Friday February 2 2018, Daily News Digest

Groundfloor repayment timelines

News Comments Today’s main news: Alibaba acquires 33% stake in Ant Financial. MPL issuance grew by 100% year-over-year in Q4 2017. RateSetter prepares investors for IFISA launch. Bitbond launches alt investment fund with 1741 Fund Management. Today’s main analysis: An empirical analysis of Groundfloor’s loan vintages. International P2P lending volumes for January 2018. Today’s thought-provoking articles: The effect of […]

Groundfloor repayment timelines

News Comments

United States

United Kingdom

China

European Union

International

India

Asia

Africa

News Summary

United States

PeerIQ 4Q17 securitization tracker shows growth of marketplace lending industry (Bankless Times), Rated: AAA

Ten marketplace lending securitizations priced this quarter totaled $4.4 billion, a record for quarterly issuance, head of research Ashish Dole said. That is 100 per cent growth in issuance over the same quarter in 2016. Cumulative issuance is now $28.2 billion from 106 deals.

THE EFFECT OF ORIGINATION GROWTH ON QUALITY: AN EMPIRICAL ANALYSIS OF LOAN VINTAGES (Groundfloor), Rated: AAA

As we addressed those limitations by qualifying our offering with the SEC and raising our first round of venture capital funding in 2015, new critics emerged to say that while we might be able to lend in a local market at a small scale, we could never lend nationwide in very large numbers without compromising loan quality. In 2016, we set out to build a lending operations team (including risk management, underwriting, and asset management) with the professional expertise, policies, tools and processes to do just that. Our aim was to improve loan quality and volume simultaneously, well beyond our home market.

How have we done?

Vintages

Vintage A is composed of 88 relatively small, mostly local Atlanta-area loans originated during Groundfloor’s formative years, a period of 30 months (2.5 years).

Vintage B, by contrast, is composed of 222 loans that were originated following our addition and application of greater lending expertise. This vintage is more than 2.5X larger, and was originated over the course of 24 months (two years, a 20% shorter period of time).

Source: Groundfloor

Performance Measure #2: Timeliness of Repayment

For each vintage, we analyzed when loans repaid in relation to their maturity dates. Here is a comparison of the timeliness of repayment for Vintage A and Vintage B, with percentages provided to break down the share of repaid loans.

Source: Groundfloor

Here is a snapshot of the situation as of December 31, 2017:

Source: Groundfloor

Juniper Square raises $ 6M for its real estate investment platform (TechCrunch), Rated: A

Juniper Square, which today announced it has raised a $6 million Series A round led by Felicis Ventures, is tackling the real estate investment side by helping investment managers raise and manage outside capital for their projects.

Today’s funding round brings the company’s total funding to date to $8 million; the company plans to use the new influx of capital to accelerate its product development and grow its team to better service its user base.

Overstock Introduces Robo-Advising Investment Platform tZERO Advisors (Crowdfund Insider), Rated: A

Overstock.com, Inc. (NASDAQ:OSTK) has introduced a digitally-driven investment platform (aka robo-advising), presented by tZERO Advisors. The service is accessible to investors through the online retailer’s FinanceHub. For a monthly fee of $9.95, investors can either select from a group of pre-established Adaptive Dynamic Portfolios matched to their investment profiles, or create a customized blend of these portfolios.

States mull loosening of laws in response to CFPB payday rule (American Banker), Rated: A

The Consumer Financial Protection Bureau’s payday loan rule was supposed to reduce the number of Americans who get mired in debt they can’t afford.

But in an ironic twist, the 4-month-old rule is being used in state legislatures to justify the creation of a new category of loans that would be even costlier for many borrowers.

One such bill in Florida has zipped through three legislative committees in recent weeks. The Indiana House of Representatives voted to pass a similar measure Wednesday.

Bradley Strock, PayPal CIO, Joins Elevate’s Board of Directors (BusinessWire), Rated: A

Elevate Credit, Inc. (“Elevate”), a leading tech-enabled provider of innovative and responsible online credit solutions for non-prime consumers, today announced that Bradley Strock has joined its Board of Directors, effective immediately.

Mr. Strock joined PayPal in 2011 and since 2014 has been its Chief Information Officer.

Chase is using memes and GIFs to bring millennials to QuickPay (Tearsheet), Rated: A

JPMorgan is focusing its Zelle efforts on millennials, despite the platform outwardly claiming it’s not targeting that age group.

Chase will soon roll out an animated GIF campaign on social media as the second part of its Quick Pay with Zelle campaign.

With Chase QuickPay with Zelle, they can set recurring payments so you never wait for rent again. The best part? It’s already in your Chase Mobile app.  href="https://t.co/tQyDUm75Hf">pic.twitter.com/tQyDUm75Hf

In 2017 Chase saw a nearly 50 percent increase in p-to-p transactions — which includes all transactions before and after it joined the Zelle network — and a 15 percent increase in enrollments.

On Monday Zelle reported it transacted $75 billion across its member banks in 2017. Venmo processed $30 billion in the same period.

Subcommittee hearing looks at challenges, opportunities with fintech (Financial Regulation News), Rated: A

The House Subcommittee on Financial Institutions and Consumer Credit convened this week to discuss opportunities and challenges in the financial technology, or fintech, market.

“From online lending and payment companies to blockchain and cryptocurrencies, advances in financial technology are changing the way financial markets work and how consumers access credit,” Subcommittee Chairman Blaine Luetkemeyer (R-MO) said.

“Fintech lenders present an opportunity to expand credit access and quality. Although such lenders should be subject to appropriate regulation, the regulation must work with the fundamental economic reality of the market,” said Brian Knight, director of the program on financial regulation and senior research fellow at Mercatus Center, George Mason University. “Ensuring that regulations do not burden fintech lenders more heavily than their bank competitors are burdened and that the validity of their loans is not in doubt are important steps toward helping realize the promises of innovation.”

EquityBuild Launches New Website Showcasing Their New Revolutionary Hybrid Capital Fund (PR Web), Rated: A

EquityBuild announces the launch of their completely new website and newest investment product EquityBuild Fund.This site is dedicated to the company’s new revolutionary hybrid capital fund only available on their platform.

How to boost your monthly income: The easy way (Augusta Free Press), Rated: A

Safe investments are a real thing, and there cannot be a more secure way of investing in interest rates at a lending club. However, the alternative for which you must search is a peer-to-peer lending platform, where investors finance loans and then get interest rates as high as 10% on a yearly basis.  For instance, you could start with an initial deposit of $2,500, as the starting investment rate is 25%.

