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Thursday June 15 2017, Daily News Digest

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United States

Patch of Land Expands Debt Facility With SF Capital to $ 30 Million (Digital Journal), Rated: AAA

Patch of Land, an online real estate lending marketplace using a technology-rich crowdfunding platform, has expanded its senior warehouse debt facility with SF Capital from $10 million to $30 million. SF Capital, a private investment firm with a flexible, long-term investment focus, began its lending relationship with Patch of Land in 2015.

The expanded debt facility provides Patch of Land greater flexibility in funding loans to support the company’s growing mortgage loan origination volume. It also complements the company’s robust crowdfunding network and enables Patch of Land to expand its pre-funding efforts to continue to meet the unique lending needs of real estate investors. The move is part of company initiatives designed to improve the borrowing experience for real estate entrepreneurs and, at the same time, expand access to residential and commercial real estate investing.

Loan Approval Rates Drop at Banks and Alternative Lenders in May 2017 (Biz2Credit), Rated: AAA

Loan approval rates at big banks ($10 billion-plus in assets), small banks, alternative lenders and credit unions dipped slightly in May 2017, according to the latest Biz2Credit Small Business Lending Index, the monthly analysis of more than 1,000 small business loan applications on Biz2Credit.com.

Small business loan approval rates at big banks fell two-tenths of a percent from April’s 24.3% figure, a post-recession high, to 24.1% in May 2017. The drop comes after approval rates at big banks climbed for most of the year.

big bank loan approvals

Loan approval rates at small banks also dropped in May to 48.8%, down from April’s 49% figure. Small banks have flirted with the 50% mark, but have not reached it since October 2014.

Institutional lenders loan approval rates in May improved slightly to 63.8%, another new high on Biz2Credit’s index. It marked the fifth time in the past six months that this category of lenders showed an increase in funding approval percentages.

Loan approval rates dropped at alternative lenders by two-tenths of a percent in May, as non-bank lenders granted 57.7% of the funding requests. This marks nearly one year of consecutive decreases for this category of lenders.

Loan approval rates at credit unions dropped one-tenth of a percent in May to 40.5%, another new low for this category of funders on Biz2Credit’s index.

small business lending index

Why Banks Are Going To Survive (Forbes), Rated: AAA

In 2016 alone, global venture investment in fintech grew by 11% to $17.4 billion in 2016, according to data provided by PitchBook.

Platformification is the bundling together of multiple services onto one online platform, and provides an efficient, automated and integrated customer experience.

Why does platformification matter now?

However, 59% of banks (according to an Accenture study) are creating full-stack platforms.

Banks must effectively bundle multiple online products together and monitor how customers interact with those products to deliver a differentiated and compelling customer experience, ultimately affecting their bottom line. According to Gartner, we are just at the beginning of this trend, as it predicts that by the end of 2019, 25% of retail banks will use startup providers to replace legacy online and mobile banking systems.

LendKey is leading the movement

LendKey pioneered the “lending as a service” model back in 2009 and already works with nearly 300 banks and credit unions nationwide to create custom, white-labeled online lending platforms.

Among the hundreds of credit unions and banks using LendKey’s tailor-made platformification service are Navy Federal, WSFS Bank and McGraw-Hill Federal Credit Union. When a student decides to take out a loan on Navy Federal’s website, the customer experiences platformification without knowing it in the form of a lending portal from LendKey, an ID portal from IDology and a signing portal from DocuSign, yet all three are delivered via a seamless process.

How the industry applied platformification

Aside from LendKey, Wells Fargo has distinguished itself in the industry as being particularly open to platformification.

Now, through platformification and customer demand, SigFig allows Wells Fargo customers to build, implement and rebalance tailored portfolios online, based on responses to investing questionnaires.

Because of platformification, banking has essentially been reinvented. Banks and financial service providers are no longer constrained by slow and inconvenient systems.

Avant, for instance, successfully launched their first bank partnership in September 2016 with Birmingham-based Regions Bank, a top 20 bank with over $136 billion in assets under management.

