- Today’s main news: OnDeck publishes Q1 financial results. LendingClub to move 350 jobs out of San Francisco to Utah. Salary Finance picks SoFi co-founder Dan Macklin as CEO. Klarna rolls out payment plans for physical stores in UK. HeZhong International sets terms for IPO. India tops China as Asia’s top fintech funding source.
- Today’s main analysis: Tesla drivers have highest average credit scores.
- Today’s thought-provoking articles: Strong GDP growth continues. Understanding sequential pay structures. The digital potential of rural America. Fintech funding in Q1 2019.
- OnDeck reports Q1 2019 financial results. We’ve been seeing OnDeck’s financial situation steadily improving over the last couple of years. Net income in Q1 was $5.9 million. Adjusted net income was $8.3 million while gross revenue wass $110.2 million. It continues to get better.
- OnDeck small business of the month.
- LendingClub sends 350 San Francisco jobs to Utah. A simple cost-cutting measure. Who can blame them?
- Salary Finance taps SoFi co-founder as CEO. We haven’t heard much from Dan Macklin lately.
- Strong GDP growth continues. A PeerIQ analysis.
- Tesla drivers have highest average credit scores. Luxury car buyers have the highest average credit scores, overall.
- Understanding sequential pay structures. From DBRS.
- Unlocking the digital potential of rural America. This has nothing to do with lending directly, but it’s an interesting read and can be useful to online lenders interested in reach rural small businesses.
- States with the fastest-growing small businesses.
- Finitive raises $6 million.
- Construction lending platform Built Technologies raises $55 million from Goldman Sachs, others.
- It was a busy month for fintech funding.
- Moving beyond financial literacy to financial empowerment.
- Inside Varo Money’s quest for a bank charter.
- Cross River partners with RS2 on digital banking.
- Mortgages are data superset of ever financial product.
- New York launches Consumer Protection and Financial Enforcement.
- Think Finance to pay $7 for loan violations.
- Capital One partners with CarGurus on auto finance.
- The most powerful women in banking.
- How to pay for flights in monthly installments.
- Crypto lending with proof of work.
- Lendio opens franchisse in Erie, Pennsylvania.
- Fundbox to power Brandwise.
- White Oak Commercial Finance hires for ABL originations team.
- SimpleBills, Guppy win Urjanet SPARK awards.
- Klarna rolls pay later product for physical retail.
- 1 billion GBP debt fund launched for nonbank lenders.
- Lendy launches wage advance firm.
- Woodford exits VPC.
- Relendex keen on modular housing.
- OakNorth supports SMEs with senior lending hires.
- London Capital & Finance allegedly caught selling unregulated muni-bonds.
- Digital banks with the best overdrafts.
- Crowdfunders buy building in Switzerland.
- How BBVA overhauled mobile banking app.
- Fintech investment doubled in 2018.
- China’s fintech funding dipped in Q1 2019.
- P2P industry still going to shine.
- Efma white paper covers potential of SME ecosystem.
- 2019 Geneva Report on World Economy authors seek input.
