Details Title: Internet 3.0: Decentralize everything Internet 1.0 is HTML websites. Internet 2.0 is a social network and user-created content. Internet 3.0 is the decentralization of everything: decentralization of marketplaces, of resources usage and allocation, etc. Is Internet 3.0 the P2P of everything? Examples of decentralization include: Decentralized exchanges (Ether Delta) Decentralize computing power (Golem) […]
Internet 1.0 is HTML websites.
Internet 2.0 is a social network and user-created content.
Internet 3.0 is the decentralization of everything: decentralization of marketplaces, of resources usage and allocation, etc.
News Comments Today’s main news: OnDeck publishes Q1 financial results. LendingClub to move 350 jobs out of San Francisco to Utah. Salary Finance picks SoFi co-founder Dan Macklin as CEO. Klarna rolls out payment plans for physical stores in UK. HeZhong International sets terms for IPO. India tops China as Asia’s top fintech funding source. Today’s […]
OnDeck reports Q1 2019 financial results. We’ve been seeing OnDeck’s financial situation steadily improving over the last couple of years. Net income in Q1 was $5.9 million. Adjusted net income was $8.3 million while gross revenue wass $110.2 million. It continues to get better.
OnDeck today announced first quarter 2019 net income of $5.9 million, Adjusted Net Income of $8.3 million and gross revenue of $110.2 million.
Net income was $5.9 million, or $0.07 per diluted share, and decreased from the prior quarter’s net income of $14.0 million, 0.18 per diluted share, primarily due to higher loan loss provision, higher operating expenses and an accrual for income taxes. Net income significantly improved from a loss of $1.9 million, or $0.03 per diluted share, in the year-ago period reflecting higher interest income from asset growth.
Adjusted Net Income was $8.3 million, or $0.10 per diluted share, and decreased from $15.9 million, or $0.20 per diluted share, in the prior quarter and increased from $6.4 million, or $0.08 per diluted share, in the year-ago period, reflecting the aforementioned drivers.
Loans grew 3% sequentially and 19% from a year ago to $1.2 billion. Originations were $636 million, down from $658 million in the fourth quarter and up 8% from $591 million in the year-ago quarter. The annual growth was broad-based with increases from both domestic and international operations as well as in both term loan and line of credit offerings. The average term loan size was unchanged sequentially at $53 thousand and was down from $58 thousand a year ago. Unit volume decreased 5% sequentially and increased 15% from the year-ago quarter.
Gross revenue was $110.2 million, essentially unchanged from the prior quarter, and up 22% from the year-ago quarter driven by higher interest income. Loan Yield of 35.6% decreased from 36.6% in the prior quarter reflecting a decline in portfolio performance while pricing was generally stable, and was unchanged from the year-ago quarter.
Interest expense of $11.3 million was essentially unchanged sequentially and decreased from a year ago despite a higher debt balance as borrowing rates improved. The Cost of Funds Rate continued to improve to 5.4%, a 20 basis point sequential improvement and a 140 basis point improvement from the year-ago quarter, as we refinanced debt at lower costs. First quarter financing activity included the extension and upsizing of four debt facilities aggregating to $595 million with improved terms.
Net Interest Margin was 29.5%, down from 30.0% the prior quarter as lower asset yields more than offset the impact from improved borrowing costs. The increase in Net Interest Margin from 27.8% in the year-ago quarter was driven by improved borrowing costs.
Provision for loan losses increased to $43.3 million and the Provision Rate increased to 6.8%. The 15+ Day Delinquency Ratio increased 120 basis points sequentially to 8.7%. Approximately half of the increase was in loans 15-89 days delinquent reflecting credit testing and economic trends, and the balance was in loans 90-days or more delinquent reflecting the change in our collection strategy for late-stage delinquencies. The Net Charge-off Rate increased to 12.2% and remains near the low end of our 12%-14% target range. The Reserve Ratio increased 30 basis points sequentially and 50 basis points from a year ago to 12.5%, reflecting portfolio quality trends and a higher proportion of 90-day plus delinquent loans, which have higher reserves.
