- Today’s main news: BlockFi hits $25M in deposits in 2 weeks. Cash-back ETF injects trouble into ETF market. PeerStreet expands product line. Funding Circle fund higher impairments drag returns. Dianrong blames Chinese regime for troubles.
- Today’s main analysis: New home equity loans do not significantly alter credit scores.
- Today’s thought-provoking articles: SoFi Money review. Can Citi, JPMorgan beat fintech personal loans? Revolut tests the limits of finance. Top 7 lending startups in 2019. Vietnam is SE Asia’s fintech hub.
- BlockFi hits $25 million in deposits within 2 weeks. Crypto lending is beginning to become a major force in alternative lending. BlockFi is one of the leaders.
- SoFi Money review. Nerdwallet takes a look at SoFi Money.
- Can Citi, JPMorgan compete with fintechs on personal loans? Fintechs had 36% of the personal loan market in 2017. Can big banks make a comeback? I think their efforts in doing so are going to make this a much more competitive market. Can alternative lenders continue to grow with streamlined processes and leaner teams?
- New home equity loans do not significantly alter credit scores. Another great LendingTree study.
- Cash-back ETF causes stir in the ETF market. PR stunt or not, Salt Financial has upped the game.
- PeerStreet expands product line with residential for rent loans.
- There are millions of dollars in student loans left on the table because people abandon their FAFSA forms.
- Online lenders still seek Madden fix.
- State of digital engagement for online lenders.
- X Financial’s Q4 results take stock 5% higher.
- Why corporates can’t fund early pay programs.
- ZestFinance using artificial intelligence in mortgage lending.
- CoreLogic launches PanoramIQ.
- White Oak Healthcare Finance launches real estate investment vehicle with new hires.
- Banks seek help from Congress to block industrial charters for online lenders.
- Senmiao Technology’s S-3.
- Figure Technologies expands leadership team.
- LendPro hires VP of sales.
- Affirm seeks corporate counsel.
- Funding Circle fund sees higher impairments drag returns.
- Revolut is testing the limits of finance.
- CrowdProperty launches equity sale.
- OakNorth reports 33.9 million GBP in profit.
- IFISA guide for SME loans.
- Specialist lender funding will be a key issue in 2019.
- Peachy criticized for email campaign to sell food shortage fears amid Brexit concerns.
- Why investors are leaving stock market for P2P lending.
- Top 20 UK places for high net worth individuals.
- Dianrong blames government for its troubles.
- Pintec stock rises.
- KKR raising first Asia real estate fund.
- China and distressed debt.
- Southeast Asia: Top 7 lending startups in 2019. Southeast Asia is poised to see explosive growth in online lending.
- Europe: Finnest, Invesdor merge.
- Vietnam: Top fintech hub.
- Germany: Bitbond, BitGo partner on security token offering.
- Indonesia: Ovo acquires Taralite.
- Malaysia: TurnKey Lender opens in Kuala Lumpur.
- Singapore: Travelstop showcases business travel management platform.
- India: Banking and financial services are one of top sectors that need upskilling.
- India: RentoMojo gets funding from Renaud Laplanche.
- Singapore: Golden Gate Ventures partners with Hanwha to invest in tech startups.
- United States
- BlockFi Receives $ 25 Million in Crypto Deposits in Just 2 Weeks After Launching Lending Products (CryptoGlobe), Rated: AAA
- SoFi Money Review: Online Checking (Nerdwallet), Rated: AAA
- Can Citi and JPM beat FinTech Personal Loans? (PeerIQ Email), Rated: AAA
- LendingTree Study Finds New Home Equity Loans Do Not Significantly Alter Credit Scores (LendingTree), Rated: AAA
- As Cash-Back ETF Hits Market, Signs of Trouble Start to Mount (Bloomberg), Rated: AAA
- PeerStreet Expands Product Line with Residential for Rent Loans (BusinessWire), Rated: AAA
- 3 Big Reasons To Fill Out The FAFSA (Even If You Think You Earn Too Much) (Huffington Post), Rated: A
- Madden lawsuit nears end, but online lenders still seek fix from regulators (American Banker), Rated: A
- The State of Digital Engagement for Online Lending (LendIt), Rated: A
- X Financial’s Fourth Quarter Results Take Stock 5% Higher (Capital Watch), Rated: A
- Why Corporates Cant Fund Early Pay Programs (Dynamic Discounting + SCF) (Spend Matters), Rated: A
- ZestFinance Using AI To Bring Fairness To Mortgage Lending (Forbes), Rated: A
- CoreLogic Launches PanoramIQ to Provide More Accurate and Complete Property Insights (CoreLogic), Rated: A
- White Oak Healthcare Finance Launches Real Estate Investment Vehicle with New Hires (ABL Advisor), Rated: A
- Banks seek Congress’ help to block fintech path to ‘industrial’ charters (Roll Call), Rated: A
- Form S-3 Senmiao Technology Ltd (Street Insider), Rated: A
- Figure Technologies, Inc. Expands Leadership Team as It Builds Out Financial Empowerment and Wealth Offerings (PR Newswire), Rated: B
- LendPro Hires Belinda Kelton as Vice President of Sales (LendPro Email), Rated: B