Online lenders haven’t been verifying income and employment on their loans(Business Insider), Rated: A

Prosper Marketplace and Lending Club, two of the largest players in the online personal loan business, don’t always verify key borrower information like income and employment, according to a report from Bloomberg’s Matt Scully.

Prosper told Bloomberg that it verifies identities and bank accounts for all of its loans, and that it has “developed some of the industry’s leading risk-mitigation controls.”

A Lending Club representative told Bloomberg that the company uses “machine learning and other techniques to build robust models that segment which borrower applications need verification and which do not.”

As Much as They Try, Non-Prime Millennials Struggle to Make Financial Progress (BusinessWire), Rated: A

According to the research, 44 percent of non-prime Millennials conducted personal research about how to manage their own finances, compared with 47 percent of prime Millennials. Despite these nearly equal efforts, non-prime Millennials – those with credit scores below 700 – are twice as likely to experience significant stress due to their finances and are about half as likely to feel satisfied with their financial situations.

The root of these challenges may come from how non-prime Millennials were taught about personal finance early in their lives. The study also found that non-prime Millennials:

  • Didn’t benefit as widely as their prime counterparts from seeing how their parents managed their finances, with only 49 percent stating they learned from their parents’ example, as opposed to 61 percent for primes
  • Were less likely to be actively taught financial management skills from their parents, with 1 in 5 receiving this parental education, compared to one in three of their prime counterparts who received instruction at home
  • Are more likely to learn financial skills via trial and error (72 percent, compared with 41 percent of prime), which may explain how some Millennials became non-prime – learning by trial and error means non-prime Millennials likely made more mistakes that damaged their credit, as opposed to prime Millennials who may have avoided those mistakes altogether

New Lending Club ABS deal structure a draw for investors (Global Capital), Rated: A

All loans securitized in the transaction are whole loans purchased through a pro-rata allocation of the ‘near-prime’ loans originated on the platform by seven third parties unaffiliated with Lending Club, according to a Kroll presale report.

ABS investors told&nbsp;<i>GlobalCapital </i>they were receptive to the online platform’s decision to do ….

LendingTree unveils its own Zestimate-style home valuation tool (Housingwire), Rated: A

The new valuation tool is from LendingTree, which announced Wednesday that it is rolling out a new home valuation feature within its financial intelligence platform, My LendingTree.

According to details from the company, any of My LendingTree’s 5 million current users (or anyone else who signs up for the service) will now have the ability to get a valuation of their home within LendingTree’s system.

The company says that its home valuation tool “leverages a proprietary home valuation model that estimates home value by accessing third party data and tracking it to visualize the user’s home value data trends over time.”

According to details from the company, My LendingTree users that have a mortgage have an average home value of $310,000 and an average mortgage balance of roughly $178,000, which translates into roughly $132,000 of “untapped home equity” on average.

And the company wants to help its users “tap into” that home equity.

As seen in the image below, users are then shown the total equity they have in their home and encouraged to get a home equity loan, if they are interested.

LendingTree home equity loan

According to LendingTree, the company “has facilitated more than 65 million loan requests” since its inception, and the company’s network currently includes more than 500 lenders offering home loans, personal loans, credit cards, student loans, business loans, home equity loans/lines of credit, auto loans and more.”

IBM intros first suite of tools from Watson Financial Services (ZDNet), Rated: A

IBM has since leveraged the industry expertise of Promontory’s workforce — made up of ex-regulators and banking executives — to teach Watson all about regulation, risk, and compliance. The first batch cognitive tools covers three areas: Regulatory requirements, financial crime insights, and financial risk modeling. The Watson-powered software is available today via the IBM Cloud.

How a Betterment GM made her way out of banking and into startupland (Built in NYC), Rated: A

Loh was hired to launch Betterment for Business just over a year ago, and now, Betterment for Business’s management team is completely women-run. They work with over 400 companies and are growing at a fast clip.

What made you decide to make a career switch into fintech?

