What’s Happening with Personal Loan Losses

personal lending losses

PeerIQ is hosting a webinar by CEO Ram Ahluwalia on “What’s Happening with Personal Loan Losses” on Wednesday 5/2 at 2 p.m. EDT. Ram will talk about the trends in personal loan losses and their main drivers. Joining him will be PeerIQ Chief Commercial Officer Kevin Walsh. Register here.

personal lending losses

PeerIQ is hosting a webinar by CEO Ram Ahluwalia on “What’s Happening with Personal Loan Losses” on Wednesday 5/2 at 2 p.m. EDT. Ram will talk about the trends in personal loan losses and their main drivers. Joining him will be PeerIQ Chief Commercial Officer Kevin Walsh.

Register here.

Webinar: Today’s Securitization Market – Case Study for First Time Issuer Avid Acceptance

Securitization Webinar Banner

Date: Tuesday, March 6, 2018 Time: 1:00 pm Eastern This brief but informative webinar explores the process and potential challenges of going through a rated securitization as a first-time issuer. Avid Acceptance, an auto subprime lender, and Key Bank, a New York Investment bank, share their unique insights from their recent securitization. Why go through […]

Securitization Webinar Banner

Date: Tuesday, March 6, 2018
Time: 1:00 pm Eastern

This brief but informative webinar explores the process and potential challenges of going through a rated securitization as a first-time issuer. Avid Acceptance, an auto subprime lender, and Key Bank, a New York Investment bank, share their unique insights from their recent securitization.

  • Why go through a securitization
  • The Securitization Process
  • What to expect as a first-time issuer
  • Deciding to go Rated vs Unrated
  • Key considerations to completing a securitization
  • Typical securitization structure

Click here to register

Authors:

George Popescu
Allen Taylor

Working with Fintech Originating Banks: Best Practices and the Evolving Regulatory Environment

Working with Fintech Originating Banks: Best Practices and the Evolving Regulatory Environment

Webinar: Working with Fintech Originating Banks: Best Practices and the Evolving Regulatory Environment Date: Wednesday, February 7, 2018 Time: 1:00 pm Eastern In this follow up to the 2016 webinar, we’ll review the latest regulatory changes affecting the marketplace lending industry. We’ll also discuss best practices for working with a charter bank and how to choose […]

Working with Fintech Originating Banks: Best Practices and the Evolving Regulatory Environment

Webinar: Working with Fintech Originating Banks: Best Practices and the Evolving Regulatory Environment

Date: Wednesday, February 7, 2018
Time: 1:00 pm Eastern

In this follow up to the 2016 webinar, we’ll review the latest regulatory changes affecting the marketplace lending industry. We’ll also discuss best practices for working with a charter bank and how to choose the right bank partner for your lending model.

This informative 30-minute webinar will cover:

  • How to successfully navigate the evolving regulatory environment
  • The emergence of “banking as a service” and what it means to MPL platforms
  • Mitigating compliance risk
  • The 3 biggest threats to emerging fintech companies
  • Madden vs. Midland Update

Speakers:

 

Gilles Gade
Founder, CEO, Chairman
Cross River Bank

 

Brian Korn
Head of Digital Finance & Marketplace Lending, Partner
Manatt, Phelps & Phillips, LLP

Click here to register:   Allen TaylorPosted on Categories Banking, banking as a service, Banks, cross river bank, digital finance, Events, Featured, Madden, Manatt, marketplace lending, Regulation, risk, risk compliance, webinar

Webinar: The Future of Financial Services for the Underbanked

unbanked financial services

Traditional services used by the underbanked include check cashing, cash advance loans, and money transfers. Many view these services as overly expensive and behind the times, and an emerging ecosystem is leveraging fintech innovation to provide improved offerings. However, there’s a strong case made by industry researchers that the traditional, non-bank financial providers remain attractive […]

unbanked financial services

Traditional services used by the underbanked include check cashing, cash advance loans, and money transfers. Many view these services as overly expensive and behind the times, and an emerging ecosystem is leveraging fintech innovation to provide improved offerings. However, there’s a strong case made by industry researchers that the traditional, non-bank financial providers remain attractive to their customers, especially compared to the costs of a using a bank account.

Local credit unions and CDFIs refute this and point to their own initiatives to serve and educate more people. Meanwhile, regulators continue to tighten controls on traditional short-term cash lenders, as well as on fintech innovators.

Details:

Wednesday, January 31
2:00 PM – 3:00 PM eastern

Register here.

Webinar: Marketplace Lending: A Look Ahead at 2018

marketplace lending webinar

As marketplace lending continues to evolve, it’s more important than ever to keep ahead of the developments that are impacting the industry.  In this follow up to last year’s “Look Ahead at 2017” webinar, you’ll learn the key factors shaping the online lending industry: Review of last year and key issues that shaped marketplace lending in […]

marketplace lending webinar

As marketplace lending continues to evolve, it’s more important than ever to keep ahead of the developments that are impacting the industry.  In this follow up to last year’s “Look Ahead at 2017” webinar, you’ll learn the key factors shaping the online lending industry:

  • Review of last year and key issues that shaped marketplace lending in 2017
  • Developments that are fueling continued growth in our industry including originations and new product offerings around securitizations
  • Shifting regulatory considerations that will impact the industry in 2018
  • The impact that the new big lenders will have on the competitive landscape

Speaker
Philip Bartow, Portfolio Manager
RiverNorth Capital Management, LLC

Philip Bartow manages RiverNorth’s marketplace lending strategies. He has over 12 years of experience in investment management, capital markets, and investment banking capacities within structured finance, securitized products and real estate.

Webinar: Marketplace Lending: A Look Ahead at 2018
Wednesday, January 10, 2018
1:00 PM Eastern

Register today:   Allen TaylorPosted on Categories Events, Featured, marketplace lending, Online Lending, RiverNorth, webinar

Webinar: Marketplace Lending: A Look Ahead at 2018

marketplace lending webinar

As marketplace lending continues to evolve, it’s more important than ever to keep ahead of the developments that are impacting the industry.  In this follow up to last year’s “Look Ahead at 2017” webinar, you’ll learn the key factors shaping the online lending industry: Review of last year and key issues that shaped marketplace lending in […]

marketplace lending webinar

As marketplace lending continues to evolve, it’s more important than ever to keep ahead of the developments that are impacting the industry.  In this follow up to last year’s “Look Ahead at 2017” webinar, you’ll learn the key factors shaping the online lending industry:

  • Review of last year and key issues that shaped marketplace lending in 2017
  • Developments that are fueling continued growth in our industry including originations and new product offerings around securitizations
  • Shifting regulatory considerations that will impact the industry in 2018
  • The impact that the new big lenders will have on the competitive landscape

Speaker
Philip Bartow, Portfolio Manager
RiverNorth Capital Management, LLC

Philip Bartow manages RiverNorth’s marketplace lending strategies. He has over 12 years of experience in investment management, capital markets, and investment banking capacities within structured finance, securitized products and real estate.

Webinar: Marketplace Lending: A Look Ahead at 2018
Wednesday, January 10, 2018
1:00 PM Eastern

Register today:   Allen TaylorPosted on Categories Events, Featured, marketplace lending, Online Lending, RiverNorth, webinar

Tuesday August 15 2017, Daily News Digest

corporate bond credit spreads

News Comments Today’s main news: Prosper reports strong Q2, closes $500M securitization. Zopa to refund investors affected by IT glitch. RateSetter in final stages of FCA authorization. Funding Societies joins international association of credit portfolio managers. Goldmoney reports Q1 profits, plans to open physical branch. Today’s main analysis: Third largest corporate note offering easily digested by bond market. Today’s thought-provoking […]

corporate bond credit spreads

News Comments

United States

United Kingdom

China

European Union

International

India

Asia

Canada

Africa

News Summary

United States

Prosper Progress: Online Lender Reports Strong Q2 Growth, Closes $ 500 Million Securitization (Crowdfund Insider), Rated: AAA

Summary of Key Financial Highlights for Prosper during the quarter:

  • Prosper facilitated $775 million in loan originations through its platform, up 32% quarter-over-quarter and 74% year-over-year driven by strong demand for its personal loan product.
  • Transaction fee revenue rose to $35.4 million, up 32% quarter-over-quarter and 84% year-over-year.
  • The company reported a Net Loss of $41.4 million in the second quarter of 2017, which included $39.3 million in non-cash charges related to warrants to purchase preferred stock that were issued to a consortium of investors, and a third party in connection with a settlement agreement.
  • Prosper generated $8.6 million of Net Cash from Operating Activities and Adjusted EBITDA of $6.7 million in the second quarter of 2017, driven by an increase in origination volume, improved marketing efficiencies and lower general and administrative expenses.

