Feb 24th 2016 News Digest Lending Times

Prosper originated $3.7 bil in 2015, 131% growth vs LC’s 109%
Chinese online payments, p2p lending and online wealth management growing 30% to 60% for next 3 years.
500 Startups launches $25m fintech fund and share data.
Lendio origination grew 1,175% year-over-year.


Feb 24th 2016
Title Description Interest level Publication
Alternative lenders and banks can work together to help consumers: An interview with Prosper Prosper now has 650 employees and originated $3.7bil in 2015 ( from $1.6bil in 2014). Banks are amazed at how Prosper can validate and verify identity, income, and employment — as well as servicing and collections in an automated, professional fashion. In short, banks need to expand their education, awareness, and understanding of what is possible by partnering with fintech companies. AAA Money Summit Mexico
Large Inflow of Money Witnessed in LendingClub Corporation The net money flow was $12.94 million and the up/down ratio was 2.18. Approximately $23.93 million was the inflow in upticks and $10.99 million was the outflow in downticks. B Los Angeles Mirror
Online P2P lending marketplace LoanZen raises seed funding LoanZen p2p lender in Bangalore used Tracxn Syndicate to raise an undisclosed seed round. A VC Circle
Chinese Stocks Cashing in on Internet Finance Boom China :Analysts expect the three key segments of online payments, peer-to-peer lending and online wealth management, to grow between 30% and 60% annually over the next three years. AAA Barron's
Peer-to-peer CEO talks risk, returns and the new Isa CEO of Wellesley &CO , Graham Wellesley , presents his take to p2p and investment. A BT
Platform Alternative Finance Leaps 84% To £3.2Bn “This year could be a make or break year for crowdfunding and peer to peer investors,” said a NESTA spokesman. A i Expats
OnDeck Share Price Plunges With Slowing Growth “Maybe the IPO route isn’t the best option for online lenders,” said Brendan Ross, president of Los Angeles-based Direct Lending Investments LLC, which buys small-business loans. A
On Deck Capital Inc (ONDK) Downgraded by Zacks Investment Research On Deck Capital Inc (NASDAQ:ONDK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday, reports. A Financial Market News
Ablrate Closes World's Largest Aircraft Backed Marketplace Lending Loan in 13 Days Niche platform raises GBP1.8 million aircraft loan within 13 days. Ablrate is a pioneer in asset backed lending against high-quality assets and the first peer lending platform in the world to give investors access to aircraft transactions. A Market Watch
500 Startups Announces $25M FinTech Fund Over the last 6 years, 500 Startups has made some great investments in the FinTech space. With nearly 80 investments in 10 countries, including CreditKarma, Flywire, FeeFighters (acquired by Groupon), Simple (acquired by BBVA), iMoney, and RealtyShares, CB Insights has tapped 500 as the most active early-stage FinTech investor in the world. Financial Institutions are still not serving millennials, minorities, women, and emerging markets effectively Technology (especially smartphones) will slash the cost of delivering financial services to billions of underserved consumers and businesses Traditional financial institutions are not innovating fast enough to meet changing customer demands All of this means we are still in the early days of the financial services revolution, and it’s a great time to be an early stage FinTech investor. As FinTech entrepreneurs ourselves, we’ve also learned that we know there’s no such thing as a lean startup in financial services because: Navigating regulation requires deep industry expertise Building trust with customers and establishing relationships has long lead cycles Building a great financial services company takes more than building a breakthrough product, it takes breakthrough marketing and distribution too AAA
Online Lender On Deck’s Stock Sinks as Growth Ebbs Shares in On Deck Capital Inc. plunged 20%, after the online lender said it would grow more slowly this year than expected. The comments highlighted how a new wave of financial-technology companies are hitting some of the same doldrums plaguing the industry’s giant incumbents. In addition, concerns about the economy are making it harder to sell the loans, and a growing number of competitors are squeezing margins. Canaccord Genuity analyst Michael Graham called OnDeck’s fourth-quarter results strong, but said that the sell off in the stock “despite this operating momentum implies to us that investors fear a cliff is coming either in borrower or lender adoption of the platform.” Mr. Graham says he’s more optimistic than investors about OnDeck’s prospects A Wall Street Journal
Latvia’s Mintos Scores €2M Investment For P2P Loans Marketplace Same news as yesterday. But an interesting diagram showing how Mintos works. B Tech Crunch
Latvia’s Mintos FinTech Startup Grows P2P Loans Marketplace Another article about Minto's raise. B
Ning Tang, CEO Of CreditEase, Discusses Chinese P2P Regulations & Future of Online Lending CreditEase is the largest peer-to-peer company in the world, and provides products and services to farmers and agricultural borrowers, microfinance clients, consumers, micro-businesses and wealth management clients covering 232 cities and 96 rural areas across China, according to the company’s website. CreditEase is also the parent company of online platform Yirendai, which held one of the first major IPOs of a Chinese P2P company last December. AAA Crowdfund Insider
Former CFPB Lawyer Joins Goldman Sachs Online Lending Unit Mitch Hochberg, a former financial regulator will lead compliance efforts at Goldman’s digital lending upstart. Hochberg is one of many new hires made in the past few months as Goldman Sachs builds up its online lending program. In May, the bank hired Harit Talwar from Discover to run the new business. It has since hired employees from companies like Lending Club, the publicly traded online lender, American Express, and Citi. A source familiar with the matter told BuzzFeed News that Goldman has hired dozens of people to work on the lending business. AAA Buzz Feed
Lendio’s Marketplace Posts 1,175 Percent Growth Online platform Lendio, which helps smaller companies find access to capital, reported heady growth for 2015. Its revenues were up more than 100 percent year over year. Its origination is up 1,175% as the company facilitated more than $128 million in funding last year. Why this difference ? Did they change business model ? AAA


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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