Daily News Digest Featured News

Wednesday November 8 2017, Daily News Digest

Lending Club originations
Source: Lend Academy

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International

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News Summary

United States

LendingClub originations rose 34% in Q3 (American Banker), Rated: AAA

Loan originations continued to climb for LendingClub in the third quarter, yet profitability remained out of reach even as the lender continued to recover from the scandal that forced out its former CEO.

LendingClub Q3 Results: Highest Revenue in the Company’s History of $ 154.0 million (Crowdfund Insider), Rated: AAA

LendingClub (NYSE:LC), the largest marketplace lending platform in the United States, has published Q3 2017 financial results. The company delivered the best revenue in LendingClub’s history generating $154 million in top line revenue, an increase of 34% versus year prior and 10% over Q2 2017.

LendingClub Q3 2017 Earnings – Close to a Return to Profitability (Lend Academy), Rated: AAA

Last quarter we reported that LendingClub had returned to origination growth. It was a relatively small amount, compared to historical growth, at just 10%, but it was a noticeable change from the several quarters of flat originations. Today, LendingClub announced their third quarter financial results which included $2.44 billion in originations, an increase of 14% from the prior quarter ($2.15 billion).

Lending Club originations
Source: Lend Academy

The company also delivered their highest revenue to date at $154 million, up 34% year-over-year. This was on the low range of guidance for the quarter ($154 – $159 million). The company had a GAAP net loss of $6.7 million, which was better than their third quarter guidance of losses between $12 million and $8 million. Adjusted EBITDA came in at $20.9 million which was in the middle of guidance between $18 and $22 million.

Lending Club net revenue
Source: Lend Academy

LendingClub forecasts fourth-quarter loss, shares plummet (Reuters), Rated: A

Online lender LendingClub Corp (LC.N) forecast a fourth-quarter loss and revenue below expectations, sending its shares down sharply after the bell on Tuesday.

For the fourth quarter, the company expects net loss of $3 million-$7 million and revenue in the range of $158 million-$163 million.

LendingClub comes up short as it cuts back full-year guidance (Financial Times), Rated: A

Shares in Lending Club crashed in after-hours trading on Tuesday, as the company pared its revenue and profit guidance for the full year.

The company’s stock fell as much as 22 per cent after the closing bell, having lost about 6.6 per cent during the day.

DUE DILIGENCE REQUIRES DEEP DIVES INTO DATA (All About Alpha), Rated: AAA

The data and analysis provider eVestment has issued a new white paper on “enhancing private equity manager selection with deeper data.”

The authors of this study cite a recent paper by Daniel R. Cavagnaro, Bart Sensoy, Yingdi Wang, and Michael Weisbach.  Cavagnaro et al found (in the eVestment paraphrase) that “an investor’s skill level in fund selection is a more important driver of their returns, than luck or access to managers,” and that indeed an increase in skill of one standard deviation accounts for a 3% increase in the annual IRR.

With reference specifically to buy-out funds, eVestment says that only 19% of the funds that (a) have raised money subsequent to 2001, and (b) were a successor to a top quartile performer (by the same GP) have then repeated that top quartile performance.

persistence

The numbers for these four periods are: 33%, 33%, 25%, and 22%.

Focusing more specifically on persistence within the top quartile, the numbers drop more dramatically. They are then: 31%, 28%, 13%, and 12%.

Download and read the eVestment white paper here.

Medical residency refis may be just what the doctor ordered (Asset Securitization Report), Rated: A

When the online lender Social Finance recently unveiled its latest refinancing product, it put a spotlight on a perhaps overlooked corner of the student loan market: medical residents.

SoFi launched an offering in October designed specifically for medical school graduates who practice in a residency program at a hospital or clinic. The company is following in the footsteps of established players like Darien Rowayton Bank and several upstarts.

SoFi Launches “Refi and Relax,” Aimed at Combating Widespread Student Loan Anxiety (PR Newswire), Rated: A

On the heels of the end of most new college graduates’ student loan repayment grace period, SoFi today announced its first-ever Refi and Relax campaign, which aims to educate graduates on their refinancing options as a way to relieve the overwhelming stress that comes with carrying student debt.

Student loan debt is a large source of anxiety and stress for many young Americans. According to a recent SoFi member survey of over 1,200 respondents, eighty three percent shared that they’ve felt like they couldn’t relax due to the burden of the debt. Fifty percent of people dealing with student loan debt reported feeling anxious and/or depressed, and fifteen percent of respondents went so far as to talk with a mental health professional about the stress of their student debt.

