Wednesday June 14 2017, Daily News Digest

nonprime mortgages

News Comments Today’s main news: Misys, D+H team up to launch Finastra. Fundrise intros first real estate robo-advisor. UK businesses find it harder to get a loan. Singapore Life gets insurance license. Faircent offers online lenders ‘What-If’ scenario simulations. Today’s main analysis: Does anyone remember how to make a subprime mortgage? The most up-to-date numbers for Prosper, RateSetter. Today’s thought-provoking […]

nonprime mortgages

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News Summary

United States

Launch of Finastra (D+H), Rated: AAA

Today Misys and D+H have joined forces to create a diversified global financial software provider, unmatched in terms of depth and breadth of solutions. Operating under the new company name Finastra (www.finastra.com), the combination will create the third largest financial services technology company in the world. The company has approximately 10,000 employees and over 9,000 customers across 130 countries, including 48 of the top 50 banks globally. This follows the acquisition of D+H by Vista Equity Partners, which already owns Misys, creating a merger of two highly complementary financial technology providers.

Finastra will be led by Nadeem Syed in the role of Chief Executive Officer. Mr. Syed was previously CEO of Misys and has over 27 years of experience leading global technology companies through transformation and growth. The company has U.S. $2.1 billion* in revenues and has offices in 42 countries around the world. It will be headquartered in London, UK, maintaining North American headquarters in Toronto, Canada.

Finastra offers the broadest set of retail banking, transaction banking, lending, and treasury and capital markets software capabilities available in the world. The company’s open architecture and approach enable financial institutions to harness the power of software ecosystems and will be delivered on premises, hosted or via the cloud. With the increased scale and geographic reach, Finastra will be able to serve customers better, regardless of their size or geographic location – from global banks, to community banks, credit unions, and corporations. Using the company’s secure and reliable solutions, customers will be empowered to accelerate growth, optimize cost, mitigate risk and continually evolve to deliver a superior customer experience, both now and in the future.

Having long pursued a progressive vision of innovation within both businesses, Finastra will strive to further unlock the potential of people and businesses by executing the product strategy of ‘Protect, Extend and Innovate’. This includes protecting our customers’ investments in all of our solutions; extending the value of our solutions by integrating new products and services; and innovating to create the best-in-class solutions. Finastra will work in partnership to help customers transform their business, and become more agile, innovative, and resilient to better meet their evolving needs.

Finastra will be privately held.

Retailpocalypse: Bank branches are closing in droves (Tearsheet), Rated: AAA

There may be no physical institution as historically revered as a bank.

Nice try. Banks these days are hardly elegant or imposing. Most have shrunk in size thanks to rising costs of real estate, and many have disappeared entirely, according to data from the Federal Deposit Insurance Corporation. Chase reduced its branch presence by 190 locations, a 3.4 percent decline, from 2012 to 2016. Wells Fargo closed 98 branches, a 1.6 percent decline in the same period. Its peers are even more aggressive. Bank of America closed 243 branches (16 percent) in that period and Citi closed 302 (28.5 percent).

Branches are consolidating locations with lower servicing volume, opening in higher growth areas and renovating existing branches and ATMs. More importantly, they’re evolving into more compact, digitally oriented spaces that incorporate new technology and help branch employees focus on improving the customer experience.

While those in the banking industry feel there will always be brick-and-mortar branches, in large part because the business of banking is grounded in trust, and in knowing the person with whom you’re working, the move to digital technologies is expected to grow exponentially.

Fundrise Revamps Service with First Ever Robo-Advisor for Real Estate (Crowdfund Insider), Rated: AAA

Fundrise, one of the leading online investment platforms for real estate, has launched the “2.0” version of their platform. Fundrise has created a Robo-Advisor focused on real estate thus providing an investing tool to match individual investor needs.

The Fundrise Robo-advisor enables individual investors to create a highly diversified real estate portfolio accessing Fundrise’s growing number of eREIT’s. The service provides an estimate based on submitted variables to extrapolate potential returns. Fundrise estimates users will save up to 40% on fees versus traditional services.

Does Anyone Remember How to Make a Subprime Mortgage? (WSJ), Rated: AAA

Brokers willing to learn the lost art of making risky mortgages are in demand again.

Mr. Boyd, a 25-year-old account executive at FundLoans in a beach town outside of San Diego, is at the cusp of efforts to bring back an army of salespeople who once powered the mortgage industry and, some say, contributed to the housing crisis.

Brokers are a key part of a mortgage chain that starts with a borrower going to a broker for a loan. The broker surveys lenders for the best loan to fit the customer. The lender then funds the borrower’s loan.

While brokers before the crisis served banks and independent lenders, today they are working largely for nonbank lenders who make up a critical part of the mortgage market.

In the first quarter, nonbank lenders accounted for about half the mortgages originated in the U.S., according to industry publication Inside Mortgage Finance.

In the first quarter, nearly a decade after the start of the housing crisis, lenders originated just $6 billion in loans to borrowers with less than stellar credit scores or who are using alternative documentation to prove income, a category now known as “nonprime,” according to Inside Mortgage Finance.

In all of 2016, they originated $22 billion in loans, according to Inside Mortgage Finance. Back in 2005, at the peak for such loans, lenders made about $1 trillion of these mortgages.

Meanwhile, the volume of loans produced by mortgage brokers dropped to $37 billion in this year’s first quarter, down about 34% from the last three months of 2016. Loans from brokers peaked at around $1.1 trillion in 2003.

‘Fintech’ startup SoFi moving into traditional banking (Seattle Times), Rated: A

NEW YORK (AP) — Online lender and financial startup SoFi has taken the first step toward competing with the nation’s biggest banks on their home turf: the checking account.

The company, however, will have back-office operations in both Delaware and Salt Lake City, Utah.

In its application to the Federal Deposit Insurance Corporation, SoFi plans to fund its new bank subsidiary with $166 million in capital.

Student Loans Are Holding Back Entrepreneurs. SoFi Is Changing That (Inc.), Rated: A

All your life, you’re told that an education will set you up to fulfill the American dream. But once you graduate, you’re faced with onerous payments that seem to hardly dent the principal. You need a steady job, stat. It’s terrifying to forgo a salary to start something new, let alone invest your assets, when you’re obligated to make monthly payments that can reach thousands of dollars.

One startup is helping its users get ahead of their debt and start the new ventures that our economy needs to thrive. SoFi (short for Social Finance) is largely known as the startup that will refinance your student loans, though it aspires to encompass its members’ entire financial lives.

