Thursday December 28 2017, Daily News Digest

china IPO

News Comments Today’s main news: VPC Specialty Lending Drops Prosper Loans.Best Egg to broaden services in 2018.Faircent raises $4M.RoboCash updates loan origination process.Tyro to launch new SME solutions. Today’s main analysis: China leads Asia’s IPO boom. Today’s thought-provoking articles: Can Lending Club grow by 20% in 2018?Blockchain could transform these major industries.APAC online lending is […]

china IPO

News Comments

United States

United Kingdom

China

  • China leads Asia in IPO boom. AT: Not really news, but it’s interesting to see where Chinese companies are going public. The big winner is the New York Stock Exchange. But Shanghai and NASDAQ are also looking good with Hong Kong hanging in there.”

European Union

International

Australia/New Zealand

India

Asia

Africa

News Summary

United States

Reversal of fortune (Breaking Views), Rated: AAA

Most new entrants have also found it hard to build scale. Lending Club’s top line may grow by 20 percent in 2018, according to Reuters data, but that will take it only to $800 million. Even online student lender Earnest, which largely avoided industry potholes, has struggled. In October it sold itself to old-school servicer Navient for $155 million – less than half its value in a 2015 funding round.

Best Egg Will Broaden to Financing Purchases in 2018 (Banking Innovation), Rated: AAA

Marketplace lender Best Egg will move towards financing consumer purchases, including homes, as it looks to expand in 2018, the company told Bank Innovation.

If I can know my monthly cost for Amazon Prime before I sign a contract, why can’t I know my monthly cost for a car payment before going to the dealership? If I can see movie options before I go to the theater, why can’t I see my financing options before I sign a 5-year loan contract? Being empowered with concrete choices would make both budgeting and buying a car that much easier and help to save hours on the financing process. So, using my personal experiences from childhood to fuel my passion, I co-founded AutoGravity in October of 2015.

Our goal at AutoGravity was to make car financing as easy as watching a movie on Netflix, streaming an album off Spotify or buying a book from Amazon. So, we demystified the process by making it accessible to everyone – empowering them through our app on their smartphone.

Tax cuts, softened regulatory tone likely to help banks in 2018 (Central Penn Business Journal), Rated: A

Financial institutions also could face challenges in the near future as a result of technology-driven competition and long-term impacts from the recently approved tax reforms.

Marsico expects banks to increase automation of certain support-center processes over the next year. Artificial intelligence, for example, could handle some of the work that goes into processing loans, as well as tasks like verifying the authenticity of checks submitted through mobile deposit apps.

One study predicts banks throughout the world will increase their tech budgets by 4.1 percent in 2018.

Consumers still not benefiting from bank overdraft programs (Consumer Affairs), Rated: A

Most consumers still don’t know they are not required to accept their bank’s overdraft protection service, according to the Pew Charitable Trusts’ latest consumer finance project.

Before the law was changed in 2010, banks automatically enrolled consumers in overdraft protection. If consumers made purchases that overdrew their accounts, the banks covered the expense and then assessed an overdraft fee, which often cost as much as $35.

Since the law changed, consumers must opt-in to this coverage — banks cannot automatically enroll them. Thaddeus King, officer of The Pew Charitable Trusts’ consumer finance project, says it’s clear consumers don’t understand that overdraft protection is not only costly, but unnecessary.

In September a survey found that an estimated eight million consumers have opted-in, primarily because they thought they had to. Two-thirds of consumers who agreed to pay the overdraft fees were unaware it was optional.

Banks actively headhunting, but they want specific skill (CNBC), Rated: B

The rising influence of digital and banking-specific technology — so-called fintech — is “really changing how banks themselves will organize their own recruitment functions,” O’Sullivan told CNBC.

United Kingdom

VPC Specialty Lending Sells Prosper Marketplace Loans (London South East), Rated: AAA

VPC Specialty Lending Investments PLC on Wednesday said it sold its Prosper marketplace loans and was able to immediately reinvest substantially all of the proceeds into new investments.

The loans sold represented around 4.1% of VPC’s net asset value as at the end of October, and it expects the hit to net asset value from the sale to be around 0.56%.

China

China bourses behind Asia’s lead in global IPO boom (Nikkei Asian Review), Rated: AAA

Asian companies raised $79.14 billion through initial public offerings as of Dec. 18, up 10% from 2016, data from Dealogic shows. The sum represents 42% of the global tally, which surged 41% on the year to $194.8 billion.