Operating expenses increased from the comparable periods to $48.3 million, reflecting growth in the business and investments in our strategic initiatives, primarily technology and analytics. The Efficiency Ratio was 43.8%, up from 41.1% the prior quarter but improved from 49.3% in the year-ago quarter, while our Adjusted Efficiency Ratio* of 41.0% increased from 39.4% in the prior quarter and 40.1% in the year-ago quarter.
Provision for income taxes was $1.7 million compared to zero in 2018 when taxable income was completely offset by operating loss carryforwards. The effective tax rate was 24% and reflected a 21% U.S. federal rate, local and state income taxes, and losses in international subsidiaries.
Total assets increased 5% sequentially and 18% from a year ago to $1.2 billion primarily reflecting loan growth. Cash and cash equivalents was unchanged from year end at $60 million and decreased from $70 million a year ago. Other assets and other liabilities increased over the comparable periods as we recorded a net $28 million right-of-use asset in other assets and an equivalent increase in other liabilities stemming from the adoption of a new lease accounting standard. The 3% sequential increase in debt to $842 million was consistent with the growth in loans.
Total OnDeck stockholders’ equity of $309 million increased $10 million, or 3%, from year end and $45 million, or 17%, from a year ago. Book value per diluted common share outstanding of $3.89 increased from $3.77 at year end and $3.40 a year ago.
OnDeck today announced that Me So Hungry, a food truck business based in California, is its Small Business of the Month for April 2019. Owned by brothers Cory and Mike Ewing, Me So Hungry is the first food truck business to receive the OnDeck recognition.
LendingTree today released its study ranking car brands by their buyers’ average credit score. Tesla buyers have the highest with a score of 740. Chrysler buyers have the lowest scores, with an average score of 656.
Luxury brand buyers occupied the top spots. Tesla, Porsche and Lexus lead with average credit scores of 740, 727 and 699 respectively.
Chrysler buyers had the lowest average credit score at 656, but it’s worth noting that this still falls in the “fair” range. It’s also right around the average credit score for all used car purchases.
For most auto makes, a credit score in the good range (670-739) was enough to be approved for an auto loan. Of the 30 different makes analyzed, 22 had an average approved credit score fall into that range
In a January 2019 newsletter, DBRS discussed the Evolution of the Shifting Interest Structure in residential mortgage-backed security (RMBS) transactions. Another common structure in RMBS transactions is the sequential pay structure.
The sequential pay structure is one of the most elementary and straight-forward structures in RMBS. Post-crisis, the sequential pay structure and its variations have been widely used in seasoned re-performing loan (RPL) and non-Qualified Mortgage (QM) transactions. Such structure largely benefits the senior classes in payment priorities over the subordinates.
Finitive (www.finitive.com), a financial technology platform providing institutional investors with direct access to alternative lending investments, announced today that the firm raised approximately $6 million in a series seed financing. The round was led by Atomic Labs with participation from Ninepoint Partners – one of Canada’s leading private credit fund managers – as well as other investors and members of the management team.
Built Technologies, a construction lending fintech platform, has raised $55 million in funding through Goldman Sachs and a handful of investors including Regions Financial, the company said Monday.
The Nashville, Tenn., company finished $31 million in series B funding through Goldman Sachs with the remainder amount raised by venture capitalists and Regions. The funding will help the 5-year-old fintech invest in research and development while building out its national client base, according to the firm’s CEO and co-founder, Chase Gilbert.
Novo, a challenger institution in the field of small-business banking, and the no-code platform provider Unqork held Series A funding rounds.
The online lender Upstart, which raised $50 million in a Series D round, says it can both lower loan loss rate and increase the number of customers underwritten.
Extend is building a platform to distribute digital cards by partnering with payment networks and card issuers. Another startup, MotoRefi, claims it can save consumers an average of $100 a month on vehicle refinancing by connecting them to trusted credit unions and community banks.