Nevertheless, student loans are SoFi’s bread and butter, a reflection of the generation of Millennials saddled with insurmountable-feeling debt. That’s why, in addition to its unemployment support and career coaching, SoFi has an entrepreneurship program. The benefits include six months of loan deferment, mentorship resources such as connections to investors, and networking with other entrepreneur members.

Of course, SoFi can’t single-handedly revive American entrepreneurship, not least because the cohorts of accepted entrepreneurs are limited, and the types of businesses that SoFi favors skew toward scalable tech startups rather than conventional small businesses. But student loan relief has a definite impact on the participating SoFi members’ ability to launch companies.

Fundrise Offering Circular (Disclosure Quest), Rated: A

We are offering up to 5,000,000 shares of our Class B Common Stock to the public at $5.00 per share. This offering commenced on February 1, 2017 and as of May 30, 2017, we had settled approximately 2,884,129 shares of our Class B Common Stock of the 3,000,000 shares that we had previously qualified for sale. We are including in the offering an additional 2,000,000 shares of our Class B Common Stock to be sold pursuant to this offering circular.

Disruptor Alert: These 2 Companies Are Changing Banking (The Motley Fool), Rated: A

Square (NYSE:SQ) has disrupted the mobile payment market, and could still be in its early innings of growth. Over the past year, Square’s stock has more than doubled, thanks to its impressive and better-than-expected growth and optimistic forecast.

Over the past year alone, Square’s payment volume increased by 33% to over $13.6 billion, and the company is on the verge of becoming profitable. Plus, Square’s services and subscription revenue more than doubled year-over-year, and has tremendous long-term growth potential.

P2P lenders aren’t the only players in the unsecured lending space anymore — some of the biggest names in the industry are getting involved, which could certainly shake things up in the years to come.

One in particular I have my eye on is Goldman Sachs (NYSE:GS).

Goldman first announced its intention to get into the consumer lending business in 2015, and after a couple of years of development, the company recently launched Marcus (named for Marcus Goldman, one of the bank’s founders), its new lending platform that offers personal loans of up to $30,000.

According to a report by TransUnion, nearly 16 million people took out an unsecured loan in 2016, the highest on record. With an average balance of $7,640 and average interest rate of 12%, this translates into a billion-dollar revenue stream if Goldman can build its market share to just 7%.

IMAGE SOURCE: LENDING CLUB INVESTOR PRESENTATION.

Cadre Raises $ 65 Million in Series C Financing, Led by Andreessen Horowitz (BusinessWire), Rated: A

Cadre, an online investment marketplace providing access and insight into institutional quality alternative assets, today announced a $65mm Series C financing round led by Andreessen Horowitz, with additional participation from Jim Breyer of Breyer Capital, Ford Foundation, General Catalyst, Goldman Sachs, Khosla Ventures, and Thrive Capital. Cadre’s existing investors include DST, Founders Fund, SL Green, and others.

Envestnet | Yodlee Unveils Personal Financial Wellness Solution Powered by Data Intelligence (PR Newswire), Rated: A

Envestnet | Yodlee (NYSE: ENV), a data aggregation and data analytics platform powering dynamic, cloud-based innovation for digital financial services, today announced the launch of its Personal Financial Wellness Solution at the Digital Banking Summit. The Envestnet | Yodlee Personal Financial Wellness Solution is a suite of applications and APIs that leverages enriched data and artificial intelligence to move beyond organizing historical financial data, helping financial institutions and fintech developers provide actionable, financial guidance to their customers across a spectrum of devices, user interfaces and platforms.

The Envestnet | Yodlee Personal Financial Wellness Solution enables financial institutions and fintech developers to provide actionable tools to help consumers identify their projected OK to Spend balance and easily Save for a Goal. By applying Envestnet | Yodlee’s advanced data intelligence to its enriched transaction data of over 15,000 data sources, financial service providers can derive actionable information from consumers’ financial data in order to measure, guide and improve consumers’ financial health.

OK to Spend

Core to the Personal Financial Wellness Solution is OK to Spend, which synergizes predictive analytics and user feedback to deliver smart financial forecasting. OK to Spend can be consumed as a financial application or a fully RESTful API framework that enables financial service providers to create forward-looking forecasts that organize and predict recurring income and financial obligations along with personalized notifications for financial events and projected balances. OK to Spend analytics is run across the consumers’ primary spending accounts (cash and credit card) regardless of which financial institution they primarily bank with, in order to provide a holistic view of their finances.

Patent-protected machine learning and data analytics enable the OK to Spend algorithms to identify sources of recurring income and accurately predicts future income, accounting for anomalies. Similarly, OK to Spend identifies recurring and forecasted financial obligations, while accounting for fluctuations determined from historic data.

Save for a Goal

The Save for a Goal application allows consumers to easily set and track savings goals. The application facilitates money movement across different accounts at a specific time frequency and allows customers to better track their goals by allowing consumers to allocate multiple goals to a single account, or spread a single goal across multiple cash and investment accounts. Save for a Goal provides visual data and notifications such as progress bars, charts, graphs and alerts, engaging customers with the option to flex and prioritize between goals.

The First In-Depth Report of the Single Family Real Estate Investor – the Iceberg Report (Newswire), Rated: A

The role of the individual and institutional single-family residential investor is highly undervalued and tremendously under-appreciated. About 10 million individuals, businesses and institutions provide secure housing and jobs for millions of average Americans. 67 million souls live in single-family rentals, a million more properties are added each year employing millions of individuals, to buy, renovate, lease and maintain as safe housing for tenants in affordable to luxury markets.  Single-family rentals have been discovered as a low-risk passive income revenue source and a growth asset in a balanced portfolio or personal retirement plan.

Using Harris Poll, single-family real estate investors were surveyed nationwide to understand why, where, what and how they invest and manage these properties to provide stable housing and realistic returns on their personal and company investments.

The report touches several other critical components that shape this market. Key among these are how the single-family real estate investor effects the economy, how investors view their properties (as added rental income or as an intentional business goal), investor decision points, and the investor as a customer,” says Steve Murray, Founder & CEO Real Trends.

To download your free copy of the Iceberg Report Executive summary, please go to

Want to Bring More Services to Your Clients? There’s A FinTech for That (CPA Practice Advisor), Rated: A

These days, there are few “typical” CPA firms left. As they seek to diversify, differentiate and grow by offering their clients value added services, firms are engaging in a much wider range of activities.