Cryptocurrency passive income is a thing – And you should try it

  • Decred – Decred is a self-funded crypto platform, where investors have a share of the platform’s currency even at the very beginning.
  • AKR – is a mining platform which offers each investor, even at the beginning of their journey a “delegated proof of work”. It works literally all around the clock and you virtually have to put NO EFFORTS.
  • NEO – another passive crypto income for those searching to round a bit their monthly income. The network works on “Gas” – this is the name of this small cryptocurrency.

Square shares climb after the payments company launches bitcoin trading for most users (CNBC), Rated: B

Nearly all users of Square‘s Cash payments app can now buy and sell bitcoin on the platform, CEO Jack Dorsey announced Wednesday.

The service will not be available for customers in New York state, Georgia, Wyoming and Hawaii, according to Square’s website.

LendingPoint Names Antonio Martino as New Chief Financial Officer (BusinessWire), Rated: B

LendingPoint, the online balance sheet lender and provider of the LoanHero point of sale financing platform, today announced that Antonio Martino has joined the company as its Chief Financial Officer (CFO).

Martino is a financial industry leader with more than 25 years of experience spanning 10 countries. Most recently he was Director, Citi Corporate Treasury, where he had global oversight roles within the asset liability management and balance sheet management processes for Citibank, N.A. Previously, Martino served as CFO of Citibank in Turkey and across Central Europe, with roles in Istanbul and Budapest, Hungary. In addition, Martino was Finance Director of Citibank Poland’s consumer banking division in Poland and Vice President of Finance within Citibank credit card business in Canada. Martino started his career in public accounting with Ernst & Young.

United Kingdom

RateSetter starts preparing investors for IFISA launch (P2P Finance News), Rated: AAA

RATESETTER has begun emailing existing investors to get them ready for the launch of its Innovative Finance ISA (IFISA) this month.

The peer-to-peer lender sent messages to its customers on Thursday revealing that the IFISA would be made available to investors in the order they opened accounts.

Innovative Isas finally take off (MoneyWeek), Rated: A

The new innovative finance individual savings accounts (IF Isas) raised just £17m in the 2016-2017 tax year, their first year of operation, but the figure for 2017-2018 looks set to be a lot higher, says HM Revenue & Customs. IF Isas enable savers to use their annual Isa allowance to invest through peer-to-peer (P2P) lending platforms, which match investors looking for income with borrowers who need a loan.

In all, more than 30 platforms now offer the product, and providers report high demand – so much so that the market’s potential size in 2017/2018 may be limited only by the platforms’ ability to source enough borrowers who want to take out loans from investors wanting to lend.

Folk2Folk launches local lending movement (Bridging&Commercial), Rated: A

The local lending movement has been created by the peer-to-peer lending platform to build and sustain socially and financially successful rural communities.

Folk2Folk intends to incorporate this ethos into its behaviour and activity.

The movement involves the participation and support of the platform’s lenders and borrowers, legal and accountancy partners, local authorities, MPs, chambers of commerce, local enterprise partnerships, surveyors, land agents, local cooperatives, leisure and tourism platforms, interest groups, community associations, charities, business groups and banks.

Novae GC joins payday lender Wonga after company takeover (The Lawyer), Rated: A

Payday loan company Wonga has hired a new general counsel following the departure of Bill Flynn after nearly three years.

Goji celebrates first year of investment bond (Bridging&Commercial), Rated: B

Goji has reported a strong first year for its diversified lending bond, which has yielded a net return of 6% to investors.

The Business Funding Show closes the funding knowledge gap (KCW Today), Rated: B

The only funding exhibition in the UK and EU is returning to London for its third year. The Business Funding Show will be held on 22nd February 2018 at East Wintergarden and will connect entrepreneurs to top funders and service providers through conference talks,  an exhibitor showcase, and one-to-one investment clinics.

BFS aims to bring awareness to entrepreneurs about alternative funding options, from crowdfunding and peer-to-peer lending to business angels and venture capital. The event saw a 33% increase in attendance in 2017, a figure the organisers aim to surpass this year.

China

Alibaba nabs 33% stake in Alipay operator A (IT Brief), Rated: AAA

With Alipay and Alipay Wallet under its umbrella, the company also runs 4 other major businesses: Yu’e Bao, Zhao Cai Bao, Ant Credit, and MYbank, a cloud based online lender the company was in the middle of establishing at the time of the name change.

Now, Alibaba Group Holdings has announced it will strengthen its strategic relationship with Ant Financial by acquiring a 33% equity stake in the company. The parties have agreed to certain amendments to their 2014 transaction agreements to facilitate the transaction.

Under the terms of the amended agreements, Alibaba will acquire newly-issued equity from Ant Financial in exchange for certain intellectual property rights owned by Alibaba exclusively related to Ant Financial.

Alibaba-backed online lender MYbank owes cost-savings to home-made tech (The Star), Rated: A

MYbank, a Chinese online lender that is an offshoot of Alibaba Group Holding Ltd, has built its business on doing things cheaply.

The bank says it can deliver loans to borrowers across China at lightning speeds for up to 1,000 times less than it would cost brick-and-mortar banks to do so.

MYbank employs about 300 people, half of whom are technicians.

As a result, the cost of approving a small business loan can be as little as 2 yuan (RM1.24), compared to at least 2,000 yuan (RM1,239) at a traditional bank, according to data provided by the bank. MYbank has built its technological infrastructure with Chinese-made technology, avoiding more expensive products from companies like IBM Corp, Oracle Corp and Dell EMC, which form the network backbone for much of China’s finance sector, Huang said.

MYbank is one of a handful of Chinese lenders – along with Tencent Holdings Ltd’s WeBank – that are founded completely with private investment. Since mid-2015, MYbank has served more than 7 million small business owners, Huang said. The bank is seeking to expand its network to include China’s 70 million to 100 million small businesses under-served by traditional financial institutions.

The bank’s net interest margin – around 3% to 5% – is higher than those for China’s major banks, which target large state companies, Huang said.

 

European Union

Bitbond Launches Alternative Investment Fund in Partnership with 1741 Fund Management (Finovate), Rated: AAA

Peer-to-peer small business financing platform Bitbond has entered into a partnership with 1741 Fund Management to launch an alternative investment fund.

European Alternative Finance Market Expanded by 41% in 2016, P2P Consumer Lending Leads (Crowdfund Insider), Rated: AAA

The European online alternative finance market grew by 41 per cent to 7.7 billion euros in 2016, according to the 3rd annual European Alternative Finance Industry Benchmarking Report by the Cambridge Centre for Alternative Finance. The report entitled “Expanding Horizons” indicates that online alternative finance showed growth in new areas across Europe.

