- Today’s main news: FCA partners with Cambridge P2P and alternative finance center; Swedish Savelend gets regulatory approval.
- Today’s main analysis : Account Receivable financing in France.
- Today’s thought-provoking articles: 2 banks created cards which change the number every hour; An interesting article about media centers for institutions.
- US real estate crowdfunding is getting hotter. RealtyShares raised $200mil to date from high net worth ( practically p2p investors). Sharestates announced $1.3bil in in lending capacity. RealtyMogul’s eReit is doing great. And now Money360 did a $8.5mil loan shortly after surpassing $100mil in financing milestone.
- Lend Academy’s podcast hosts Scott Sanborn. Given our busy lives I prefer text, but for those who want to listen on their commute here is an interesting episode.
- An interesting article about media centers for institutions focused on banks. I think this article also applies to all large finance companies, maybe large funds, and managers, etc. The interesting part: the new strategy is working. In today’s world of an overwhelming amount of information, promoting own news and info is the key.
- We are covering on Lending Club in SeekingAlpha for the sake of completeness. However, I don’t think it’s relevant for our readers.
- FCA partners with Cambridge center for P2P and alternative finance. The UK regulator is amazingly open-minded, practical, and willing to approach things in the right way. This can only translate into a great business environment. I continue to feel very comfortable with P2P in the UK.
- LendInvest continues their activist market-creation tactics.
- And LendInvest, who by the way is in the news a lot, backs a housebuilder fund in the UK. I think that LendInvest does an outstanding job at being in the news.
- Swedish company Savelend gets regulatory approval and discussed next fund raise and IPO ideas.
- An extremely good review of Account Receivable financing in France. A great analysis.
- And also in France: 2 banks created cards which change the number every hour. Very interesting, even though the author thinks it’s the wrong approach.
- United States
- Money360 Provides $8.5M Bridge Loan Dedicated to Refinancing South Carolina Property, (Crowdfund Insider), Rated: A
- Podcast 76: Scott Sanborn of Lending Club, (Lend Academy), Rated: A
- The future of bank media centers, as told by BNY Mellon, ( Tradestreaming), Rated: A
- Lending Club – An Online Lender In Trouble?, (Seeking Alpha), Rated: B
- United Kingdom
- Cambridge academics offer FCA P2P insight, (Mortgage Introduced), Rated: AAA
- LendInvest: Now is the time for action, (Bridging and Commercial), Rated: B
- LendInvest backs housebuilder fund, (Mortgage Introducer), Rated: A
- European Union
- Loan intermediary Savelend gets the green light by FI, (Digital.di.SE, article in Swedish), Rated: A
- Disrupting Account Receivables Financing in France, (Crowdfund Insider), Rated: A
- Some are touting this as the bank card of the future — it’s not, (The Next Web), Rated: A
- All you wanted to know about Fintech, (The Hindu Business Line), Rated: B
Money360 Provides .5M Bridge Loan Dedicated to Refinancing South Carolina Property, (Crowdfund Insider), Rated: A
On Monday, real estate marketplace lending platform Money360 announced it provided a $8.5 million bridge loan for the refinancing of a K-12 charter school located in Spartanburg, South Carolina. According to the platform, the new loan will allow the borrower to pay off a maturing seller-financing loan, which had a higher interest rate, and provide $4.8 million cash out for impending near-term buildout of additional classrooms and facility space for the school.
The news of the bridge loan comes just a few months after the marketplace lender officially surpassed the $100 million in closed commercial real estate loans with the completion of $15.25 million in recently closed loans.
Podcast 76: Scott Sanborn of Lending Club, (Lend Academy), Rated: A
In this podcast you will learn:
- Why Scott decided to join Lending Club back in 2010.
- What the mood is like inside Lending Club today.
- The keys to winning back investors, especially banks.
- What their mix of investors looks like today.
- Lending Club’s plans for retail investors.
- Scott’s thoughts on Lending Club’s recent loan performance.
- Background to what Lending Club has built to help facilitate securitizations.
- The kinds of conversations that Scott has been having in Washington DC.
- The possible timelines of the SEC and DOJ investigations.
- How Lending Club keeps the balance between their whole loan and retail platform.
- The status of the new loan product that was going to be released earlier this year.