Shanghai, the world’s second largest economy saw a total of 409 companies tapping $31.61 billion from the market, up 30% compared with last year. Of the country’s total funds raised, 56% was from Shanghai, making it Asia’s top IPO destination.

Source: Nikkei Asian Review

Hong Kong saw total funds raised fall 34% to $14.08 billion this year, despite a 24% jump in volume.

Alibaba-backed online lender Qudian, for instance, saw its New York-listed shares tumble 55% after it debuted in October. Its peer LexinFintech Holdings, backed by JD.com, on Dec. 14 slashed its fundraising target by 76% to $120 million.

European Union

P2P Lender RoboCash Updates on 2017 Progress (Crowdfund Insider), Rated: AAA

Latvia-based European peer to peer lender Robo.Cash, a young platform that is less than a year old, has provided an update on loan origination progress.  According to the P2P lender, RoboCash attracted € 2.5 million of investments in pay day lending (PDL) loans in 2017. Robo.Cash launched its platform in Latvia in February 2017.

Robo.cash said the current average sum of investments is € 2.900 per investor with over 1,500 investors from 28 EU-countries have joined Robo.cash in 10 months. The site says investors may be separated as follows:Germany (50,5%), Spain (7,2%), the Czech Republic (6,1%), Austria (4,6%), Latvia (3,9%), Portugal (3,6%), the United Kingdom (3,3%), Netherlands (2,7%), Lithuania (2,3%), Estonia (1,6%).

More retailers’ customers using Klarna’s buy-now, pay-later plan (The Columbus Dispatch), Rated: AAA

The Swedish e-commerce company signed 500 online retailers for its new service, which allows consumers to buy products now and pay for them later.

And the company’s North American operations signed on a new CEO, Jim Lofgren, replacing central Ohio native Brian Billingsley, who recently was named chief revenue officer for Dallas-based payment-service company Modo.

“We serve more than 70,000 merchants over 18 markets, and our data in the U.S. market is really very similar to other markets,” Lofgren said recently. “We’re making a very significant impact for our merchants.”

Brussels moves to boost Europe’s fintech sector (Financial Times), Rated: A

The European Commission is to present draft legislation early next year to remove administrative hurdles to the cross-border operation of crowdfunding sites and online peer-to-peer lending services. It says the initiative will ensure that EU companies can grow and compete.

European fintech successes include TransferWise, the Estonian-developed foreign exchange company, and France’s PayPlug, which makes it easier for sole traders to accept credit card payments.

LoanBook Shares Latest Milestone (Crowdfund Insider), Rated: A

LoanBook, a Spanish marketplace lending platform, having easily surpassed its initial £650,000 last week is, is heading toward the home stretch having raised over £721,200 for 6.40% equity with the help of more than 253 Crowdcubeinvestors. £340,000 of this investment sum comes from current shareholders, local Business Angels and Family Offices. Funding will be used to continue LoanBook’s platform growth and development.

Crowdfunding saves tumbling down French chateau (The Business Times), Rated: B

It’s a modern story of an ancient fairytale castle: a crowdfunding effort online has raised 1.6 million euros (S$2.55 million) to restore a chateau in western France.

Around 25,000 people from 115 countries have become shareholders in the chateau de La Mothe-Chandeniers which has turrets, a moat and an elderly owner who had not maintained it.

International

30 Big Industries Blockchain Could Transform (CB Insights), Rated: AAA

1. BANKING

Swiss bank UBS and UK-based Barclays are both experimenting with blockchain as a way to expedite back office functions and settlement, which some in the banking industry say could cut up to $20B in middleman costs.

2. PAYMENTS AND MONEY TRANSFERS

Abra, another blockchain-enabled mobile wallet and payments startup, was recently integrated into the payments ecosystem of American Express: through a new feature, customers will be able to fund their Abra wallets using an eligible American Express Card.

3. CYBERSECURITY

Other potential applications include using blockchain to provide massive scale data authentication: for example, using its blockchain-enabled KSI (Keyless Signature Infrastructure), cybersecurity startup Guardtime tags and verifies data transactions for cryptographic assurance of their integrity and authenticity.

11. STOCK TRADING

Partnerships with existing trading networks and exchanges will help blockchain take off in the space. Blockchain startup Chain (which is also mentioned below) is a leader on that front: the company helped orchestrate a live blockchain integration that successfully connected Nasdaq’s stock exchange and Citi’s banking infrastructure.

12. REAL ESTATE

Tech startup Ubitquity offers a Software-as-a-Service (SaaS) blockchain platform for financial, title, and mortgage companies. The company is currently working with Land Records Bureau in Brazil, among other stealth clients, to input property information and record documents through the blockchain.