- United States
- OnDeck Reports First Quarter 2019 Financial Results (PR Newswire), Rated: AAA
- Food Truck Satisfies as OnDeck Small Business of the Month (Yahoo! Finance), Rated: B
- LendingClub to slash San Francisco office, move 350 jobs to Utah (Mercury News), Rated: AAA
- SoFi Co-Founder Steps Back Onstage with Salary Finance (newKerala), Rated: AAA
- Strong GDP Growth Continues (PeerIQ), Rated: AAA
- LendingTree Study Finds Tesla Drivers Have Highest Average Credit Scores (Yahoo! Finance), Rated: AAA
- Understanding Sequential Pay Structures (DBRS), Rated: AAA
- Finitive Raises $ 6 Million Series Seed Round Led By Atomic Labs (PR Newswire), Rated: A
- Goldman Sachs, Regions help raise $ 55M for construction-lending fintech (American Banker), Rated: A
- A busy month for fintech funding (American Banker), Rated: A
- Moving Beyond Financial Literacy to Financial Empowerment (Lend Academy), Rated: A
- Inside Varo Money’s three-year quest for a bank charter (American Banker), Rated: A
- Cross River Teams Up With RS2 To Offer New Digital Banking Experience (Crowdfund Insider), Rated: B
- Blend’s Erin Collard: Mortgages are the data superset of every other financial product (Tearsheet), Rated: A
- New York launches its own ‘mini CFPB’ (American Banker), Rated: A
- Think Finance to Pay CFPB $ 7 for Loan Violations (Bloomberg Law), Rated: A
- Capital One drives auto finance deal with CarGurus (Finextra), Rated: A
- The Most Powerful Women in Banking (American Banker), Rated: A
- Now you can pay for your flights in instalments with these booking companies (Lonely Planet), Rated: A
- States With the Fastest-Growing Small Businesses (Business News Daily), Rate: A
- Unlocking the Digital Potential of Rural America (American Innovators), Rated: AAA
- Proof of Work: the slow but steady process of institutional adoption (The Block), Rated: A
- Lendio Franchise Opens in Erie to Expand Access to Capital for Local Businesses (Lendio), Rated: B
- Fundbox Selected By Brandwise To Power Net Terms For Suppliers, Agencies, And Retailers (Yahoo! Finance), Rated: B
- White Oak Commercial Finance Adds to its ABL Originations Team (Yahoo! Finance), Rated: B
- Urjanet Announces 2019 SPARK Award Winners (PR Web), Rated: B
- United Kingdom
- Klarna gets physical: All UK payment methods now available in-store (Fintech Finance), Rated: AAA
- £1bn debt fund launched for UK non-bank lenders (P2P Finance News), Rated: A
- Lendy execs launch wage advance firm (P2P Finance News), Rated: A
- Woodford’s peer-to-peer exodus continues with VPC sale (Citywire), Rated: A
- Relendex ‘very keen’ to get behind modular housing (Development Finance Today), Rated: A
- OakNorth continues supporting British SMEs with senior lending hires (Fintech Finance), Rated: B
- Mother tells of ‘devastating’ impact caused by collapse of Eridge firm London Capital & Finance (Times Local News), Rated: B
- HeZhong International sets terms for $ 5 million US IPO (Nasdaq), Rated: AAA
- European Union
- Which digital banks have the best overdrafts? (AltFi), Rated: AAA
- 55 Investors Become the Co-Owners of a Building in Western Switzerland (Yahoo! Finance), Rated: A
- How BBVA overhauled its mobile banking app (American Banker), Rated: A
- Global fintech investment doubled in 2018 (HousingWire), Rated: AAA
- China’s fintech funding dipped significantly in Q1 2019 (Business Insider), Rated: AAA
- P2P Industry is Likely to Shine Despite Troubles in China (Learn Bonds), Rated: A
- Efma White Paper Covers Potential of SME Ecosystem (Monitor Daily), Rated: A
- Authors of the 2019 Geneva Report on the World Economy seek market participant input (Fintech Policy), Rated: B
- India unseats China as Asia’s top fintech funding source (TechCrunch), Rated: AAA
- Coming Together of Traditional Lenders and Fintech Players, Creating Better Opportunities (Entrepreneur), Rated: AAA
- MOGO: A Rapidly Growing Canadian Fintech Provider (Yahoo! Finance), Rated: AAA
- The Legal and Regulatory Framework Governing Financial Technology (Fintech) in Nigeria (Lexology), Rated: AAA
OnDeck Reports First Quarter 2019 Financial Results (PR Newswire), Rated: AAA
OnDeck today announced first quarter 2019 net income of $5.9 million, Adjusted Net Income of $8.3 million and gross revenue of $110.2 million.
Net income was $5.9 million, or $0.07 per diluted share, and decreased from the prior quarter’s net income of $14.0 million, 0.18 per diluted share, primarily due to higher loan loss provision, higher operating expenses and an accrual for income taxes. Net income significantly improved from a loss of $1.9 million, or $0.03 per diluted share, in the year-ago period reflecting higher interest income from asset growth.