Over a third of respondents have reported losing sleep due to student loan debt. Seventy five percent of respondents shared that they would give up social media if it meant their student loans would disappear. Forty percent of respondents said they would stay at a job that they hate because of student loan debt. Another twenty percent are willing to take even more dramatic measures by sacrificing a finger or toe in exchange for erasing their student loans.

Americans currently owe over $1.34 trillion in student loan debt, about $319 billion more than total credit card debt, according to the Federal Reserve Bank of New York’s August 2017 report.

Refi and Relax will comprise of a robust social media advertising campaign (#RefiandRelax), in addition to a members-only launch party in New York exclusively for those who recently refinanced their loans. On November 7, to give SoFi members a night off to unwind, the event will be dedicated to utmost relaxation, with manicures from GlamSquad, playtime with Socials Tees puppies, premium giveaways, and more.

There’s a gender gap in college savings, too (Mashable), Rated: A

Two studies recently found that parents save less for their daughters’ college educations than they do for their sons’. As highlighted in a Wall Street Journal story, a study by T. Rowe Price examined families who had all boys and families who had all girls.

The families who only had boys saved more for college than the families who only had girls. Fifty percent of households with boys saved money for college, compared to only 39 percent of households with girls. And 83 percent of families with boys contributed to college savings monthly, while only 70 percent of families with girls did. This all stood up no matter how many children the families had.

LendKey Forms Partnership with Allied Solutions to Offer Digital Lending & Loan Participation Solutions for Financial Institutions (Crowdfund Insider), Rated: A

LendKey, a lending-as-a-service solution for banks and credit unions, announced on Monday it has formed a partnership with Allied Solutions to offer its digital lending solutions, including unique and innovative loan participation programs, to Allied’s more than 4,000 clients.

Catching Up With LendingPoint (deBanked), Rated: A

At Money2020, we sat down with Chief Executive Officer Tom Burnside and Chief Strategy Officer Juan Tavares, both of LendingPoint, an online consumer lender we examined in the July/August magazine issue.

An interesting initiative that they’re now just ramping up, Tavares says, is partnerships with hospitals that allow patients to determine their deductible expenses and obtain credit on the spot to pay for it.

Accounting software giant Intuit launches direct business loans (CNBC), Rated: A

Financial software firm Intuit is offering loans directly to businesses with a lending product called QuickBooks Capital.

The company, which makes tax-preparation and accounting software, said Tuesday it would enable firms to use its bookkeeping software to access up to $35,000 in credit, with a term between three and six months.

QuickBooks Capital uses machine learning to help small businesses demonstrate credit-worthiness.

According to a study by the Federal Reserve earlier this year, only 23 percent of businesses younger than five years get access to credit.

How banks can beat digital lenders at their own game (American Banker), Rated: A

Perhaps it’s time to start acknowledging that banks are no longer taking a back seat to pioneering online lending startups.

Many depositories have learned that if they fail to modernize their lending processes, they risk being left behind. At the same time, many startups have been stymied by certain intractable advantages held by the banking sector, the most notable being significantly lower funding costs.

Bank of America Merrill Lynch has signed on with a quant firm — and it shows where Wall Street is headed (Business Insider), Rated: A

Manoj Narang, founder of quant hedge fund MANA Partners, has launched a trading subsidiary that is developing market-testing products. One of his first clients: Bank of America Merrill Lynch.

MANA Tech is also marketing a product using similar data that allows investors to measure how much money their algorithmic strategies would have performed in past market conditions, and identifies how they could become more profitable.

“It’s much more beneficial to be a quant trading firm where technology is a profit center and not a cost center. It allows you to spend much more on your technology than you can with the traditional setup where technology is a tax on trading profits,” Narang added.

Can Cryptocurrencies Solve What Traditional Lenders Cannot? (TheStreet), Rated: A

Beyond general economic anxiety in a post-2008 world, numerous other factors contribute to small businesses’ difficulties securing credit. New companies don’t have track records showing years of rising revenue and profit. Some of the world’s most promising theaters for business growth, like Asia Pacific, are regions where many individuals typically don’t have access to banks. Women-owned businesses may be at a particular disadvantage, since women have been starting businesses at a high rate over the past decade, and therefore tend to constitute a higher proportion of young businesses.