- Corporate Counsel, Commercial (Go In House), Rated: B
- United Kingdom
- Funding Circle fund sees higher impairments continue to drag returns (AltFi), Rated: AAA
- Revolut Is Testing the Limits of Finance (Bloomberg), Rated: AAA
- CrowdProperty launches equity sale after increasing loan book by £100m (PlaceTech), Rated: AAA
- OakNorth reports £33.9m profit for 2018 and commits to donating 1% of all future net profit to charitable causes and social entrepreneurship (OakNorth Email), Rated: A
- IFISA Guide: SME loans (P2P Finance News), Rated: A
- Specialist lender funding will be the key issue for 2019 – LendInvest (Mortgage Solutions), Rated: A
- Payday lender slammed for using Brexit food shortage fears to sell loans (Moneywise), Rated: A
- Why investors are fleeing the ‘fear and greed’ of stock markets for peer-to-peer loans (The Telegraph), Rated: A
- The top 20 UK places for high net worth earners (Citywire), Rated: B
- China/Hong Kong
- China’s Online Lender Dianrong Blames Chinese Regime for its Woes (NTD), Rated: AAA
- Pintec’s Stock Rises on Steady Results During Quarter of IPO (Capital Watch), Rated: A
- KKR Raising First Asia Real Estate Fund, Targeting $ 1.5 Billion (U.S. News), Rated: A
- China and distressed debt top DB’s hedge funds tastes test (City Wire Selector), Rated: A
- European Union
- Finnest and Invesdor Merge to Combine Debt and Equity Operations in Europe (Crowdfund Insider), Rated: AAA
- Bitbond to Work with BitGo for Germany’s First Security Token Offering (Bitbond), Rated: A
- Top 5 sectors that need upskilling: How to stay relevant in age of disruption? (Indian Express), Rated: A
- CRYPTO EXCHANGE COINDCX RAISES SEED FUNDING FROM BAIN CAPITAL VENTURES (Coin News Span), Rated: B
- Look out for 2019’s top 7 lending startups (e27), Rated: AAA
- Vietnam is the region’s fintech hub (The ASEAN Post), Rated: AAA
- Travelstop Targets Fintech SMEs with Business Travel Management Platform (Fintech News), Rated: A
- How Ovo Has Grown to be Indonesia’s Largest Digital Payments Platform (Entrepreneur), Rated: A
- TurnKey Lender Opens a New Office in Kuala Lumpur (Digital Journal), Rated: A
- Golden Gate Ventures ties up with Hanwha to invest in Asian startups (SDF-KH), Rated: B
BlockFi Receives $ 25 Million in Crypto Deposits in Just 2 Weeks After Launching Lending Products (CryptoGlobe), Rated: AAA
BlockFi Lending LLC, a New York-based “secured non-bank lender” that provides cryptocurrency-backed loans in USD to digital asset investors, has revealed that its interest-generating deposit accounts have received over $25 million in cryptocurrency.
SoFi Money Review: Online Checking (Nerdwallet), Rated: AAA
SoFi Money is an online checking account by SoFi, a company best known for its student loan refinance loans. SoFi’s account has a top-of-the-line interest rate and no monthly or overdraft fees. There’s no free ATM network, but SoFi reimburses many third-party ATM fees and doesn’t charge its own. SoFi also boasts unique perks: free career counseling and financial planning sessions.
Can Citi and JPM beat FinTech Personal Loans? (PeerIQ Email), Rated: AAA
The personal loan market has grown rapidly since 2010 and the growth has been driven by FinTechs. “My Chase Plan” and “My Chase Loans” – a point-of-sale financing alternative and a personal loan product respectively – that will be offered to its existing credit card customers.
“My Chase Plan” and “My Chase Loans” – a point-of-sale financing alternative and a personal loan product respectively – that will be offered to its existing credit card customers.
LendingTree Study Finds New Home Equity Loans Do Not Significantly Alter Credit Scores (LendingTree), Rated: AAA
Home prices in the United States have rebounded to new highs since the financial crisis. As a result, American homeowners are sitting on the largest amount of home equity in history — at just over $15 trillion dollars, according to the Federal Reserve.
- The decline in scores averaged just 13 points. At the high end, scores declined by 24 in San Jose,Calif. The smallest decline was 5 points in San Diego. Borrowers had an average score of 735 to start, so the declines are quite negligible in terms of access to credit and may have marginal impacts on the cost of credit. The highest starting credit score was 752 in San Francisco, while the lowest was 712 in Indianapolis.
- The decline took an average of 158 days to reach bottom, which is just over five months. St. Louis homeowners saw their credit scores reach their lowest points in an average time of 101 days (3 months), while the longest decline was for homeowners in Dallas at 211 days (7 months). Loans do not appear on credit reports immediately after closing. Typically, the lender starts reporting to the credit bureaus after your first payment, depending on the lender’s reporting cycle. Thus it may take about 60 days after closing or even longer for it show up and start affecting a score.