There are several companies in this space doing great work in creating high quality products: Even, PayActiv, TrueConnect and HoneyBee all offer options to employers that help their employees who need access to quick financing. Even has a groundbreaking deal with Walmart that has resulted in 300,000 employees using their pay advance app.
MoneyLion has four million users and they are focused on ending financial stress for all Americans by taking a holistic approach and being proactive in providing help. Dave helps the 30 million people who are hit by overdraft fees each year by advancing $75 from their next paycheck. Tally is a fully automated debt manager to help consumers get out of credit card debt.
Just ask Colin Walsh, the co-founder and CEO of Varo Money, who began discussions with regulators three years ago to charter a national bank. Though the fintech won approval from the Office of the Comptroller of the Currency last year to move forward, it is still waiting on an answer from the Federal Deposit Insurance Corp.
Cross River, a bank that delivers advanced financial and compliance products/services to the fintech industry, announced on Monday it has teamed up with RS2 to offer a new digital banking experience. Through the collaboration, Cross River and RS2 will provide merchants with a global payment experience for processing credit and debit card transactions, as well as digital banking for their workers and consumers.
Financial technology company Blend began building its platform by helping traditional institutions digitize mortgages, working with firms like Wells Fargo, US Bank and some regional banks and credit unions.
New York has created a statewide financial protection division that will focus solely on corporate compliance and consumer issues, following similar efforts by New Jersey and Pennsylvania.
The New York State Department of Financial Services on Monday named Katherine A. Lemire, a former assistant U.S. attorney, to be executive deputy superintendent of the agency’s newly created Consumer Protection and Financial Enforcement division.
A bankrupt payday lender will have to pay a $7 civil penalty to the Consumer Financial Protection Bureau over nearly $50 million in loans it issued in states where they were not legal, according to bankruptcy court filings.
Judge Brian Morris of the U.S. District Court for the District of Montana granted a stay in the CFPB’s litigation against Think Finance LLC on April 30, pending activity in the bankruptcy court.
Online travel apps CheapOair and OneTravel will soon operate a new feature that allows customers to pay for their airfare in instalments. It means that customers don’t have to pay for the full cost of their flight upfront and can instead spread the cost out into more manageable payments that suit individual budgets, choosing between three-, six- or 12-month instalments. Fareportal, the company that operates CheapOair and OneTravel, said its partnering with online lender Affirm to introduce the new feature.
For example, a $300 (£230) purchase at 10% APR spread out over three months would cost $101.69 (£78) per month.
A recent study by the U.S. Chamber of Commerce revealed that Mississippi, Nebraska and Maine are the three states where small to medium businesses have grown the most year over year. This is according to sales in Amazon stores, specifically. More than half of the items sold in Amazon stores are from small to medium businesses.
The top 10 fastest-growing states breaks down as follows:
The third-party physical product sales, which is what gets sold on Amazon stores primarily, passed $160 billion in 2018. Nearly 20% of rural small businesses generate 80% of their revenue by selling products online.
Unlocking the digital potential for rural small businesses across the country could add $47 billion to the U.S. GDP per year.
Increased adoption could grow annual revenues of rural small businesses by more than 21% over the next three years – the equivalent of $84.5 billion per year – with states in the South seeing the greatest benefit
Online tools and technology have the highest potential impact on rural small businesses with revenue under $100,000
Lendio has announced the opening of a new Lendio franchise in Erie. Through the Lendio franchise program, John Fee, a local business owner himself, will help other entrepreneurs in the community apply for loans, review their options and secure funding, easing their financial hurdles.
Today Fundbox announced that the sales technology leader Brandwise and Fundbox have entered into an exclusive agreement whereas Fundbox will be Brandwise’s business-to-business (B2B) trade financing partner. Brandwise will leverage Fundbox’s business capital platform to power financing terms within the Brandwise ecosystem of 250,000 retailers.