13. INSURANCE 

LenderBot is a micro-insurance proof of concept for the sharing economy that demonstrates the potential for blockchain applications and services in the industry. LenderBot, which allows people to enroll in customized micro-insurance by chatting through Facebook Messenger, enables blockchain to serve as the third-party in the contract between individuals as they exchange high-value items through the sharing economy.

28. CREDIT HISTORIES

Lenders minimize the risk posed by loans or lines of credit to small businesses by evaluating their histories using business credit reports. These third-party reports — issued companies such as Dun & Bradstreet — are inaccessible to the small business owners (beyond the basic profile information they provide to the credit bureau). This can make business owners feel like credit bureaus have all the power over loan terms, even though the credit bureau may be assessing outdated or inaccurate information to determine their reports.

Lumeno.us is one startup using blockchain technology to make business credit reports more accurate, transparent, and shareable. Lumeno.us normalizes semi-structured financial data using a proprietary application of collaborative tagging and advanced analytics. From there, it provides business owners the tools to share their data in order to get a loan, find trusted partners, or manage a portfolio or network.

30. CROWDFUNDING

Initial Coin Offerings (ICOs), in which companies sell cryptocurrency-backed tokens in their companies in the same manner as a publicly-traded company sells stock, are another example of blockchain-powered crowdfunding — startups such as OpenLedgermake that possible. Individuals may soon invest in real estate using “crypto crowdfunding,” as well: Singapore-based Real Estate Asset Ledger (REAL) intends to use blockchain technology to inject greater liquidity and transparency into real estate investing.

How telepresence can revolutionize financial services industry (Born2Invest), Rated: A

Imagine, you are trying to make an investment somewhere in the World and you want to be face to face with your investment advisor without leaving your own office or room?

What is different about telepresence is that you can be telepresent through someone else instead of being even present through video conferencing or other methods.

I the financial sector, companies are using telepresence to connect their customers with their loan officers, investment advisors, and other employees to discuss all the requirements and provide solutions without actually the presence of the customer as well as the financial organization at the same place.

Australia/New Zealand

Challenger Bank Tyro to Launch New Financial Solutions for SME (Crowdfund Insider), Rated: AAA

Australian fintech and challenger bank Tyro is set to launch a new set of financial solutions for small to medium enterprises (SMEs). Founded in 2001, Tyro describes itself as Australia’s largest independent EFTPOS provider, focusing on smaller to medium enterprises. The company states it is now has a license from APRA to offer banking products and deposits with its platform are government guaranteed. The company currently has 20,000 customers and has $42.2 billion in transaction.

Online Financing Down Under: A Rapidly Evolving Market (TG Daily), Rated: AAA

The research paints a clear picture of trends currently taking place in Australia and New Zealand, where $348.37 million and $267.77 million respectively has been issued through online financing options (through 2015). These statistics are notable since 2012, with a growth rate of 653% between 2013 – 2015.

Various small business loans lenders currently offer funding to Australian clients from $5,000-$400,000 (depending on the industry lender). Australian small business loans lenders such as prospa, Capify, Sail, and Spotcap dominate the market.

India

Online Peer-To-Peer Lending Startup Faircent Raises $ 4 Million (Bloomberg), Rated: AAA

Faircent raised $4 million (Rs 25 crore) in early-stage funding led a Belgium-based impact investor Incofin Investment Management, Rajat Gandhi, co-founder of Faircent, told BloombergQuint over the phone.

P2P lending marketplace platform launched (The Hindu Business Line), Rated: AAA

Rajiv Ranjan, a former Infoscion along with Ambar Kasliwal, a Mumbai-based Chartered Accountant, has launched a fully-owned P2P lending marketplace platform.

Called PaisaDukan.com, it is a part of BigWin Infotech, a government recognised start-up and it aims to start operations from January 2018, company officials said. The startup is among a few who have applied for an NBFC ((non-banking financial company)-peer-to-peer (P2P) licence after RBI’s revised guidelines.

Fin-tech gains from innovations, digital push (VC Circle), Rated: AAA

Private equity and venture capital firms, which sat on huge money piles and waited on the side lines looking for the right opportunities, caught on to the excitement and loosened their purse strings to record a four-fold jump in investments to $1.84 billion in 2017 from $447 million, showed provisional data from VCCEdge, the data and analysis platform of News Corp VCCircle.