With the rise of a new generation of B2B financial technology companies, or Fintechs, the opportunities for CPA firms to offer new services have never been better.

Fintechs are infiltrating every aspect of B2B financial services, and venture investment continues to pour in. Where people used to look to QuickBooks, Oracle and SAP, now there are cloud-based accounting and ERP options like Xero and Freshbooks and NetSuite and Workday. But you probably know about those.

What you might not know is that Fintechs are moving into e-invoicing, expense reporting, data sharing and protection, compliance, tax management and fraud control. They’re executing specific parts of the banking value chain better, cheaper and faster, including lending, trade finance, and payments. Some are even considering becoming banks themselves.

Fintech solutions solve the whole thing– all types of payments and all the work that goes along with the payments. Companies can make 80 percent or more of their payments electronically, and that saves a lot of resources, especially if you’re a BPO writing hundreds of thousands of checks on behalf of your clients. You could be helping them get a lot more card rebates instead.

But what visibility really does is open up more opportunities for CPA or audit or BPO firms down the road. If you’re a BPO, visibility into payments could potentially help you work better with vendors.

The more you can help clients automate, the more nimble they are and the more nimble you are.

Goldman Sachs Bank Aggressively Going After Deposits (Lend Academy), Rated: A

So, I did a bit of research on what Goldman Sachs Bank is offering compared to others in the market. I looked at Bankrate and Nerdwallet to see who were the top offerings for savings accounts and CDs of various duration. What was interesting to me is that Goldman Sachs was at or near the top in every category.

For savings accounts there were a couple of small regional or local banks that had slightly higher rates but no major national banks were higher. If you look at 3-year CDs with a minimum investment of $500 (the Goldman Sachs minimum) I could not find an offering anywhere in the country that came close to matching Goldman’s 1.90% rate. In fact, the second highest rate available anywhere for a $500 3-year CD was 1.65% from Barclays.

Allstate, Marketplace Lending Association and others fly in (Politico), Rated: A

All sorts of interest groups are flying in this week to nab some time with lawmakers before the July 4 recess.

The Marketplace Lending Association, a trade group that represents digital financial and lending startups, is in town this week for its first-ever fly-in, meeting with lawmakers and regulators. “The goal is to bring Washington up to speed on the growth of the sector, as well as the emerging partnerships between the fintech member firms and banks,” according to the group. Its member companies include Lending Club, Prosper, Funding Circle, Avant, Marlette Funding and Affirm.

FINRA Establishes Innovation Outreach Initiative For FinTech (ETH News), Rated: A

On June 13, 2017, The Financial Industry Regulatory Authority (FINRA) declared the establishment of the Innovation Outreach Initiative, in order to properly assess FinTech‘s industry impact.

FINRA’s Innovation Outreach Initiative comes after the launch of its FinTech site that’s dedicated to emergent topics in the field, and literature on blockchain technology and digital investing.

The initiative will consist of program elements, such as enhancing FINRA’s processes, timely publication of regulatory technology applications, regional outreach roundtable discussions (comprised of FINRA members and nonmembers), and the creation of a FinTech Industry Committee. The committee will help to assist with ongoing discussions about how FINRA’s programs and rules will intersect with FinTech innovations.

Online Lending Policy Institute Names Board of Governors (OLPI Email), Rated: B

The Online Lending Policy Institute (OLPI), a voice for policy analysis, in-depth research, and education for the online lending industry, today announced its Board of Governors, a group of industry experts ranging from academics to lawyers to executives from twelve leading organizations. This newly elected group joins founding members of OLPI: Cross River Bank, Boston University’s Center for Finance, Law & Policy, and RocketLoans.

The Board of Governors are:

  • Frank Borchert, General Counsel, Marlette Funding/ Best Egg
  • Colin Darke, General Counsel/Chief Compliance Officer, RocketLoans
  • Dr. Michael Dooley, Chief Economist, SoFi; professor of economics UC Santa Cruz
  • Marc Franson, Managing Partner, Chapman and Cutler LLP
  • Michael Freedman, General Counsel, BorrowersFirst, Inc.
  • Gilles Gade, CEO, Cross River Bank
  • Adam Goller, Chief Credit Officer, Cross River Bank
  • Cornelius Hurley, Director, OLPI; professor Boston University
  • John Kromer, Partner, Buckley Sandler LLP
  • Robert Linderman, General Counsel, Freedom Financial Network, LLC
  • Tim Li, CEO, Kuber Inc.; professor Fintech School
  • Marshall Lux, Senior Fellow, Harvard Kennedy School
  • Marty Mitchell, Managing Director, ProBank Austin (formerly Professional Bank Services)

DiversyFund Announces New Luxury Investment With Roman James Design Build (Digital Journal), Rated: B

DiversyFund, Inc., a fast-growing full-service online real estate investment platform, announced the next ground-breaking real estate investment project that their partnership with Roman James Design Build will undertake. DiversyFund and Roman James will be building a new ultra-luxury in Hollywood Hills, one of the most exclusive neighborhoods in Los Angeles.

This investment opportunity is located at the end of Granito Drive in the prestigious Hollywood Hills community of Los Angeles, California, home to Hollywood celebrities, professional athletes and Fortune 500 CEOs.

Congressional Testimony on Fintech Innovation: “Today We Are Following Not Leading” (Crowdfund Insider), Rated: B

This past week the House Subcommittee on Digital Commerce and Consumer Protection, part of the Energy and Commerce Committee, held a hearing on Fintech innovation as part of their disruptors series.

Van Valkenburg called on Congress to “rationalize the chaos of financial regulation,” pointing to the horrifying reality there exists a byzantine environment of state and federal regulators that, well simply put, doesn’t make sense.

United Kingdom

London leads European fintech investment despite Brexit (Financial News), Rated: AAA

London-based fintech companies attracted more than three times as much capital in the first quarter as Berlin – Europe’s second largest fintech investment hub – and maintained its market share despite moves by other cities in the region to gain from the UK’s departure from the EU.

New research from data provider FinTech Global found six cities that stand out in Europe’s fintech arms race, with companies based in London, Berlin, Stockholm, Paris, Barcelona and Amsterdam raising $823m in the first three months of 2017.

Overall European investment stood at $1.2bn, with London claiming a 36% share at $421m — more than treble the $140m investment in Berlin-based companies, according to the research.