White Oak Commercial Finance, LLC (“White Oak”), an affiliate of White Oak Global Advisors, LLC, announced today the appointment of Michael Goletz to Director of ABL Originations, covering the Midwest U.S. region. Mr. Goletz joins from WNB Specialty Finance, a division of Woodforest National Bank, where he was responsible for sourcing and structuring asset-based lending debt facilities ranging from $5 million to $25 million.
Urjanet, the global leader in utility data aggregation, today announced the winners of its 2019 SPARK Awards: AvidXchange, Bright Power, SimpleBills and Guppy – four companies at the forefront of using utility bill data to better serve their customers, community partners, and the environment.
Most Innovative Use of Utility Data:SimpleBills. In addition to utility bill management, residents can use SimpleBills to report their utility bill payment history to credit bureaus through a unique opt-in service.
Leader in Financial Inclusion: Guppy. Through its partnership with Urjanet to acquire user-permissioned utility data, Guppy enables greater access to financial services for consumers, as well as background and ID checks for businesses, all while keeping the end user in control of their own data.
EUROPEAN Risk Capital (ERG) has launched a £1bn multi-client debt programme for UK-based, mid-market non-bank lenders.
The programme – titled ‘CreditStream’ – has a minimum deal target size of £10m, making it primarily suited to mid-sized lenders including bridging and development lenders, second charge mortgagees, consumer and SME funders, auto/equipment finance companies, and fintech lenders. The maximum deal size can be in excess of £100m.
Copious Capital’s launch product is Pay Me Today, described as an “antidote to payday lending,” which lets companies approve and arrange salary advances for staff who need access to money before payday.
Lendy’s operations manager Pamela Guillamón owns between 25 per cent and 50 per cent of Pay Me Today, according to Companies House documents.
Fund manager Neil Woodford has followed his £88 million sale of his stake in peer-to-peer lending trust P2P Global Investments (P2P) by offloading his entire £40 million stake in rival VPC Specialty Lending (VSLV).
Relendex is “very keen” to get behind modular housing, according to its chief operating officer Max Lehrain. Development Finance Today recently reported on the difficulties lenders faced when funding modular builds, however Fintan explained some ways Relendex was able to feel comfortable with supporting such schemes.
The London-based challenger bank charges 15 per cent equivalent annual rate for arranged overdrafts.
Charges £2 a month for unarranged overdrafts as well as the standard rate of interest. Will waive charges if your monthly overdraft interest comes to less than 10p for the month. Operates a monthly fee cap of £2.
Customers with arranged overdrafts are charges a 50p charge every day your account is overdrawn by more than £20, up to a maximum charge of £15.50 a month.
The digital lender, launched by Clydesdale and Yorkshire Banks in 2016, charges a 12.5 per cent equivalent annual rate on arranged overdrafts. On top of this it charges a fee of £6 a month. The bank charges £6 a day for unarranged overdrafts.
The Berlin-based app-only bank, with more than 2 million customers in 24 countries, said it will launch an overdraft facility for its 200,000 UK account holders “soon.”
Foxstone (www.foxstone.ch) announces the acquisition, in crowdinvestment, of a residential building in Concise (VD) by 55 investors, of all ages and all backgrounds. They acquired a share of the building in co-ownership with a minimum amount of CHF 50’000.-
The total amount raised in co-ownership was CHF 3,250,000 for an acquisition price of the building of CHF 6,800,000, the remaining balance being financed by a mortgage. The net return on equity is 6.53%, which represents an annual return of CHF 3,265 for a CHF 50’000 investment. The Régie du Rhône takes care of the day-to-day management of the building.
News Comments Today’s main news: OCC must tap breaks on FinTech charter plans. White House publishes framework for FinTech. Today’s main analysis: The key to successful P2P investing. Today’s thought-provoking articles: Shanghai office vacancies rise. Did India’s online lenders reap the benefit of a note ban? The rise of digital lending in Indonesia. United States PeerIQ highlights […]
The key to successful P2P loan investing. GP: ” Great data and info from Funding Circle. Worth a read.” AT: “The interesting thing here are the recommended tools for P2P investors, especially the advice for competing against institutional investors. Lenders and third-party tool suppliers can use this list to build better investment tools for P2P loan investors.”