Third-largest corporate note offering easily digested by bond market (Morningstar), Rated: AAA

From a microeconomic perspective, second-quarter earnings reports have generally been in line, with the usual amount of hits and misses. Thus far, our corporate credit analysts have not discerned any significant change to their sector outlooks. From a macroeconomic perspective, second-quarter real GDP was reported to have expanded an annualized 2.6%, and as widely expected by the market, the Federal Reserve did not make any change to monetary policy.

In the corporate bond market, the average spread of the Morningstar Corporate Bond Index (our proxy for the investment-grade bond market) continued its tightening trend but declined only 1 basis point to end the week at +106. In the high-yield market, the BofA Merrill Lynch High Yield Master Index tightened 5 bps to +359. In equities, the S&P 500 was unchanged and volatility sank to new lows.

Fund flows in the high-yield market came to a near standstill last week, as the amount of redemptions from high-yield exchange-traded funds more than offset inflows into open-end funds, resulting in a net outflow of $0.1 billion.

Chatter Increases that Earnest is Up for Sale. Again. (Crowdfund Insider), Rated: A

Back in May, Crowdfund Insider reported that Earnest, an online lender providing personal loans, was up for sale. Referencing a report in Bloomberg, the rumor was quickly squashed by Earnest representatives who told this publication they were absolutely not for sale.

But now the chatter is increasing that Earnest is, in fact, on the auction block.  Apparently management is attempting to sell itself for $200 million. Alternatively, Earnest needs a quick equity injection of $50 million. Otherwise, things don’t look so good.

Millennials are financing everything from bed sheets to concert tickets (MarketWatch), Rated: A

In recent years, payment companies including PayPal PYPL, +1.76% Affirm and Bread have created installment plans for retailers that give consumers the option to finance the weirdest purchases over time.

These payment methods have taken hold at a time when millennials have been more reluctant than their parents to use credit cards. Millennials had about two credit cards each on average last year, according to the credit reporting company Experian. That’s compared with about three for boomers and an average of 2.5 for members of Generation X.

Brooklinen partnered with the payment company Affirm in June to offer a payment plan spread over three, six or 12 months. Financing doesn’t come cheap: Rates range from 0% to 30% APR, after Affirm checks the buyers’ credit and approves them. That compares to an average APR of almost 17% for credit cards — or zero if you’re paying with cash.

If the consumer does not pay within 120 days, Affirm no longer lends to that person, and writes off the debt. Affirm then sends the remaining balance to a third-party debt collector, which Affirm supervises, but Affirm does not package and sell the balances, Metcalf said. Affirm makes its money from simple interest consumers pay, Metcalf said.

PayPal offers two types of credit, both as part of a program called PayPal Credit. One option is to wait six months without paying anything, and no interest on purchases over $99 from select retailers. The other option is an installment payment plan called Easy Payments: Consumers pay interest at an APR of 19.99% if they don’t first pay off their balance within the term they select.

DiversyFund Announces First Ever ‘No Fee’ Real Estate Income Fund (Digital Journal), Rated: A

DiversyFund, Inc., a fast growing, online real estate investment platform, announced the first ever “no fee” real estate debt fund to investors today. With the Fund, investors gain the ability to invest in a diversified portfolio of real estate debt investments that target risk-adjusted returns and generate passive income.

The Fund already has an impressive four-year track record since its launch in March 2013, posting an average annualized net return of 11.4% since inception through Q1 2017, a track record that few Wall Street funds have been able to match. The Fund targets passive income by making real estate-backed debt investments in assets featured on DiversyFund’s platform. The Fund makes quarterly distributions of interest income to its investors and has never lost any investor principal.  The minimum investment amount is $10,000.

How Some Savvy FAs are Overtaking ‘Basic’ Robos (Financial Advisor IQ), Rated: A

Robo advice for mass-affluent investors keeps evolving. But brick-and-mortar advisors aren’t standing still. In fact, some traditional FAs are taking into their own hands ways to automate more sophisticated types of holistic planning – from philanthropy to tax strategies and healthcare issues.

For instance, Heron Financial uses a mobile app, Mobile Assistant, that helps Edwards turn client meetings into easy-to-disseminate notes in Redtail, the firm’s CRM system.

Savant Capital says it’s licensing new off-the-shelf software suites to create their own robo-like experience for clients.

By year’s end, Savant expects to start beta testing its own robo-style package that automatically plucks key data from a family’s tax returns.

Savant is also working on a similar tool to automate estate planning. It’s designed to automatically sort through internal client reporting software, CRM data and core financial planning databases to identify an appropriate estate planning strategy from 120 different scenarios, according to Brodeski.

Advisor Jonathan Swanburg in Houston isn’t writing special algorithms. But his employer, Tri-Star Advisors, finds it can achieve similar results automating more areas of clients’ comprehensive plans by taking advantage of new algorithms being embedded in core prepackaged financial planning suites.

Behalf Inc. Partners with FinWise Bank to Offer Small Business Loans (LendIt), Rated: A

Behalf, a rapidly growing on-demand commercial credit platform, today announced its partnership with FinWise Bank.

Operating since 2013, Behalf is an alternative financing provider that facilitates commerce between business buyers and sellers. Driven by data and technology, Behalf allows merchant partners to offer business customers instant credit and flexible payment terms at the point of sale. Once approved, Behalf customers can use their credit line to fund purchases with virtually any vendor, including MasterCard accepting businesses.

LendingTree Announces Finalists for $ 25,000 Startup Innovation Spotlight (Markets Insider), Rated: A

LendingTree®, the nation’s leading online loan marketplace, today announced the five finalists for its new initiative to showcase the top startup companies in financial technology (fintech) lead generation at LeadsCon this summer.

  • Traaqr
    Brian Handrigan, Co-Founder & Co-CEO

This SaaS disruptor is bringing click level analytics to companies of all sizes while providing automated data capture at a precision never believed possible before.

ForeverCar works with consumers to find and compare quotes for the right vehicle protection plan, and offers concierge support when a vehicle needs service or repairs, keeping you up-to-speed throughout the repair process.

  • Outleads
    Dorin Rosenshine, Founder and CEO

Outleads integrates with leading contact center software, including Genesys, Five9, and more, and onboards CRM data directly into Adobe Analytics, Google Analytics™ & AdWords™ for conversion attribution and real-time retargeting.

LeadCrunch solves the problem of finding optimal B2B targets by analyzing a company’s best customers to identify “Smart Personas”, and then engages look-alike personas with relevant content to generate permission-based leads.

Starbutter AI is a voice and chat app development company focusing on chatbots and AI agents, giving consumers high quality information so that they can pick the best financial products and helps financial companies match the right products to their customers.

The age of e-mortgages finally arrives (Scotsman Guide), Rated: A

The Michigan-based lender United Wholesale Mortgage recently received much media attention for rolling out what it claimed to be the first-ever truly digital mortgage after a Chicago couple in late July completed the entire process of refinancing their mortgage from a computer.

What was supposedly newsworthy about this event — worthy to be featured in an Aug. 9 article in the Wall Street Journal — was that a notary was remotely patched in for the e-signing, and didn’t have to be present in the couple’s home.

A male employee claims he was fired after reporting sexual harassment at a $ 4 billion startup (Business Insider), Rated: A

But a lawsuit filed on Friday against hot fintech startup Social Finance, better known as SoFi, is strikingly different.

This suit has been filed by a male employee who claims that he saw sexual harassment of his female coworkers and was fired after he reported it, according to a report by The New York Times’ Nathaniel Popper.

SoFi Harassment Suit (Fortune), Rated: A

Charles’ lawyer says he will file another lawsuit this week claiming broader employee mistreatment and seeking class-action status.

Fintech Startup SoFi Faces Wage, Retaliation Suits (Law360), Rated: A

Social Finance Inc. was hit with a wage-and-hour putative class action in California court Monday, just days after a former worker sued the financial startup, alleging it fired him for reporting the harassment of a female coworker and for reporting managers who fraudulently canceled loan applications to reap bonuses.

Five employees — Sean Pullen, Christina Cane, Michael Carrera, Matthew Taylor and Yulia Zamaora — allege that San Francisco-based SoFi failed to provide them with meal and rest breaks, failed to pay them for overtime and all….

Income& Selected for Highly Competitive Plug and Play Fintech Accelerator (LendIt), Rated: A

Income&, a real estate investment platform based in San Francisco, announced today that it was one of 24 startups selected for the sixth class of the Plug and Play Fintech Accelerator. The company will participate in a 12-week accelerator program geared toward financial technology startups, during which time it will gain access to Plug and Play’s extensive network of leading banks and financial institutions. Income& was among 3% of startup company applicants selected from a highly competitive pool for the fall 2017 Plug and Play Fintech Accelerator class.