For country-specific numbers, click here.

Among other findings of the report:

• Institutionalization grew considerably from 2015 to 2016, with 45 per cent of peer-to-peer consumer lending and 29 per cent of peer-to-peer business lending funded by institutions such as banks, pension funds and asset management firms.

• Online alternative finance for business continued to grow, providing 1.14 billion euros to more than 14,000 businesses throughout Europe. Debt models including peer-to-peer business lending accounted for 67 per cent of business finance, while equity models accounted for 27 per cent.

• Estonia ranked first for alternative finance volume per capita for the second year in a row, at 63 euros, followed by Monaco (51 euros) and Georgia (28 euros).

• Countries in which platforms believe that existing regulations are adequate are more likely to show higher levels of alternative finance per capita and a larger share of business funding.

• While overall perceptions of regulatory adequacy are divided, the greatest discontent concerns laws governing equity-based crowdfunding

• Two types of risk are of greatest concern to European alternative finance platforms: a potential collapse of a well-known platform due to malpractice, and fraud involving one or more high-profile transactions.

Bob Diamond to join board of Corrado Passera acquisition vehicle (Financial Times), Rated: A

Bob Diamond plans to join the board of a €600m acquisition vehicle chaired by Corrado Passera, which listed on Thursday, bringing together two of Europe’s best known ex-bankers to buy an Italian lender to small businesses.

After the cash shell’s initial public offering on Thursday, Mr Passera told reporters in Milan that it had shortlisted five small Italian lenders and would complete the acquisition of one of them for up to €60m — allowing it to become a bank.

The plan is to turn the small bank into an online lender to small businesses and a merchant bank, which will buy non-performing loans from other banks and parcel them up before selling them on to institutional investors.

 

Italy’s SPAXS shortlists five banks in acquisition hunt (Reuters), Rated: A

Saddled with one quarter of Europe’s nearly $1 trillion debt pile, which has rattled investor confidence in them, Italian banks have become more selective in their lending and compete to lend to low-risk firms, squeezing profit margins, while many small businesses find it hard to access funds.

Shares in SPAXS, which will use up to 10 percent of the amount raised in the IPO for the acquisition, were 4.04 percent higher at 1038 GMT on their market debut on the alternative investment segment of the Milan bourse.

Google and Facebook set off a second wave of fintech talent (Financial Times), Rated: A

One cloud on the horizon, however, is Brexit. The UK’s departure from the EU could make it harder for Irish fintechs to scale up quickly through expansion into the neighbouring British market, which many of them use as an early testing ground.

A good example of this is Plynk, a payment and messaging app aimed at young people, which was co-founded by Charles Dowd and Clive Foley in 2015, a year after Mr Dowd left Facebook. Based in the Camden Street area, Plynk last year raised €25m from investors led by Swiss Privée.

Another start-up that aims to build a global presence from its Irish base is TransferMate, which has handled more than $10bn of cross-border payments for businesses since it set up in 2010. Last year it raised €30m from Allied Irish Banks, with plans to offer the fintech’s software to all the bank’s clients.

By the end of this year, TransferMate expects to derive as much as half its revenue coming from clients in the US, where it has been approved by all 50 states. A third of its revenue is expected to come from European clients and a fifth from the rest of the world.

The most successful product of Ireland’s fintech scene is actually based in San Francisco. Stripe, which provides payment services to businesses, was founded by Irish brothers Patrick and John Collison, who have become paper billionaires thanks to its rapid growth.

Stripe has its European headquarters in Ireland, where it employs about 10 per cent of its 1,000 global staff. Iain McDougall, the company’s head of UK and Ireland, says the country’s fintech growth is being driven by “a second wave of talent in Ireland, spawned by the massive investment of Google, Apple, Facebook and Amazon in Silicon Docks”. A former Google employee himself, Mr McDougall says: “We’re starting to see some of that talent come through, not just college graduates with a couple of years experience . . . there’s now significant depth to it.”

International

International P2P Lending Volumes January 2018 (P2P-Banking), Rated: AAA

This month I added Linked Finance.

Zopa crossed the milestone of 3 billion GBP originated since launch.

Source: P2P-Banking

Moven To Buy US Bank, Create Joint Venture In Japan With SBI (PYMNTS), Rated: A

According to a report in the American Banker, SBI will receive one seat on Moven’s six-member board and the companies will create a joint venture in Japan.

Of the funding the company will receive from SBI Group, some will go toward the joint venture to sell customized Moven software for Asian banks.

Salesforce boosts nCino global expansion plans (American Banker), Rated: A

NCino, a vendor of cloud-based banking technology, announced a new round of funding led by Salesforce Ventures to help fund its global expansion strategy.

The funding round led by Salesforce Ventures, the corporate investment group of Salesforce, also featured participation from another existing nCino shareholder. The amount of investment was not disclosed.

Several countries investigating Japanese virtual coin heist (e27), Rated: B

Takao Asayama, who is a member of the Singapore-based NEM Foundation that is behind the cryptocurrency, told reporters in Tokyo that it is working with exchanges to block the hackers from cashing out the stolen cryptocurrency. He did not name the countries involved in investigations.

India

Jaitley extends avenue for SME financing, bad loans in the sector now on radar (Economic Times), Rated: AAA

As bank credit to micro, small and medium enterprises shrink, the government has decided to get innovative by getting Non-Bank Finance Companies (NBFCs) and the burgeoning fintech industry to play a larger role in financing. However, NPAs in the MSME sector would also now undergo greater scrutiny.

“Non-Bank Finance Companies (NBFCs) stepped up financing of MSMEs after demonetization. NBFCs can be a very powerful vehicle for delivering loans under MUDRA. Refinancing policy and eligibility criteria set by MUDRA will be reviewed for better refinancing of NBFCs,” said Finance Minister Arun Jaitley while presenting the Union Budget for 2018-19.

If we look at the NBFC segment first, it specialises in catering to sector specific financial needs covering retail; consumer and vehicle loans; micro, small and medium enterprises (MSMEs) and micro finance among others.

Source: Economic Times

Tech play
Jaitly also laid out a roadmap to use data generated by the Goods and Services Tax (GST) to enhance credit availability to the SME sector.

“It is proposed to onboard public sector banks and corporates on Trade Electronic Receivable Discounting System (TReDS) platform and link this with GSTN. Online loan sanctioning facility for MSMEs will be revamped for prompt decision making by the banks. Government will soon announce measures for effectively addressing non-performing assets and stressed accounts of MSMEs. This will enable larger financing of MSMEs and also considerably ease cash flow challenges faced by them,” said Jaitley.