While seed and angel investments accounted for 43% of the total number of deals at 32, growth- and late-stage deals, besides private transactions and venture debt accounted for the rest.

Besides, Paytm’s $1.4 billion infusion from Softbank, Policybazaar’s $77-million Series-E round, SME Lending platform Capital Float’s $45 million Series-C funding, MSwipe’s $41 million funding from UC-RNTand Eduardo Saverin’s B Capital, and Mobikwik’s $35 million round from Bajaj Finance also made the headlines during the year.

Source: VC Circle

RBL Bank to go stronger on fintech partnerships (Economic Times), Rated: A

While banks are fighting a bitter turf war with fintech startups to retain their share of business, private sector lender RBL Bank has seen value in strategic partnerships. The bank is growing its advances book by almost half annually, driven largely by partnerships with non-banking finance companies (NBFC) and tech startups.

While startups such as MoneyTap, BookMyShow are helping the bank acquire customers for its credit products, even its tie-up with one of the most prominent NBFCs Bajaj FinservBSE -0.14 % is helping the bank get customers who were never eligible for a credit card previously.

Rein in your exuberance as you step into 2018 (Business Standard), Rated: A

Investors need to position their personal finances in a manner that will enable them to gain from developments in the future.  Book profits in the mid- and small-cap space: Mid- and small-cap funds’ strong performance streak continued in 2017 (category average return: 47.19 per cent year-to-date). As valuations of growth stocks shot up, investors turned to value picks. …

Asia

Robo-advisory and its role in capital management (Fintech Innovation), Rated: AAA

Africa

Robots versus financial advisors (Moneyweb), Rated: A

With the advent of robo-advisors, where advice is provided at low- or no cost over the internet, questions are being raised as to the future of qualified financial advisors. Is my job becoming obsolete?

A qualified and trusted advisor is able to spot potentially poor financial decisions and gently advise against this course of action. A robo-advisor could never be such a friend in need.

Authors:

George Popescu
Allen Taylor

Wednesday August 2 2017, Daily News Digest

Bank branch proximity

News Comments Today’s main news: PeerIQ wraps up $12M Series A financing, expands into traditional lending. LendInvest 5.25% bond offer closes Friday. Confirmed: LendInvest pulls out of P2P Finance Association. RateSetter enter hire purchase market with new partner. Yirendai’s Q2 results. Dianrong raises $220M from Asian investors. Lending Loop launches auto-invest, raises $2M. Today’s main analysis: Consumers prefer digital banking capabilities […]

Bank branch proximity

News Comments

United States

United Kingdom

China

European Union

International

India

Asia

Middle East

Canada

Philippines

News Summary

United States

PeerIQ Secures $ 12M in Series A Financing to Expand Leading Data and Analytics Platform for Lending Markets (Globe Newswire), Rated: AAA

PeerIQ, a provider of data and analytics for the lending sector, today announced that it has closed a $12 million Series A funding round, co-led by TransUnion, Hearst’s Financial Venture Fund and Macquarie Group, along with existing investors Uprising and former Morgan Stanley CEO John Mack. With the new capital, PeerIQ will expand its core platform to unlock more value for its clients, extend beyond online into traditional lending markets, and collaborate on new product initiatives with its strategic partners.

Already a core data partner to PeerIQ, TransUnion is deepening its relationship, with Steve Chaouki, executive vice president and head of TransUnion’s financial services business unit, joining the PeerIQ board. Shea Wallon, managing director of Hearst’s Financial Venture Fund, which invests in early-stage financial information, service and technology companies, is joining the board as well.

Consumers Prefer Digital Banking Capabilities Over Branch Proximity (The Financial Brand), Rated: AAA

The 2017 Omni-Channel Shopper Study, published by Novantas, found three major shifts in consumer behavior that will impact bank distribution and sales strategies in the future.

  1. A significant shift from branch dependence to digital preference
  2. A redefinition of the drivers of bank consideration and purchase
  3. An increase in demand for digital account opening

A Shift in Dependence on Branches

The research found that segments that placed the highest importance on branches for their checking relationship shrunk significantly in the past year, at the same time that those segments with the lowest branch attachment grew. The same was true for segments that were the most dependent on branches for ongoing transactions. These segments also shrunk significantly over the past year.

A New Definition of Convenience

The biggest news is that the drivers of ‘perceived convenience’ start with an organization’s digital capabilities. In fact, the importance of branch-centric factors have dropped in each of the past three years of the study. This is especially true for consumers aged 18-54.