How One Lawyer is Making Real Estate Investing Safer (Markets Insider), Rated: A

Last year, attorney Amy Wan, received a call from a real estate developer client who was trying to raise $300,000 from investors to acquire an investment property. When he asked how much the legal services would be, she gave him a flat fee of $10,000.

While working as a Partner in Crowdfunding Lawyers, a boutique real estate securities law firm, Wan says she began to come face-to-face with the reality that clients doing small raises could not afford her services.

She was named one of “Ten Women to Watch in LegalTech” by the American Bar Association Journal, and pivoted to a career in securities law when she became General Counsel of Patch of Land, a real estate crowdfunding startup. At Patch of Land, Wan works to help democratize investment opportunity. Now, she hopes to democratize access to counsel for small businesses.

Bootstrap Legal is a legaltech/fintech startup based in Los Angeles.

E-Signatures & Digital Lending: How to Move 99% of Customers off Paper (Bright Talk), Rated: A

In the sub-prime lending market, speed-to-close determines market share. Join us to learn how an end-to-end digital process with e-signatures transformed OneMain’s lending business – positioning the lender as the largest personal loan company in the U.S. Today,99% of OneMain’s loans are e-signed, enabling them to be closed and funded significantly faster than on paper.

In this 60-minute presentation, you’ll learn how the company took a phased approach and implemented e-signatures in the call center and online channels, then expanded to the branch network. This year, OneMain will complete its e-signature roll-out to 1,700 branches, where the majority of its loans are transacted.

Presenters

David Smith, Vice President, Application Systems, OneMain
Philip Hannah, Director of IT, OneMain
Mary Ellen Power, VP Marketing, eSignLive by VASCO

Live online Aug 31 11:00 am United States – Los Angeles  or after on demand

SEC Suspends OTC-Traded Emerging Markets Investor Over ICO Concerns (Coindesk), Rated: A

Issued August 9, the order was made against a firm called CIAO Group (now rebranded as NuMelo Technology), which trades on markets operated by OTC Markets Group. NuMelo first announced plans for an ICO on July 6, at the time indicating a desire to bring a “digital financial products marketplace” based on blockchain tech to the African market.

ETHLend announces date of LEND token presale and ICO (CryptoNinjas), Rated: B

ETHLend token pre-sale details:

Starting: 25.09.2017 at 12.00 GMT

Ending: 25.10.2017 at 23.59 GMT or when the cap is reached

AMOUNT TO RAISE: 2,000 ETH

TOKENS FOR SALE: 60,000,000,LEND (6% of total sold tokens)

LEND TOKEN PRICE: 30,000 LEND = 1 ETH

(price includes 20% bonus tokens for all pre-sale participants)

Minimum amount to participate: 1 ETH

ETHLend token pre-sale details:

Starting: 25.09.2017 at 12.00 GMT

Ending: 25.10.2017 at 23.59 GMT or when the cap is reached

AMOUNT TO RAISE: 2,000 ETH

TOKENS FOR SALE: 60,000,000,LEND (6% of total sold tokens)

LEND TOKEN PRICE: 30,000 LEND = 1 ETH

(price includes 20% bonus tokens for all pre-sale participants)

Minimum amount to participate: 1 ETH

3 Stocks That Doubled So Far in 2017 (Madison), Rated: B

LendingTree’s efforts have proven immensely successful. In its most recent quarter, the online loan marketplace reported record results both from mortgages and other types of loans, and the number of loan requests jumped by nearly half to 5.4 million. In particular, efforts to expand beyond the mortgage realm have been extremely lucrative, as non-mortgage product revenue more than doubled in just the past 12 months.

United Kingdom

Zopa to refund investors affected by technical glitch (Bridging&Commercial), Rated: AAA

The technical issue has now been fixed and Zopa will be refunding impacted investors the difference between the amount paid and the true value of the loans purchased.

RateSetter in “final stages” of FCA authorisation process (P2P Finance News), Rated: AAA

RATESETTER believes it is in the “final stages” of reaching full authorisation after becoming the last of the main peer-to-peer lenders to be trading on interim permissions.

The platform is the last of the Peer2Peer Finance Association (P2PFA) members still awaiting full permission after ThinCats announced it had received Financial Conduct Authority (FCA) authorisation last week.

Invesco sells £9.6m Ranger Direct Lending fund stake (AltFi), Rated: A

Invesco Perpetual, the asset management giant, has been trimming its exposure to the £243m Ranger Direct Lending fund amid a testing period for the alternative credit investment trust.

The firm is one of Ranger’s largest investors with, until this week, just under a third of total shares in the fund.  This, however, has been trimmed in the past seven days, according to regulatory documents, with Invesco Perpetual’s current holding now down at 27.9 per cent.

Invesco Perpetual, who owns the fund as an income play within their fleet of top equity income portfolios, sold £9.6m worth of Ranger’s stock last week.

London fintech Tail is a cashback platform built on the promise of Open Banking (TechCrunch), Rated: A

London-based Tail is a new fintech startup that offers a glimpse into the promise of Open Banking. This is seeing upcoming legislation in the EU and U.K. force banks to offer third-party developer access to your bank account data — with your permission, of course.

The app, initially available for iOS and serving London only, offers heavy discounts at local places to eat and drink, all linked to the card you pay with and delivered each week in the form of cashback. However, the draw is how seamlessly it all takes place, by being built on top of digital-only challenger bank Starling‘s API, with Monzo integration also in the works.

Hargreaves Lansdown cashes in on (not too much) excitement (FT Alphaville), Rated: A

Back on August 4, the Financial Conduct Authority said it needed to “reassess” the broker’s capital requirements, because of its plans to do things a little more interesting than selling investment funds – such as offering an online cash deposit service, and lifetime individual savings accounts.

That meant Hargreaves had to retain another £50m, scrap its planned special dividend, and reassure the market of its profitability ahead of schedule.

Hence, this morning’s results contain no real surprises. Its 21 per cent rise in pre-tax profit, to to £265m, for the year ending June 30 had been rushed out with the capital announcement 11 days ago, “to allow investors to assess its strong financial and trading performance”.

P2P lenders offering rates up to five times better than mainstream best buys (P2P Finance News), Rated: A

THE MAIN peer-to-peer lenders are currently offering rates five times higher than the best offerings on the mainstream savings market.

It comes as a new challenger bank launched last week called PCF, offering a fixed savings rate of 2.6 per cent.

This may come with Financial Services Compensation Scheme (FSCS) protection, but seven years is a long time to lock up your money for and savers could do better by taking a bit more risk with a P2P platform.

P2P investors can earn up to 6.1 per cent a year for backing consumer loans, even while using an Innovative Finance ISA (IFISA).

End of Line for iFunding? Real Estate Crowdfunding Site May Be Done (Crowdfund Insider), Rated: A

The chatter on Bigger Pockets regarding iFunding has taken a new twist. In a series of public posts investors are referencing a possible bankruptcy for the real estate crowdfunding platform.

According to the posts, a company named Jazco has offered to take over the remaining deals that have funded on the iFunding site.

Fewer Advisors View Robos as a Threat (Financial Advisor IQ), Rated: A

Sixty-six percent of advisors are undecided about whether robos are a positive or negative force for their practice, according to a survey of 102 advisors by U.K.-based Panacea Adviser cited by FT Adviser. Just last year, when Panacea Adviser last conducted the survey, a whopping 89% of respondents said robo-advisors were a threat, according to the paper. The rate of incorporating robos into traditional advice practices is also picking up. While only 2% of advice firms surveyed this year currently offer a robo platform, 8% are in the process of integrating one and 12% are considering doing so, FT Adviser reports.

Buy to Let mortgages and peer to peer lending explored (AXA), Rated: A

Zoopla research from May 2017 discovered that it’s now cheaper to rent than to buy in 54% of UK cities.

Those with good credit ratings could be offered interest rates as low as 3%. If your credit rating is not so great, however, rates can rise to as high as 30%.

Is this the end of fintech as we know it? (Banking Technology), Rated: A

In the age of the internet, fintech dominates finance. In the UK, the sector is currently worth £7 billion, employing around 60,000 people with figures set to increase.

With unseen levels of growth in fintech, it’s important for companies to make sure that they don’t fall prey to the same mistakes their predecessors did. The easiest way to do so is by sticking to regulation standards.

As online banking slowly becomes the norm for managing money, it’s only natural that online banks emerge. Usage of online banking has more than doubled since 2007, kindling a banking revolution through which the UK has lost 40% of its banks and building societies since 1989. Online banks offer two key services: better banking deals and superior user experience.