Source: Economic Times

At end-March 2017, there were 11,522 NBFCs registered with the Reserve Bank, a number that is only bound to increase with fintech sectors like P2P being clubbed in the segment. The Economic Survey has revealed that the amount of credit or loans disbursed by banks amounted to Rs 26,041 billion as on November 2017, but 82.6% of this was cornered by large enterprises.

For millions of SMEs in the country, banks only lent out 17.4 % of the total credit.

Indian Budget 2018: A Push for Blockchin and Cyber Tech (Bank Info Security), Rated: A

In a move to push adoption and development of new technologies, such as machine learning, artificial intelligence and the internet of things, the finance minister announced allocation of Rs 3,073 crore for the Department of Science and Technology.

Meanwhile, the finance minister’ pledge to encourage use of blockchain, the distributed ledger technology that supports cryptocurrencies, in payment systems has earned him accolades from some security practitioners.

“Blockchain can be effectively used to process banking transactions. I see blockchain-enabled wallets and blockchain-enabled cards as next big thing in the payment systems,” Jyoti says. “Blockchain can provide an extra layer of cybersecurity to the payment systems, which could have led to this decision.”

Why Blockchain?

Blockchain has been popular among the banking industry in India. In fact, banks in India have formed a “bank chain,” an association of more than 20 banks where they discuss some typical use cases of blockchain.

Sapan Gupta, national practice head – banking and finance, at the law firm Shardul Amarchand Mangaldas, notes: “Capitalizing on the blockchain technology could open new ways of securing peer-to-peer lending transactions, boosting trade finance, fintech and information repository sectors. Segregating the use of blockchain from crypto-currencies reflects the government’s intention to use the technology in a gradual and safe manner.”

What do Ola, ShopClues, Practo, and Paytm feel about the budget? (Yourstory), Rated: A

Rajat Gandhi, Founder & CEO, Faircent.com 

“The finance minister’s budget speech reflects the government’s intent to increase the credit access for the MSME sector and women entrepreneurs under MUDRA scheme. P2P lending is using technology and new-age data, and diligently working towards taking organised credit to the non and under-banked segments of the Indian economy. This is an opportunity for the government to directly invest or co-fund through registered P2P Lending Platforms and ensure credit access for MSMEs, New-To-Credit as well as female entrepreneurs. P2P lending is an asset class ensuring flow of investments from those with surplus to those in need. Hence it’s important that the lenders are supported through tax incentives. We look forward to working with the government towards the common goal of financial inclusion.

 

Bipin Preet Singh, Co-founder, MobiKwik 

“A reformist budget for startups and digital India. The government’s impetus on digitising the rural hinterlands, focus on smart cities, and commitment to blockchain technology will encourage the promotion of digital payments across the country, thereby making India truly digital. Further, disallowing cash payments beyond Rs 10,000 by trusts and institutions will boost digital payments. I commend the government’s decision to reduce corporate tax to 25 percent and improve the ease of doing business by providing a unique ID for every company on lines of Aadhaar. These initiatives will benefit startups and MSMEs immensely and lay a strong foundation for a progressive India. However, the government should consider regulating cryptocurrencies than curbing their use entirely.”

Budget 2018: 10% Long Term Capital Gain tax to benefit P2P lending players (moneycontrol), Rated: B

Imposing 10% long-term capital gain tax on equity investments may create some level playing field for the P2P lending industry. So far, the favourable tax treatment on long-term gains on equity investments made them a preferred choice for the investors. Now, those who are ready to take higher risk for earning better returns may also think of investing in P2P lending projects which have a better risk profile as compared to equity-oriented investments.

Asia

Ulema council, OJK to issue fatwa on sharia-based fintech lenders (The Jakarta Post), Rated: AAA

The Indonesia Ulema Council’s (MUI) sharia division and the Financial Services Authority (OJK) are preparing a fatwa to serve as a legal basis for the operation of sharia-based financial technology (fintech) lending institutions.

“Many non-Muslims are also interested in sharia-based fintech financing. So it has a very large potential market,” Adiwarman said as reported by kontan.co.id.

Since a trial run in November 2017, Investree has disbursed Rp 2.7 billion (US$189,000) in sharia-based financing.

Africa

Five ways to finance your dream (Standard Digital), Rated: AAA

It found that in 2015, Kenya and South Africa raised $16.7 million (Sh1.7 billion) and $15 million (Sh1.5 billion), respectively, in financing from various online channels. However, unlike in South Africa, most of the money raised using these alternative financing platforms in Kenya came from foreigners.

Overall, a total of $62.2 million (Sh6.4 billion) was raised across Africa, with more than 75 per cent of this money going towards funding start-ups and SMEs.

  1. Equity-based crowdfunding
  2. Peer-to-peer business lending
  3. Debt-based securities
  4. Donation-based crowdfunding
  5. Reward-based crowdfunding

Authors:

George Popescu
Allen Taylor

Wednesday June 7 2017, Daily News Digest

Ranking by average gross yield

News Comments Today’s main news: SoFi to add 400 Delaware workers by 2018. KBRA rates Upstart Securitization Trust 2017-1. RateSetter, MarketInvoice, LendInvest make Fintech50 list. China P2P lenders face tighter disclosure rules. Danish fashion tycoon invests in Klarna. Today’s main analysis: RentRange identifies 25 markets with highest average gross yield. Today’s thought-provoking articles: Did someone cancel the fintech revolution? Innovators […]

Ranking by average gross yield

News Comments

United States

United Kingdom

China

European Union

International

India

Canada

News Summary

United States

FinTech company SoFi to add 400 Delaware workers by 2018 (Delaware Online), Rated: AAA

SoFi, an online provider of personal loans, will add 400 workers to its Claymont office by the end of 2018.

SoFi entered Delaware in February when it acquired Claymont-based Zenbanx for an undisclosed sum. The Zenbanx purchase bolstered SoFi’s portfolio of online personal finance offerings. Among the former Zenbanx products that now belong to SoFi are software that enables customers to transfer international currency through mobile devices and an app that allows users to transfer money through the sound of their voice.

SoFi has vowed to ramp up the former Zenbanx office with an aggressive hiring plan that will see it add 100 workers by August, 200 workers by the end of the year and 400 employees by the end of 2018.

The majority of the openings are call center jobs, but SoFi is also looking to fill IT, business development and management positions. Of the first 200 openings, 130 will be call center positions, 30 will be mortgage operations jobs and the remaining 40 will be IT, business development and office staff.