Another significant trend of note is the increasing importance of being able to access cash without a fee, irrespective of primary bank proximity.

The Novantas shopping survey found that 79% of consumers are doing at least some of their shopping for new checking accounts digitally, with 54% using only digital channels. These digital-only shoppers are both older and wealthier, with the size of the digital-only shopper category increasing in size.

Juvo Raises $ 40M In Series B Funding Led By NEA And Wing Venture Capital (PR Newswire), Rated: A

Juvo, a pioneer in mobile Identity Scoring, today announced a $40 million USD Series B funding round led by New Enterprise Associates (NEA) and Wing Venture Capital. Also included in the round are investments from SignalFire as well as add-on investments from existing investors. Juvo will leverage these new funds to drive global growth and scale, with a particular emphasis on Asia,  Latin America and Europe, and broaden its suite of financial service offerings targeting the financially excluded. The company also announced the appointment of Peter Wagner, founding partner of Wing, to Juvo’s board of directors.

Juvo, who came out of stealth mode 10 months ago, was founded with an overarching mission: to establish financial identities for the billions of people worldwide who are creditworthy, yet financially excluded. By partnering with mobile operators and financial institutions around the world, Juvo uses sophisticated, data science-based credit algorithms to identify previously anonymous prepaid subscribers, enabling them to build financial identities and gain access to basic financial services.

Juvo currently partners with seven mobile operators around the world, with a reach of over 500 million subscribers across 25 countries and four continents. Juvo’s operator partners have reduced churn by 50 percent or greater, while lifting average revenue per user (ARPU) numbers by as much as 15 percent. Most importantly, operators across the board are seeing an average increase in subscriber lifetime value of 65 percent.

Reverse Mortgage Funding Named One of LendingTree’s Top Reverse Mortgage Lenders (BusinessWire), Rated: A

Reverse Mortgage Funding LLC (RMF), a leading national reverse mortgage lender dedicated to helping older Americans achieve financial peace of mind, today announced that it has been named one of the nation’s top reverse mortgage lenders by LendingTree, a leading online lending exchange that connects consumers with multiple lenders, banks, and credit partners. Based on loan volume from the top reverse mortgage lenders for the third quarter of 2016 analyzed by LendingTree, RMF was chosen for consistently scoring high approval ratings and reviews among consumers.

Microsoft rolls out Surface Plus financing, support programs (ZDNet), Rated: A

Called Surface Plus and Surface Plus for Business, the two programs are available in the US only as of noon ET on August 1. The plans can be purchased in the US Microsoft brick-and-mortar stores or online at Microsoft.com.

Students seem to be one of the primary, if not the main, target of the new Surface Plus program.

Microsoft’s Surface Plus page is now live. It notes that new Surface Pros will go for $34 per month for 24 months; Surface Laptops for $42 per month for 24 months and Surface Books for $63 per month for 24 months under the plan. Payment plans are arranged with Klarna Inc.

Marketplace Lender Blackmoon to Launch Ethereum Token Management Platform (Coindesk), Rated: A

Released by Blackmoon Financial Group today, Blackmoon Crypto is designed to enable verified asset managers to create and manage tokenized funds in a legally compliant manner. Operating in nine countries, Blackmoon has attracted $2.5 million to date in investment from firms including Target Global and Flint Capital.

Even Financial launches tool to semi-automate financial compliance for online ads (Martech Today), Rated: A

For the financial industry, which has long dealt with compliance requirements, New York City-based Even Financial is out with a Programmatic Compliance Tool that helps to semi-automate the process of staying within boundaries.

In real time and via an API, the tool looks at the blog, web or app page where a client’s ad for a financial product will appear. Image recognition analyzes daily screen grabs to assess ad placement. The tool also parses the surrounding text on the page to detect any issues that could pose problems with US federal or state regulations, as well as any nearby content that could be embarrassing for the advertising financial service.

CEO and co-founder Phillip Rosen told me that Even’s clients are financial companies — including Lending Club and Discover Loans — which run ads and offer affiliate links for loans, credit cards or other products on about 200 sites, blogs and apps.

How Legacy Financial Institutions Are Deepening Financial Inclusion Through Fintech Partnerships (PR Newswire), Rated: A

The Center for Financial Inclusion at Accion (CFI) and the Institute of International Finance (IIF), with the support of MetLife Foundation, today released a new report examining how partnerships between mainstream financial institutions and fintechs are expanding access to the formal financial economy to the unserved and underserved, particularly in emerging markets.