- Scott’s thoughts on the arrival of large banks like Goldman Sachs into the space.
- The keys for Lending Club in 2017 to maintain their leadership position in the industry.
The future of bank media centers, as told by BNY Mellon, ( Tradestreaming), Rated: A
Comment: instead of “media centers”, I would have used “social media” in the title.
Banks’ official news channels have been woefully neglected, leaving most, though not all, bank media centers resembling a standard Word document from the early 1990s. This layout is unlikely to excite investors, let alone the stray customer who accidentally stumbles upon the media center.
In 2014, BNY Mellon realized that this lackluster newsroom template didn’t reflect the innovative, modern brand the bank was trying to cultivate.
At BNY, the focus was broad: the firm wanted to reach journalists, clients, prospects, and employees across the globe.
With its target audience in mind, the media relations and digital marketing teams at BNY, supported by the bank’s design agency, created a newsroom whose visuals and content are styled after a digital magazine.
It’s not that BNY has completely done away with the Press Release, nor is it trying to erase its corporate tone or language. The bank simply believes that PRs are just one tool in its messaging toolbox.
The viewer numbers have also experienced a significant bump: From the third quarter of 2015 to the third quarter of 2016, external visits to the newsroom increased 32 percent, page views rose 22 percent and engagement is up 6 percent.
Not all banks are ready to take the plunge into this brave new world of communication. But they should consider it.
Lending Club – An Online Lender In Trouble?, (Seeking Alpha), Rated: B
Comment: we are covering this article for the sake of completeness. However, I find it to be not very relevant for our average readership as it is targeting the general public, has months old information, and in my eyes would be a waste of time to be read by our readership.
Cambridge academics offer FCA P2P insight, (Mortgage Introduced), Rated: AAA
A research team from the Centre for Alternative Finance at the Cambridge Judge Business School will provide the FCA with in-depth analyses of the P2P sector.
In July the regulator launched a consultation on the future of the crowdfunding market and sought to collect a range of evidence. The collaboration with the university represents a move by the regulator to broaden the range of evidence being used in the consultation.
Examining default rates and bad debt ratios, the aim of the research is to gain a deeper understanding of how robust underlying underwriting models are, and to spot changes in investor demographics.
“The FCA is also very interested in us conducting qualitative interviews with lenders and investors. Particularly from an SME point of view. It’s really interesting to understand the profile of borrowers, and some of the questions have to be answered by a combination of research methods.”
The UK’s Crowdfunding Association (UKCFA) welcomed the cooperation, saying it demonstrates the regulator is determined to base regulatory decisions on accurate evidence.
“There have been examples where the regulator has taken a view on models relating to real estate P2P, but they haven’t made the evidence they’ve used public.
The FCA closed its consultation on the future of crowdfunding on 8 September.
LendInvest: Now is the time for action, (Bridging and Commercial), Rated: B
Over the summer, the Communities & Local Government Committee began an inquiry into the capacity of the homebuilding industry, while the National Housing Taskforce launched a call for evidence on supporting new sources of housing supply. Both closed to submissions last month.
LendInvest has submitted responses to both, emphasizing our belief that if the government is to deliver on its promise of one million new homes by the end of this parliament, it has to do more to support small-scale housebuilders.
LendInvest backs housebuilder fund, (Mortgage Introducer), Rated: A
This morning communities secretary Sajid Javid said the £3bn fund will support SMEs, custom builders and developers, while he also targeted regenerating brownfield sites.
Loan intermediary Savelend gets the green light by FI, (Digital.di.SE, article in Swedish), Rated: A
Loan Company Savelend, previously stopped by the FSA, now gets the green light. The company is dedicated to mediate loans between lenders, so-called peer-to-peer lending.
Founded in 2013, the first loan was brokered in 2014. In December of the same year, it applied for it to become a consumer credit in line with the new law that had just been introduced. After the large TrustBuddy scandal, the FSA got in and had two questions. They wanted to see our entire banking book and how we handled the losses, “said CEO Ludwig Pettersson.
Savelend continued to process loans between individuals after this and in February filed for registering as a payment service provider.
Earlier this summer Savelend took 2.7 million SEK from a number of business angels. “We will bring in more capital in 2017 and aims for IPO in 2019,” said CEO Ludwig Pettersson.