Alternative Lenders

Immediately after 2008, most banks had their hands tied when it came to providing loans to small businesses-providing a window for alternative lenders, predominantly peer-to-peer lenders, to grow. P2P lending is still very much a nascent and emerging area – according to a recent Fundera survey, small businesses continue to look mainly to brick-and-mortar banks for financing, with only 11% of respondents opting to work through alternative lenders.
When a small business needs a loan, it shares its real transaction history from a POS terminal with the flip of a switch on WishFinance’s app.
The company’s cryptocurrency, WISH, offers an Ethereum-based tokens that investors need to build and manage loan portfolios on the platform. One token–at a cost of $1–manages one active loan, meaning a lender with 1,000 active loans would deposit 1,000 WISH tokens using one of the available cryptocurrency exchanges. Lenders can also “borrow” tokens from other lenders, sharing gains with the primary token owners. In theory, the platform takes a good first stab at making SME lending more profitable and less uncertain. If more lenders entertain using the blockchain to manage risk, we’ll see higher volumes of loans and, in turn, higher demand for tokens to manage them.

The financial services industry typically evolves at a glacial pace. The three trends outlined above – the rise in alternative lenders, crowdfunding and cryptocurrencies – represent evolution, not necessarily disruption.

CrowdStreet Gains Momentum as it Delivers on Vision of Expanding Access to Commercial Real Estate Investing (Marketwired), Rated: A

With its innovative integrated online investor marketplace and software as a service (SaaS)-based investment lifecycle management solution, CrowdStreet has increased investment dollars managed on its platform by 4x, reaching $4.2 billion in 2017, and doubled the number of investors year-over-year to more than 61,000. These results signify a major shift in confidence in online commercial real estate investing as this infographic illustrates.

In 2017, CrowdStreet’s technology platform has seen more than $745 million distributed back to investors, a 3x increase from $245 million last year. The marketplace investment run rate also grew by over 3x reaching $250 million of equity raised this year, compared to $76 million in 2016.

CrowdStreet Announces Leadership Team Expansion & Advisory Board Formation (Crowdfund Insider), Rated: B

The funding portal revealed Molly Moore, was appointed as its new Chief Marketing Officer while Rohit Colaco was named Vice President of Engineering. CrowdStreet appointed Thomas Byrne (CEO of Property Capsule Inc), Lewis G. Feldman ( CEO and Founder of Heritage Capital Ventures LLC), Christopher Keber (Currently Head of Investments and Strategy at McCourt Global), and John Witchel (President and COO of GitPrime) to its advisory board.

CrowdSeekr Takes Top Spot Among Real Estate Crowdfunding Resources (PR.com), Rated: A

CrowdSeekr is proud to announce that it is now the top data resource for real estate crowdfunding based on the number of investment opportunities in its database. CrowdSeekr is an aggregator and search engine for the real estate crowdfunding industry. The company was founded in 2015 and now features nearly 300 available real estate crowdfunding investments from dozens of platforms.

CrowdSeekr.com is a leading aggregator and search engine for real estate crowdfunding investment opportunities. It was founded in 2015 by e-commerce attorney Ashley Smith and commercial real estate professionals Tim Strange and Marylee Strange. CrowdSeekr currently lists offerings from over 30 real estate crowdfunding platforms. Over 7 billion dollars has been raised for real estate projects using crowdfunding since 2013.

The Next Frontier Of Real Estate Investor And Property Manager Technology (Forbes), Rated: A

Quietly working and collecting rent used to be the DIY real estate investor commonly known as the landlord. Then real estate investing boomed, and property management became a reported $77 billion business as real estate investors grew to an estimated 7 million people. Single and two- to four-unit buildings currently comprise an estimated 54% of the rental units available today — a market share that has turned the heads of software developers looking to service the independent DIY real estate investor market.

Over the last five to seven years, hoards of real estate investors embraced the efficiencies technology brought to the industry and to their bottom line. Owners accumulating between two and 500 units have started to look at technology solutions as a platform for controlling costs.

Most landlords are now set up in a software solution and can fill a calendar with the dates of the cycle specific to just the payment processing phase. We watched the benefits of the speed of the automatic payment options processed through electronic ACH banking unfold.

A New Horizon For Real Estate Tech

The next step is to use the information available from machine learning and AI to help landlords better manage the asset and identify consumer behavior while anticipating needs.

U.S. Fintech Investments Double (WealthManagement.com), Rated: A

Investments in U.S. fintech companies nearly doubled during the third quarter to $5 billion, up from $2.6 billion in the second quarter, according to KPMG’s recent Pulse of Fintech report. There were a total of 142 deals during the quarter, up from 125 deals in the prior year quarter and 147 deals last quarter. The automated advice platform technology was a big bet during the quarter, with hybrid models—those using a combination of humans and technology—gaining more traction over pure robo advisors, the report said.