KBRA Rates Upstart Securitization Trust 2017-1 (KBRA Email), Rated: AAA

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by Upstart Securitization Trust 2017-1 (“UPST 2017-1”). This is a $163.107 million consumer loan ABS transaction that is expected to close on June 21, 2017.

This transaction is Upstart Network, Inc.’s (“Upstart” or the “Company”) first securitization of prime and near prime unsecured consumer loans. The loans are facilitated by Upstart’s proprietary models supporting an online marketplace that connects borrowers and investors by offering consumer loans originated by Cross River Bank (“CRB”) through the platform, www.upstart.com (the “Upstart Platform” or the “Platform”).

RentRange Identifies 25 Markets with the Highest Average Gross Yield (Markets Insider), Rated: AAA

RentRange, one of the premier providers of market data and analytics for the housing industry, today released data ranking the top 25 U.S. metropolitan statistical areas (MSAs) by highest average gross yield for singlefamily1 homes during the first quarter (Q1) of 2017. The data analysis also identified the average rental rate increase between the first quarter (Q1) of 2017 and the same quarter in 2016, average vacancy rate in Q1 2017 and investor purchases over the past 12 months.

The Q1 2017 RentRange® data shows that the highest yielding markets are dominated by older metro areas in the Midwest and Northeast.

Analyzing the average vacancy rates, which is the percentage of rental properties that are vacant or unoccupied at a particular time, the lowest rates from the list are in Pittsburgh, Indianapolis, St. Louis, Oklahoma City and Canton. Lower vacancy rates generally mean properties stay vacant for less time, limiting the loss of rent.

Source: Markets Insider

Lenders Seeking to Provide Real-Time Credit Offers Online Can Cut Implementation from Months to Weeks with TransUnion Find My Offer Solution (Globe Newswire), Rated: A

As financial institutions seek to improve customer experiences online, TransUnion (NYSE:TRU) today announced the launch of Find My Offer to help lenders deliver relevant credit offers to consumers online. Find My Offer is a set of configurable white-label web screens that support a lender’s consumer prequalification and digital prescreen initiatives.

Lenders can use Find My Offer to acquire new customers and expand existing relationships online. The site automatically integrates with TransUnion’s DecisionEdge suite, allowing lenders to use their existing underwriting criteria for their online marketing.

A top 20 national bank recently utilized Find My Offer to increase online acquisitions. Its IT team estimated a six month development cycle to build a customer-facing site to initiate credit offers online. Using Find My Offer, the bank saved more than 40% in development costs and was able to present relevant, tailored offers to consumers within three weeks – approximately 20 weeks earlier than what was projected using internal IT resources.

Sharestates Launches Auto-Invest Tool for Highly-Tailored Investments While Surpassing $ 500M in Loan Originations (PR Newswire), Rated: A

Sharestates, an online real estate investment marketplace, announced today the launch of its new Auto-Invest tool, a feature that will maximize the investor’s chances of investing in the platform’s highly sought after real estate debt opportunities. The new feature will allow investors to choose from multiple strategies, including a custom investment strategy that includes 12 underwriting filters to choose from. The launch of this new tool coincides with the company reaching a major milestone of $500 million in loan volume.

With the Auto-Invest tool, the investor will have the ability to increase the frequency at which their funds are deployed. These automatic investments will give the investor a better chance of eliminating “cash drag,” which occurs when the investor does not have a chance to log in, review the new loan and manually make their investment before the loan sells-out.

The interface provides a user-friendly and client-focused tool, making investing in real estate loans hassle-free. Additionally, after every auto-invest transaction, the investor will receive a confirmation email with loan and investment details, where they will then have a 24-hour window to opt out or increase participation.

In order to tailor the best possible loan selection for each individual, Sharestates uses a multitude of adjustable measurements for each investor to meet their investment goals. These measurements include; investment totals per loan, maximum investment frequency and limit, interest rate requirements, risk ratings, property types and more.

Sharestates continues to outperform the online real estate lending industry with originations exceeding $500 million since inception in 2014. Current run rates have Sharestates exceeding $1 billion in total originations before the end of 2017, with current monthly totals hovering around $60 million. Sharestates has funded more than 520 individual loans, providing an average return on investment of 10.62%.

Kuber’s Fluid App that Allows Students to Borrow Money Interest Free Now Live on iTunes (Crowdfund Insider), Rated: A

Kuber Inc, a Southern California based Fintech company, has launched it’s personal finance product targeting the more than 22 million university students in United States. Fluid App is now live on Apple iTunes store and free to download. This is first of its kind finance product is designed specifically to build credit for college students in America.

Using the app, users may borrow up to $500 dollars interest free and without and other associated fees. The lending and repayment activities are then reported to major U.S. credit bureaus to start building credit from day one.

Direct Online Loans: Support That Works For You (NuWire Investor), Rated: A

Direct lenders have streamlined their rules and regulations to help those typically overlooked by conventional lenders. They still review you application carefully, but they don’t necessarily use subprime credit scores to reject your application. If you speak with the representatives at MoneyKey, they’ll you know what you need to provide. These reps may review your rating through other channels, but it’s not the only way they’ll determine your candidacy. It’s just one number amongst many factors they use to review your application.

They also don’t rely on in-person meetings to determine your candidacy, as they do most of their business online. All they require is basic contact and financial information submitted in an online application, and they’ll notify you if you qualify within minutes. For those that do, you’ll receive a phone call from a representative to verify the information that you supplied. If everything checks out, direct payday lenders like MoneyKey deposit your approved short term loan into the account that you supplied on your application. In some cases, you’ll receive your cash in as little as one business day.

Robo-Advice Is Not Your Differentiator (FA Magazine), Rated:  AAA

Increasingly, robo-advice technology will become bare necessities for any retail financial advice firm that wants to grow by adding value to financial advisors and their clients.

How to Get Small Business Loans: Part 2 (FX Daily Report), Rated: B

At some point, bank is one of the most reputable lenders. Banks usually have lower interest rates and the credit duration may be longer. However, large banks usually have more requirements and slower process.

These banks may have slightly higher interest rates. However, local community banks offer simpler procedures, as they always want to be the partners for small business. Local banks commonly offers shorter credit period.

They are the most welcoming partners for quick loan. Direct online lenders usually apply a relatively easy loan process. They are also supported by reputable lenders. Another advantage is that the lenders may not require you to provide collateral. Some lenders do not even check your credit record before making approval. Some lenders even offer overnight credit process. Once you send the application today, you will get the money in your account tomorrow.

The disadvantages include higher interest rates, shorter duration, and lower credit limit. Direct online lenders can be easily found on internet. Some of them have only online presence, but some are online divisions of a conventional lending agency.