Challenger banks like MonzoAtom and Starling have been making a lot of noise in this new banking arena. In 2016, Monzo raised £1 million in just 96 seconds in the fastest crowdfunding campaign ever. Atom Bank established its base outside of London, and Starling is now expanding outside the UK.

LendInvest signs up former Interbay BDM (Mortgage Strategy), Rated: B

Specialist lender LendInvest has appointed Andy Virgo (pictured) as its first BDM for the South of England.

Virgo will be responsible for sourcing deals across the South of England and joins LendInvest from Interbay Commercial, the commercial mortgage lending arm of OneSavings Bank, where he was a senior BDM.

ONLINE LENDER QUIDIE UNVEILS NEW MARKETING PUSH (ResponseSource), Rated: B

Croydon based online lending company, Quidie has launched a new digital marketing campaign to support sales of its new low rate short term loan products (of up to £1,000 with a fixed interest rate of 180%*) which are available to qualifying UK consumers exclusively online via the website.

The new campaign includes a 40 second video ad starring up and coming rapper and actor Craige Middleburgh.

London-based Integrated Marketing Agency Brandnation was responsible for all campaign creative and production. Brandnation is also handling all supporting PR and Social Media activity for the campaign.

China

The Score On Tencent’s Credit Scoring (PYMNTS), Rated: AAA

Hong Kong Stock Exchange to Launch Blockchain-Powered Market in 2018 (Coindesk), Rated: A

The Hong Kong Stock Exchange (HKEX) is planning to launch a blockchain-powered private market aimed at helping smaller firms obtain financing.

HKEX chief executive Charles Li detailed the plan, which would play out through a separate venture dubbed HKEX Private Market, in an August 1 note.

China’s biggest unicorns are a different breed (NASDAQ), Rated: A

China boasts 695 million mobile web users and shops more online than anywhere else in the world, with e-commerce sales likely to top $1.1 trillion this year, according to eMarketer, or more than twice the outlay in the United States.

China’s startups confront a particular set of regulatory risks. A crackdown on peer-to-peer lending and online “wealth management products” has probably delayed flotations by both Ant and Lufax, for example.

And Didi, which now has no serious local rivals, recently took in more than $5 billion from Japan’s SoftBank and others.

Overall, VC and private equity funds ploughed 384 billion yuan ($57.5 billion) into startups in the first half, according to Zero2IPO, not much changed from the previous year’s frantic pace. Local giants Baidu, Alibaba, and Tencent have deep pockets and want to keep emerging threats under control. They boast stakes in or ties to more than half of the top ten. SoftBank is also eyeing China as it invests a $93 billion mega-fund.

European Union

Fintech CEO says tech giants like IBM may go on M&A ‘shopping spree’ for start-ups in 2018 (CNBC), Rated: A

Tech giants like IBM and Capgemini could go on a mergers and acquisitions “shopping spree” for financial technology (fintech) start-ups next year, the chief of one such start-up has told CNBC.

new European directive, which becomes effective in January 2018, would enable third party businesses to monopolize on banks’ software and customer data to build new products – something referred to in the fintech world as “open banking”.

Döderlein, whose company helps develop mobile payments products for 17 banks, said that this would result in big, mainstream tech companies snapping up smaller fintechs to harness the newer technologies they have on offer.

International

Visa’s Latest Big Bets in Fintech (The Motley Fool), Rated: AAA

When extolling the virtues of long term, buy-and-hold investing, it’s hard to think of a better example than Visa Inc. (NYSE:V). Since going public in March 2008, Visa’s shares have returned well over 600%, crushing the market in the process.

Broadening its partnership with a Pal

Was it really just a little over a year ago when, after a frosty and testy co-existence as business frenemies, that Visa and PayPal Holdings Inc (NASDAQ:PYPL) first struck a deal covering their North American business?

For starters, in Europe, Visa Checkout will automatically be enabled at any merchant utilizing PayPal’s Braintree payment processing. More impressively, however, is that, since PayPal holds a banking license in Europe, Visa will be issuing PayPal debit cards in Europe.

Kleaning up with Klarna

Visa also recently announced a strategic investment in and a new partnership with Klarna, a European online payments company that offers credit and flexible payments during the checkout process at online merchants.

Going to the market with Marqeta

Finally, in its most recent fintech deal, Visa announced a multiyear partnership and strategic investment in Marqeta, an open API (application programming interface) card issuer platform. Marqeta offers a number of payment solutions for issuers for on-demand delivery, alternative lending, the disbursement of earnings and rewards to card holders, advance cost controls, and on-demand virtual and tokenized cards.

Foolish takeaway

The payments industry is changing rapidly, with fintech start-ups and larger financial institutions all wanting a bigger piece of the pie. That is why Visa shareholders should take heart that the company is making constant investments to ensure it gives its clients and card holders the best payment experience possible.

The 10 largest P2P and marketplace lending deals of Q2 2017 (AltFi), Rated: AAA

The three months of this year, from April to the end of June, was a particularly active period for fundraising in the space. The top ten deals to marketplace lending companies received a combined investment total of $658m in the second quarter of the year, which represents 84 per cent of the total capital committed to deals in the sector, according to data provider Fintech Global.

The largest deal in Q2 went to Chinese P2P lender Tuandaiwang which raised a whopping $262.6m of private equity funding in May. This was the only marketplace lending company in Asia to feature in the top ten deals.

Fintech: Why It Matters So Much to Your Investment (FX Daily Report), Rated: A

In their latest report, Accenture established that international investment in fintech blast through the roof in just a couple of years. From $ 800 million in 2008, the figure has moved up to $ 12 billion by the onset of 2015. In Europe, the growth rate rose by 215% to $1.48 billion between 2008 and 2014. This figure is expected to continue going up and having a huge impact on individual businesses and institutions.

Transferring cash within and outside the country had made the traditional methods complicated, expensive, and unrealistic. However, latest technologies have made international cash transfer easy, transparent, reliable, and highly secure. Using online wallets such as Skrill, GOOG, and others, money is transferred within seconds and accounts maintained in top conditions.

India

Fin-tech startup DigiLend raises funds from InCred, Fullerton (VC Circle), Rated: AAA

Mumbai-based fin-tech firm DigiLend Analytics & Technology Pvt Ltd has raised nearly Rs 2 crore ($311,939) from two non-banking financial services companies, filings with the Registrar of Companies show.

Mumbai-based InCred Finance and Temasek-owned Fullerton India Credit Company Ltd have made the investment, the filings indicate.

DigiLend will use the funds to pilot its product in the personal loan segment, Dattani said.

Asia

Funding Societies Joins Prestigious IACPM and Welcomes Risk Expert Terry Tse to Board of Directors (Markets Insider), Rated: AAA

Funding Societies has become the first and the only peer-to-peer (P2P) lending company to attain membership at the International Association of Credit Portfolio Managers (IACPM), a prestigious forum for credit risk management. In addition, risk expert Terry Tse joins Funding Societies’ Board of Directors. Mr. Tse is the former Chief Risk Officer of Dianrong — one of China’s leading P2P lending platforms.

Together with sister platform Modalku, Funding Societies is currently the biggest SME loan crowdfunding platform in Southeast Asia, with operations in SingaporeIndonesia, and Malaysia. Recently, Funding Societies has also become the only Southeast Asian digital lender to be selected by CB Insights to the Fintech 250, a list of 250 top private companies changing the face of financial services around the world.

Canada

GOLDMONEY REPORTS FIRST QUARTERLY PROFIT OF $ 3.3 MILLION, PLANS TO OPEN PHYSICAL BRANCH IN TORONTO (Betakit), Rated: AAA

Toronto-based Goldmoney, a gold-based payments and savings platform that allows users to acquire, store, and spend gold that is stored in a secure vault, has released the financial results for its first quarter of 2018, which ended on June 30, 2017.

Goldmoney reported an adjusted profit of $3.3 million and an IFRS profit of $2 million. The company said this is the first time it’s reported a quarterly profit in Goldmoney history.

Goldmoney also reported a quarterly revenue of $125 million, suggesting improvement from $112 million year-over-year (YoY).

Canadian Small Business Growth Continues (Lessors), Rated: A

PayNet, the premier provider of credit assessments on private companies reports that the PayNet Canadian Small Business Lending Index (CSBLI) increased 1% to 123.8 in June 2017 from 122 in May, the third month in a row of year-over-year increases. Compared to May 2016 the CSBLI is up 5%.

The Construction sector investment increased 4% which continues to reflect improvements in housing starts and prices throughout much of the country. Accommodation and Food fell 5% while all other segments were within 3% of May 2017. Growth geographically remains broad based as well with British Columbia and Quebec showed the largest increases from May, both up 3%, while Atlantic Canada exhibited the largest decrease (3%).