One year after President Donald Trump defeated Hillary Clinton to become President of the United States, the stock market has risen 21.2 percent.

presidential stock markets
Source: WealthManagement.com

InvestCloud and Willis Towers Watson are partnering. The cloud-based financial services platform was selected to build a bespoke solution for the WTW Asset Management Exchange that will enable clients to better access and monitor roughly $2 billion, according to a statement.

Goldman Sachs Shuffles Leadership in Slumping Fixed-Income Unit (Bloomberg), Rated: A

Goldman Sachs Group Inc. has shaken up the leadership of its vaunted fixed income, currencies and commodities business after stumbles this year called its strategy into question.

The firm named Jim Esposito and Justin Gmelich, both 49, to newly created roles as co-chief operating officers of FICC, according to a memo Tuesday from securities division co-heads Isabelle Ealet, Pablo Salame and Ashok Varadhan. Gmelich gives up his title as global head of credit and mortgage trading, while Esposito relinquishes his role helping to run fixed-income sales, leaving John Willian with sole responsibility.

U.S. Consumer Financial Protection Bureau Sets Out Principles for Consumer-Authorized Data Sharing and Aggregation (Lexology), Rated: AAA

On October 18th, 2017 the U.S. Consumer Financial Protection Bureau (“CFPB”) outlined the principles to be followed (“Principles”) when consumers authorize third party companies to access their financial data to provide certain financial products and services.

The Principles line up quite closely with the ten Fair Information Principles that underlie Canadian federal privacy legislation (PIPEDA). Absent (or diluted) from the CFPB Principles are the Fair Informaiton Principles regarding “Limiting Use, Disclosure and Retention”, “Limiting Collection” and “Identifying Purpose”. The CFPB Principles also attempt to address many of the same issues that arise in the mandatory “Open Banking” regime in the EU and the UK, but in a much less fulsome manner.

The CFPB’s interest in consumer data (and specifically Open Banking) was telegraphed by the Director of the CFPB his remarks at the 2016 Money 20/20 conference when he stated that the CFPB was “gravely concerned” that financial institutions were limiting or shutting off access to financial data, rather than “exploring ways to make sure that such access…is safe and secure.”

The CFPB has now released its set of Consumer Protection Principles intended to reiterate the importance of consumer interests. They are, however, non-binding and not intended to alter, interpret, or otherwise provide guidance on existing statutes and regulations that apply.

  1. 1) Access
  2. 2) Data Scope and Usability
  3. 3) Control and Informed Consent
  4. 4) Authorizing Payments
  5. 5) Security
  6. 6) Access Transparency
  7. 7) Accuracy
  8. 8) Ability to Dispute and Resolve Unauthorized Access
  9. 9) Efficient and Effective Accountability Mechanisms

USATech buys Cantaloupe Systems for $ 85M (Philly.com), Rated: B

Shares of USA Technologies Inc., Malvern, hit a 10-year high of $6.75 in early trading Tuesday after the mobile- and cashless-payments company said it agreed to pay $85 million ($65 million cash, the rest in USAT shares) for a competitor, San Francisco-based Cantaloupe Systems Inc.

The 11 Most Valuable VC-Backed Fintech Companies In The US (Fintech News), Rated: B

VC-backed fintech firms

United Kingdom

Your November Review – Insight and Analysis (Funding Circle), Rated: AAA

Last month was a global record month here at Funding Circle. In the UK alone, over £120 million was lent to businesses thanks to your continued support.

Funding Circle
Source: Funding Circle

You’ve helped more than 8,900 small businesses access finance in the last 6 months…

Funding Circle lending volume
Source: Funding Circle

Totalling over £630 million lent.

Assetz appoints LendInvest’s Damien Druce for intermediary expansion (P2P Finance News), Rated: A

ASSETZ Capital is looking to bolster its presence in the intermediary space as part of the next stage of its expansion.

The peer-to-peer business lender has appointed Damien Druce (pictured) to lead the move as head of intermediary sales.

He joins from LendInvest where he was northern business development manager, and has previously worked for Castle Trust and Crystal Specialist Finance.

China

JD Finance Announces JD Financial Cloud“Fintech as a Service” (Business Insider), Rated: AAA

JD Finance today announced the launch of JD Financial Cloud. The new platform uniquely combines advanced technology and big data to offer “Fintech as a Service,” a new approach that will help financial institutions solve problems and reduce costs while boosting their productivity and competitiveness.