They also have online presence. However, peer-to-peer lending sites are not the true lenders. Instead, they act as the middlemen between the clients and the lenders.

Merrill Lynch, Betterment Execs Agree On Financial Advice For New Grads (FA Magazine), Rated: B

Joe DePaulo, CEO and co-founder of College Ave Student Loans, had this advice for grads starting a job on how to ease the burden of the ball and chain of college debt weighing on their finances:

1. Organize all your student loans to make sure you know when your monthly payments start, the amount due for each one and your various due dates so you don’t accidentally miss any payments or pay late.
2. Get to know your loan servicers — the companies handling the billing and payment services for your loans — and make sure each of them have your current contact information, including both your e-mail and mailing address.
3. Consider signing up for auto-pay for each loan through your student loan servicers. You’ll often get a discount on your interest rate when you’re making automatic payments, and you’ll know that your payments are being made on time each month. It’s a great way to save money and build good credit.
4. Know your grace period for your student loans, or how long you can wait after leaving school before you have to make your first payment. This can vary by loan depending which types of loans you have. The grace period is usually six or nine months, and it’s designed to give you time after you graduate to find a job and get on your feet before payments are due. Interest continues to accrue during the grace period on most loans though, so if you have the ability to start making payments before the grace period ends, you should. This will help you save money in the long run.
5. Pay attention to the interest rate on each loan. When you can afford to pay a little extra, you’ll usually save the most money by paying down the loan with the highest interest rate first.

United Kingdom

RateSetter, MarketInvoice and LendInvest make this year’s Fintech50 list (P2P Finance News), Rated: AAA

RATESETTER, MarketInvoice and LendInvest have made this year’s Fintech50 list, while Funding Circle and Zopa have been awarded a place in the Fintech50 Hall of Fame.

The annual Fintech50 list, which was first launched in 2013, selects the 50 European fintechs that are transforming financial services and recognises innovation rather than revenue. The companies are selected by a panel of more than 60 industry experts, following extensive year-round research from the Fintech50 team.

This year’s list, unveiled at a launch event at Silicon Valley Bank in London on Tuesday night, was chosen out of 1,500 companies. As well as an impressive presence from a raft of UK peer-to-peer lenders, the list includes business finance provider Iwoca, crowdfunding platform Seedrs, challenger lender Atom Bank and cryptocurrency Ethereum.

The Fintech50 2017:

  • Action.ai (London, UK)
  • Advice Robo (Amsterdam, Netherlands)
  • Aire (London, UK)
  • Algomi (London, UK)
  • AQMetrics (Kildare, Ireland)
  • Atom Bank (London, UK)
  • Azimo (London, UK)
  • Behaviosec (Stockholm, Sweden)
  • Bonify (Berlin, Germany)
  • Clearmatics (London, UK)
  • Clearscore (London, UK)
  • ComplyAdvantage (London, UK)
  • Contego (London, UK)
  • Credit Benchmark (London, UK)
  • Curve (London, UK)
  • Cuvva (Scotland, UK)
  • DarkTrace (Cambridge, UK)
  • Digital Shadows (London, UK)
  • Ethereum (worldwide)
  • FeatureSpace (London, UK)
  • Fenergo (Dublin, Ireland)
  • Figo (Hamburg, Germany)
  • FundApps (London, UK)
  • Iwoca (London, UK)
  • Kantox (London, UK)
  • LendInvest (London, UK)
  • Mambu (Berlin, Germany)
  • MarketInvoice (London, UK)
  • Meniga (Rejkyavik, Iceland)
  • Monzo (London, UK)
  • N26 (Berlin, Germany)
  • NetGuardians (Switzerland)
  • Onfido (London, UK)
  • OpenGamma (London, UK)
  • PayKey (Tel Aviv, Israel)
  • Privitar (London, UK)
  • Qumram (Zurich, Switzerland)
  • Railsbank (London, UK)
  • Raisin (Berlin, Germany)
  • RateSetter (London, UK)
  • Revolut (London, UK)
  • Scalable Capital (Munich, Germany / London, UK)
  • Seedrs (London, UK)
  • SETL (London, UK)
  • solarisBank AG (Berlin, Germany)
  • Suade (London, UK)
  • Thought Machine (London, UK)
  • Traxpay (Berlin, Germany)
  • Trussle (London, UK)
  • WeFox (Switzerland)

The FinTech50 Hall of Fame:

  • Adyen (Amsterdam, Netherlands)
  • Currencycloud (London, UK)
  • eToro (Limassol, Cyprus)
  • Funding Circle (London, UK)
  • iZettle (Stockholm, Sweden)
  • Klarna (Stockholm, Sweden)
  • Nutmeg (London, UK)
  • Transferwise (London, UK)
  • WorldRemit (London, UK)
  • Zopa (London, UK)

The Hot Ten – this year’s ones to watch:

  • Bud (London, UK)
  • ClearBank (London, UK)
  • Cleo (London, UK)
  • Datasine (London, UK)
  • Deposify (Dublin, Ireland)
  • Governance.io (Luxembourg)
  • Meteo Project (Paris, France)
  • Nxchange (Amsterdam, Netherlands)
  • Post Quantum (London, UK)
  • 10xBanking (London, UK)
China

China P2P lenders facing tighter disclosure rules (China Economic Review), Rated: AAA

Efforts to clean up China’s scandal-plagued peer-to-peer (P2P) lending sector are taking another step forward with a pilot program that imposes tighter information disclosure requirements to protect customers from being swindled, Caixin reports.  Under an initiative announced on Monday, companies will have to give people who use their P2P platforms a range of information including their registration address, shareholders, who provides custodian services, how many investors they have, their bad loan ratio and their outstanding loans. Altogether 47 separate pieces of information will need to be disclosed, 32 of which are mandatory, according to the National Internet Finance Association of China (NIFA), which is in charge of the pilot.

Chinese banks boost offshore lending in Asia-Pacific (The Asset), Rated: A

Chinese banks have been increasing their offshore lending volume in Asia-Pacific, outside of Japan, since 2014. Based on the pro-rata mandated lead arranger (MLA) role, China’s offshore lending amounted to US$70.5 billion via 300 deals in 2016, or nearly double the 2015 figure of US$36.3 billion, and nearly three times the 2014 volume of US$24 billion in 2014.

Figures released by Thomson Reuters on June 5 show that the bulk of China’s offshore lending has been concentrated in Northeast Asia. In 2016, Chinese banks accounted for US$52.7 billion through 172 transactions on a pro-rata basis at the MLA lender level, representing an increase of 83% from 2015.

