Feb 23rd 2016 News Digest Lending Times

OnDeck shares fell 20% on expenses soaring at $47.4m/quarter .
Google closing Google Compare, it’s financial servicing comparison platform.
Composite business model marries balance sheet and marketplace.
P2P Financial Association Q&A session. UK P2P industry is organized.
New $100mil fund to invest in European balance sheet lenders.


Feb 23rd 2016
Title Description Interest level Publication
On Deck Reports Growing Revenue, But Losses Mount On Deck Capital Inc. reported record revenue and loan volume in the fourth quarter, but it wasn’t enough to drive the online small business lender into profitability. OnDeck’s shares fell 20% to $7.02 in aftermarket trading, though volume after the close was only around 1% of the daily average over the past 65 trading sessions. AAA Wall Street Journal
Google Is Closing Google Compare, Its Financial Services Comparison Service In its note, Google said that the product has received a good level of traffic from users but, when it came to revenue and activity, it “hasn’t driven the success we hoped for”. The search giant said it will be “focusing more intently” on its AdWords advertising platform and future opportunities in the ad space, particularly around financial services. AAA Tech Crunch
Get to Know Your Marketplace Lenders Aside from lacking storefronts, the many firms in p2p and marketplace lending have little in common with one another. Here's a guide to help tell them apart. AAA American Banker
Best of Both Worlds: The Composite Lending Business Model Two major lending business models in this industry are marketplace and balance sheet lending, which differ mainly in the distribution of risk and the amount of return. Composite lending bridges those models and brings the benefits of marketplace lending to balance sheet loan originators. AAA Alt Fi News
Investments Continue To Accelerate Canadian Fintech Growth Borrowell receives $6.4 million investment from Equitable Bank, Hedgewood, Power Financial Corporation and others A Business Wire
Latvia’s Mintos Scores €2M Investment For P2P Loans Marketplace Latvia’s Mintos, a fintech startup that operates a p2p loans marketplace to let investors invest in various loans from a growing number of loan originators, has raised €2 million in seed funding. Backing comes from Riga-based VC Skillion Ventures. A Tech Crunch
Regulators should leave China P2P sector alone Unique view on p2p regulation in China : " When an industry is new and fast-changing, no one knows how it will shape up. It is therefore advisable to let it grow unfettered. Once regulation is imposed, vested interests will quickly form to frustrate innovation. Even when it becomes clear that certain rules are harmful, it will be hard to revise them, or do away with them for the larger good of the industry." A Nikkei Asian Review
FCA denies their Isa rules contradict HMRC rules The Financial Conduct Authority has denied it produced draft rules for the Innovative Finance Isa that contradict those produced by HM Revenue & Customs. A FT Adviser
ThinCats Announces £150 Million in Loans on 5th Anniversary Peer to peer lender ThinCats has topped £150 million in loans since its founding in 2010. ThinCats is an online lender that provides access to capital for British SMEs. The P2P lender shared the top four sector loan beneficiaries over past five years include financial & insurance (14%), construction (12.9%), real estate (12.4%) and manufacturing businesses (11.7%). A Crowdfund Insider
Frontline Buzz From P2PFA Breakfast – IFISAs, Provision Funds and Lord Turner The bosses of the P2PFA’s eight member platforms converged today over breakfast to answer questions from the media. Mr. Faes described the idea of having too much money to lend as a bit of a “utopian” problem – one that he’s not especially concerned by. Giles Andrews speculated that we’ll see the first P2P securitisations in the UK this year. Although no plans are in place at present, the idea that Funding Circle might one day license its software to a bank on a white label basis was not dismissed outright by Co-Founder James Meekings. Finally, Madiston LendLoanInvest appears to have exited the P2PFA. AAA Alt Fi News
LendInvest Expands into Scotland LendInvest is broadening the reach of its mortgage-based lending platform. The P2P lender has traditionally focused on London and the Southeast but now it is moving into Scotland. This expansion marks LendInvest’s first official presence outside London B Crowdfund Insider
Target Asset Management together with Blackmoon Financial Group, announce the launch of a Fund to invest in loans originated by European balance sheet lenders Target Asset Management and Blackmoon Financial Group announced the launch of a $100 million Fund investing in loans originated by European balance sheet lenders. The fund will be open to international investors with minimum commitment size of 125,000 EUR and will be targeting annual returns of 12-13% net of fees. AAA Business @ It Business Net
Leading Fintech Companies Overview Cash Crisis Same article as yesterday : A cash crisis is impeding the online lending industry’s growth since the cost of borrowing grows, funds become increasingly limited and ratings agencies maintain a cautious outlook toward the space. B Coin Speaker
Arnold helps woman get loan back after dentist doesn’t provide correct dentures Story of an unhappy LC customer who got taken advantage of by a dentist. The dangers of loan channels and brokers. A PIX 11 news
OnDeck Reports 4Q Loss as Expenses Soar The online small-business lender recorded operating expenses of $47.4 million, up 73% from the same period a year earlier. AAA American Banker
Is The Tide Going Out On Marketplace Lending? Over the last seven or so years, marketplace lending is to VC money what high-end retail is to some people – simply irresistible. Hundreds of millions of dollars have been poured into a variety of these tech-enabled, data-driven lending platforms. But it’s just the next 10 years that they — and marketplace lenders — need to worry about. AAA Seeking Alpha


Author : George Popescu

About the author

George Popescu

Serial entrepreneur.

George sold and exited his most successful company, Boston Technologies (BT) group, in 2014. BT was a technology, market maker, high-frequency trading and inter-broker broker-dealer in the FX Spot, precious metals and CFDs space company. George was the Founder and CEO and he boot-strapped from $0 to a $20+ million in revenue without any equity investment. BT has been #1 fastest growing company in Boston in 2011 according to the Boston Business Journal and the only company being in top 10 fastest in 2012-13 as it was #5 in 2012. BT has been on the Inc. 500/5000 list of fastest growing companies in the US for 4 years in a row ( #143, #373, #897 and #1270). After the company sale in July 2014 until February 2015 George was Head-of-Strategy for Currency Mountain ( ), a USD 100 million+ holding company focused on retail and medium institutional currencies, precious metals, stocks, fixed income and commodities businesses.

• Over the last 10 years, George founded 10 companies in online lending, craft beer brewery, exotic sports car rental space, hedge funds, peer-reviewed scientific journal ( Journal of Cellular and Molecular medicine…) and more. George advised 30+ early stage start-ups in different fields. George was also a mentor at MIT’s Venture Mentoring Services and Techstar Fintech in NY.

• Previously George obtained 3 Master's Degrees: a Master's of Science from MIT working on 3D printing, a Master’s in Electrical Engineering and Computer Science from Supelec, France and a Master's in Nanosciences from Paris XI University. Previously he worked as a visiting scientist at MIT in Bio-engineering for 2 years. George had 3 undergrad majors: Maths, Physics and Chemistry. His scientific career led to about 10 publications and patents.

• On the business side, Boston Business Journal has named me in the top 40 under 40 in 2012 in recognition of his business achievements.

• George is originally from Romania and grew up in Paris, France.

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