Over the previous three years, London accounted for 39% of European investment, suggesting that the impact of last year’s Brexit vote has been slight.

UK businesses looking for finance are finding it harder to get a loan (Business Matters), Rated: AAA

With the UK in the early stages of Brexit and now facing a General Election, new research conducted by RateSetter Business Finance reveals how credit conditions look to be tightening again, with over 400,000 small businesses now interested in finding an alternative to the banks for a loan.

When asked, 32 per cent of SMEs that had considered raising finance said that it was now harder than six months ago.

As banks are progressively closing their branches and cutting back on front-line staff, businesses now need to go elsewhere to benefit from face-to-face contact before borrowing money. With over a third of small businesses preferring to seek advice in person, the move to online-only offerings and the closure of physical branches is a concern.

Hive ICO – the first crypto currency invoice financing platform for SMEs (Daily Fintech), Rated: A

Hive claims it will be the first crypto currency invoice financing platform for SMEs, with its ICO opening in 4 days and closing at the end of July.

From what I can gather – and I’d say you’re best to verify this yourself – Hive tokens give holders the right to participate in the network and generate a return by funding invoices. The carrot for small business owners is the speed of execution of the financing element.

And while I was lucky enough to get a master class in person, if you haven’t yet got your head around tokens and ICO, these articles are worth a read:

Asia

OBTAINING DIRECT LIFE INSURANCE LICENSE BY SINGAPORE LIFE (Credit China Fintech Holdings Limited), Rated: AAA

This announcement is made by Credit China FinTech Holdings Limited (“Company”) on a voluntary basis.

Reference is made to the announcement of the Company dated 26 April 2017 in relation to the Investment in Singapore Life (the “Announcement”). Unless otherwise defined, the capitalised terms used herein shall have the same meaning as those defined in the Announcement.

The board of directors of the Company is pleased to announce that Singapore Life has been approved as a fully licensed direct life insurer by the Monetary Authority of Singapore.

Singapore Life will also soon offer life insurance solutions to customers through its online platform www.singlife.com and financial advisers.

European Union

French Fintech Under Macron’s Presidency One Month On (Forbes), Rated: A

On the other hand, as Grossman points out, ‘since Macron has publicly stated that innovation and disruption is key for France’s growth potential, his intention for closer integration with Europe has been broadly welcomed by the fintech industry.’ Macron seems to be pro-PSD and has invited those affected by Brexit to work in the technology sector in France, all are welcome under En Marche. The French president is also very supportive of SME growth and is interested in helping French Tech.

Macron’s initiatives so far are clearly in favour of the development of fintech in France and with billions promised for innovation, the president is returning to supporting this space, as he did with The Family in Paris, as Grossman points out.

International

What do the most up-to-date numbers in marketplace lending tell us? (AltFi), Rated: AAA

Prosper is currently lending significantly more than it is being repaid for the first time in roughly a year.

In March, the platform posted its first positive monthly net lending figure ($200k) since May of last year. April saw net lending growth to c. $15m.

 

RateSetter has posted back-to-back months of negative net lending in April and May (roughly £-700k and £-4m respectively). There are no other negative net lending months in the platform’s 6-7 year history.

Sovereign wealth funds ramp up private debt investment (AltFi), Rated: A

Gargantuan sovereign wealth portfolios are increasingly turning to private debt exposure with almost two-fifths of portfolios now actively investing in the asset class due to its potential for stable risk-adjusted returns and portfolio diversification benefit.

The report found that 39 per cent of sovereign wealth funds now invest in the asset class, an increase of five percentage points over the past 12 months. The majority of sovereign wealth funds with over $10bn in assets now allocate to the asset class, including two-thirds of those managing $250bn or more, and all of those managing $100-249bn.

Libyan Investment Authority is one such investor in private debt that allocates to the asset class as part of its private equity portfolio. The fund targets distressed debt and mezzanine funds in Europe, North America and MENA.

Mezzanine investments are the private debt fund type most appealing to sovereign wealth funds, with 70 per cent targeting the strategy over the next 12 month and direct lending is sought by 53 per cent.

Australia

Australia and Hong Kong seal fintech cooperation agreement (ZDNet), Rated: A

The Australian Securities and Investment Commission (ASIC) has signed an agreement with the Hong Kong Securities and Futures Commission (SFC) to provide mutual support to fintech businesses from Australia and Hong Kong seeking to operate in each other’s markets.

Under the agreement, ASIC and SFC will refer fintech businesses to each other for advice and support via ASIC’s Innovation Hub — aimed at helping fintech businesses navigate Australia’s regulatory framework without compromising investor and financial consumer trust — and its Hong Kong-based equivalent, SFC’s Fintech Contact Point.

India

Now online money lenders can simulate ‘What-if’ scenarios on Faircent (Techseen), Rated: AAA

India based Peer-to-Peer lending website, Faircent, has announced the launch of what it claims to be a first-of-its-kind Portfolio What-if Analysis (PWA) tool on its platform. According to the company the tool will allow lenders to simulate different loan scenarios and understand how multi-loan portfolios in peer-to-peer lending operate through a ‘What-if’ analysis.

Using the tool lenders can create a test portfolio and specify the amount they would like to invest, along with the duration, interest rates, and tenure. The Portfolio Simulator will then perform advanced algorithm-based calculations based on the input, generating projected portfolio returns by following a standardized method using the concept of Net Annualized Return (NAR).

Rupaiya Exchange Receives Award for Best Peer-to-Peer Lending Platform in India (PR Newswire), Rated: A

Rupaiya Exchange received the award for Best Peer-to-Peer Lending Platform in India in The Asian Banker Financial Peer-to-Peer Audit Awards Programme 2017. The awards ceremony was held in conjunction with the prestigious Asian Banker Future of Finance Summit 2017, the foremost annual meeting for decision makers in the financial services industry in the Asia Pacific region, held at the Asian Civilisations Museum, Singapore.

The awards evaluation criteria were based on multiple dimensions including financial performance, risk management processes, technology, innovation and strategy.

Online Peer-To-Peer Lending (BusinessWorld), Rated: A

Facilitating simple, fast, and tech-enabled banking services, the emergence of fintech is forcing banks to rethink old business models and delivery mechanisms to adopt a more technology-driven and consumer-centric approach to retail banking.

Leading this ‘uberisation’ of financial services is the online P2P (peer-to-peer) lending sector, which is driving disruption in the institutional lending space through its simplified, tech-enabled approach. What this also means is that online P2P lending will play a significant role in driving the Indian economy.