Adjusted Net Income was $8.3 million, or $0.10 per diluted share, and decreased from $15.9 million, or $0.20 per diluted share, in the prior quarter and increased from $6.4 million, or $0.08 per diluted share, in the year-ago period, reflecting the aforementioned drivers.
Loans grew 3% sequentially and 19% from a year ago to $1.2 billion. Originations were $636 million, down from $658 million in the fourth quarter and up 8% from $591 million in the year-ago quarter. The annual growth was broad-based with increases from both domestic and international operations as well as in both term loan and line of credit offerings. The average term loan size was unchanged sequentially at $53 thousand and was down from $58 thousand a year ago. Unit volume decreased 5% sequentially and increased 15% from the year-ago quarter.
Gross revenue was $110.2 million, essentially unchanged from the prior quarter, and up 22% from the year-ago quarter driven by higher interest income. Loan Yield of 35.6% decreased from 36.6% in the prior quarter reflecting a decline in portfolio performance while pricing was generally stable, and was unchanged from the year-ago quarter.
Interest expense of $11.3 million was essentially unchanged sequentially and decreased from a year ago despite a higher debt balance as borrowing rates improved. The Cost of Funds Rate continued to improve to 5.4%, a 20 basis point sequential improvement and a 140 basis point improvement from the year-ago quarter, as we refinanced debt at lower costs. First quarter financing activity included the extension and upsizing of four debt facilities aggregating to $595 million with improved terms.
Net Interest Margin was 29.5%, down from 30.0% the prior quarter as lower asset yields more than offset the impact from improved borrowing costs. The increase in Net Interest Margin from 27.8% in the year-ago quarter was driven by improved borrowing costs.
Provision for loan losses increased to $43.3 million and the Provision Rate increased to 6.8%. The 15+ Day Delinquency Ratio increased 120 basis points sequentially to 8.7%. Approximately half of the increase was in loans 15-89 days delinquent reflecting credit testing and economic trends, and the balance was in loans 90-days or more delinquent reflecting the change in our collection strategy for late-stage delinquencies. The Net Charge-off Rate increased to 12.2% and remains near the low end of our 12%-14% target range. The Reserve Ratio increased 30 basis points sequentially and 50 basis points from a year ago to 12.5%, reflecting portfolio quality trends and a higher proportion of 90-day plus delinquent loans, which have higher reserves.
Operating expenses increased from the comparable periods to $48.3 million, reflecting growth in the business and investments in our strategic initiatives, primarily technology and analytics. The Efficiency Ratio was 43.8%, up from 41.1% the prior quarter but improved from 49.3% in the year-ago quarter, while our Adjusted Efficiency Ratio* of 41.0% increased from 39.4% in the prior quarter and 40.1% in the year-ago quarter.
Provision for income taxes was $1.7 million compared to zero in 2018 when taxable income was completely offset by operating loss carryforwards. The effective tax rate was 24% and reflected a 21% U.S. federal rate, local and state income taxes, and losses in international subsidiaries.
Total assets increased 5% sequentially and 18% from a year ago to $1.2 billion primarily reflecting loan growth. Cash and cash equivalents was unchanged from year end at $60 million and decreased from $70 million a year ago. Other assets and other liabilities increased over the comparable periods as we recorded a net $28 million right-of-use asset in other assets and an equivalent increase in other liabilities stemming from the adoption of a new lease accounting standard. The 3% sequential increase in debt to $842 million was consistent with the growth in loans.
Total OnDeck stockholders’ equity of $309 million increased $10 million, or 3%, from year end and $45 million, or 17%, from a year ago. Book value per diluted common share outstanding of $3.89 increased from $3.77 at year end and $3.40 a year ago.
Food Truck Satisfies as OnDeck Small Business of the Month (Yahoo! Finance), Rated: B
OnDeck today announced that Me So Hungry, a food truck business based in California, is its Small Business of the Month for April 2019. Owned by brothers Cory and Mike Ewing, Me So Hungry is the first food truck business to receive the OnDeck recognition.
