- Today’s main news: Sharestates forms sister company, launches $300M fund with bank partners. UK mortgage industry in need of innovation, says FCA. PaisaDukan raises $225K in seed money. ShopBack buys Seedly.
- Today’s main analysis: Credit card usage at all-time high, delinquency rates in check.
- Today’s thought-provoking articles: Ant Financial is getting policy attention in China. Investor experience determings P2P lending’s future. Amazon should stop trying to be everything to everybody. How to use AI to improve financial services.
- Sharestates forms sister company, starts $300 million fund with bank partners. AT: “This is huge for the real estate crowdfunding sector and could push Sharestates into Tier 1 level with Fundrise and RealtyMogul. Disclosure: I write for Sharestates, but I didn’t see this coming.”
- Credit card usage at all-time high, delinquency rates in check. AT: “This TransUnion study is a must-read.”
- New York bill could put obstacles in front of online lenders.
- Interview with Frank Rotman of QED Investors.
- Private equity loans on the rise.
- Customers still want to open accounts at a bank branch.
- LendingTree move could impact downtown Pineville.
- StratiFi raises $7 million.
- CyberMiles offers blockchain identities for P2P lending.
- FinTech Breakthrough names CIT ‘Best Small Business Lending Solution’.
- Is the mortgage industry in need of innovation? AT: “Not only in the UK, but in the U.S., as well. And I’d say all around the world.”
- What Jack Ma’s Ant Financial is up to. AT: “Chinese policy maker are taking a hard look at Ant Financial, and this is a pretty deep look at the conflict.”
- 12 banks implemented blockchain technology last year.
- Amazon – stop being everything to everybody. AT: “If you’re looking for evidence that Amazon is trying to be a bank, you might find it here, but what they’re really up to goes well beyond financial services. This is a pretty good look at Amazon’s business model, but when will they experience the point of diminishing returns?”
- How to use AI to improve financial services.
- Europe: Investor experience will determine P2P lending’s future.
- Europe: How banking is open to innovation.
- India: PaisaDukan raised $225K in seed funding.
- India: Fintech Valley Vizag, KPMG partner on Startup Market Connect 2018.
- UAE: Vault Investment, MIG form Relam Investment together.
- Israel: Investing in Israel.
- Singapore: ShopBack acquires Seedly.
- United States
- Sharestates Partners with Prominent Banks, Equity Investors to Launch $ 300 Million Fund (ADVFN) Rated: AAA
- Credit Card Usage at All-Time Highs, But Delinquency Rates Still Remain in Check (Global Newswire) Rated: AAA
- New York State Bill Would Add Another Compliance Hurdle with “Limited Charter” for Online Lenders (Crowdfund Insider) Rated: A
- Frank Rotman of QED Investors (Lend Academy) Rated: A
- Jitters mount as loans from private equity continue to rise (Financial Times) Rated: A
- All that tech, yet customers keep opening accounts at branches (American Banker) Rated: A
- Potential LendingTree HQ move would have significant impact to downtown Pineville, town manager says (Charlotte Business Journal) Rated: B
- StratiFi Technologies Raises $ 7M in Series A Funding (Finsmes) Rated: A
- CyberMiles gains praise at global blockchain technology expo! (Crypto Recorder) Rated: A
- FinTech Breakthrough Names CIT Point-Of-Sale Platform As “Best Small Business Lending Solution” In 2018 (PR Newswire) Rated: B
- United Kingdom
- FCA Says Mortgage Industry in Need of Innovation (Crowdfund Insider) Rated: AAA
- China’s Got Jack Ma’s Finance Giant in Its Crosshairs (Bloomberg) Rated: AAA
- 12 Banks in China Implemented Blockchain Technology in 2017 (The Oofy) Rated: A
- European Union
- Experience of investors determines the future p2p lending (TechBullion) Rated: AAA
- How banking is open to innovation (Global Banking and Finance Review) Rated: A
- Amazon. Stop Being Everything to Everybody! (Crowdfund Insider) Rated: AAA
- How to Use AI in Fintech and Improve Your Financial Services (Payments Journal) Rated: AAA
- P2P Lending Marketplace PaisaDukan Raises Additional Seed Funding of $ 225K (BW Disrupt) Rated: AAA
- Fintech Valley Vizag and Knowledge Partner KPMG Announce Startup Market Connect 2018 (The New Indian Express) Rated: B
- Vault Investment and MIG jointly form “Relam Investment” (Zawya) Rated: A
- Investing in My Future by Investing in Israel (The Times of Isreal) Rated: A
- Seedly helps millennials manage their money – and Singapore’s ShopBack just acquired it (Tech in Asia) Rated: AAA
Sharestates Partners with Prominent Banks, Equity Investors to Launch $ 300 Million Fund (ADVFN) Rated: AAA
Sharestates, an online real estate investment platform, today announced their partnership with prominent bank partners and equity investors, launching a new $300 Million fund that will provide individual and institutional investors with increased funding power for real estate deals.