The financial health of Canadian companies continues to maintain stability with relatively few signs of deterioration of financial health. The PayNet Canadian Small Business Delinquency Index (CSBDI) 31-180 days past due held steady at 1.09% in June from May 2017. Compared to June 2016, delinquency decreased (10 bps).

Agriculture delinquency decreased by (11 bps), the largest monthly decrease amongst all industries in June.

Africa

Nigeria’s Fintech industry has grown by over 90 % in 4 years (Business Day Online), Rated: AAA

In 2009, we began to look at how digital  is affecting the economies and consumers. The economy has changed, the world has changed. We now live in global, digital economy and because of that, one of the key things that makes money gets to businesses is through payment.

Fintech in Nigeria has come to stay, but what is your assessment of the industry in Nigeria today?

We are coming a bit late but the nation is doing so well compared to other nations. In the last 3-4 years the industry has grown by over 90 percent. It is said that there is over 400 Fintech organisations working with Africa Fintech organisation. These are all entrepreneurs and different groups providing solutions.

Are you saying that  Fintech has impacted  hugely on the economy, assist to solve clients’ challenges and provide job opportunities?

Imagine the 400 Fintech firms working with Africa Fintech Organisation and many of them are at infancy.  And each of them has its own niche of providing  solution to a particular sector. This is the new economy. Before now we had an economy that is based on crude oil, manufacturing and others, but the new economy is digital.

Are there examples of countries that employed Fintech to drive their economy?

Fintech  manifests in different forms and that is why speakers at the forum said that they do not see Nigeria being a follower in Fintech market. They see Nigerian being a leader because it is leading its own form of Fintech which is different from countries like S/Africa.  Though South Africa is doing so well in Fintech with its peculiar needs and penetration of banks to customers.

Nigeria is now growing from a combination of these models. But there are some models, where Nigeria is yet to get to which have been done so well in other markets. For instance, Econet which has worked very well in Zimbabwe where the number of people who are insured through the mobile platform are higher than the number of people insured in Nigeria. Under Fintech, people can borrow money like in Kenya without going to the bank because the whole system can read all your transactions as the system knows how money comes in and how it goes out. So when you ask for loan, they know that you are trustworthy and then they can lend you money easily.

Shivani Siroya of Tala (Lend Academy), Rated: A

Our next guest on the Lend Academy Podcast is Shivani Siroya, the CEO and founder of Tala. While Tala is headquartered in southern California its lending operations are focused on the developing world. They launched in Kenya back in 2014 and in three short years they have become the #5 most downloaded app in that country. How they have done this is a fascinating story.

Authors:

George Popescu
Allen Taylor

Friday June 16 2017, Daily News Digest

Indonesia fintech

News Comments Today’s main news: SoFi wants to steal banks’ most coveted customers. Biggest online lenders don’t always check key borrower data. Fed issues FOMC statement. RateSetter puts aside George Banco partnership. Alibaba’s first fintech investment in Hong Kong. Investree enters Vietnam. Today’s main analysis: How fintech startups are transforming banking in Indonesia (A MUST-READ). Today’s thought-provoking articles: Real estate […]

Indonesia fintech

News Comments

United States

United Kingdom

China

International

Australia

India

Asia

Africa

News Summary

United States

SoFi Wants to Steal Your Most Coveted Customers (The Financial Brand), Rated: AAA

Don’t look now, but the ‘in your face’ fintech firm, SoFi, is moving from offering just student and personal loans to providing wealth management and opening checking accounts. And their target market is one of the most coveted by banking … the educated, affluent, digital-first Millennial.

In an interview with Mike Cagney, “Mad Money” host Jim Cramer said, “If Bank of America or Citi had the Internet when they were forming, this (the SoFi model) is what they would have started.” Cagney responded saying, “Absolutely. I think what’s going to happen is the banks are going to move toward our model over time. And we certainly don’t have the hubris to expect that we’re going to change all of banking, but we are going to drag them into a different kind of service model. One that’s a lot more aligned to the customer.”

The company is also developing financial planning services, which it expects to launch this summer. These include joint financial planning for couples and first-time home buying.

“If you look at SoFi, we run over 65 percent contribution margin across our three lending businesses. We’re the most profitable fintech company in the marketplace. And there’s huge opportunity to expand from that, and it comes down to cost of acquisition. If you build really strong brand, really strong evangelism, really strong what I call ‘cross-buy,’ you can drop that cost of acquisition significantly and that drives margins,” Cagney said.

When fintech meets CRA: SoFi bank bid draws activists’ ire (American Banker), Rated: A

In its early days, Social Finance made loans only to borrowers who had attended name-brand universities. Graduates of elite colleges were paying relatively high interest rates on federal student loans even though they represented a low risk, and the Silicon Valley startup saw in that mispricing a chance to make money.

SoFi CEO Mike Cagney noted in a 2013 interview that traditional banks were aware of this opportunity but were unwilling to pursue it.

Real Estate Lending: The Investment Bankers are Coming (Lend Academy), Rated: AAA

Back in 2012, I borrowed money to purchase a house I planned to fix-and-flip. I contributed 20% of the purchase price as a down payment. For the privilege of borrowing the other 80%, I paid a local “hard money lender” a 3.5% origination fee plus interest only payments at a 13% APR.

I started doing some more research into the market that was originating a majority of these types of fix-and-flip loans, which is called “hard money lending”. There were a few things that became quickly apparent to me.

  1. The market was highly-fragmented. There wasn’t a single lender that controlled any significant amount of the national market.
  2. The use of technology was virtually non-existent. The ability to apply online for a hard money loan didn’t exist. The lender I borrowed from didn’t even have a website.
  3. Capital formation was very analog. This put them in a perpetual cycle of originating new loans to keep their funds working while also raising additional capital to meet the demands of their borrower base.
  4. Hard Money Lenders, generally speaking, had a very negative reputation among the borrower community. This was in part due to the high interest rates. However, upon further digging, the real cause of dissatisfaction among borrowers was the lack of service and transparency.

Much like the early days of peer-to-peer lending, the new online real estate originators won business by providing a better borrower experience. Online applications with instant feedback on pricing and terms provided better transparency to borrowers. Quick funding decisions that are augmented by large data sets, rather than relying 100% on appraisals, allows these new lenders to provide more certainty around closing. Online dashboards where borrowers can order construction draws and make interest payments make the loan servicing experience easier for the borrower. Regardless of the financial innovation that is to follow, these technology platforms have improved the level of service provided to borrowers.

That said, the five largest online originators still only write between 5-8% of the total loan volume in the fix-and-flip market. We are still in the very early days of what is likely to be a massive consolidation of a previously fragmented market.

Biggest Online Lenders Don’t Always Check Key Borrower Data (Bloomberg), Rated: AAA

Prosper Marketplace Inc. doesn’t verify key information like income and employment for around a quarter of the loans it makes, according to documents tied to bonds that Prosper sold last month. LendingClub Corp. said it only verified income about a third of the time for one of the most popular loans it made in 2016, according to company data seen by Bloomberg. If either lender finds mistakes in a borrower’s application, such as overstated income, they may still go ahead with the loan, according to disclosures linked to bond sales from the companies, including documents for securities that LendingClub is offering now.

Online loans usually don’t have collateral, so when they go bad, investors can lose out. Traditional consumer finance companies and banks tend to check incomes and employment on closer to 100 percent of new customers before making these kinds of loans, according to industry executives. Online lending competitor Social Finance Inc. checks income on 100 percent of its borrowers, according to a report from Kroll Bond Rating Agency.

Investors in LendingClub loans earn average annual returns of around 4.3 percent, about three percentage points higher than the yield for two-year U.S. Treasuries. Those kinds of returns helped nonbank startups arrange more than $36 billion of loans in 2015, mainly for consumers, according to a report from KPMG.

LendingClub verified income on 35.6 percent of one of its most popular types of loans in 2016, according to company data obtained by Bloomberg. That figure has bounced around over time: it was 16 percent in 2008, and 47 percent in 2013.

LendingClub has had to write off a growing percentage of its loans — 8.5 percent, annualized, in the first three months, compared with 5 percent the same quarter a year ago.

Federal Reserve issues FOMC statement (Federal Reserve), Rated: AAA

Information received since the Federal Open Market Committee met in May indicates that the labor market has continued to strengthen and that economic activity has been rising moderately so far this year. Job gains have moderated but have been solid, on average, since the beginning of the year, and the unemployment rate has declined. Household spending has picked up in recent months, and business fixed investment has continued to expand. On a 12-month basis, inflation has declined recently and, like the measure excluding food and energy prices, is running somewhat below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.

In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1 to 1-1/4 percent.