LendingClub to slash San Francisco office, move 350 jobs to Utah (Mercury News), Rated: AAA
LendingClub, the online-loan marketplace, plans to wind down customer support operations in its home city of San Francisco and shift staff to Utah as it seeks to trim costs.
In an internal memo to staff reviewed by Bloomberg, Chief Executive Officer Scott Sanborn said LendingClub aims to have its teams completely out of San Francisco by December.
About 350 jobs will shift to Lehi, Utah, where LendingClub recently opened a new office.
SoFi Co-Founder Steps Back Onstage with Salary Finance (newKerala), Rated: AAA
Salary Finance announces SoFi co-founder Dan Macklin will be joining as CEO, Salary Finance Inc. (the US arm of the group).
Strong GDP Growth Continues (PeerIQ), Rated: AAA
LendingTree today released its study ranking car brands by their buyers’ average credit score. Tesla buyers have the highest with a score of 740. Chrysler buyers have the lowest scores, with an average score of 656. Key findings Read the full report here.
LendingTree Study Finds Tesla Drivers Have Highest Average Credit Scores (Yahoo! Finance), Rated: AAA
LendingTree today released its study ranking car brands by their buyers’ average credit score. Tesla buyers have the highest with a score of 740. Chrysler buyers have the lowest scores, with an average score of 656.
Read the full report here.
Understanding Sequential Pay Structures (DBRS), Rated: AAA
In a January 2019 newsletter, DBRS discussed the Evolution of the Shifting Interest Structure in residential mortgage-backed security (RMBS) transactions. Another common structure in RMBS transactions is the sequential pay structure.
The sequential pay structure is one of the most elementary and straight-forward structures in RMBS. Post-crisis, the sequential pay structure and its variations have been widely used in seasoned re-performing loan (RPL) and non-Qualified Mortgage (QM) transactions. Such structure largely benefits the senior classes in payment priorities over the subordinates.
Read the full report here.
Finitive Raises $ 6 Million Series Seed Round Led By Atomic Labs (PR Newswire), Rated: A
Finitive (www.finitive.com), a financial technology platform providing institutional investors with direct access to alternative lending investments, announced today that the firm raised approximately $6 million in a series seed financing. The round was led by Atomic Labs with participation from Ninepoint Partners – one of Canada’s leading private credit fund managers – as well as other investors and members of the management team.
Goldman Sachs, Regions help raise $ 55M for construction-lending fintech (American Banker), Rated: A
Built Technologies, a construction lending fintech platform, has raised $55 million in funding through Goldman Sachs and a handful of investors including Regions Financial, the company said Monday.
The Nashville, Tenn., company finished $31 million in series B funding through Goldman Sachs with the remainder amount raised by venture capitalists and Regions. The funding will help the 5-year-old fintech invest in research and development while building out its national client base, according to the firm’s CEO and co-founder, Chase Gilbert.
A busy month for fintech funding (American Banker), Rated: A
Novo, a challenger institution in the field of small-business banking, and the no-code platform provider Unqork held Series A funding rounds.
The online lender Upstart, which raised $50 million in a Series D round, says it can both lower loan loss rate and increase the number of customers underwritten.
Extend is building a platform to distribute digital cards by partnering with payment networks and card issuers. Another startup, MotoRefi, claims it can save consumers an average of $100 a month on vehicle refinancing by connecting them to trusted credit unions and community banks.
Moving Beyond Financial Literacy to Financial Empowerment (Lend Academy), Rated: A
Some of my thinking was prompted by this recent column in American Banker by Jennifer Tescher, the CEO of the Center for Financial Services Innovation (CFSI).
There are several companies in this space doing great work in creating high quality products: Even, PayActiv, TrueConnect and HoneyBee all offer options to employers that help their employees who need access to quick financing. Even has a groundbreaking deal with Walmart that has resulted in 300,000 employees using their pay advance app.