Coinciding with the launch of the $300 Million fund will be Syndicate Profile, a sister company offering 12-40% annual returns to investors with the potential for quarterly cash flow. With individual investments starting at $25,000, individual and institutional investors, as well as family offices, will be able to deploy capital across a spectrum of real estate opportunities not available outside of Syndicate Profile.
Credit Card Usage at All-Time Highs, But Delinquency Rates Still Remain in Check (Global Newswire) Rated: AAA
TransUnion’s report found that serious credit card delinquency rates per borrower (90+ DPD) increased in Q1 2018 to 1.78%, up from 1.69% in Q1 2017. The delinquency rate is now level with the 1.77% mark observed six years prior in Q1 2012, though it remains below the 10-year first quarter average of 1.91%. The average card debt per borrower also followed a similar path as delinquencies during the last year, rising 2.63% to $5,472 in Q1 2018 from $5,332 in Q1 2017.
The number of credit card accounts rose 2.6% in the last year to 416.5 million in Q1 2018, up from 405.8 million in Q1 2017. In that same timeframe, the number of consumers with access to a credit card also increased by 2.1% to 174.9 million from 171.4 million one year ago.
The latest origination data point to a modest 1% growth rate between Q4 2017 and Q4 2016.
Changes between Q1 2018 and Q1 2017 for Key Consumer Credit Metrics
New York State Bill Would Add Another Compliance Hurdle with “Limited Charter” for Online Lenders (Crowdfund Insider) Rated: A
A bill (Senate Bill S8340) sitting in the New York State Senate now, will create a limited state charter for internet lending.
Sponsored by New York State Senator Elaine Phillips, the bill would authorize the Department of Financial Services (DFS) to issue a new, limited state charter to “Internet Lending Services Corporations.” These entities are defined as businesses making loans over an internet or electronic platform.
Frank Rotman of QED Investors (Lend Academy) Rated: A
Frank Rotman is a founding partner of QED Investors, the most prolific VC investor in fintech over the past decade. He also authors an excellent blog, Confessions of a Fintech Junkie, which is where he published his seminal white paper, The Copernican Revolution in Banking.
Jitters mount as loans from private equity continue to rise (Financial Times) Rated: A
An article in the FT shares examples of businesses that have not benefited from the recent economic expansion and at the same time took out loans; companies with poor credit ratings took out $564 billion in commercial loans in 2017 which beat out a record set before the financial crisis; these loans are funded by private equity firms and other types of asset managers; the article notes that loan quality may be deteriorating as more capital enters the space and lenders look to make riskier loans.
All that tech, yet customers keep opening accounts at branches (American Banker) Rated: A
Heeding predictions that the future of banking is digital, banks of every size now offer customers mobile and online ways of opening accounts. Yet according to J.D. Power, the majority of customers — even millennials who prefer digital banking — say they open bank accounts in branches because it is too confusing to do so online.
Potential LendingTree HQ move would have significant impact to downtown Pineville, town manager says (Charlotte Business Journal) Rated: B
The online lender is considering a roughly 30-acre site in downtown Pineville for its headquarters after determining that its plans for SouthPark would not be adequate to accommodate its growth. LendingTree will go before Pineville Town Council on Tuesday to discuss its proposal for what’s known as the Cone Mill site, at 436 Cone Ave.
StratiFi Technologies Raises $ 7M in Series A Funding (Finsmes) Rated: A
StratiFi Technologies Inc., a New York- and San Francisco, CA-based provider of fintech technology solutions, raised $7m in Series A funding.
The round was led by Anthemis Group, with participation from Wolverine Holdings, Cboe Global Markets, HOF Capital, AngelList, Mike Curcio, Matt Hougan, Matt Wyndowe, and Luke Powell.
CyberMiles gains praise at global blockchain technology expo! (Crypto Recorder) Rated: A
CyberMiles (CMT) is one project that has been flying under the radar for some time now, but one that has the potential to transform ecommerce as we know it for good. Think of it like a next generation eBay. Therefore, it is not surprising that it was selected as the most promising blockchains during the recent global blockchain technology expo.
Last, but not least, CyberMiles (CMT) has the potential to change how loans are made and disbursed in the finance sector. That’s because it allows for the use of a person’s blockchain identity to be used in peer-to-peer lending.