The adoption of technology means that loan approvals and disbursals can be facilitated in as little as 24 hours from the request origination, whilst digitised operations and processes allow for minimisation of overhead costs. This translates to greater benefits for all stakeholders; while borrowers pay lower interest rates and processing fees, lenders earn higher margins and returns on their investments.

MENA

MBRF, Beehive to offer start-up finance solutions (Gulf News), Rated: AAA

Dubai SME’s financial arm and peer-to-peer lending platform Beehive had signed a memorandum of understanding (MoU) to aid financing for small and medium enterprises (SMEs).

The MoU between Beehive and the Mohammad Bin Rashid Fund (MBRF) will make it easier for SME owners in Dubai to obtain loans for development and expansion at competitive rates through the Beehive Group Finance Platform.

Under the deal, MBRF would act as a guarantor for credit of up to Dh500,000 on SME financing for a period up to 36 months.

Canada

Calgary-Based POS Lender LendingArch Expands into Quebec (Crowdfund Insider), Rated: A

LendingArch, a Calgary-based online and point-of-sale lending platform, announced its expansion to Quebec. LendingArch has partnered with medical clinics and home improvement contractors in Quebec to offer POS financing options, enabling LendingArch to become a fourth in-store payment method by applying online to finance products or services for up to 36 months.

Authors:

George Popescu
Allen Taylor

Friday February 10 2017, Daily News Digest

Friday February 10 2017, Daily News Digest

News Comments Today’s main news: Will US rate rise hit P2P lending? US deregulation is no threat to P2P lending. Today’s main analysis: Apple users have higher credit scores, loan amounts than Android, Windows users. Today’s thought-provoking articles: Australian MPL update. United States Will US rate rise hit P2P lending sector? GP:” If savings accounts […]

Friday February 10 2017, Daily News Digest

News Comments

United States

United Kingdom

European Union

Australia

India

United States

Will US Rate Rise Hit Peer-to-Peer Lending Sector? (Morningstar), Rated: AAA

Rising interest rates in the US could hit this sector – but Simon Champ, manager of P2P Global Investments (P2P) told journalists in London on Wednesday that he is not unduly concerned about the effect this will have on returns.

“As the average life of the loans we own is very short – that is about one to three years –  we are able to steer the book even if economic policy changes. We can get back 3-4% of loans in a month, coming back in cash and reapplying that to other loans. So we are not worrying about what is happening in the US as we have the ability to move the trust weighting to different areas as a fiduciary,” he added.

Champ admitted that the current economic climate has helped to grow peer-to-peer lending services.

Champ also stressed the “amazing transparency” peer-to-peer lenders vehicles have, when compared to the banking sector. However, he believes in the long term, banks and peer-to-peer lending platforms will coexist comfortably within the same market.

Sachin Patel, global co-head at Funding Circle SME Income Fund (FCIF) echoes Champ’s views, saying that peer-to-peer lending provides another channel for small businesses to access finance.

Apple Users Have Higher Credit Scores, Loan Amounts and Better Rates than Android, Windows (PR Newswire), Rated: AAA

LendingTree® (NASDAQ: TREE), the nation’s leading online loan marketplace, analyzed over 2 million purchase mortgage and personal loan requests to better understand how Americans are shopping for their loans. The findings show that 41 percent of purchase mortgage shoppers and almost half (48.53%) of personal loan shoppers use a mobile device to shop and compare loan offers from different lenders. Additionally, the analysis suggests a correlation between a user’s device, credit score, and loan amount.

Overall, potential borrowers using a Mac computer have the highest average credit score in both the mortgage (FICO average 722) and personal loan (FICO average 683) categories, along with the highest average loan amount in each. In 2016, the average loan amount for Mac users was $274,412 for a mortgage and $14,650 for a personal loan, much higher than the national average of $226,554 and $11,921, respectively. The average down payment amount for borrowers using a Mac in 2016 was $66,865 while the national average came in at approximately $45,830.

Because Mac users averaged higher credit scores, they also received a lower interest rate offer on a 30-year fixed rate mortgage loan. Although interest rates increased in the last few weeks of 2016, the national average 30-year fixed interest rate for 2016 was roughly 4.04% when Mac users, with a higher average credit score, where offered an average rate of 3.93%.

Following closely behind Mac users are Apple iPad users, averaging the second-highest credit score and second-highest loan amount in both mortgage and personal loan categories, despite being one of the least-common devices used to submit loan requests. Naturally, iPad users received the second-lowest interest rate offer for a 30-year fixed rate mortgage loan, 3.95% in 2016.

On the other side of the spectrum, Android users averaged the lowest credit scores and lowest loan amounts in both the mortgage and personal loan categories. Unfortunately, this also means average interest rates offered to Android users were higher than the national average.

Data was analyzed from over 2 million loan requests and funded loans facilitated by LendingTree and through My LendingTree between January 1 and December 31, 2016.

Peer lenders are packaging loans and selling them to Wall Street (CNBC), Rated: AAA

But as the industry is growing, so are its funding needs. That’s where big Wall Street banks are stepping in.

P2P platforms increasingly are bundling loans together and selling them off to institutional investors as “asset-backed securities.”

Total ABS issuance for 2016 in peer lending came to $7.62 billion, according to S&P Global Market Intelligence analyst Eric Turner.

However, the practice of ABS issuance in the marketplace lending arena began only around 2013, when the total was a meager $257.1 million. That means issuance is about 30 times what it was just four years ago. The 2016 total also represented a 72.4 percent increase over the previous year.

Among platforms, SoFi leads the way in ABS offerings, with the firm accounting for 58.4 percent of the 2016 total. Avant and Earnest were other big issuers during the year, while Lending Club was fourth.

How One Female Fintech Founder Beat The Odds—And Raised Millions For Child Support App (Fast Company), Rated: A

When former Silicon Valley exec Sheri Atwood landed $4 million in crucial Series A venture capital funding for SupportPay, an app designed to streamline child care payments, a lot of attention was focused on her personal story. She was a divorced mom and child of a painful broken marriage—so the show-me-the-money skirmishes were familiar territory.

Last year in the U.S. just a handful of fintech companies founded by women raised Series A or Series B funding. In New York, there were two investment platforms—Sallie Krawcheck’s Ellevest ($9 million) and Wise Banyan ($3.5 million), and insurance broker PolicyGenius ($15 million). And in California there was online lender ApplePie Capital ($16.5 million), along with SupportPay ($4.1 million). Overall, billions poured into the sector.