Where precision marketing is concerned, JD Finance’s “Jingdong Laike,” analyzes a massive base of user tags based on online shopping and mobile usage patterns as well as payment history and credit risk to offer insights that can boost response rates by 25 percent while reducing customer acquisition costs by 20 percent.

Furthermore, leveraging AI and big data to recognize and analyze patterns in JD Finance’s comprehensive dataset that includes 30,000+ risk control variables, 300m+ user credit evaluations, 500+ models and 5,000 risk strategies can help institutions better evaluate credit risk.

China’s Raging Fintech Boom on Verge of Minting Two Billionaires (Bloomberg), Rated: AAA

Online consumer finance platform PPDAI Group Inc. is planning an initial public offering in the U.S. this month, giving co-founder Shaofeng Gu, who owns more than 25 percent of the business, a net worth of at least $1.3 billion, according to the Bloomberg Billionaires Index. Ning Tang owns 36 percent of U.S. listed peer-to-peer lending platform Yirendai Ltd., giving the founder and chief executive officer a net worth of about $930 million.

“In China, one billionaire is created every three weeks,” Qiong Zhang, head of wealth management for UBS Securities in China, said in an interview.

china wealth creation
Source: Bloomberg

P2P platforms turn to US markets for funds (China.org.cn), Rated: A

Hexindai Inc became the first Chinese financial technology (fintech) company to list on the Nasdaq stock market last Friday. Priced at $10 per share, the IPO aims to raise $50 million. It was also the third Chinese fintech company that went public in the US this year.

According to the global consulting firm Oliver Wyman, the market size for consumer lending will expand to $620 billion by 2020 with a compound annual growth rate of 49 percent.

With such a rapid growth in demand, P2P lending platforms such as Hexindai have seized the growth opportunities. Credit loans accounted for 99 percent of its total loans in the second quarter of 2017, with Q2 profit soaring to 60 million yuan, far ahead of its annual profit in 2016.

According to the US Securities and Exchange Commission, Rong360 Inc, another online financial service provider, plans to raise $270 million through an initial public offering in New York.

Auto Financier Yixin Launches $ 900 Million IPO (Caixin), Rated: A

Yixin Group Ltd., an online car financing company backed by three of China’s top internet companies, is hurtling ahead with a Hong Kong IPO to raise up to nearly $900 million, as enthusiasm on a new generation of financial technology (fintech) companies starts to stall.

The company has set a price range of HK$6.60 ($0.85) to HK$7.60, with plans to issue nearly 880 million shares in Hong Kong, according to a source with direct knowledge of the deal, speaking on condition of anonymity because the matter is private. At that price range, the company would generate between $740 million and $870 million in proceeds.

Marketplace lending: where everybody wins (Enterprise Innovation), Rated: A

European Union

Revolut becomes latest UK fintech firm to seek banking license (Reuters), Rated: AAA

British financial technology firm Revolut said on Wednesday it has applied for a European banking license, as it bids to join a growing number of digital-only banks looking to win away customers from larger, traditional lenders.

Current accounts and credit will initially be available to users in Lithuania, before being rolled out to Estonia and Latvia and, as soon as possible, Britain. Next in line are France, Germany and Italy and eventually the rest of the European Union, the firm said.

Revolut to bring processing in-house (Banking Technology), Rated: A

Revolut is building its own in-house processor, following a string of outages caused by its current third party provider.

The latest issues were flagged on social media by Revolut’s users from around the world on 3 November, with their cards being declined and payments rejected.

International

AI-based fraud scoring boosts loan approval rate by 50 per cent for ID Finance (ID Finance Email), Rated: AAA

ID Finance, the emerging markets fintech company, has enhanced its credit scoring capabilities with the integration of its newly developed AI-based fraud-scoring engine. By eliminating fraudulent loan applicants, ID Finance has been able to improve the quality, precision and speed of its credit scoring technology, boosting its loan approval rate by 50 per cent.

The fraud-scoring engine works by analysing information relating to the applicant’s authenticity and detecting atypical behaviour or anomalies in the data provided. The engine takes into account a wide range of factors including the time spent filling in the form as well as the applicant’s web browser history. The quality of supporting documentation uploaded is also assessed for authenticity.

The fraud scoring system was developed in-house by ID Finance’s team of data scientists and risk analysts and based on meticulous analysis of previous fraudulent applications. The engine uses machine learning to examine over 15 external data sources and several hundred data points to identify patterns that would otherwise go undetected.