The report, “How Financial Institutions and Fintechs Are Partnering for Inclusion: Lessons from the Frontlines” is based on 24 in-depth interviews with firms and experts from around the world, and highlights 14 partnerships in as many countries. The report identifies four key financial inclusion challenges in emerging markets that mainstream financial institutions address through fintech partnerships:

  • gaining access to new market segments
  • creating new offerings for existing customers
  • data collection, use, and management
  • deepening customer engagement and product usage

15 Biggest Mid-Day Losers For Tuesday (Benzinga), Rated: B

  • Yirendai Ltd – ADR YRD shares dropped 10.7 percent to $34.18. Yirendai posted Q2 earnings of $0.66 per share on revenue of $174.5 million.

Get the full scoop on Yirendai under the China heading today.

United Kingdom

LendInvest 5.25% bond offer closes on Friday (Citywire), Rated: AAA

Peer-to-peer lending group LendInvest is offering investors exposure to the property market and a 5.25% return from through a retail bond.

The LendInvest bond is offering a return of 5.25% with a maturity date of 2022, the first time a bond has been listed on Orb paying over 5% since April 2016. Neither has there been a retail bond listed on Orb that has a maturity of five years since Orb opened in 2010.

The bond can be held in ISAs and self-invested personal pensions (Sipps) and the minimum investment is £2,000. It can be purchased through a number of investment platforms including, Hargreaves Lansdown, AJ Bell Securities, Alliance Trust Savings, Barclays Bank, Equiniti Financial Services, Interactive Investor, Redmayne Bentley, and Syndicate Room.

LendInvest leaves the P2PFA (Bridging&Commercial), Rated: AAA

The Peer-to-Peer Finance Association (P2PFA) has confirmed that LendInvest has withdrawn its membership of the self-regulatory body.

The P2PFA said communication of LendInvest’s intention to withdraw from the P2PFA with immediate effect had been received and the lender is no longer a member of the association.

“As we continue to scale the business, we’re increasingly looking to diversify our funding model and expand our capacity to lend to underserved borrowers, as well as to create new entry points to an attractive asset class that suits a broader range of investors seeking competitive risk-adjusted returns,” said Christian Faes, co-founder and CEO of LendInvest.

RateSetter unveils partner as it enters hire purchase market (P2P Finance News), Rated: AAA

RATESETTER has named leasing and asset finance specialist Corporate Asset Solutions (CAS) as its partner in the launch of new hire purchase loans on the peer-to-peer platform.

Businesses will be able to access hire purchase agreements for up to £750,000, processed by CAS.

British fintech start-up Neyber secures £21m in funding (Financial Times), Rated: A

What do several thousand police officers, two former Goldman Sachs executives and an Indian investment company have in common?

They all are central players in a £21m fundraising set to be announced this week by a British fintech start-up, which provides loans that are repaid out of people’s salaries.

Neyber is a kind of digital credit union.

The police officers — more than 5,000 of them — make up the majority of borrowers on Neyber’s platform, which has lent more than £65m over two-and-a-half years.

FCA answers your questions on robo-advice (FT Adviser), Rated: A

Set up in May 2016, the advice unit offers regulatory feedback to firms developing automated models providing low-cost advice.

So far 17 firms have worked with the unit, which was launched following the Financial Advice Market Review, a joint initiative by the Treasury and the FCA to look at ways to bridge the gap between people who could benefit from financial advice and those who can afford it.

Oxford University is getting into fintech (Business Insider), Rated: A

The university’s Saïd Business School announced on Wednesday that it will launch an online short course in fintech — financial technology for the uninitiated — that is designed to help prepare business executives for a future where more and more financial services functions are based around tech.

Oxford has launched the programme in conjunction with educational technology firm GetSmarter, which was recently acquired by fellow ed-tech business 2U for $103 million (£78 million).

Banking jobs ‘will completely change’ (Business Insider), Rated: A

Business Insider chatted with Axel Lehmann, chief operating officer of Swiss bank UBS, to ask how the organisation is coming to terms with fast-changing world of fintech.

Axel Lehmann: True change is really coming from outside the industry.

It’s less the technology, as such, providing a transformative element in the banking industry. It’s really alternative business models that have the potential to shake up everything and eat into our cake.

AL: I truly believe that whole question of robotics and artificial intelligence over a time horizon of four to eight years will fundamentally change the banking business. As banks, we understand that our business is all about data. These technologies have the potential to really fundamentally change the way we operate in terms of getting smarter with the customer, understanding what kind of products we should offer and so on.