I spent a decade in asset management and I was considering a couple of different factors. I took a hard look at the trends going on in the industry and saw how technology was affecting finance. Then, I looked at my own experience to make sure I had utility for the next 30 years of my working career. That’s when I made the move into the tech sector.

What advice would you give to people thinking of making the switch from traditional financial services into tech?

For me, it was all about looking at the financial services industry. I would recommend reading Reid Hoffman’s ‘The Start-up of You,’ which asks you to look at your life like a startup. It makes you question things like what skills you need to acquire and where do you need to raise capital. Something I always hear from candidates is that they’re not ready to take that risk. My advice to make sure you’re thinking of risk in the right way. Staying at a big bank in the short term is secure, but in the long term, will you have a skill set that anyone wants to hire?

5 Tips for Real Estate Crowdfunding (U.S. News), Rated: A

To invest in real estate, you can do it the old-fashioned way, buying a property with a loan or cash, then collecting rent or fixing it up to sell. Or you could invest in a real estate investment trust, a kind of fund that buys residential, commercial or industrial properties.

Or you could do it the 21st century way, with a real estate crowdfunding company, which pools investors’ funds to make loans to home flippers or to buy residential and commercial properties. Interest and rent earned on those deals is passed back to those who supplied the money.

Most platforms have been limited to “accredited investors” – people with at least $1 million in liquid assets or annual income of at least $200,000. But rules are changing fast, so stay tuned if you don’t qualify now. Realty Mogul and Fundrise allow non-accredited investors.

One of the industry’s big names, RealtyShares, currently offers a number of opportunities with handsome projected returns if all goes as planned, such as 9.5 percent on a Church’s Chicken restaurant in Huntsville, Alabama, 11 percent on a single-family home in Jacksonville, Florida, and 14 percent on a home being built in Los Altos Hills, California.

  1. Know the rules. Most experts urge investors to consider real estate crowdfunding to be a long-term investment, since real estate holdings and debt are not as liquid as stocks, bonds or mutual funds. Equity real estate investments are considered long-term holdings, while debt investments may produce returns more quickly, but pay less in the long run.
  2. Watch for risk.
  3. Don’t overdo it. This is a new industry and sure to experience growing pains, so don’t bet the farm.
  4. Don’t get greedy. As with other investments, higher returns generally come with greater risks. The real estate market could sour, rising interest rates could undermine property values, the borrower may turn out to be less competent than your site thought, especially if the project involves a fix and flip.
  5. Know your partners. Obviously, it’s important to research the platforms you use, but also dig for information on the other investors.

Cetera Financial Institutions introduces insurance-focused portal for bank and credit union-based financial advisors and clients (CUInsight), Rated: A

Cetera Financial Group® (“Cetera”)*, a network of independent firms supporting the delivery of professional financial advice through trusted financial advisors and financial institutions, and Cetera Financial Institutions (“CFI”) today announced the launch of a new portal designed for CFI-affiliated advisors and clients to streamline and simplify the process of identifying and purchasing insurance solutions. Cetera Financial Institutions is the Cetera firm specifically focused on serving the wealth management programs of banks and credit unions.

The portal was developed in coordination with Covr Financial Technologies, an innovative technology firm that provides consumers with access, education and the ability to purchase insurance policies in conjunction with financial advisors.

CFI’s new insurance portal is designed to increase application processing speed and improve case management efficiency for advisors, among other functions.  It also creates a more simplified and straightforward experience for both advisors and clients in identifying and purchasing life, long-term care, disability and other forms of insurance. The CFI-branded portal functions as an integrated offering within Cetera’s existing SmartWorks® advisor workstation, and has been custom-built to serve the needs of the full Cetera Financial Institutions insurance team — from sales to operations to case management. Cetera anticipates incorporating the insurance portal into its MoneyGuidePro® financial planning solution within the next month.

Schwab Sees FAs Adding Services Without Upping Fees (Financial Advisor IQ), Rated: A

Moreover, 79% of advisors believe there will be more opportunities than challenges in the next 10 years, the survey found.