To recruit SME clients, Finexkap relies on online advertising and partners such as the French subsidiary of the international consulting and auditing firm BDO.
Founded in 2015, Créancio is a newer entrant in this market. However, as a spin-off from Groupe GTI, Creancio has a leg up in AR financing. Group GTI is namely a structured finance expert and a pioneer in the field of AR securitization with currently over €2 billion assets under management.
To recruit SME clients, Créancio relies, among others, on partners such as auditing and accounting firm Baker Tilly. In 18 months of existence, Créancio has financed €20 million worth of invoices.
However, as it stands in France, the market has high barriers to entry. It is not an easy and inexpensive market to penetrate and to operate in.
Setting up an AR securitization fund is a difficult and expensive process, operating it requires working with multiple operators in the ecosystem such as credit insurers, custodian banks and investment services providers, and not necessarily on equal terms with those enjoyed by incumbents. In addition, incumbent factors are not standing idly by as they see new competitors emerge.
But Finexkap and Créancio have faith in their superior agility, their ability to seize technology opportunities and to deliver added value to underserved market segments.
Disrupting Account Receivables Financing in France, (Crowdfund Insider), Rated: A
According to the Association des Sociétés Financières, France’s AR financing is a €250 billion market that is growing at a double-digit rate, i.e. much faster than long-term lending. But is it ripe for disruption? Two French startups are betting on it.
Online AR Financing platforms Finexkapand Creancio see a major opportunity in that the divisions of large banks who currently dominate AR financings, such as BNP Paribas factor, Crédit Agricole’s Eurofactor, and Natixis Factor, have not made it easy for small and medium size enterprises (SMEs) to access their services.
According to Finexkap, less than 3% of French SMEs currently resort to AR financing.
French AR financing startups operate through AR Securitization.
Unlike the well-known UK factoring and invoice discounting marketplace MarketInvoice, they do not claim an affiliation with P2P lending or crowdlending.
Founded in 2012, French Finexkap calls itself a factor 2.0. Next to the above-mentioned benefits of flexibility, convenience, and speed, the company claims two major advantages over incumbent factors.
Cedric Teissier, Finexkap’s co-founder, and CEO, is a well-known figure of the French and the international Fintech scenes. Since 2012, the company has raised €25 million from investors, including well-known alternative finance investor GLI Finance, to fine-tune its business model and kickstart the lending operations. In January 2015, the company’s asset management arm Finexkap AM launched its first AR securitization fund. Earlier this month, Finexkap announced its second fund, a €100 million fund launched in partnership with asset management firm ACOFI Gestion.
Some are touting this as the bank card of the future — it’s not, (The Next Web), Rated: A
Two French banks are doing away with the static credit card number in exchange for numbers that change every hour. If stolen, the numbers would be quickly out of date, thus limiting damage when the worst happens. Think of it as a single use credit card, much like what ‘Privacy‘ and others offer, only for a physical card.
While it’s undoubtedly smart, it’s a band-aid to a much bigger problem. Luckily, the solution is already in our pockets.
The future of safe credit card payments rests within your phone, tablet or watch. These digital wallets are the ultimate in consumer security as they typically involve hacking a highly secure phone before being able to access the prize inside. Once through, additional layers such as two-factor authentication, single-use credit card numbers, individual PINs, and even biometric security options could provide additional security.
Some of these things already exist, others will undoubtedly make their way to your device as usage expands.
In the future, a data breach could be met with a notification that your bank is sending you a new card, all while instantly updating the information in your phone and foregoing the physical object. This could even take place behind the scenes with automatically-rotating credit card numbers, or single-use solutions.
All you wanted to know about Fintech, (The Hindu Business Line), Rated: B
A recent Credit Suisse report predicted that the Fintech revolution in India may trim transaction costs to near-zero (bye bye ATM charges) and wean away depositors from banks (bye bye 4 per cent). It also predicts that Fintech will be the trigger to a five-fold boom in consumer and SME loans from $600 billion to over $3000 billion in just ten years’ time.
So if you’re an investor, this could create enormous opportunities both for wealth creation and destruction. A host of new Fintech firms may also eventually vie with banks or NBFCs as listed entities.
If you’re a small borrower, Fintech offers you a shot at obtaining it without hassles.