OCC must tap breaks on FinTech charter plans. AT: “I certainly think the OCC should be deliberative in understanding the industry before regulating it, but it seems that opening the door to charters could foster innovation and encourage modernization. The video interview with Charles Moldow is very insightful, particularly where he praises the Obama Administration for their forward thinking and support of FinTech.
White House publishes framework for FinTech. AT: “It is interesting that this happened on the administration’s last week in office. I can’t help but wonder how it will be taken by the incoming president and his team.”
Weekly Industry Update (Part 1): January 14, 2017 (PeerIQ Email), Rated: AAA
The FASB Fair Value Hierarchy in ASC 820 categorizes assets across three levels based on inputs to valuation techniques used:
Level 1 assets have actively traded markets; and valuation inputs are direct quoted prices for identical assets or liabilities.
Level 2 assets include valuation inputs other than quoted prices that are observable for the asset, either directly or indirectly.
Level 3 is the most unobservable level and requires many assumptions and estimates. Since a two-way market is not available, fair value is often based on models in which there are few, if any, external observations.
Under ASC 820 guidelines, the fair value of an asset reflects the exit price that would occur in an orderly market.
Current Alternative Pricing and Valuation Approach
Asset managers employ a number of informal approaches to valuation – several of which have limitations.
Amortized Cost: This approach values a loan at its outstanding balance at purchase price plus accrued interest. It may overstate loan price during the early period of the loan’s life, as it does not account for loan status (e.g., delinquency).
Haircut Matrix: Loans are valued at outstanding balance plus accrued interest, with haircuts applied to loans based on their stage in the delinquency queue. The size of the haircut is calibrated to historical loan performance. The haircut-matrix approach improves on an amortized cost approach by incorporating loan status, yet still suffers from major deficiencies ignoring A) changes in a borrower’s credit profile at loan level, B) seasonality of loans, and C) credit spread and interest rate risk premium, and D) a forward-looking view on cashflows.
Loan Loss Provisions: Banks holding loans in the hold-to-maturity book create a provision or accrued liability based on expected losses on the pool.
Asset managers can no longer rely on informal processes to value illiquid securities. A consistent and transparent valuation framework is necessary to promote investor confidence, market integrity, improve comparability of returns, and meet fiduciary and regulatory obligations.
P2P loans have less volatility, a low correlation, and yield much higher returns compared to other fixed-yield investments. Median adjusted returns average 7% on a 36-month loan.
The P2P lending nature means that you must build a portfolio of hundreds of loans where each loan is a fraction of the total portfolio.
Lending Club, Prosper, and Funding Circle have all released statistics that show diversified portfolios give the greatest return and minimize risk.
Prosper also has statistics that show since July 2009, every portfolio of 100 notes or more has had positive returns.
With the recent influx of institutional money, MPL has become much more competitive. The best-quality loans can be snapped up within minutes of being posted.
Loan filtering can help investors consistently outperform the market. Based on back testing from NSR, the most effective filters are: loan grade, credit inquiries in the last six months, and loan purpose.
In the next table, you see how the annual income filter can affect returns on D- to HR-rated loans on Prosper.
Another great tool is LendingRobot, a registered investment advisor offering fully automated MPL investing for individuals.
The Office of the Comptroller of Currency’s desire to add financial technology firms to its regulatory repertoire, if implemented without a sufficient foundation, could stall the U.S. financial system’s path to innovation and set it back by decades.
Currently, FinTech companies must work with governments on the state level to serve their customers and stay in business. Seeing how operating on a state-by-state basis could cause discrepancies, it seems putting all FinTech companies under the supervision of one federal regulator, as the OCC is suggesting, would streamline rulemakings and enforcement.