But 44% of advisors say they’re providing additional services to their clients without charging them, while 40% say they’ve been spending more time on each client but haven’t raised their fees, according to Schwab.

In addition, 24% of advisors believe that investing in technology to build scale isn’t offsetting the expense, the survey found. Nonetheless, most advisors are still confident technology will help them: 76% think technological advances will let their companies stay ahead of the competition, according to Schwab.

Treasury Report Seeks to Deliver Regulatory Relief to Banks & Credit Unions (Crowdfund Insider), Rated: A

Treasury’s recommendations relating to the reform of the banking sector regulatory framework may be summarized as follows:

  • Improving regulatory efficiency and effectiveness by critically evaluating mandates and regulatory fragmentation, overlap, and duplication across regulatory agencies;
  • Aligning the financial system to help support the U.S. economy;
  • Reducing regulatory burden by decreasing unnecessary complexity;
  • Tailoring the regulatory approach based on size and complexity of regulated firms and requiring greater regulatory cooperation and coordination among financial regulators; and
  • Aligning regulations to support market liquidity, investment, and lending in the U.S. economy.

Global Debt Registry Announces Expansion in New York and Leadership Hire (Global Debt Registry), Rated: B

Global Debt Registry (GDR), the asset certainty company known for its loan validation expertise, today announced it is moving its headquarters to New York City as part of its overarching strategic growth initiative to be closer to the investor community. The Company also announced the addition of structured finance veteran, Michael Koenitzer, as Director of Business Development.

InstaLend: Online Real Estate Investing Made Simple (Real Estate Tech News), Rated: B

For as little as $5,000, InstaLend connects accredited investors to borrowers seeking to fund short-term residential real estate investments.

Qualified borrowers, such as property flippers use InstaLend to apply for flexible loan products including hybrid loans and Sub-630 FICO lending programs. All deals go through a vetting process when InstaLend underwrites the loan.

InstaLend

United States P2P Lending Market 2017 : Lending Club, Borrower, P2P Credit, Prosper, Funding Circle (OpenPR), Rated: B

The report studies the industry for P2P Lending across the globe taking the existing industry chain, the import and export statistics in P2P Lending market & dynamics of demand and supply of P2P Lending into consideration. The ‘ P2P Lending ‘ research study covers each and every aspect of the P2P Lending market United Statesly, which starts from the definition of the P2P Lending industry and develops towards P2P Lending market segmentations. Further, every segment of the P2P Lending market is classified and analysed on the basis of product types, application, and the end-use industries of the P2P Lending market. The geographical segmentation of the P2P Lending industry has also been covered at length in this report.

Top Manufacturers Analysis Of This Research Report

1. Lending Club
2. Borrower
3. P2P Credit
4. Prosper
5. Funding Circle
6. Upstart
7. Kiva
8. Zopa
9. Lendkey
10. LendingHome

Get Free Sample Copy of Report Here : www.marketsnresearch.com/request-for-sample.html?repid=11043

United Kingdom

Over 3,500 firms give up permission to advise on P2P agreements (Bridging&Commercial), Rated: AAA

A total of 3,555 firms have voluntarily given up the permission to advise on peer-to-peer agreements by cancellation or variation of permissions since April 2016.

The FCA informed B&C that around 15,000 firms were originally authorised to advise on peer-to-peer agreements.

Firms that have cancelled their permission for advising on peer-to-peer agreements include two distinct groups:

•    Those which were formerly authorised to carry out the activity, but then ceased to be regulated entities by cancelling their permissions
•    Firms which were formerly authorised to advise on peer-to-peer agreements, but removed the activity by varying their permissions while remaining to be authorised by the FCA for other activities.

Stephen felt there were a couple of key reasons why advisers may be slower to advise on the peer-to-peer space:

  • It’s a growing and complex industry with lots of operating models and different lending opportunities and risks
  • It’s not clear that existing professional indemnity insurance would cover advising on peer-to-peer lending, so this needs to be clarified ahead of an adviser undertaking these activities.