AL: Dealing with fintechs is a cultural shift that needs to take place and you want to have the local people to innovate. At UBS we have a systematic process on how we expose ourselves to fintech companies.

L: We have to be mindful going forward. Regulation shouldn’t stifle innovation. The banks should welcome when regulators like the PRA in the UK or the MAS in Singapore open up to fin tech and allow companies to better explore potential changes in the business model. The one request we would have is a level playing field.

Increasingly regulation will have to shift to a more functional regulatory approach. At the moment, if I’m a bank I’m regulated like a bank. If I’m an insurance company, I’m regulated like an insurance company. However some of these lending platforms are partially unregulated although to the customer it looks the same as a regulated offering. To avoid regulatory arbitrage regulators will have to move to a more functional perspective.

Evolving For Symbiosis: Rethinking The Bank-Fintech Puzzle (The Financial Brand), Rated: A

While a few traditional financial institutions continue to view fintechs as pure competition, there is a broad realization that the way customers and businesses consume financial services is changing faster than banks are able to adapt—especially while maintaining focus on a premier experience for full-service banking customers.

Failure to adjust to changing expectations and preferences will result in falling behind the market while more nimble, non-traditional players poach current customers and dominate the attention of the next generation of account holders.

Collapsed engineer Morgan Tucker owed creditors £3m (Construction News), Rated: B

Failed engineer Morgan Tucker collapsed owing an estimated £3m, according to the administrators’ latest report.

The Newark-based company was estimated by administrator FRP Advisory to owe a total of £3,038,952 to creditors when it entered administration on 30 May.

The biggest unsecured creditor was the Funding Circle, one of the country’s biggest peer-to-peer funding firms, which was owed a total of £218,911.

China

Yirendai Reports Second Quarter 2017 Financial Results (PR Newswire), Rated: AAA

In the second quarter of 2017, Yirendai facilitated RMB 8,189.6 million (US$1,208.0 million) of loans to 138,529 qualified individual borrowers on its online marketplace, representing a year-over-year growth of 80%; 70.9% of the borrowers were acquired from online channels; 51.2% of the loan volume was originated from online channels and nearly 100% of the online volume was facilitated through mobile.

In the second quarter of 2017, Yirendai facilitated 199,591 investors with total investment amount of RMB 11,446.7 million (US$1,688.5 million), 100% of which was facilitated through its online platform and 90% of which was facilitated through its mobile application.

For the second quarter of 2017, total net revenue was RMB 1,183.1 million (US$174.5 million), an increase of 61% year over year; net income was RMB 269.1 million (US$39.7 million), an increase of 3% year over year.

Here’s Why Yirendai Stock Is Crashing Today (The Motley Fool), Rated: AAA

Shares of Yirendai (NYSE:YRD) are plunging today, down by 16% as of 12:25 p.m. EDT, after the peer-to-peer lender reported second-quarter earnings.

The company’s loan volume grew 80% year over year, and is up by 18% from the first quarter, continuing an amazing streak of growth. Revenue grew by 61% year over year (16% from last quarter), and both loans and revenue handily surpassed the company’s own expectations.

Loans and revenue increased by 18% and 16%, respectively, during the quarter, but total expenses shot up by 29%, including a 32% rise in sales and marketing expenses. This is the main reason net income fell 23% from last quarter, and grew by just 3% from last year, despite the 61% revenue growth.

European Union

European fintechs are ‘valued too highly’ and consolidation is coming (Business Insider), Rated: A

Victor Basta, cofounder and CEO of London-based Magister Advisors, wrote in a blog post shared with Business Insider ahead of publication: “Many fintech companies are valued too highly in financing rounds, and need years of performance for their ‘cash value’ to catch up to the financing round valuations.

TransferWise was reportedly valued at $1.1 billion in its funding round last year. It said earlier this year that it is on track for revenues of £100 million in 2017 and should make its first ever operating profit.Revolut was reportedly valued at £300 million in a recent $66 million funding round. Its first year of full accounts show it lost £7.1 million on £2.3 million of revenue.

International

JPMorgan to Unveil Robot to Execute Stock Trades (Newsmax), Rated: AAA

JPMorgan reportedly plans to develop a robot to execute stock trades, essentially replacing the human touch in the process.

Daniel Ciment, JPMorgan’s head of global equities electronic trading, told the Financial Times that the AI — known as LOXM — has been used in the bank’s European equities algorithms business since the first quarter and will be launched across Asia and the U.S. by year’s end.