SEC: RIAs Are Worse Than BDs at Cybersecurity (Financial Advisor IQ), Rated: A

The SEC says many financial advice firms are falling short when it comes to cybersecurity, with investment advice firms being less prepared than broker-dealers, Reuters writes.

As part of its second stage of cybersecurity exams initiated in 2014, the SEC analyzed 75 firms and found that 26% of the companies don’t conduct risk assessments on a continuous basis and 57% of the firms fail to carry out vulnerability and penetration tests with simulated attacks on critical systems, according to the newswire.

The SEC has concluded that investment advice firms have had more issues with cybersecurity than broker-dealers, according to the newswire. On the other hand, the SEC learned that almost all investment advisors practiced regular system maintenance as part of their cybersecurity process, namely by consistently installing security patches, Reuters writes.

Only 4% of the companies examined were missing essential patches or updates, according to the newswire.

Marlette Funding Depositor Trust (SEC), Rated: A

On June 2, 2017, representatives of the Company provided us with a computer-generated unsecured consumer loan data file containing data, as represented to us by the Company, as of May 24, 2017, with respect to 29,806 unsecured consumer loans (the “Statistical Loan File”).  At your instruction, we randomly selected 125 unsecured consumer loans (the “Initial Sample Loans”) from the Initial Statistical Loan File using the following criteria provided to us by the Company:
(i)
3 unsecured consumer loans with a seller identified as “Seller #1” on the Initial Statistical Loan File;
(ii)
21 unsecured consumer loans with a seller identified as “Seller #2” on the Initial Statistical Loan File;
(iii)
1 unsecured consumer loan with a seller identified “Seller #3” on the Initial Statistical Loan File;
(iv)
23 unsecured consumer loans with a seller identified as “Seller #4” on the Initial Statistical Loan File;
(v)
15 unsecured consumer loans with a seller identified as “Seller #5” on the Initial Statistical Loan File;
(vi)
62 unsecured consumer loans with a seller identified as “Seller #6” on the Initial Statistical Loan File;
In addition, on June 13, 2017, representatives of the Company provided us with a computer-generated unsecured consumer loan data file containing data, as represented to us by the Company, as of May 24, 2017, with respect to an additional 4,203 unsecured consumer loans (the “Subsequent Statistical Loan File”).  At your instruction, we randomly selected 8 unsecured consumer loans from the Subsequent Statistical Loan File with an origination date (as set forth on the Subsequent Statistical Loan File) on or before March 31, 2015 (the “Subsequent Sample Loans”).  The Initial Sample Loans and the Subsequent Sample Loans are collectively and hereinafter referred to as the “Sample Loans”

Fintech Ingo Money raising $ 12M in venture capital, plans to add up to 100 jobs (Biz Journals), Rated: A

Ingo provides risk-management services to financial institutions, such as banks and payment networks. Investors include Baltimore-based Camden Partners, Philadelphia-based MissionOG, and Bethesda, Md-based CNF Investments.

Notice of Class Action Settlement (Google AdWords Email), Rated: A

In Re Google AdWords Litigation, No. 5:08-cv-03369-EJD
U.S. District Court Northern District of California
A $22,500,000 class action settlement has been preliminarily approved by the U.S. District Court for the Northern District of California, in the case In Re Google AdWords Litigation, No. 5:08-cv-03369-EJD.  Your rights may be affected and you may be entitled to a portion of this settlement if you are an eligible Class Member.
Who Is Included in the Settlement?
You may be a Class Member if during the period of July 11, 2004 and March 31, 2008, you: 1) were a U.S. resident; 2) had a Google AdWords Account; and, 3) were charged for clicks on advertisements appearing on parked domains or error pages.
What Is This Case About?
This case alleges that Google failed to disclose to its AdWords customers that it placed ads on websites known as parked domains and error pages.  The lawsuit alleges this conduct violates California laws against unfair competition and false advertising.  Google denies these claims.
How Do I Ask for Payment?
To receive payment, you must submit a claim form no later than June 21, 2017 and have spent at least $1.00 on AdWords served on parked domains or error pages between July 11, 2004 and March 31, 2008.  You may complete the claim form online at June 21, 2017. If you do not want to stay in the Class, you must submit a request for exclusion by June 21, 2017. If you exclude yourself, you cannot get a payment from this settlement, but you will keep any rights to sue Google for the same claims in a different lawsuit. The detailed notice explains how to exclude yourself, object, and request to appear.
The Court’s Fairness Hearing.
The Court will hold a Final Fairness Hearing on July 27, 2017 at 9:00 am PST at the following location: U.S. District Court for the Northern District of California, San Jose Courthouse, Courtroom 4 – 5th Floor, 280 South 1st Street, San Jose, CA 95113.  At this hearing, the Court will consider whether: 1) the settlement is fair, reasonable, and adequate; 2) to approve the service awards to the class representatives; and 3) to approve the award of attorneys’ fees and expenses to the attorneys for the class.
Where Can I get More Information?

SEC heightens exam focus on robo advisers (Financial-Planning), Rated: A

Under newly confirmed Chairman Jay Clayton, the SEC is setting its sights on expanded protections for retail investors, planning a series of RIA sweep exams exploring areas like robo advisers and money market funds.

Slated to launch this year is an exam sweep looking at how firms are deploying robo advisers, or using automated services to augment the provision of investment advice.

Levine said that the sweep will likely run along the lines of the guidance on digital advice platforms that the SEC issued in February, when it affirmed that robo advisory services still have a fiduciary duty, and warned of potential issues around disclosure and client communications.

Also this year, the SEC is planning to launch a sweep looking at how firms that traffic in money market funds are incorporating the rules the SEC adopted to shore up that sector following the destabilizing run in 2008.

As part of a broader focus on retail investors saving for retirement, the commission is also planning to launch a sweep exam looking at how firms are adhering to the schedules laid out in the disclosures of target-date funds, and another probing the controls advisers have in place on fixed-income cross trading relating to retirement accounts.

Initiative invests $ 5M to help more educators access Landed (Landed Blog), Rated: A

Today, we’re excited to announce that the Chan Zuckerberg Initiative (CZI), has invested $5,000,000 to create a Landed down payment support fund that will make it easier for educators in the Redwood City, Ravenswood City, and Sequoia Union High School districts in California — districts which face some of the highest housing costs in the country — to buy homes.

  • Eligibility: Any district or public school employee within the boundaries of Sequoia Union High School District, Redwood City School District and Ravenswood City School District.
  • Support: Up to half of a down payment (max $120,000), for the purchase of a primary residence.
  • Terms: Participants share up to 25% of the appreciation (or loss) in the price of the home upon sale, or after 30 years, whichever is sooner. There are no monthly payments.
  • Other: Participants can choose to end their relationship with Landed at any time. Financial coaching support will also be made available to participants.

Fletcher Jones Auto Group Partners With AutoGravity To Bring Financing Of Real Time Inventory To The Smartphone (PR Newswire), Rated: A

AutoGravity, a FinTech pioneer on a mission to transform car shopping and financing, has announced the launch of real-time inventory on the Fletcher Jones Drive (FJ Drive) smartphone app powered by AutoGravity. Car shoppers now have access to the largest selection of Mercedes-Benz inventory in the nation, a seamless auto financing application and Mercedes-Benz Financial Services offer presentment – all in the palm of their hand through the AutoGravity powered FJ Drive app for iOS and Android.

AutoGravity joined forces with the Fletcher Jones Auto Group to launch FJ Drive, the nation’s first and only mobile app that allows customers to secure financing for any new Mercedes-Benz right on their smartphone. Real time inventory extends the partnership by empowering users to shop for specific vehicles sitting on the dealership lot. Guests can choose any Mercedes-Benz model and browse all available cars for their store of choice. Easy to use filters, including model year, body type and color, make finding cars simple and intuitive. Guests apply for financing and review their lease or loan offer in the app before picking up their car at the Fletcher Jones showroom.

Venture fund seeks fintech ‘workhorses’ (American Banker), Rated: A

Since its beginnings in 2015, Centana has invested in four companies, including the insurance technology company One and digital identity management firm Jumio. The New York-based limited partnership says it is hunting for other investment candidates and that it expects to put $5 million to $30 million into as many as 15 investments.

Centana is hoping to differentiate itself from other venture capital firms by pursuing “workhorses” — essentially, companies that will help incumbent companies improve on existing business models, Cukier said.

FinTech Marketplace Wealth Migrate Announces Luxury Condo Give-a-way (Benzinga), Rated: A

Wealth Migrate, an online real estate investment marketplace, announces the global opening of its #LikeAMillionaire luxury condo give-a-way. The competition, which is open to all new users who sign up on the WealthMigrate.com platform, is another example of how Wealth Migrate is putting quality real estate within reach of middle class investors throughout the globe, who typically do not have access to these types of deals.