Peer-to-peer lender Relendex raises money at £6m valuation (AltFi), Rated: A

Relendex, a P2P lender focused on commercial real estate loans, has concurrently closed a rights issue and a round of financing from new investors.

The exact amount that has been raised has not been disclosed. But we do learn that this latest investment gives the company a post-money valuation of £6m, on a fully diluted basis.

Relendex intends to use the money to invest in new technology and services.

Why crowd-based capitalism has changed the economy (City A.M.), Rated: A

Unlike 19th and early 20th century evolutions, today’s technological shifts are steering us away from managerial capitalism and towards what many see as a more crowd-based iteration, Sundararajan said. Traditional hierarchical organisations and large, well-staffed companies that create goods and services are in decline. An alternative model is ascendant, one in which products are distributed not by a firm, but by a heterogeneous crowd. This economic structure blurs the lines between the personal and professional and between casual labour and full-time work.

Take Funding Circle, for example. Funding Circle provides small business loans through crowdfunded capital. Often as many as 200 people fund one loan, with some parties offering as little as £20 in exchange for a return.

Based on his research into these questions, Sundararajan believes “when we understand the evolution of trust we understand the evolution of business.” Rather than conventional handshakes and signatures, Sundararajan says that today trust develops from ‘digital cues’ — online information about individuals and organisations that we process and interpret to determine with whom to associate. Sundararajan identifies several digital cues that help us gather enough online information to inform our decisions on who to trust. These include government, third-party, or brand certification; reviews of Facebook and LinkedIn profiles; and digital peer feedback through sites like Yelp, among others.

FCA says banks won’t fill advice gap (FT Adviser), Rated: A

Banks are not a panacea to the problems facing the financial advice market, David Geale has said.

The report also recommended a number of measures for the Financial Conduct Authority to take forward, aimed at giving firms the confidence to deliver streamlined advisory services focusing on specific consumer needs.

The review also highlighted the increasing role that technology can play in creating a more engaging, cost-effective advice market.

Mr Geale added that later this month the FCA would be publishing it’s baseline measures for judging whether the Financial Advice Market Review process had been a success over the next few years.

Insurex Announces Crowdsale for Blockchain-based Marketplace for Insurance Products (The Merkle), Rated: A

Insurance blockchain startup InsureX has announced that it will open its crowd sale on 11 July at 14:00 UTC. InsureX is building the first blockchain-based marketplace to be used for the trade and management of insurance products.

‘Blockchain technology presents an exciting opportunity to disrupt the industry. Preliminary estimates are that gross written premiums generated by insurers contribute 3.5 trillion or 5.7 percent of the global GDP – that is a massive opportunity. At InsureX we want to set a new precedent for the way insurance products are bought and sold through a blockchain-based marketplace that will add greater speed and security to the process’ Ingemar Svensson, CEO, InsureX.

The crowdsale opens on the 11 July at 14:00 UTC. Contributors in ETH will be eligible for IXT tokens with bonuses of up to 36% for early birds.

InsureX will operate as a Software as a Service (SaaS) platform that runs on the Ethereum blockchain.

China

Tencent Leads $ 146M Round In Chinese Online Brokerage Firm Futu (China Money Network), Rated: AAA

Chinese Internet giant Tencent Holdings Ltd. has led a US$145.5 million C round financing in Futu Securities, an online brokerage platform serving Chinese investors trading U.S. and Hong Kong-listed stocks.

If Li’s statement is correct, Futu Securities would become the latest addition to China Money Network’s China Unicorn Ranking, which includes 102 such companies worth a total of US$435 billion when the ranking was released in May 2017. Futu Securities would also become the first Hong Kong company to officially join the unicorn club.

Established in 2012, Futu provides an online stock trading platform enabling Chinese individual investors to trade U.S. and Hong Kong-listed stocks. Since its founding, the company has cumulatively served over 3.4 million customers who have completed over RMB500 billion (US$73 billion) worth of transactions. Annual transaction value reaching nearly RMB300 billion (US$44 billion) in 2016 alone.