FinTech Breakthrough Names CIT Point-Of-Sale Platform As “Best Small Business Lending Solution” In 2018 (PR Newswire) Rated: B
FinTech Breakthrough, an independent organization that recognizes the top companies, technologies and products in the global FinTech market, today announced that it has selected CIT‘s point-of-sale digital platform as the winner of its “Best Small Business Lending Solution” award. The platform allows business customers to finance their purchases at the point-of-sale in as little as five minutes.
CIT’s point-of-sale platform finances B2B purchases of more than $2,500. An automated credit process and mobile document signing, simplifies the financing experience enabling customers to shop, apply and complete purchases either in store or online.
FCA Says Mortgage Industry in Need of Innovation (Crowdfund Insider) Rated: AAA
The Financial Conduct Authority (FCA) has published an interim report on UK mortgage market. According to the FCA, Mortgage debt accounts for over 80% of total UK household liabilities – so this is a significant sector of finance that has a profound impact on individuals.
While the FCA found that competition was effective for providing home financing, the sector of finance could do with a bit more innovation.
Read the full report here.
China’s Got Jack Ma’s Finance Giant in Its Crosshairs (Bloomberg) Rated: AAA
Spanning online payments, insurance, lending, credit scores, asset management and more, Jack Ma’s Chinese behemoth resembles a mashup of PayPal, Geico, Wells Fargo and Equifax — with a bit of BlackRock thrown in for good measure. Thanks to clever mobile apps and a burgeoning Chinese middle class, Ant oversees the world’s biggest money-market fundand handles more than $2.4 trillion of mobile payments every three months. Many of the company’s 870 million customers rely on it for nearly every aspect of their financial lives.
But Ant’s extraordinary reach may soon expose the company to a major challenge: Chinese policy makers, worried that Ant and other financial holding companies pose systemic risks to the nation’s $12.7 trillion economy, are drafting new regulations that could make it much harder for the companies to grow.
12 Banks in China Implemented Blockchain Technology in 2017 (The Oofy) Rated: A
CEBNet, which is the news source for China’s banking sector, reported on Friday that twelve of the 26 Chinese banks had included in their annual filings a case in which blockchain applications were accepted to be used in different cases over the past year. Among these institutions, there are commercial banks, including China Construction Bank, Bank of China, and the Agriculture Bank of China, as well as private ones such as the Chinese Merchants Bank and some other banks at the city level.
Experience of investors determines the future p2p lending (TechBullion) Rated: AAA
Peer-to-peer lending is turning to a priority type of additional income for a growing number of the European investors and going to increase its importance in the next few years. According to the studies conducted by the own analytical center of the Latvian P2P platform Robo.cash, the younger generation of investors who consider P2P lending as an advantageous and comfortable financial tool will contribute to the dynamics greatly.
The younger generation is speeding up
With an account of stagnating interest rates on deposits in developed countries, as well as the cautious lending policies held by banks after the global economic crisis, alternative lending is attracting more and more investors and borrowers. Its volumes have grown drastically and the global scale is predictedto come close to $1 trillion by 2025. The increased volume of investments made by investors, who are already experienced in P2P lending, and a grown number of new investors help to maintain such a high momentum on the market.
The own statistics of the P2P platform Robo.cash working in the European market since February 2017 shows that 22-37-year-old Millennials are steadily catching up with an elder generation of investors. This promises to create a favorable environment for the further growth of alternative lending globally. Six months ago, an average age of investors of the platform was equal to 38 years and age groups were distributed as follows: Silent Generation (73-90) — 0.8%; Baby Boomers (54-72) — 9.5%; Gen X (38-53) — 38.6%; Millennials (22-37) — 50.3% and Post-Millennials (18-21) — 0.8%. Today, the typical investor has grown younger to 37 years due to the increased share of investors under 37 years old: Millennials — 53.9% and Post-Millennials — 1.8%.
How banking is open to innovation (Global Banking and Finance Review) Rated: A
Open Banking, which is the sister regulation of the EU’s PSD2 legislation, is off to a slow start – but that is to be expected. We’re only at the start of a revolution which will unleash an incredible range of innovative financial services and products, and profoundly change the financial and tech industry. Ultimately, it may radically alter how we think about money and do business.
Data sources have been restricted or denied, integration was complex and slow, and there was no universal regime for security and compliance. In short, all the cards were stacked in favour of financial institutions – they could push exclusive arrangements or buy any solution perceived as a threat at a very early stage. As a result, innovation has been largely restricted to international payment processing, automation, peer-to-peer lending and accounting software. Scaling a consumer focused fintech solution that seeks to do a core banking service better or cheaper has been incredibly difficult to pull off. Open Banking turns this situation on its head.