European Union

Danish fashion tycoon invests in Swedish payments firm Klarna (Daily Mail), Rated: AAA

Anders Holch Povlsen, owner of Danish fashion retailer Bestseller, is buying a stake in payments firm Klarna, one of Europe’s most highly valued tech startups, the firm said on Wednesday.

A Klarna spokeswoman declined to comment on the precise size of the stake, but said it would be at least 10 percent.

Klarna said Povlsen’s company Brightfolk would buy shares from General Atlantic, DST Global and Niklas Adalberth, who will all still retain stakes in the firm.

Doing KYC on International Investors and the Potential of Automation (P2P Banking), Rated: A

On the majority of p2p lending marketplaces that accept non-resident international investors, the necessary process to comply with ‘Know Your Customer’ (KYC) rules involves multiple manual steps both on the side of the investor and on the side of the marketplace. After filling in details in forms the investor typically needs to submit scans (or photos) of an ID or a passport. As an investor  I balk at the very few marketplaces that ask me to submit these via unsecured email. The better ones offer an upload inside the SSL secured website after login. The British marketplace typically also require a recent utility bill to confirm address.

In continental Europe a few marketplaces are doing video ident. Recently when I registered at Paskoluklubas, aside from entering details in forms I needed to schedule a Skype video call in which I answered several questions and had to show my ID live. While it was straightforward, it is not more time efficient (both for investor and for marketplace). And I was lost for words for a split second when asked for my zodiac. How many non-native-english speakers can answer that question without hesitating for the right word (luckily mine is easy to translate).

Another example of outsoucing is the process Lenndy uses. When registering, all an investor is asked by Lenndy is his email address, nothing else. Then the investor is required to link an Paysera account with at least level 3.

Last week British Relendex moved from a manual document upload process to an automated process for investors of 7 countries; Australia, Canada, Denmark, Germany, Sweden, Switzerland. Relendex uses the Call Validate solution and checks (in case of Germany) first , middle, last name, gender, phone, address, city and postal code with the data coming from three different data sources and which Relendex says has high match accuracy. Relendex’s criteria was that the data available should be of equal quality and accuracy to that of the UK database.

Irish fintech start-up Plynk raises €25m in fundraising round (The Irish Times), Rated: A

Dublin-based financial payments start-up Plynk has raised €25 million in a Series A fundraising round as it looks to roll out its money-messaging app globally.

The investment, which has been led by Swiss Privee, is one of the largest-ever Irish Series A rounds.

The company has also announced plans to increase headcount from eight to 28 over the next 12 to 18 months as the number of users it has in Ireland this week reached 6,000, easily surpassing its initial target of 4,000.

Plynk has a licence to operate across the European Economic Area, which includes the EU along with Iceland, Liechtenstein and Norway. While only available in Ireland, the start-up intends to roll out its app in Spain over the summer with Portugal to follow shortly after.

German fintech platform Fincompare raises €2.5 million to provide financing for SMEs (Tech.EU), Rated: A

The German fintech startup Fincompare has raised €2.5 million in seed financing. The funding comes from the VC Speedinvest and Uniqa insurance, both from Austria. Several business angels from Berlin also participated in the round.

The Fincompare platform allows SMEs to receive and compare various offers for loans – anywhere from €10,000 to €5 million.

Grundag Real Estate Crowdfunding Platform Launches Powered by CrowdDesk (Crowdfund Insider), Rated: A

A new real estate crowdfunding platform has launched in Germany. Grundag GmbH & Co., a wholly-owned subsidiary of CrowdDesk, has launched to provide debt based crowdfunding for German real estate projects. CrowdDesk is a white label crowdfunding platform that powers several well established platforms in Germany. The new site was launched in partnership with ERGE Miet- & Finanzvermittlung GmbH & Co. KG.

International

FINTECH – DID SOMEONE CANCEL THE REVOLUTION? (Finextra), Rated: AAA

There are indications the Fintech revolution has stalled. It promised to change market structure, to radically improve products and services, and to save the incumbent banking sector from a slow slide to invisible utility status.

But these promises are yet to come to pass. Yet the revolution could still be completed – the underlying technologies are real and, deployed in the right way, they can still have a transformative effect on the financial services industry.

Source: FinTech – Did Someone Cancel the Revolution, Accenture

Read the full report.

FinTech Innovators vs. Incumbents: Understanding the Odds (Morgan Stanley), Rated: AAA

How can investors navigate this next chapter in FinTech? In a recent global collaborative report, “FinTech: A Gauntlet to Riches,” Faucette and his colleagues offer an investment framework for understanding where FinTech companies are likely to disrupt—and where established players are poised to get ahead.

Indeed, the pace of venture capital funding in FinTechs has slowed recently, suggesting that early-stage investors are coming to grips with the challenges of this space, and that established financial services firms are likely to take a more meaningful role in funding and developing new technology.

To understand which trends favor startups and which bode well for incumbents, investors should ask some key questions:

  1. What is the existing infrastructure? Innovators have the best shot at success in areas that lack established infrastructure. One area that is particularly poised for growth is B2B payments, a large and underserved corner of the market, with roughly 50% of payments still made via checks.
  2. Is consumer behavior changing? Early adopters in a nascent market tend to be more receptive to a new technology or provider, giving innovators a first-mover advantage. This bodes well for FinTech disruptors focused on small-business insurance (a.k.a. InsurTech).
  3. Does government help or hinder innovation? 
  4. How important is access to data? Investors should take note of the role of data, which can limit a small firm’s ability to scale without partnering with a data owner.
  5. Does success hinge on collaboration? 
  6. How important is access to capital markets? Companies that require continuous access to capital markets are subject to a high degree of market volatility, which can put an entire business model in jeopardy if still early in its formation, says Faucette. For fledgling U.S. marketplace lenders (a.k.a. peer-to-peer lending) and mortgage originators, access to capital markets could be a limiting factor, especially now that established players are investing in the space.
  7. Is the industry concentrated?

TransferWise CEO: ‘There is a huge fight to be the fintech capital of the world’ (Business Insider), Rated: A

The CEO and cofounder of TransferWise says cities around the world are becoming increasingly competitive in attempts to attract tech companies.

Luxembourg earlier this year set up a public-private partnership called the “House of Fintech,” aimed at attracting more companies to set up in the country. Lobbyists from Paris have made multiple trips to the UK in recent months in a bid to tempt financial services, including fintech, to set up in the French capital in the wake of Brexit. The Monetary Authority of Singapore has also copied the UK regulator in setting up a regulatory “sandbox,” which allows innovative companies to experiment with new products in a safe environment.