How Chinese P2P lending institutional investors measure a platform (Xing Ping She Email), Rated: AAA

In China, P2P lending institutional investors usually conduct due diligence before they invest a platform. The following short report is a due diligence report of Caifuzhihui Inc. wrote by Xeenho, which briefly illustrates the procedures of the measuring method.

Basic Information
Caifuzhihui.cn is a P2P lending platform based in Xuzhou, Jiangsu province. The company mainly operates for car pledge, truck and real estate mortgages. Xeenho rated “BBBB” for Caifuzhihui.cn. The information of the platform is open and transparent, ready to accept due diligence from investors. The online interest rates of their loans are in high level, but there are relatively too much remaining funds in the platform.

Here are the points of Xeenho’s rating report on Caifuzhihui.cn.

Operations
Regional resource advantages and fewer counterparts in the area.
New business of truck mortgage is logic and reasonable, good security in use of funds an source of repayment.
Lack of local professional talents.

Risk Control
Transparent and open, ready for assault investigation.
Owing to policy support, getting better assets at lower cost.
Lack of strict verification to the mortgage of some pledged cars.

Financial Capacity
The platform has been profitable, while their qualification inspecting of partners needs to be improved, the investors cannot accurately judge the strength of them.

Interest rates
High level of interest rates in the industry and shorter-maturity give the platform certain investment value. However, there are too much remaining funds in the platform, investors should take into full account the idle loss.

Click here to get the full report.

China’s P2P lenders dodge regulations (China Economic Review), Rated: A

Following years of explosive yet unchecked growth of P2P lending in China, the central government in August announced sweeping regulations to rope in the nascent sector.  But Caixin reporters found that while some P2P lenders have been trying to follow the new requirements, others have managed to skirt the new rules.

In 2016, a total 2 trillion yuan in loans were made through P2P lending firms.

Here is the Presentation that Explains How Ant Financial, Part of Alibaba, Will Dominate Finance (Crowdfund Insider), Rated: A

One area that Alibaba wants to dominate is finance for both consumers and SMEs and they are well on their way.  Ant Financial, their financial services subsidiary, is executing on this vision and last week Eric Jing, CEO of Ant Financial, delivered a presentation explaining their approach.

Jing shared some hard numbers:

  • Alipay, their payment platform, has 520 million annual active users
  • Wealth management, Ant Fortune, has 330 million cumulative users with 17% year over year growth
  • Ant Credit Pay and Ant Cash Now have 100 million active users
  • Ant Insurance has 392 million users and is growing premiums at 43% year over year
  • Zhima Credit has 257 users and 95% year over year growth

PayPal only has 203 million active accounts. Charles Schwab has just 10.2 million accounts.

As for future growth, Ant Financial points to the fact that 30% of the adult worldwide population is underbanked, 80% of the worlds SMEs have no access to formal financial systems and 90% of the adult population in developing countries do not have a credit card.

View Jing’s full presentation here.

European Union

Where Top European Banks Are Investing In Fintech In One Graphic (CB Insights), Rated: AAA

In Q1’17, investments to European VC-backed fintech companies spiked to 73 investments worth $667M. At the current pace, total funding dollars to fintech companies based in Europe are on pace to surpass $2.6B and deals could surpass 2016’s total by 57%.

Euro banks

International

The U. of Cambridge Launches 2016-17 European, Africa & Middle East Alternative Finance Industry Surveys (Crowdfund Insider), Rated: AAA

The Cambridge Centre for Alternative Finance (CCAF) at the University of Cambridge Judge Business School has launched its third European benchmarking survey and the second survey for Africa and the Middle East. The two separate research initiatives will review the emerging alternative finance markets in each of theses regions.

The CCAF defines alternative finance as innovative financial instruments and distributive channels that have emerged outside of the traditional financial system. This includes crowdfunding and peer-to-peer (P2P) lending activities.