- Scores recovered over an average of 163 days. This is also just over five months, so the time to fall and recover are about equal. The quickest time to recover was 102 days, or slightly over 3 months, in Cincinnati. Borrowers in Chicago had the longest recovery time of 243 days, just over 8 months.
- Scores recover within a year and begin to move higher. The complete cycle to return to the credit score prior to the home equity loan takes 321 days, less than 11 months. The shortest cycle was in St. Louis at 211 days and the longest in Chicago at 443 days, about 15 months.
As Cash-Back ETF Hits Market, Signs of Trouble Start to Mount (Bloomberg), Rated: AAA
Last week, one ETF upstart created a minor splash by doing what was once unthinkable — offering to pay investors to buy into its exchange-traded fund. That comes on the heels of eight fund providers — including JPMorgan Chase, Vanguard and BlackRock to name a few — all slashing fees in one of the industry’s most aggressive rounds of price cuts to date.
The sub-zero fee giveaway by Salt Financial, which previously ran a single $11 million ETF, is widely seen as a marketing gimmick to drum up a little PR, get customers in the door and increase its assets under management. During the first year, investors will receive 50 cents for every $1,000 in a new low-volatility stock ETF — until it grows to $100 million. After a year, a management fee of 0.29 percent, or $2.90 per $1,000, could kick in.
The race to zero, however, is very real. Fidelity Investments jump-started the no-fee push in August by offering index funds for free. In February, SoFi said it would waive charges on two planned ETFs for the first year. Last week, JPMorgan started selling America’s cheapest-ever ETF for the princely sum of 20 cents for every $1,000 invested. And BlackRock unveiled plans Wednesday to cut fees for large clients in one of its S&P 500 indexed mutual funds.
PeerStreet Expands Product Line with Residential for Rent Loans (BusinessWire), Rated: AAA
PeerStreet, a platform for investing in real estate backed loans, today announced the launch of a new loan product for private lenders: Residential for Rent loans. Residential for Rent loans have a 30-year term so borrowers can secure long-term financing for residential rental properties. This launch is in response to key market conditions: as more people struggle to finance buying a home, the rental market has continued to grow.
3 Big Reasons To Fill Out The FAFSA (Even If You Think You Earn Too Much) (Huffington Post), Rated: A
One-quarter of families don’t complete the FAFSA, according to Sallie Mae’s 2018 How America Pays for College survey. Of those that don’t fill it out, 48 percent say it’s because they don’t believe they’ll qualify for financial aid.
But they’re often wrong: An analysis by NerdWallet found that in 2017, students left an estimated $2.3 billion in federal financial aid on the table by not filling out the FAFSA.
Madden lawsuit nears end, but online lenders still seek fix from regulators (American Banker), Rated: A
An 8-year-old class action that wreaked havoc on the online lending industry is finally winding down, but the lobbying push in Washington to undo its impact shows no signs of abating.
Lawyers in the case have filed a proposed settlement that would provide $9.8 million in cash and debt relief to as many as 58,000 consumers, setting up the final chapter in a lawsuit that is likely to be remembered best for the legal precedent it established.
The State of Digital Engagement for Online Lending (LendIt), Rated: A
A recent trend report by Clarity Services, a credit reporting provider, showed that online funded loan volumes grew by almost 500% between 2013 and 2017.
How Far are Most in their Digital Transformation Strategy?
- 54% of financial institutions have developed a digital strategy, but have not yet implemented it
- 29% of financial institutions are currently developing a digital transformation strategy
- Only 14% of financial institutions are in the process of implementing a digital transformation strategy
How Much Will They Be Investing In Digital Transformation in the Next 12-18 Months?:
- 65% are planning to increase spending by 10%
- 26% are planning to increase spending by 1-9%
- 6% have no plans to change spending
What will They be investing in over the next 12-18 Months?
- Replace or upgrade legacy IT systems — 88%
- Reduce operational inefficiency — 76%
- Improve customer experience — 74%
X Financial’s Fourth Quarter Results Take Stock 5% Higher (Capital Watch), Rated: A
The stock of X Financial (NYSE: XYF) jumped more than 5 percent Tuesday morning, to $6.55 per American depositary share, after the peer-to-peer lending marketplace announced improved revenue and profit for the fourth quarter, as well as a dividend for 2018.
The Shenzhen-based company, which connects borrowers and investors on its platform, reported in a statement Monday evening that its revenue grew 18 percent year-over-year to $125.5 million during the three months through December.
Its net income, X Financial said, was $35.2 million, or 22 cents per share, at a 53 percent increase from the same period of 2017.
Why Corporates Cant Fund Early Pay Programs (Dynamic Discounting + SCF) (Spend Matters), Rated: A
If you look at the graph below, 5% of S&P 500 companies hold more than half the overall cash; the other 95% of corporations have cash-to-debt levels that are the lowest in data going back to 2004, according to Wells Fargo research. We know who those 5% are — they are the GAFA companies: Google, Amazon, Facebook and Apple.