What did they see that you think other investors missed?

They saw the need and also the social benefit it was providing. Especially here in the Valley, investors are more than willing to fund the 22-year-old white male problems. But all these problems facing the typical American over the age of the 30: No one is willing to do it. Unfortunately everybody is looking for a Mark Zuckerberg. When I say that I code, I’ve been tested in meetings. I wonder, have you ever asked a guy this? I passed their test.

What did it take to pull of your Series A?

We closed $4.1 million in December, led by Fenway Summer Ventures. It was incredibly difficult, compounded by the fact that the world changed. When we raised our seed capital, the consensus was to focus on user growth. Just get users on board, get them active and using the product. We weren’t focused on revenue. Then around March of last year, revenue became investors’ only focus. It required a huge shift in product, in strategy, in development. The whole rules of the game changed. At the time we were giving the product away for free, with the idea that eventually the it would be a monthly subscription. Our focus had to become getting users to convert to paid. We turned on revenue in June and started collecting revenue in July. That’s when we could start having conversations.

P2P lending to benefit from rising growth and inflation? (ValueWalk), Rated: A

Since the election, financials have gained about 18% and industrials are up 11.5%. Contrast this to the 1% rise in consumer staples and utilities.

Since the election, the S&P Small-Cap 600 is up 16%, with the S&P 500 up 7%. If Trump delivers on his trade threats, firms that earn a large share of their revenues from US sales will outperform multinationals.

P2P lending is a great source of fixed income. Its investors are currently averaging 7% returns on 36-month loans and 9% on 60-month loans.

P2P lending will also benefit from rising growth and inflation. If the economy improves, more borrowers will apply for loans. As investor appetite for risk increases, they will seek higher returns, which MPL offers.

How Fintech Can Take Off Without Getting Hampered By Regulations (Fortune), Rated: A

However, today’s rules regulating various licenses and charters are incredibly outdated and not well-suited to the Fintech world. For example, the way banking licenses are issued by state was established years ago when bric-and-mortar stores did not compete with online retailers.

If the OCC is going to start granting charters to fintechs, it will have to step out of its comfort zone and accept a certain amount of failure. For a fintech charter to deliver on its promise of making financial services more inclusive, efficient, and capable, it should be made available to a wide variety of firms. Many of these firms will ultimately not make it. Not only is that ok, it is necessary.

If the OCC sets a zero failure rate goal, and achieves it, something went wrong. If none of the firms chartered by the OCC fail, then either the OCC simply chose firms that were so entrenched that failure was not an option, or the OCC created a chartering regime that was so cumbersome and difficult that only firms that had already made it would apply. Either outcome is undesirable.

The OCC should instead focus on making certain these firms have a credible plan for protecting their customers in the event of failure. For example, a lending platform should have a plan to allow the borrowers to continue to make payments on the loan and the lender to receive those payments, even if the platform goes bust. If the customers are protected, the success or failure of any given fintech firm should not be a regulator’s concern.

Merrill Lynch Rolls Out Robo-Advisor (Financial Advisor), Rated: B

Merrill Lynch has launched its robo-advisor, paving the way for the wirehouse to capture clients for whom traditional financial advice is too expensive, the Wall Street Journal writes.

Merrill Lynch is the first among big brokerages to unveil a robo-advisor, the Journal writes. Wells Fargo plans to start piloting a digital service this year and UBS has also announced plans to release a robo platform.

United Kingdom

Funding Circle’s Patel: US deregulation is no threat to P2P (P2P Finance News), Rated: AAA

US PRESIDENT Donald Trump’s plans to deregulate financial services are no threat to peer-to-peer lenders, Funding Circle’s global co-head of capital markets has said.

“Trump has been quite open about his plans for deregulation, but I think that’s more with regard to investment banks,” said Sachin Patel (pictured) at a media roundtable held by the Association of Investment Companies.

“However, if he does deregulate retail financial services, that’s not the only way we compete with banks. It’s not just regulatory capital considerations, we can offer other advantages such as speed of transactions.”

UK footwear giant schuh partners with leading online payments provider Klarna (Retail Times), Rated: A

European payments provider Klarna has announced a partnership with 

What is the real potential of crowdlending? (Misys), Rated: A

Unbiased removes Innovative ISA tweet after criticism (Citywire), Rated: B

Last week, Unbiased posted a link on Twitter to an article with information about innovative finance ISAs. The article listed the benefits and risks of using the savings vehicle.

However following the tweet, many were quick to criticise Unbiased.

In response to this backlash, Unbiased contacted Phil Young, director of director of Threesixty support services, on Twitter to say it was ‘an internally written piece, for information only’, and that it took the post down ‘until we can review the facts’.

European Union

Austrian fintech startup Finnest raises €1 million, opening Slovakia office (Tech.eu), Rated: AAA

Austria fintech startup Finnest has announced a funding round of €1 million led by Maxfield Capital along with existing investors Speedinvest and a number of angels.

Vienna-based Finnest is a loan platform for SMEs and is currently active in the DACH region with plans to launch in its first non-Germany speaking market in the coming months. It will open an office in Slovakia later in February.

Finnest is addressing a segment that has been underserved so far, according to Maxfield Capital general partner Alexander Turkot: SMEs with annual turnover of at least €10 million that are trying to attract additional investment.

Interview with Ivalyo Ivanov, CEO of Iuvo Group (P2P-Banking), Rated: A

Iuvo is the first South-East European P2P platform that allows its users to buy parts of loans. All loans listed on the platform are issued by originators (registered non-banking financial institutions). We give our users the opportunity to generate an annual return up to 12% on their investments while simultaneously provide our originators with the chance to develop their businesses.

What ROI can investors expect?

The expected annual return depends heavily on the choices our investors make, but the return a well-balanced portfolio should make is on average between 7 and 12%.

How reliable is the credit rating / credit history data available for the Bulgarian loans?

Bulgaria has a very well developed non-banking financial sector and a great deal of experience with consumer loans. The quality of the scoring process is without a doubt on a very high level and there are no reasons to think that would change any time soon. Of course, as I’ve already said, thorough audits are made before we consider any originator joining us.

How is the company financed? Why did you select to start the company in Estonia?