The forthcoming surveys on Europe and Africa & the Middle East build upon their multi-year research agenda to provide the best available source of industry data on a country-by-country basis.

The survey data will be collected directly from over 350 alternative finance platforms across 90+ countries in Europe and Africa & the Middle East with the aim to capture over 90% of visible online alternative finance market.

The results of the survey will be made freely available for all in the two industry reports and are expected to be published in the third quarter of 2017.

Misys boss to lead fintech giant after merger with DH (The Telegraph), Rated: B

The boss of banking software firm Misys is to take the helm of a new £1.7bn company called Finastra that has been formed from the British company’s merger with Canadian rival DH Corp.

Nadeem Syed has been named chief executive of the giant fintech business, which is owned by Vista Equity Partners and is the world’s third biggest financial software provider behind competitors FIS and Fiserv.

Australia

Old technology costing advice industry (Financial Standard), Rated: AAA

The majority financial advice firms are still choosing to rely on Microsoft Excel as their primary source of administrative software despite a range of financial software products coming to market, YTML said.

According to the financial technology provider’s anecdotal evidence, eight out of 10 practices are still using Microsoft Excel as a dependency in the advice process.

YTML co-founder and chief operating officer Piew Yap said this software gap is preventing advisers from taking advantage of the time and cost saving measures which updated and tailored technology solutions can provide.

One of the main barriers to taking up new technology, according to YTML director Terri Ho, is the reality that many software providers prefer to operate in silos – or “don’t talk to each other”. According to Ho, advisers are operating a number of different technology platforms to service client needs but are still having to manually enter details across all.

India

Lending API-fied : Start of P2P Lending Revolution (Finextra), Rated: A

National Payments Corporation of India (NPCI) has revolutionised Indian Payment Industry and has removed friction. Newer payments platforms like IMPS, UPI, BBPS etc have solved payment and collection problems of all customer segments. NPCI has change the market by standardising and securing APIs across banks. UPI is classical API use case, which is simplifying mobile payments for P2P as well as Merchant Payments.

On the lines of payments, there is urgent need to revolutionize Lending in the country through technology intervention by an organisation similar to  NPCI. I am calling the entity as National Lending Corporation of India (NLCI) for now.

High level flow of Lending Process (and the APIs) is given below:

  • Loan Request API (sent by Retail Borrower): Standard API for request for loans from a specific person (like VPA of the lender in UPI parlance) or for generic listing of loan requests. This would include the amount of loan, expected duration (range), type of loan (EMI based).
  • Data enrichment of Loan Request API (by NLCI) : Aggregation of critical customer credit data from CIBIL and key alternate sources for sharing with lender.
  • Loan Inquiry API (Retail or Institutional Lender): This entity would be able to run inquiry for a loan based on key inputs like expected Credit Score, Amount, Type of Customer etc. Incase, the loan request is sent specifically in their name (i.e. VPA), the loan request would be available in their queue for acceptance or rejection (similar to UPI collect request).
  • Loan Confirmation API (Retail or Institutional Lender): Lender would be able to approve the loan or reject the loan.
  • Loan accounts would be maintained to NLCI platform for accounting and processing.
Canada

BlueRock Wealth Management Partners with FutureVault (Benzinga), Rated: A

BlueRock Wealth Management Inc., a wealth management firm that provides personalized financial advice and services, has announced that it is offering FutureVault’s Digital Collaborative Vault – called the BlueRock Vault – as an exclusive service to its executive and high-net-worth clients.

The new service will allow BlueRock clients to securely deposit, store and manage important financial, legal and personal documents. FutureVault’s patent-pending Trusted Advisors feature will enhance the sharing and fiduciary tracking of vital documents between BlueRock clients and staff in addition to a client’s external network of Trusted Advisors (i.e. lawyers, accountants, insurance brokers, etc.) providing complete transparency and new levels of trust.

Authors:

George Popescu
George Popescu
Allen Taylor
Allen Taylor

About the author

Allen Taylor

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