MoneyLion has four million users and they are focused on ending financial stress for all Americans by taking a holistic approach and being proactive in providing help. Dave helps the 30 million people who are hit by overdraft fees each year by advancing $75 from their next paycheck. Tally is a fully automated debt manager to help consumers get out of credit card debt.
Inside Varo Money’s three-year quest for a bank charter (American Banker), Rated: A
Just ask Colin Walsh, the co-founder and CEO of Varo Money, who began discussions with regulators three years ago to charter a national bank. Though the fintech won approval from the Office of the Comptroller of the Currency last year to move forward, it is still waiting on an answer from the Federal Deposit Insurance Corp.
Cross River Teams Up With RS2 To Offer New Digital Banking Experience (Crowdfund Insider), Rated: B
Cross River, a bank that delivers advanced financial and compliance products/services to the fintech industry, announced on Monday it has teamed up with RS2 to offer a new digital banking experience. Through the collaboration, Cross River and RS2 will provide merchants with a global payment experience for processing credit and debit card transactions, as well as digital banking for their workers and consumers.
Blend’s Erin Collard: Mortgages are the data superset of every other financial product (Tearsheet), Rated: A
Financial technology company Blend began building its platform by helping traditional institutions digitize mortgages, working with firms like Wells Fargo, US Bank and some regional banks and credit unions.
New York launches its own ‘mini CFPB’ (American Banker), Rated: A
New York has created a statewide financial protection division that will focus solely on corporate compliance and consumer issues, following similar efforts by New Jersey and Pennsylvania.
The New York State Department of Financial Services on Monday named Katherine A. Lemire, a former assistant U.S. attorney, to be executive deputy superintendent of the agency’s newly created Consumer Protection and Financial Enforcement division.
Think Finance to Pay CFPB $ 7 for Loan Violations (Bloomberg Law), Rated: A
A bankrupt payday lender will have to pay a $7 civil penalty to the Consumer Financial Protection Bureau over nearly $50 million in loans it issued in states where they were not legal, according to bankruptcy court filings.
Judge Brian Morris of the U.S. District Court for the District of Montana granted a stay in the CFPB’s litigation against Think Finance LLC on April 30, pending activity in the bankruptcy court.
Capital One drives auto finance deal with CarGurus (Finextra), Rated: A
CarGurus today announced a partnership with Capital One Auto Finance that will benefit both consumers and dealers.
The Most Powerful Women in Banking (American Banker), Rated: A
Camille Burckhart, Popular Inc.
Chief information and digital officer
Jacqueline Howard, Ally Financial
Senior director, corporate citizenship
Carrie Lichter, Fifth Third
Chief operational risk officer
Now you can pay for your flights in instalments with these booking companies (Lonely Planet), Rated: A
Online travel apps CheapOair and OneTravel will soon operate a new feature that allows customers to pay for their airfare in instalments. It means that customers don’t have to pay for the full cost of their flight upfront and can instead spread the cost out into more manageable payments that suit individual budgets, choosing between three-, six- or 12-month instalments. Fareportal, the company that operates CheapOair and OneTravel, said its partnering with online lender Affirm to introduce the new feature.
For example, a $300 (£230) purchase at 10% APR spread out over three months would cost $101.69 (£78) per month.
States With the Fastest-Growing Small Businesses (Business News Daily), Rate: A
A recent study by the U.S. Chamber of Commerce revealed that Mississippi, Nebraska and Maine are the three states where small to medium businesses have grown the most year over year. This is according to sales in Amazon stores, specifically. More than half of the items sold in Amazon stores are from small to medium businesses.
The top 10 fastest-growing states breaks down as follows:
- North Dakota
The third-party physical product sales, which is what gets sold on Amazon stores primarily, passed $160 billion in 2018. Nearly 20% of rural small businesses generate 80% of their revenue by selling products online.
Unlocking the Digital Potential of Rural America (American Innovators), Rated: AAA
Unlocking the digital potential for rural small businesses across the country could add $47 billion to the U.S. GDP per year.