Iuvo is financed through business angels. We chose Estonia as it has been the cradle of P2P lending in the past years and we believe the best way for us to grow and develop is to be where the best platforms are.

Is Iuvo Group open to international investors?

In order to open an account with us individual investors must be at least 18 years old, have a bank account in the European Union (or third countries that are currently considered as having equivalent AML/CFT systems to the EU), and have their identity successfully verified by Iuvo’s back office team.

Australia

Australian Marketplace Lending Update (The National Law Review), Rated: AAA

In a recent report on licensing applications the Australian Securities and Investment Commission (ASIC) revealed that it has granted 7 Australian financial services licences (AFSL) and 3 Australian credit licences to marketplace lenders between January and June 2016. A further 3 AFSL applications are currently being considered. Previously, 6 licenses were granted between 1 July 2015 and 31 December 2015. This indicates that the number of entrants to the Australian market continues to grow.

Unlike other jurisdictions such as New Zealand, Australia does not have specific marketplace lending legislation. Marketplace lenders have had to adapt to fit within the existing financial services framework.

Australian crowdfunder, DomaCom has signed an exclusive distribution deal with a New York-based real estate crowdfunding platform, Prodigy Network.

The deal aimed to expand investment opportunities for Australian investors wanting to invest in US real estate assets.
India

P2P lending marketplace Rupaiya Exchange aims to increase financial inclusion (The Tech Portal), Rated: B

Rupaiya Exchange intends to increase financial inclusion by enabling common man an access to credit. It enables borrowers to take personal as well as business loan through this virtual marketplace.

With the use of multiple data extraction, analysis techniques, and proprietary scoring mechanism, they score every individual and not rely only on the traditional credit checks. Through the use of technology, they want to provide credit to credible borrowers and bring down their cost of borrowing.

Authors:

George Popescu
Allen Taylor

Thursday January 19 2017, Daily News Digest

millennials financial goals and dating

News Comments Today’s main news: UK P2PFA publishes Q4 data. Trended data better at assessing auto loan risk. Today’s main analysis: Millennials find apps better for personal finance than dating. Today’s thought-provoking articles: Student-loan startup raises money from Suber. SoFi expands mortgage line into Australia. Rupaiya Exchange to disburse Rs 100 cr loan. United States Millennials use apps […]

millennials financial goals and dating

News Comments

United States

United Kingdom

European Union

Australia

India

United States

MILLENNIALS FIND APPS MORE HELPFUL FOR PERSONAL FINANCE THAN DATING (SoFi), Rated: AAA

Personal finance can be frustrating. And your financial future can suffer without the right strategy.

That’s true for everyone, but it’s especially for millennial professionals ages 25 to 34 and Gen Xers ages 35 to 44. On top of having student loan debt and dealing with an ever-increasing cost of living, both groups have a tough time figuring out who to trust and what advice to take.

Gen Xers feel more empowered by money than other age groups

While only 18% of respondents say that thinking about their financial future makes them feel empowered, those ages 35 to 44 feel the most empowered. Perhaps that’s because as professionals rising in their careers, they’re thinking about what money will enable them to do.

For millennials, earning a higher salary is a financial priority
It’s been reported that millennials, on average, are willing to take a $7,600 pay cut in exchange for an improved quality of life/work. But our findings show something different: For these ambitious professionals, earning a higher salary is, indeed, a financial priority. While it’s true that millennials experience wage stagnation, there are a number of ways to change that.

25-34 year olds talk to parents and/or siblings more than any other group, and reach out to financial advisors only slightly more than 35-44 year olds.

But in comparison to other groups, 35-44 year old professionals do the least when it comes to structuring their long-term goals. Among all groups, those making more than $100,000 were the most likely to look at the big picture.

But with 38.4% of 25-34-year-olds indicating they were less than successful in accomplishing their priorities, that’s sure sign they could use more help in setting investment goals and creating good financial habits for reaching them.

While only 10.8% of 25-34-year-olds have used digital tools to actually achieve financial milestones, that’s still more than any other group.

Trended data better at assessing auto loan risk, analysis shows (Automotive News), Rated: AAA

Auto loan accounts could jump 11 percent a year if lenders use trended data, according to Equifax’s December 2016 Consumer Credit Impact analysis.

Especially in the automotive industry, Equifax expects more reliance on data insights as the market settles into a “post-recession norm,” a company statement said. “It will be vital to leverage as many insights about consumer debt behavior as possible to more confidently assess risk for a stable portfolio performance in support of a healthy loan marketplace.”

Equifax began using trended data for mortgage underwriting in September. It’s currently testing a specially designed risk-assessment model for auto lending.

In Equifax’s auto loan overpay analysis, it found that 77 percent of consumers who overpaid in year one also overpaid in year two. For those who overpaid in year one but did not in year two, “that nuance is very important,” Maynard said.

Student-Loan Startup Raises Money from Prosper’s Suber, Others (Bloomberg), Rated: A

Credible, which offers an online exchange for student and personal loans, raised $10 million from investors including Ron Suber, the president of Prosper Marketplace Inc., and Regal Funds Management to expand its business of matching borrowers with lenders.

The Series B funding round was led by Regal, and included existing investor Carthona Capital, Credible founder and Chief Executive Officer Stephen Dashsaid this week in an interview. The firm’s Series A round was for $10 million and much of it is still in the bank, Dash said.

Credible closed its Series A in 2015 in a fundraising led by Soul Htite, founder and CEO of Dianrong.com and co-founder of LendingClub, according to TechCrunch. Suber also participated in that round.

Sharestates Tops $ 275 Million in Real Estate Investment (Crowdfund Insider), Rated: A

Sharestates, a real estate crowdfunding platform, has hit $275 million in loans since platform launch in 2015.  The milestone makes Sharestates one of the largest online real estate investment platforms of its kind.  Sharestates said the December 2016 was the most active month in the platform’s history originating more than $42 million in loans. Sharestates said that loan volume has nearly doubled in just three months.

As of December 30, 2016, Sharestates reported having returned more than $151 million to its investors with no loss of principal and yielded a net average annual return of 11% to investors.

BorrowersFirst® Secures Additional $ 100 Million in Funding (Yahoo! Finance), Rated: A

BorrowersFirst (), a national online consumer lending platform, announced today that it has secured an additional $100 million in debt financing to accelerate loan originations and fund continued growth of its balance sheet. With this new facility, BorrowersFirst has now secured an aggregate of $400 million in capital to support its profitable growth.