The Zero-2-One Tower, standing 42 stories tall, is set to be the tallest building in Cape Town upon completion in 2020.

FinTech and InsurTech company IATAI Enterprises and payment solutions enabler BPP create Handy U (Crossroads Today), Rated: A

The FinTech and InsurTech company IATAI Enterprises (IATAI), which specializes in making mobile transactions, communications and other interactions quicker and easier across platforms, has joined forces with the payment solutions enabler BPP to develop Handy U, a universal and customizable payment, rewards and insurance solution for consumers, businesses and merchants.

Handy U is a reloadable Visa virtual/digital account that enables IATAI’s travel and insurance clients to instantly make and receive payments, access benefits and redeem rewards generated by their loyalty programs. Handy U is hosted on IATAI’s digital wallet, onepocket, which lets users combine several payment methods in a single transaction, both online and in-store.

First Foundation to acquire Community 1st Bank for about $ 50 mln (Reuters), Rated: B

* First Foundation – deal is valued at approximately $50.4 million in aggregate

* First Foundation – at closing, transaction is expected to be about 2.5% dilutive to co’s tangible book value per share with an estimated tangible book value earn-back period of 3.6 years

“Investing in Real Estate through Equity Crowdfunding Websites” Now On Demand (Benzinga), Rated: B

This Financial Poise webinar series explores the purchase of ownership shares in private companies via crowdfunding websites.

Episodes in the series address

  • the modes of angel investing in a company during its early stages,
  • the opportunities and perils of crowdfunding real estate investments,
  • the money-raising entity’s perspective and
  • a close look at crowdfunding options under federal and state law.

The 3rd episode of the “Equity Crowfunding” series is available now on demand! “Investing in Real Estate through Equity Crowdfunding Websites” (Register Here) features Moderator Chris Cahill of Lowis & Gellen. Chris is joined by Jordan Fishfeld of CFX Markets, Marty Coyne of Connected Investors Inc. and Lynda Davey of Avalon Net Worth.

Boston’s FinMason Announces New Fintech Accelerator Program (Crowdfund Insider), Rated: B

FinMason, a Boston-based fintech and investment analytics firm, announced on Thursday the launch of its new fintech accelerating program, FinSpring, which is described as an initiative that will provide free access to FinRiver, a set of flexible and lightning-fast investment analytics APIs.

United Kingdom

RateSetter Update: Decides to Not Go Ahead With George Banco Partnership (Crowdfund Insider), Rated: AAA

Last month, RateSetter announced it was entering a partnership with George Banco and acquiring an equity stake in the personal loan provider company. Unfortunately, RateSetter revealed earlier this month that it has decided to pull out of the partnership after all.

“We have subsequently decided not to go ahead with this new arrangement with George Banco. After further examination of the infrastructure required to do this, we concluded there were better uses of our development resources which may be deployed more effectively to source other borrowers. Therefore, we will not facilitate lending directly to George Banco’s customers, and accordingly we have updated our Principles of Lending document which sets out our lending criteria. The existing wholesale loans to George Banco will continue to be repaid in accordance with the schedule of the existing loan contracts. The total of these existing loans currently stands at £31.5 million.”

To see the updated Principles of Lending document, click here.

BTL index: Nothing to choose between Tory and Labour-voting regions (Letting Agent Today), Rated: AAA

The top ten buy-to-let postcodes in England and Wales are evenly split between locations that voted for the Conservatives or Labour.

Luton has been identified as the best buy-to-let investment location across England and Wales, with an average yield of 4.54% and rental price growth of 7.37%.

According to LendInvest, which analyses data from Zoopla and the Land Registry to compile its Buy-to-Let Index, Stevenage is the best performing buy-to-let postcode out of areas that voted Conservative last week.

The Hertfordshire town has recorded capital gains of 11.64% and rental price growth of 7.5% over the last quarter.

Luton is the top performing Labour-voting postcode.

Top 10 buy-to-let postcodes

Yield Capital gains Rental price growth Transaction volume growth
Luton 4.54% 12.83% 7.37% -10.40%
Stevenage 4.05% 11.64% 7.47% -9.40%
Rochester 4.55% 12.34% 5.45% -9.40%
Colchester 4.29% 14.14% 4.14% -11.16%
Dartford 4.37% 13.61% 3.92% -10.94%
Peterborough 4.71% 9.04% 6.98% -10.67%
Southend-on-Sea 4.30% 12.37% 3.89% -10.26%
Manchester 6.11% 7.58% 7.53% -12.41%
Canterbury 4.36% 9.34% 6.62% -11.49%
Romford 4.81% 14.42% 1.28% -11.67%

MoneyThing posts record month ahead of 2017 IFISA launch (P2P Finance News), Rated: A

MONEYTHING is on track to boost its loan origination ahead of an Innovative Finance ISA (IFISA) launch later this year, after delivering its highest new loan monthly level to date in May.

The peer-to-peer lending platform launched £7.7m of new loan opportunities last month, which marks its strongest result since it launched in February 2015, and £3.7m more than its previous record.

It now aims to roll out the tax-free wrapper by the end of the year, although the launch will not be imminent, a company representative told Peer2Peer Finance News.

Irish fintech firm Assure Hedge receives UK regulatory boost (Irish Times), Rated: A

Assure Hedge, a provider of foreign exchange technology to protect businesses from currency fluctuations, has received a boost from the UK Financial Conduct Authority under a programme aimed at drawing financial technology (fintech) under its regulatory oversight.

China

Meet Alibaba’s first fintech investment in Hong Kong (The Asset), Rated: AAA

Aiming to fix cash flow issues for companies operating in Hong Kong, Andy Chan along with his partner Winston Wong, set out on a mission to craft Hong Kong’s first invoice trading platform, Qupital.

Since its inception less than a year ago, the company has started to gain attention from companies including Chinese e-commerce giant Alibaba.

In terms of generating revenue, Chan shares that when an invoice is purchased, Qupital would take between 25-75 basis points of the total invoice value. Moreover, the company would take 20% of net gains made by funders.

With fresh capital from high-profile backers, Chan has his sights on deepening his business in Hong Kong with an eye on expansion to other markets in 2018 such as Thailand and Vietnam.

Baidu, With a Move Into Fintech, Gets Wary Credit-Ratings Look (WSJ), Rated: A

Baidu Inc. is among China’s tech giants looking to get a leg up in the competitive financial-services market. Credit-rating companies aren’t so sure it’s a good idea.

Fitch recently placed Baidu on negative watch, citing “significantly higher” business risks as it moves into making unsecured consumer loans and selling uninsured investments known as wealth-management products, which Fitch said are “part of the shadow banking system in China.”

Moody’s decided last month to place Baidu’s bond ratings on review for a downgrade, citing concerns over the firm’s short history in the financial-services business.

Baidu’s financial services, which also include its mobile payment platform, now account for about 12% of its assets, or 25 billion yuan ($3.7 billion)—representing rapid growth for a firm that formed its financial-services group only about a year ago. That has significantly changed Baidu’s credit profile, said Moody’s vice president and senior credit officer Lina Choi.

International

Transforming banking with fintech (HSBC), Rated: A

HSBC has its own tech teams designing new platforms and products, and they are absolutely brilliant. But we need to be humble and recognise that we don’t have all the answers. We invest in and work with fintech start-ups where we think they can help.

Our partnership with Tradeshift is making it easier for business customers to manage their accounts and their relationships with suppliers online, saving time and cutting down paperwork.

Retail customers in the UK can now download an HSBC SmartSave app, developed in partnership with a start-up called Pariti. It helps them save money without even having to think about it.

We have invested in a start-up which is developing technology that can sift through large amounts of financial transactions to pinpoint suspicious patterns. This will help us tackle financial crime more effectively, and, ultimately, keep our customers safer.

Australia

ZipMoney eyes profitability, partners with NAB (AltFi), Rated: A

ASX-listed fintech zipMoney has put the finishing touches on its A$260 million debt warehouse with big four bank NAB and could become one of the few all-Australian fintechs to make a profit.

The money raised will go to the “immediate refinance of $70 million of existing receivables”, ZipMoney told the ASX, resulting in lower interest rates across the board. It will also allow the company to increase volumes and hire more staff.

ZipMoney provides a ‘buy now, pay later’ service, offering shoppers loans between $1000 and $10,000 for up to eight months.

ASIC permanently bans Perth financial adviser (Professional Planner), Rated: B

An ASIC investigation found that between January 2011 and November 2012 Mr Hutchison dishonestly:

  1. banked cheques he received from his clients for advice fees directly into his personal bank account, when he knew he was obliged to remit or report them to RI Advice. Mr Hutchison then deducted additional fees from his clients’ investment platform or financial product for payment to RI Advice; and
  2. banked cheques he received from his clients for advice fees directly into his personal bank account and failed to record the receipt of the cheques on RI Advice’s payment system.