Increased adoption could grow annual revenues of rural small businesses by more than 21% over the next three years – the equivalent of $84.5 billion per year – with states in the South seeing the greatest benefit
Online tools and technology have the highest potential impact on rural small businesses with revenue under $100,000
Read the full report here.
Proof of Work: the slow but steady process of institutional adoption (The Block), Rated: A
Antonio from dYdX
dYdX is a decentralized exchange for margin trading, borrowing, lending, and eventually derivatives. dYdX allows traders to trustlessly short and get leverage on crypto assets.
- DAI lending rate has been high due to strong demand to go leveraged long on ETH, peaking at over 77% APR returns for lenders over the weekend
Brendan from Dharma
Dharma is the easiest place to borrow and lend cryptocurrencies. It enables non-custodial peer-to-peer lending through smart contracts on Ethereum.
- #ReFi with #DeFi continued in full force, leading to over 1.7m in borrow volume (nearly all Dai-denominated)
Lendio has announced the opening of a new Lendio franchise in Erie. Through the Lendio franchise program, John Fee, a local business owner himself, will help other entrepreneurs in the community apply for loans, review their options and secure funding, easing their financial hurdles.
Fundbox Selected By Brandwise To Power Net Terms For Suppliers, Agencies, And Retailers (Yahoo! Finance), Rated: B
Today Fundbox announced that the sales technology leader Brandwise and Fundbox have entered into an exclusive agreement whereas Fundbox will be Brandwise’s business-to-business (B2B) trade financing partner. Brandwise will leverage Fundbox’s business capital platform to power financing terms within the Brandwise ecosystem of 250,000 retailers.
White Oak Commercial Finance Adds to its ABL Originations Team (Yahoo! Finance), Rated: B
White Oak Commercial Finance, LLC (“White Oak”), an affiliate of White Oak Global Advisors, LLC, announced today the appointment of Michael Goletz to Director of ABL Originations, covering the Midwest U.S. region. Mr. Goletz joins from WNB Specialty Finance, a division of Woodforest National Bank, where he was responsible for sourcing and structuring asset-based lending debt facilities ranging from $5 million to $25 million.
Urjanet Announces 2019 SPARK Award Winners (PR Web), Rated: B
Urjanet, the global leader in utility data aggregation, today announced the winners of its 2019 SPARK Awards: AvidXchange, Bright Power, SimpleBills and Guppy – four companies at the forefront of using utility bill data to better serve their customers, community partners, and the environment.
- Most Innovative Use of Utility Data: SimpleBills. In addition to utility bill management, residents can use SimpleBills to report their utility bill payment history to credit bureaus through a unique opt-in service.
- Leader in Financial Inclusion: Guppy. Through its partnership with Urjanet to acquire user-permissioned utility data, Guppy enables greater access to financial services for consumers, as well as background and ID checks for businesses, all while keeping the end user in control of their own data.
Klarna gets physical: All UK payment methods now available in-store (Fintech Finance), Rated: AAA
Global payments provider Klarna has today announced that all its alternative payment options are available both in-store as well as online.
Klarna’s alternative payment options include:
- Shoppers can pay later, up to 30 days after delivery of goods
- Shoppers can pay for purchases in 3 equal instalments collected monthly
- For higher-ticket items, consumers can use Klarna’s consumer finance in 6-36 month payment plans
£1bn debt fund launched for UK non-bank lenders (P2P Finance News), Rated: A
EUROPEAN Risk Capital (ERG) has launched a £1bn multi-client debt programme for UK-based, mid-market non-bank lenders.
The programme – titled ‘CreditStream’ – has a minimum deal target size of £10m, making it primarily suited to mid-sized lenders including bridging and development lenders, second charge mortgagees, consumer and SME funders, auto/equipment finance companies, and fintech lenders. The maximum deal size can be in excess of £100m.
Lendy execs launch wage advance firm (P2P Finance News), Rated: A
Companies House documents show Brooke and Kelly, whosecurrent role at Lendy remains a mystery, set up a firm called Copious Capital in July 2018.