The additional $100 million senior debt commitment comes from Waterfall Asset Management, a SEC-registered specialist credit advisor focused on high yield asset backed security (ABS) and loan investments.

BorrowersFirst loans are originated by Cross River Bank (CRB), a leader in marketplace lending.

This lawyer refinanced his student debt with a fintech start-up and deeply regrets it (CNBC), Rated: A

After graduating from law school in 2009 with more than $250,000 in debt, Josh Garber refinanced $80,000 of his student loans with online personal finance startup SoFi, a decision he now sorely regrets.

The company, he said, offered a better interest rate than his other lender and a program that allowed him to defer payments if they were higher than a certain percentage of his income, similar to how federal loans work.

SoFi has since scrapped that loan program, and every three months its debt collectors come after him for repayments he cannot afford to make, he told CNBC.

SoFi disputed Garber’s description of the terms and details of the program and said he never produced proof of income.

“We’ve never offered an income-based repayment plan, but we can offer members forbearance for up to 12 months if they can show us economic hardship. So incorrect to say we took away a program,” a spokesman for SoFi told CNBC.

Lending Club Schedules Q4 Earnings Release for February 14th (Crowdfund Insider), Rated: B

Lending Club (NYSE: LC), the leading US marketplace lending platform,  will issue its Q4 earnings report on Tuesday, February 14, 2017, after market close. Lending Club will host a conference call to discuss the fourth quarter financial results at 2:00 p.m. PT / 5:00 p.m. ET on the same day. The earnings report will be viewed as a benchmark measure on the marketplace lending industry.

A live webcast of the call will be available at under the Events & Presentations menu. To access the call, please dial +1 (888) 317-6003, or outside the U.S. +1 (412) 317-6061, with conference ID 2560900, ten minutes prior to 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time).

To access the confernece call,  dial +1 (888) 317-6003, or outside the U.S. +1 (412) 317-6061, with conference ID 2560900, ten minutes prior to 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time).

PayPal Names Airbnb Executive To Its Board (PYMNTS), Rated: B

PayPal announced Tuesday (Jan. 17) it has appointed Belinda Johnson, chief business affairs and legal officer at Airbnb, to its board of directors. Johnson will serve on the audit committee at PayPal. Her appointment, while disclosed Tuesday, was effective as of Jan. 12.

PayPal said the addition of Johnson to the board will increase the number of directors to 10.

United Kingdom

UK P2PFA Publishes Q4 Data (Crowdfund Insider), Rated: AAA

During the final three months of 2016, more than £843,917,964 million of new lending was transacted through P2PFA member platforms, with a total of almost £3 billion lent during the year. The P2PFA pointed to strong growth in the number of investors and borrowers.

P2PFA members represent over 75% of UK p2p lending. Their eight member platforms include; Funding Circle, Landbay, Lending Works, LendInvest, Market Invoice, RateSetter, ThinCats and Zopa.

 

Funding Circle is dominating Britain’s peer-to-peer lending industry (Business Insider), Rated: A

Britain’s peer-to-peer lending industry enjoyed its best quarter of the year in the final three months of 2016, led by big volumes at Funding Circle.

The P2PFA figures point to a sustained recovery from jitters surrounding last year’s Brexit vote. Lending volumes declined between the first and second quarters of 2016 as uncertainty before and directly after the vote to leave the European Union put off investors.

The strong year-end for the sector was largely driven by Funding Circle, which accounted for £305.9 million of the £843.9 million lent in the third quarter, or 35% of all lending.

Financial innovation – a lifeline for SME funding (Banking Tech), Rated: A

The reluctance of banks to lend to businesses in the wake of the financial crisis kickstarted massive innovation in business finance. In particular, peer-to-peer (P2P) lending is often seen as the poster child of innovation in the finance sector, with Zopa, Funding Circle and RateSetter being some of the largest and most well-known P2P lenders.

Yet, focusing only on P2P misses a huge part of the story of how funding in Britain is changing.

European Union

Fintech gets its voice heard at Davos (P2P Finance News), Rated: A

THE WORLD Economic Forum may be the go-to place for political leaders to rub shoulders but fintech trade body Innovate Finance is making sure its bustling sector gets heard in Davos.

The organisation has taken a delegation including peer-to-peer lender Zopa and other technology companies such as Bankable, Bitfury, Deposit Solutions, iwoca, Scalable Capitaland Yoyo Wallet, to the annual meeting in Switzerland this week.

KfW mulls more P2P securitisations (P2P Finance News), Rated: A

KFW, the German state-backed bank that last year invested in Funding Circle’s £129m securitisation, is open to more deals in the peer-to-peer finance sector in 2017.

The development bank bought £44m of the most senior tranche of business loans, which were owned by US asset manager KLS and originated through Funding Circle’s platform.

Last month, KfW said it plans to commit €1.3bn (£1.1bn) to SME securitisation deals in 2017, including up to €500m for transactions from European countries outside of Germany.

Australia

US fintech SoFi targets mortgage lending in Australia (Financial Review), Rated: AAA

One of the best-funded financial technology companies in the US, SoFi, is preparing to launch in Australia to offer mortgages in direct competition with the banks.

In recent days, the San Francisco-based SoFi has used LinkedIn to advertise for a manager of mortgage operations, based in Sydney, along with an operations manager and a marketing manager.

The pending opening in Sydney would be SoFi’s first office outside the US, where it has funded more than $US14 billion in student loan refinancing, personal loans and mortgages since it was founded in 2011. Over the past two years, SoFi, which used to be called Social Finance, has raised $1 billion in new equity funding and grown staff numbers from 200 to 700.

India

This P2P lending platform plans to disburse Rs 100 cr loan in a year (YourStory), Rated: A

Globally, shared economy and funds is a strong concept. It was something that 34-year-old Rohan Hazrati, who was associated as the CFO of a German company, noticed. He had seen people investing and borrowing via peer to peer lending. It was his eureka moment, he realised that there was a need for a more simple and easier lending process in India. That is when he thought of starting Rupaiya Exchange, a P2P (peer-to-peer) lending platform.

Over the past two years, the focus on lending space is fast increasing. In the P2P lending space, there is the Mohandas Pai-backed Faircent, which is a significantly large player in the space, i2ifunding, and IndiaLends.

The team charges a percentage on the loan funded, as success fees. The team has raised an angel round of $200,000 from a group of HNIs and professionals.

Authors:

George Popescu
Allen Taylor