Why Trustly CEO Oscar Berglund Is Offering An Alternative To Credit Cards (Forbes), Rated: A

Excitement over fintech remains high even though investor enthusiasm has been curbing in recent months. According to a KPMG report, the flow of investments has started to ease. Global investments dropped to $3.2 billion in Q1 of 2017 from $4.15 billion in Q4 of the previous year. Indeed, investors seem to have made their wagers and are now more focused on ensuring that existing fintech companies start delivering.

More mature segments, such as payments, are also seeing saturation, as new competitors seek to maximize opportunities in markets keen on going cashless.

Having processed a whopping €3.2 billion in transactions in 2016, payment startup Trustly has recently emerged as a leader in the global fintech scene. Based in Stockholm, Trustly offers a fresh perspective on payments by putting the bank account at the center of digital payments instead of credit cards. The company is now used in 29 European countries, enabling merchants to perform cross-border business easily.

Berglund: We aren’t really going head to head against big banks. We see the bank account as the hub of people’s financial lives, and it’s what most other payment methods depend on. Trustly’s service is built around the relevance of the bank account and as such around the relevance of banks.

In Europe banks focused on the online channel are at the forefront of the adoption of new technology and I believe more banks will no doubt make use of our services going forward.

Berglund: Credit cards were invented to make payments easier in the physical world, but they may not have the same raison d’être as people move to online and mobile platforms. The truth is, it’s a pain to dig for your credit card and key in a long string of numbers, especially if you’re on the go and trying to make a purchase from a tiny smartphone screen. With Trustly, users can make a payment in just a few steps using only information they know top of mind. And our product is optimized for mobile and other devices to make it even more convenient. So while credit cards won’t be going anywhere for a while, it’s important to offer other user-friendly alternatives too.

India

CIOs Will No Longer be the Most Influential Technology Decision Makers (BW Disrupt), Rated: AAA

The year 2016 registered an impressive impact on the Indian economy and therefore was a landmark year for fintech and banking industries. This year, 2017 started out to be an exciting one for Financial Technology which will spell out a future of continued scale and disruption for the industry, especially after India’s digitalisation movement. With the proliferation of cloud and mobile technologies advancing and customer demand for better digital banking experiences growing, Fintech firms will continue to innovate faster and offer new services with richer user experiences.

Top 5 Trends to watch out for: 

  1. Mobile Everything
  2. Chatbots, machine learning & AI
  3. Banks & Fintech firms to partnerAccording to a recent Business Insider report, 87% of banks that have partnered with financial service providers (fintech companies) have been able to cut costs. Additionally, the same study found that 54% of partnerships increased revenue.
  4. Blockchain moves out of the labs into the real world
  5. Reforming Digital Leadership: CIOs will no longer be the most influential technology decision makers. With the continued rise of the Chief Digital Officer and in many cases the Chief Marketing Officer will help financial institutions usurp the IT team in implementing ‘digital’ throughout the organisation.

FinMomenta Plans to Expand Footprint of P2P Lending Model ‘Tachyloans’ to Other Asian Nations (BW Disrupt), Rated: A

FinMomenta founders believe that they are the Next Moment in FinTech industry. With their latest product TachyLoans, they plan to build a digital lending marketplace that connects people (Investors/Lenders) who wants to invest/lend their incomes, with people (Borrowers) who are looking to borrow funds to meet their financial requirements. The platform caters to both Individuals and Small & Medium Enterprises (SMEs).

How does the platform FinMomenta work?

Investors can earn returns as high as 25% per annum and borrowers can avail loan at lower interest rates starting from 11.5% per annum. Interest rates are charged based on borrower’s creditworthiness. Lenders and borrowers can negotiate on the loan amount, interest rates and loan tenor through a two-way bidding process available on their dashboard.

Please elaborate key features/services of Tachyloans?

The platform uses a unique proprietary credit scoring model enabled by Artificial Intelligence and Big Data to assess the creditworthiness of applicants. It also uses e-KYC and Aadhaar for verification of the borrowers that helps lenders to automatically invest in the recommended list of borrowers.

Tachyloans not just focuses on cutting down the transaction time for lenders and borrowers but also reduces the overhead costs associated with the traditional lending process and enables us to pass on the cost savings to lenders in the form of higher returns and to borrowers in the form of lower interest rates. Lenders and borrowers can negotiate on the interest rates through Tachyloans platform.

What is the Monetization model of FinMomenta?

FinMomenta charges a service fee to both lenders and borrowers for having loans enabled on the platform.

What is the market size and opportunities for companies operating in Fintech industry in India?

Consumer credit market in India is currently at $300bn out of which $98bn is the personal loans market. The market is currently growing at 14% year on year. The SME business loan market is currently at $600bn and is expected to grow to $3.4 trillion by 2022. In terms of the population, out of 1.2bn population only 150mn population has their history in credit bureaus and 20mn has scores acceptable to banks. There is a very small population that is being serviced by the banks. Around 10mn citizens are entering jobs every year and with more than 55% less than 45 years, the population would have huge aspiration to grow in life which would require access to credit for them.

Canada

Aztec Exchange Launches PayMe in Canada with EDI Gateway (PR Newswire), Rated: A

Aztec Exchange, a global supplier of invoice finance products and services, and Canadian EDI provider EDI Gateway today announced a partnership to deliver Aztec’s breakthrough early e-invoice payment service PayMe (payme.cloud) to EDI Gateway’s (edigateway.com) Canadian supplier and corporate clients.

PayMe is unique in the early payment market because, unlike with factoring firms, creditworthiness is based on that of the buyer, not the supplier.  There is complete pricing transparency, meaning there are no hidden fees or interest charges.  Suppliers are only required to pay a minimal invoice discount charge and a standard transaction fee.  For customers on the EDI Gateway platform using PayMe, this means they’ll typically receive payment within 24 hours.  Furthermore, because it’s entirely online, they can submit for early payment any time from any internet-connected device.  There are also no restrictive long-term contracts and suppliers can sell as many approved invoices as they want.

This partnership with EDI Gateway is the latest for PayMe, which launched in May 2016.  Over the course of the past year, PayMe has had tremendous growth and is now available to more than 100,000 SMEs globally via e-invoice providers as a white label solution for traditional banks.  It will soon be launched directly through corporates. For EDI Gateway, PayMe complements their existing e-invoicing solution, enabling them to offer an integrated payment and financing service.  The firm looks to continue this approach going forward to attract and retain their retail and vendor clients.

Authors:

George Popescu
Allen Taylor