Amazon. Stop Being Everything to Everybody! (Crowdfund Insider) Rated: AAA
While Amazon may have missed out in the purchase of Flipkart, Amazon just extended it’s investment into India’s Capital Float – India’s largest online lender.
May, 2018 – Amazon Pay – Who moved PayPal and Square’s cheese? Amazon did.
March, 2018 – Amazon Checking Account
March, 2018 – Amazon Mortgage – Amazon is making it’s first inroad into personal finance with Amazon Mortgage.
Feb, 2018 – Amazon Lending – We have known this for sometime now, Amazon Lending started back in 2011 has made over 3 billion worth of loans to small businesses that sells goods on their platform. An invitation only program, Amazon lends anywhere from $1,000 to $750,000. Terms are favorable to credit cards and the fees a deducted from the merchant’s seller accounts at Amazon. Of course amazon uses sellers inventory, product mix and revenue data to underwrite but now with the help of Bank of America, Amazon is ready to restart their SME (Small and Medium-sized Enterprises) lending in a big way again. This is a direct threat to OnDeck, recently teamed up with JPMorgan Chase and Kabbage, which might need to re-stack their chips and integrate more with Ebay and Paypal. – “Amazon has partnered with Bank of America for its lending program: Sources” –
Ten years before Jeff Bezos founded Amazon.com, a movie entitled “1984” was released. If you haven’t watched this film, stop reading and do yourself a favor and get it today…. on Amazon. DOH!
How to Use AI in Fintech and Improve Your Financial Services (Payments Journal) Rated: AAA
There are a few main ways how AI is used today in the financial world.
- Advanced customer service
- Fraud detection
- Lowering the risk in P2P lending
- Improved insurance support
- Enhanced investment analysis
This company is a P2P lender that actively uses AI in their service. Their company is situated in the USA. They created AI algorithms that can assess all risks of lending money to a certain customer, and it allows managers of the company to give loans very fast.
P2P Lending Marketplace PaisaDukan Raises Additional Seed Funding of $ 225K (BW Disrupt) Rated: AAA
PaisaDukan.com, a P2P Lending marketplace owned by Mumbai based FinTech start-up BigWin Infotech today announced second round of seed funding and secured USD 225K through angel investment. The company has raised $650K of seed funding last month that takes company to the total Seed investment of $875K till date. The investors’ names are still undisclosed by the company.
Fintech Valley Vizag and Knowledge Partner KPMG Announce Startup Market Connect 2018 (The New Indian Express) Rated: B
Fintech Valley Vizag, an initiative of Government of Andhra Pradesh, conducted a demo day to enable startups to showcase their solutions to leading corporates in banking and financial industry. As a part of this Connect, eight corporate partners who were looking for innovative solutions shared their 19 high priority use cases. These corporate partners included ICICI Lombard, DCB, Kotak Mahindra, RBL Bank, Fullerton India, IDFC, Tata Capital and Bajaj Allianz.
Vault Investment and MIG jointly form “Relam Investment” (Zawya) Rated: A
UAE-based company Vault Investment and Vietnamese MIG Holding, announced that they have aligned to form Relam Investment Company LLC.
Lootah also announced three new technological investment projects. The first would serve the real estate sector through the crowdfunding platform.
During the launch ceremony today, Relam Investment Company signed three partnership agreements. The second agreement was with Cygnus Technology Services represented by Mr. Swapnil Patil which is a technological company to launch the services system (OYA) in UAE and Vietnam followed by the agreement for BRICX – a Real Estate Crowdfunding project with MMD Technologies represented by Mr. Samy Moselhy.
Investing in My Future by Investing in Israel (The Times of Isreal) Rated: A
A thriving economy starts with local investments, and for my future and the future of my kids, I know that investing in Israel is the right choice moving forward. Low risk investment optionsexist, and this includes your standard bonds, real estate and certain stock options.
It’s difficult to help fund a startup through venture capital, but through peer to peer lending, a lot of investors can invest in local, small companies. OurCrowd is a go-to choice, based in Israel, that allows you to invest in upcoming startups.
Seedly helps millennials manage their money – and Singapore’s ShopBack just acquired it (Tech in Asia) Rated: AAA
Singapore-based ShopBack, an online product comparison and rewards platform, has made its first acquisition. The company snapped up Seedly, which focuses on personal finance advice and expense tracking for young people.
Founded in 2016, Seedly developed an app that allows users to connect their bank accounts and credit cards as well as get detailed reports about their spending habits.
On its website, community members can ask each other questions and review products like mobile plans, lending startups, and robo-advisors.