The goal of modernizing the OCC is well received, but the agency must take a more deliberative approach before deciding the future of a very complex and still developing industry.
From what we know right now, unless the OCC takes time to fully understand and address the complexities of the FinTech sector, as well as its current weaknesses and strengths, their hasty decision to bring FinTech companies under the same umbrella as banks could trigger unintended consequences for consumers and the U.S. financial system – something the U.S. economy cannot afford.
The White House has released a whitepaper, A Framework for FinTech, which “expresses the forward-leaning posture of this Administration to innovation and entrepreneurship, generally, and FinTech in particular.”
The document lays out 10 principles, which, for example, encourage stakeholders to start with the consumer in mind, promote safe financial inclusion and financial health, build in cybersecurity, data security and privacy protections and protect financial security.
The companies increasingly are joining lobbying groups that want laws changed to make it easier for them to attract new borrowers and investors as they look for ways to grow and limit future regulatory scrutiny.
The ability of the lenders to get what they want in Washington likely will have a significant impact on the future of the industry.
The desire to influence U.S. policy comes as regulators and lawmakers step up their scrutiny of marketplace lending. Online U.S. loan volume is expected to reach $120 billion by the end of the decade, up from $20 billion in 2015, according to Morgan Stanley research.
The road hasn’t always been easy. While a handful of companies have grown impressively, many others have fallen by the wayside, as many investors and real estate companies have been cautious in pursuing real estate crowdfunding. Those without the requisite experience in tech and real estate have struggled to find scale. Still, the young industry continues to grow impressively year over year.
While growth slowed somewhat in 2016 (likely in response to top-of-market trepidation) the 40% figure is still robust, and the U.S. accounted for a large share of the $1bn of overall industry growth this year.
The trend of division and specialization among real estate crowdfunding platforms is likely to continue, with the potential for consolidation in the advent of a dip in the market.
The Office of the Comptroller of the Currency is still accepting comments on the proposed Fintech Charter for financial firms looking to operate with a federal charter. The deadline was initially set for January 15th but one report says the OCC has pushed the date back to January 17th to accommodate the long weekend.
The Fintech Charter has the potential to be a powerful tool for aspiring innovative financial firms that seek to compete on the national level. But opposition is mounting from traditional financial firms that have become comfortable with the sizeable regulatory moat that has blocked most competition.
Fitch Ratings posited that a Fintech Charter could harm agility and add cost to innovators. Moody’s took the other side of the argument stating a Fintech charter may aid marketplace lending platforms.
A prominent lending and fintech conference is offering mini conferences to people interested in leaning more about the space.
LendIt Forums are free learning events for asset managers, real estate investors, financial advisors, commercial bankers, lending innovators, and venture capitalists.
The first LendIt Forum, Ask Us About…Marketplace Lending 101takes place on Wed., Jan. 18 at 2 pm ET. Participants can ask questions to LendIt chairman and CEO Peter Rention and Crowdfund Insider founder and CEO Andrew Dix.
Nick Ogden, the founder of payments provider WorldPay, is gearing up to launch a new challenger bank in the UK after receiving approval by financial regulators, according to a Financial Times report today.
Ogden is planning to launch ClearBank in the coming months and will serve as chairman, according to filings with the Financial Conduct Authority. Former Royal Bank of Scotland senior manager Charles McManus will be chief executive.
“We expect a second explosion in the number of people lending and the amount lent in 2017, due to IF Isas [Innovative Finance Isas],” says Neil Faulkner, co-founder and managing director.
But while returns of “3%-7%,” and even “12%, [which] have been possible through short-term, asset back loans,” 4th Way expects to see these rates fall in 2017, “benefiting borrowers at the expense of lenders”.
Apparently, the slowdown and consolidation of the Chinese peer to peer lending industry is having an impact on the real estate market. Colliers International is reporting that Shanghai Grade A office space experienced a rise in average vacancy due to the widespread withdrawal from peer to peer lending platforms.
