It started its operations in the Philippines in 2011 before expanding to other countries with large underbanked populations such as Mexico and Colombia.
Mark Mackenzie, managing director for Asia-Pacific at LenddoEFL, says the company will be announcing a partnership in Malaysia in mid-2018, although he is reluctant to disclose more details.
As pointed out by impact investment firm Omidyar Network in its 2016 Big data, small credit report, it is estimated that individual consumer data production will reach 35 billion terabytes by 2020 — some 44 times the data produced in 2009. It also highlighted a few reports that had observed more than 30 companies globally that are already creating credit scorecards using non-traditional data.
New Business Models and Emerging Technologies are Enabling Fintech Companies to Improve Financial Inclusion (The Financial), Rated: A
The report, Financial Inclusion in the Digital Age, was launched today during Money20/20 Asia in Singapore.
Over two billion unbanked adults in the world, representing 38 percent of all adults globally, do not have access to basic financial services and another 57 percent have basic accounts, but do not have access to diversified investments, low-cost payments systems, core household and business insurance, or credit. Financial Inclusion in the Digital Age explores some of the central frictions that prevent greater financial inclusion and financial well-being, and associated technological innovations that are fostering creative new approaches to mitigating these frictions for individuals and small businesses globally.
This serial entrepreneur wants to disrupt peer-to-peer lending, using blockchain (The Next Web), Rated: B
Most recently, he founded Celsius, the consumer credit blockchain-based startup.
The Celsius opportunity
Celsius gives its members the opportunity to use the coins they currently hold as collateral. With the Celsius Wallet, users can secure loans in dollars whenever they want by offering up their cryptocurrency as collateral. In the future, consumers will also be able to lend their crypto to others and earn interest in the process.
Fintech vs Banking: Which sector controls the future of money? (Small Caps), Rated: AAA
ApplePay is forecast to facilitate US$200 billion in payments by 2021 and already handles US$50 billion annually. Meanwhile, Amazon is preparing to cut the ribbon on its first chequing account feature by partnering with JP Morgan, a leading US bank.
According to the Australian Financial Review, 84% of millennials would consider banking with a tech giant like Google or Apple. This indicates that the average consumer puts more trust in their search engine provider than their internationally-recognised regulated Tier 1 banking institution, which only reaffirms the scale of the problem banks are now facing.