Reshaping Peer-to-peer Lending with Crypto Assets (Coinidol), Rated: A

The Bitbond, BTC Jam, and BTC POP platforms were pioneers in the market of crypto lending. From that time forward, it can be clearly seen that blockchain and crypto assets usage in p2p lending is stepping up. The congruence of the proven peer-to-peer lending business model and possibilities of blockchain seems to be a solid base for advanced financial services. What does it mean for investors and borrowers, how does it affect global economy, and how can crypto assets possibly reshape the existing peer-to-peer lending market?

Financial Inclusion

According to McKinsey research, there are still about 2 billion unbanked and underbanked people in the worldwide adult population. Blockchain-based lending services can offer microloans to a customer who has no previous credit history. While some banks in Asian countries require enormous amounts of paperwork to be done before approving a loan, cross-border lending platforms have unified rules for everyone. Not mentioning the fact that bank account penetration in developing countries hardly reaches 30%.

Globalization means equality 

It’s no secret that interest rates set by traditional banks may significantly vary by country. While the difference can be about 0.1% between loan interests in Germany and UK, interest rates in Thailand, Turkey or Latviamay be 10 times higher. Global platforms offer the same terms regardless of citizenship.

  • Lendoit is a decentralized P2P lending platform.
  • CoinLoan is a platform for lending secured with crypto-assets (cryptocurrency, tokens).
  • ETHLend offers fully decentralized P2P lending.
  • Inspeer is a P2P lending service that works with cryptocurrency and fiat.

Fintech funding round-up: 7 November 2017 (Banking Tech), Rated: A

Banking (not baking) challenger Douugh has partnered with community bank Choice Financial to launch an integrated checking account and debit card. Choice has also made an investment to “support Douugh’s roadmap”, bringing the company’s total seed funding to $2.5 million.

Mobile-only challenger bank Monzo has closed its latest fundraising round, raising £71 million from Goodwater Capital, Stripe and Michael Moritz.

Smartkarma, a provider of investment research, has closed a Series B round of financing led by Sequoia India, which brings the company’s total funding to $21 million.

9 Firms To IPO This Week (Benzinga), Rated: B

CBTX, Inc. (CBTX) will issue 2.4 million shares between $24 and $26 Wednesday on the Nasdaq. The Community Bank of Texas maintains nearly $2.94 billion in assets in 34 state branches, according to the Federal Deposit Insurance Corporation.

PPDAI Group Inc. (PPDF) will issue 17 million shares between $16 and $19 Friday on the New York Stock Exchange. The 10-year-old Shanghai company facilitates online peer-to-peer lending and reported $381 million in sales in the 12 months ending June 30.

India

The digital register is ringing loud and clear (The Hindu Business Line), Rated: AAA

According to government sources, digital transactions since demonetisation have grown manifold on a month-on-month basis. For instance, volume wise, transactions via NACH, IMPS, UPI+BHIM and Rupay have grown to ₹1,47,624 crore in September 2017, against ₹1,07,987 crore in October 2016. Similarly, transactions through debit cards, credit cards, NEFT, RTGS and mobile wallets have grown from ₹1,07,59,649 crore in October 2016 to ₹1,23,28,369 crore as of July this year.

Prime Minister Narendra Modi’s actions to digitise India has brought a momentum to the entire payment ecosystem and helped build a new framework for the digital economy.

As per reports, deposits up to ₹80 lakh were made in 10.9 million accounts in November-December last year, and over 1.48 lakh account holders deposited an average ₹3.3 lakh in their banks. The impact is seen in the number of tax filings for the period April-May 2017, which went up by 17 per cent to 27.5 lakh returns from a level of 23.5 lakh in the same period last year.

Asia

Kosdaq-listed SFC buys full stake in Korean P2P lending startup Villy (Pulse News), Rated: A

South Korea’s peer-to-peer (P2P) lending service startup Villy was acquired by Kosdaq-listed solar backsheet manufacturer SFC Co. for 11 billion won ($9.8 million), the company said Monday. It is the country’s first merger and acquisition (M&A) case for a P2P lending startup.

Founded in April 2015, Villy boasts 80.5 billion won worth cumulative loan, 36,000 cases of investment and 5,460 investors, 55.4 percent of whom are people in their 20s to 30s. Its reinvestment rate reaches 74.7 percent. Following the acquisition, Villy will be a subsidiary of SFC with its 100 percent stake owned by the latter.

Authors:

George Popescu
George Popescu
Allen Taylor
Allen Taylor

About the author

Allen Taylor

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