Combined with increasing inventory, office space in Shanghai experienced the highest full year supply in five years. The drop in demand also constrained the annual rental growth rate. The correction was said to be strongest in Puxi, where P2P tenants have clustered in the past two years.
Overall, the Shanghai office sector remained the most active investment market in China during 2016. Thirty-eight large-scale transactions totaling more than RMB 70.6 billion were completed during the year.
Today with stricter rules coming and Chinese officials becoming more vigilant against bogus online lenders, the industry is finally slowing. One of the rules requires online lenders to work with custodians for investor funds. According to an article in China News, at the end of 2016, 184 of the 2300 P2P lenders had established such a relationship. Another 122 were in the process of signing a custodial agreement but the majority still have not complied with the law. According to an article in China News, transaction volume dropped by almost half in 2016.
China Rapid Finance Limited (“CRF” or “the company”), China’s largest consumer lending marketplace in terms of number of loans facilitated, added to its recent haul of awards and recognitions by being named to Hurun Report’s “2017 China New Finance Top 50.”
Online credit providers such as pay day loan companies and peer to peer (P2P) lending platforms are growing at a rapid pace and are reaching, where formal finance is unable to reach. While three years ago there were only two P2P lending platforms in the country, as of April 2016 the number had risen to 30, as notified by the RBI.
These platforms are reporting healthy double digit growth rates in disbursals as well as registrations month after month. The monthly average cumulative lending of P2P lenders has shot up from Rs 20-30 lakh to Rs 5-6 crore in just 3 years’ time.
However, this is bright side of the story. While, number of loan seekers shot up, job losses and delay in salary payments have been the cause of concern for the lenders. Post the event, lenders have become cautious of the credibility of the borrowers, who might come across more hurdles before getting a loan.
Digital lending firms anticipate rapid growth this year, banking on a new regulation on information technology-based lending by the Financial Services Authority, or OJK, that will give these companies a firm legal basis to operate in Indonesia.
Lending through services such as Investree, Kredivo, UangTeman and Doctor Rupiah to name a few, could reach Rp 1 trillion ($75 million) this year, which represents a nearly seven-fold increase from last year according to an OJK estimation. While this amount is still small compared to the nearly Rp 4,200 trillion in outstanding loans held by conventional banks, the authority sees potential in these digital services that could fill a gap in small business financing, currently under-served by banks and financing companies.
By regulating how digital firms handle and store customers’ data, the OJK addresses confidentiality issues that are central to any lending business.
Here’s a simple rule: whatever you think the phrase “peer-to-peer lending” means, a peer-to-peer lender somewhere has done the exact opposite.
Continue reading: Sun, sand and leveraged peer-to-peer lending
Here's a simple rule: whatever you think the phrase "peer-to-peer lending" means, a peer-to-peer lender somewhere has done the exact opposite.
Ratesetter has changed its model to deal with fragility in its fund designed to protect investors from losses. In the process, it has revealed just how bank like some “peer-to-peer” lenders have become
Continue reading: Wake me up when online lenders a…
Ratesetter has changed its model to deal with fragility in its fund designed to protect investors from losses. In the process, it has revealed just how bank like some "peer-to-peer" lenders have become
A new report on UK “peer-to-peer” lending predicts, among other things, a greater reliance on open ended funds. Which sounds like it’ll work out just fine
Continue reading: P2P will destroy the world, and soon
A new report on UK "peer-to-peer" lending predicts, among other things, a greater reliance on open ended funds. Which sounds like it'll work out just fine
Last year, Chinese gaming billionaire Zhou Yahui invested £22m in LendInvest, a UK online lender specialising in the property market. The Series A investment from his firm Beijing Kunlun Technology was intended to help the lender grow faster ahead of a planned stock market float in 2016.
Last year, Chinese gaming billionaire Zhou Yahui invested £22m in LendInvest, a UK online lender specialising in the property market. The Series A investment from his firm Beijing Kunlun Technology was intended to help the lender grow faster ahead of a planned stock market float in 2016.