India

Anshu Jain-backed InCred on the hunt for buyout deals to grow lending biz (VC Circle), Rated: A

InCred Finance, a non-banking financial company backed by private equity firms and former Deutsche Bank co-CEO Anshu Jain, is looking to make acquisitions to start microfinance and vehicle loan businesses as part of efforts to expand its loan book.

Asia

Singapore’s GIC Leads $ 220 Million Funding Round for Chinese P2P Firm Dianrong (U.S. News), Rated: AAA

Chinese peer-to-peer lending platform Dianrong said on Wednesday it raised $220 million from a group of investors led by Singapore sovereign wealth fund GIC Pte Ltd, looking to step up research of new technology as it expands across China and explores ventures in other countries in the region.

Other investors in the funding round included CMIG Leasing, a unit of China’s biggest private investment conglomerate China Minsheng Investment Group (CMIG), and South Korean fund manager Simone Investment Managers, Dianrong said.

The Shanghai-based firm would use the funds to automate some of its new branches across China, for research and development and potential acquisitions, Soul Htite, co-chief executive of Dianrong, told Reuters.

Middle East

Dubai Regulations for Crowdfunding: Issuers May Raise Up To Million (Crowdfund Insider), Rated: AAA

The Dubai Financial Services Authority(DFSA) announced the enactment of a regulatory regime designed to engender a robust crowdfunding ecosystem for the country.

At a high level, crowdfunding offers are capped at $5 million. This is in line with the UK but far higher than Reg CF in the US.

As for the specifics of the rules you may view them here.

Fintech in Iran: An Overview (Fintech News), Rated: A

Fintech is gaining steam in Iran as the country’s central bank, financial institutions and government agencies are taking steps to make Tehran a regional hub for financial innovation.

Several fintech events have been organized in Iran in recent months, including the Fintech Festival sponsored by Bank Pasargad Iran earlier this year. The bank also held the Second Fintech Trig-Up during the festival wherein 45 experts help startups develop their ideas.

The CBI is planning to launch a new regulatory body specifically for fintech firms. The authority has also been working on a regulatory framework for fintech companies since 2015.

In March, a group of Iranian fintech companies joined hands to form an association representing the industry. Called Fintech A, the organization is set to bring industry players under one roof, mainly to find a solution to their problems and boost innovators’ relations with regulatory bodies.

Online payment services provider ZarinPal, peer-to-peer payment app Bahamta, online invoicing service Hesabit, money transfer service PayPing and crowdfunding platform Mehrabane are among founding members of the association.

Canada

LENDING LOOP RAISES $ 2 MILLION, LAUNCHES AUTOMATED INVESTMENT PLATFORM (Betakit), Rated: AAA

Toronto-based Lending Loop, a peer-to-peer lending platform, has raised $2 million in funding from the MaRS Investment Accelerator Fund. The round also saw participation from a group of finance and technology investors.

Lending Loop said the funding will help the company roll out its latest product Auto-Lend, which allows lenders to automatically invest in loans through Lending Loop’s marketplace. The company also plans to invest in machine learning capabilities to assess the risk of borrowers applying for loans.

Flexiti Financial Announces Closing of $ 6.25M Convertible Unsecured Debentures Offering (Newswire), Rated: A

Flexiti Financial, a provider of point-of-sale (POS) financing and payment technology for retailers, is pleased to announce the closing of an oversubscribed $5M convertible debentures offering. Oversubscription amounts totaled an additional $1.25M of aggregate principal, for a total investment of $6.25M. These funds will allow Flexiti Financial to accelerate its rapid growth and further develop the company’s award-winning POS lending platform technology, which is currently adopted in over 1,500 merchant locations and used by over 10,000 customers across Canada.

Philippines

Oriente-Express joint venture to address financial inclusion through fintech (Inquirer.net), Rated: AAA

Greater China-based Oriente and Express Holdings, Inc. (a subsidiary of JG Summit Holdings, Inc.), through an exclusive partnership, will address the financial exclusion problem of underbanked consumers and MSMEs in the Philippines.

This joint venture is setting up a digital financial services marketplace that will enable Filipinos to tap into credit facilities to bridge their ever-growing needs, whether to pay for tuition, unexpected medical expenses or even finance a small business.

According to the World Bank, close to 90 percent of adult Filipinos are not covered by a credit bureau and many people resort to informal means to borrow money. In addition, according to the Banko Sentral ng Pilipinas, of the 43 percent of the population who save money, only 14 percent of households maintain a deposit account and 68 percent keep their savings in unsecured places.

Authors:

George Popescu
Allen Taylor