Mr Hutchison misled or deceived his clients by failing to disclose to them that they had been double charged advice fees and failed to comply with the proper process for remitting and reporting the fees. He also misled or deceived RI Advice by failing to disclose that he had deposited the advice fees into his own account and did not comply with RI Advice’s relevant fees policies and procedures.

India

SMC Capital, REPL launch Rs 1,000-crore real estate fund (India Times), Rated: A

SMC Capital and EPC developer REPL group have come together to launch a Rs 1,000-crore real estate fund, SMC IM Capital. The fund has already got commitments from global investors based in the US and Middle East and will look at a first close by end of this month.

The fund will invest between Rs 50 crore and Rs 80 crore in the middle segment affordable housing projects in tier I and II cities.

In India, real estate is the second largest employer after agriculture, and is slated to grow at 30% over the next decade. The real estate sector comprises four sub sectors — housing, retail, hospitality, and commercial.
Asia

Indonesian P2P lending site Investree to enter Vietnam, launches sharia-based service (e27), Rated: AAA

Indonesian peer-to-peer (P2P) lending startup Investree announced on Thursday that it is set to begin expansion to Vietnam in 2018, DailySocial reported.

The Jakarta-based startup said it is currently undergoing the process of setting up a joint venture with an undisclosed local financial institution.

Investree also announced that it is going to launch a sharia-based lending service in July; the startup is currently on the process of applying for certification from the National Sharia Board (DSN).

Gunadi cited strong demand from both borrowers and lenders to set up a lending practice based on the Islamic law, and by far three small businesses from Jakarta and Surabaya have agreed to join in the pilot project.

How FinTech Startups Are Transforming The Way Banks Function In Indonesia (inc42), Rated: AAA

India, November 2016. PM Modi launched a demonetisation drive to eradicate black money, fostering a new wave of digitisation in India. Consequently, there was a tremendous rise in the adoption of e-wallets, launch of new fintech startups, and the average Indian became familiar with a new financial entity, bitcoin.

From local grocery shops to petrol pumps to movie theatres, digital wallets have captured each and every day-to-day business which requires payments. Not only this, digital wallets have even seen a massive adoption for payment chores like booking air tickets or buying movie tickets or paying bills (DTH, Water, Electricity).

Be it digital payments, online lending, or remote banking, Indonesia has seen a surge of startups that have developed products to solve the current needs of the population.

At the same time, the country remains a challenging market for fintech industry to grow with only 40% of adults in the country having access to banks. 49 Mn SMEs unit are still not bankable, because of low credit score and little or no financial history.

It is estimated that only 40% of Indonesia’s 250 Mn populationcurrently have access to services provided by banks.

Secondly, Indonesia is a country of SMBs. These enterprises account for 99% of the total amount of enterprises that are operating in Indonesia and they create a total of 107.6 Mn jobs in Southeast Asia’s largest emerging economy, as per a Deloitte report. Moreover, Indonesia’s micro, small, and medium-sized companies contribute 60.6 % to Indonesia’s gross domestic product (GDP).

Thirdly, due to Indonesia’s peculiar geography, its traditional banking system suffers. The number of bank branches, which is estimated at 10 banks (branches)  per 1,000 square kilometersis far too low to serve Indonesia’s vast geography.

The major areas that startups are capturing and disrupting are payments, insurance, stock markets, investments, PoS, comparison, and online lending. Major startups in the payments sector include Mandiri, T-Cash, PayPro, IPayMu, Xenditi among others.

Digital payments have become so big in the archipelago that the total transaction value in the “Digital Payments” segment amounts to $18 Mn in 2017. Additionally, the total transaction value is expected to show an annual growth rate (CAGR 2017-2021) of 18.4 %, resulting in the total amount of $36 Mn in 2021. Popular fintech categories in Indonesia are lending platforms, capturing 17% and marketplaces for financial products that have occupied 13%.

Deposits, Lending, And Capital Raising

The online lending space is dominated by players included Modalku, Taralite, and Investree. The online lending segment has a huge market demand in the country, owing to the fact that a major population of the country has a low credit score and SMEs can benefit from these alternative services.

Taralite: Launched in 2016, the startup sanctions financial loans with relatively low interest, starting from 1%, for education, marriage, childbirth, house renovation, vehicle purchase, property & housing. It also provides loans without collateral. It recently secured $6.3 Mn from Japanese financial services provider, SBI Group.

MODALKU: Founded in 2016, it is an online lending platform, that provides loans up to IDR. 2 Bn, with relatively affordable interest. Its focus areas are SMEs looking for working capital, with minimum one year of operations.

Market Provisioning

Cekaja.com: Launched in 2013, the platform allows users to compare various financial products at one place.

Investment & Risk Management

JOJONOMIC: JOJONOMIC digitises the entire employee reimbursement process for an employee.

RajaPremi:  Founded in 2014, RajaPremi is an online insurance marketplace.

Bareksa: Founded in 2016, it is an online and integrated marketplace for mutual funds.

Digital Payments

Kudo: Launched in 2014, the startup has a website and a mobile application that enables anyone to be an online entrepreneur without having to personally stock the items.

DOKU:  A 2007 founded startup, Doku is the biggest player in the Indonesian payments scene. Functioning as an online and offline payment gateway for businesses and individuals, DOKU is an e-wallet equipped with links to credit card and electronic money.

t-cash: Founded in 2011, it is an electronic money service provided by Telkomsel (a telecom giant). Users are required to install the T-Wallet app on their mobiles and equip their mobiles with the t-cash stickers.

Ayopop: Launched in 2016, Ayopop is an app that specialises in bill payments.

POS (Point-Of-Sales Startups)

Pawoon: Launched in 2013, Pawoon is a cloud-based Point of Sales (POS) application for SMEs.

DealPOS: DealPOS is a cloud-based point-of-sale ( POS ), inventory and accounting software for business which was also launched in 2013.

A Year Ago… (LinkedIn), Rated: A

A year ago, I found myself on stage in Hong Kong, China speaking on “How Fintech Companies Can Differentiate Themselves and Build Special Competitive Advantage“.

Wondering in the halls of an incredible conference in Shanghai a few days later at LendIt Conference China, I was consumed with anxiety. Every platform I saw in China easily had 30 million plus active users. Whether it was credit, payment, insurance or investments, the conference in China was filled with eager entrepreneurs, seasoned executives and hunger investors.

Out of necessity, with a series of coincidences and a ton of luck I founded a company called MaxDecisions, Inc. with an old colleague and friend Henry Wang. We didn’t think too much of it and we didn’t really know where we will end up with it.

In the same month, I founded another company called Kuber Financial, LLC. and later Kuber Inc. with two other co-founders. Both of them left in the middle of the project, one early on and one late later year.

Fluid App came to me because I wanted to build something that’s truly different from all other platforms. A fun, mobile only, credit building product that could truly change lives of millions of young Americans. A FinTech, AdTech mesh up, that a lot of people are now starting to understand and appreciate my vision for this product.

With our 10th employee coming onboard at www.maxdecision.com next week, we’ve officially broke our first million dollars in sales.

Shenzhen – Singapore – Hong Kong Financial Technology Alliance was formally established (01Caijing), Rated: B

June 14, Shenzhen Internet Finance Association, THE FINLAB PTE LTD and the Hong Kong Internet Professional Association in the World Youth Entrepreneurship Forum officially signed a tripartite cooperation memorandum, at the same time announced at the forum, Shenzhen – Singapore – Hong Kong Financial Technology Alliance was formally established.

Africa

Payment Startups Lead Way In Africa’s Booming FinTech Scene (Forbes), Rated: AAA

Payments and remittances startups account for the majority of Africa’s over 300 fintech startups, though blockchain companies are the more likely to secure funding.

Payments and remittances is the most populated of nine sub-sectors addressed in the report, with 125 startups across the continent focused on making the process of sending and receiving money easier. Lending and financing – with 65 startups – is the next most popular category; indeed, over 60 per cent of all Africa’s fintech startups are focused on these two crucial spaces.

African blockchain startups are the most successful in percentage terms, with almost 40 per cent of the blockchain-focused startups on the continent securing funding.

The continent’s fintech startups have secured over US$92.5 million in investment since 2015, the report finds, while the data shows fintech startups are spread across the African continent. Southern Africa and West Africa are fintech leaders – with 34.2 per cent and 34 per cent respectively based in those regions respectively. South Africa has the most fintech startups (94), followed by Nigeria (74) and Kenya (56).

Authors:

George Popescu
Allen Taylor