Copious Capital’s launch product is Pay Me Today, described as an “antidote to payday lending,” which lets companies approve and arrange salary advances for staff who need access to money before payday.
Lendy’s operations manager Pamela Guillamón owns between 25 per cent and 50 per cent of Pay Me Today, according to Companies House documents.
Woodford’s peer-to-peer exodus continues with VPC sale (Citywire), Rated: A
Fund manager Neil Woodford has followed his £88 million sale of his stake in peer-to-peer lending trust P2P Global Investments (P2P) by offloading his entire £40 million stake in rival VPC Specialty Lending (VSLV).
Relendex ‘very keen’ to get behind modular housing (Development Finance Today), Rated: A
Relendex is “very keen” to get behind modular housing, according to its chief operating officer Max Lehrain.
Development Finance Today recently reported on the difficulties lenders faced when funding modular builds, however Fintan explained some ways Relendex was able to feel comfortable with supporting such schemes.
OakNorth continues supporting British SMEs with senior lending hires (Fintech Finance), Rated: B
OakNorth – the bank for entrepreneurs, by entrepreneurs – is bolstering its regional presence with the appointment of four senior team members in Manchester, the Midlands and the South West.
Christopher Swarbrick, who has 18 years’ banking experience, joins as a Senior Director, Debt Finance.
Christopher Richards joins from RBS where he spent 11 years and most recently held the role of Senior Relationship Manager, managing a portfolio of 40 complex banking relationships.
Mother tells of ‘devastating’ impact caused by collapse of Eridge firm London Capital & Finance (Times Local News), Rated: B
THE mother of two sons, one of whom is autistic, has told of the impact on their lives brought about by the collapse of a Tunbridge Wells based investment firm.
Around 11,500 people are set to lose a total £237million following the demise of the company based at Eridge Park.
LCF were selling unregulated mini-bonds, offering investors an eight per cent return for money that was purportedly being lent to a range of businesses.
HeZhong International sets terms for $ 5 million US IPO (Nasdaq), Rated: AAA
HeZhong International Holding, which operates a peer-to-peer lending marketplace in China, announced terms for its US IPO on Wednesday.
The Shenzhen, China-based company plans to raise $5 million by offering 1.3 million shares at a price of $4. At $4, HeZhong International Holding would command a market value of $55 million.
Which digital banks have the best overdrafts? (AltFi), Rated: AAA
The London-based challenger bank charges 15 per cent equivalent annual rate for arranged overdrafts.
Charges £2 a month for unarranged overdrafts as well as the standard rate of interest. Will waive charges if your monthly overdraft interest comes to less than 10p for the month. Operates a monthly fee cap of £2.
Customers with arranged overdrafts are charges a 50p charge every day your account is overdrawn by more than £20, up to a maximum charge of £15.50 a month.
The digital lender, launched by Clydesdale and Yorkshire Banks in 2016, charges a 12.5 per cent equivalent annual rate on arranged overdrafts. On top of this it charges a fee of £6 a month. The bank charges £6 a day for unarranged overdrafts.
The Berlin-based app-only bank, with more than 2 million customers in 24 countries, said it will launch an overdraft facility for its 200,000 UK account holders “soon.”
55 Investors Become the Co-Owners of a Building in Western Switzerland (Yahoo! Finance), Rated: A
Foxstone (www.foxstone.ch) announces the acquisition, in crowdinvestment, of a residential building in Concise (VD) by 55 investors, of all ages and all backgrounds. They acquired a share of the building in co-ownership with a minimum amount of CHF 50’000.-
The total amount raised in co-ownership was CHF 3,250,000 for an acquisition price of the building of CHF 6,800,000, the remaining balance being financed by a mortgage. The net return on equity is 6.53%, which represents an annual return of CHF 3,265 for a CHF 50’000 investment. The Régie du Rhône takes care of the day-to-day management of the building.
How BBVA overhauled its mobile banking app (American Banker), Rated: A