Feb 26th 2016 Daily New Digest

Lending Club, the world?s largest online marketplace connecting borrowers and investors. (PRNewsFoto/Lending Club)

Lending Club answer Madden VS Midland with banks keeping economic interest in loans at all times.
European FinTech general updates.
P2P returns review.
CFPB pushing banks to compete with pay-day-loans companies.
After RateSetter FCA may make changes.

Feb 26th 2016
Title Description Interest level Publication
LendingClub to change its fee model LendingClub Corp., which operates one of the biggest U.S. online lending platforms, plans to announce that it will change the way it makes new loans, paying a larger piece of its fees to a banking partner in return for the bank taking more risk on the loans. The shift is a result of Madden vs Midland probably. AAA Market Watch
Lending Club Enhances Relationship with Issuing Bank The issuing bank ( Web Bank) maintains an on-going economic interest in all loans made after they are sold, which is paid only when borrowers make payments on their loans. The majority of the bank's revenue is tied to the terms and performance of the loans. The bank also maintains an ongoing contractual relationship with borrowers, who may seek additional credit through the Lending Club program in the future. AAA Virtual Strategy
FINTECH BRIEFING: Europe's fintech funding boom — BBVA ramps up open API platform — UK regulatory bodies push competition Two of the top 20 global fintech deals were from the UK. Germany is becoming a major player. Fintech funding by financial institutions is growing. BBVA RAMPS UP OPEN API PLATFORM. The Spanish bank has created the position Head of Open APIs and rehired a Simple executive to fill it. Bank/startup collaboration is the key message. The benefits of APIs are yet to be confirmed. AAA Business Insider
Peer-to-peer lending: what returns can you actually get? Lending your money out to other people and small businesses has become increasingly popular. Here are some of the main companies and what they offer AAA BT
Klarna Sets Its Sights On Ramping Up US Growth Sebastian Siemiatkowski, CEO and cofounder of Swedish payments company Klarna, told Reuters that the company expects to to see its revenues increase by nearly 40 percent this year as it continues growing its business in the U.S. A PYMNTS
In the Spotlight with Matt Tooth, LendInvest Matt Tooth, Head of Distribution at LendInvest, speaks about overcoming prejudices around peer-to-peer lending and why the industry is growing so rapidly. B Financial Reporter
86% of P2P firms still not authorised Only six peer-to-peer (P2P) firms have received full Financial Conduct Authority (FCA) authorisation. According to FCA data, 185 firms registered with the FCA for interim permissions for P2P activities as of 1st April 2014. A Bridging and Commercial
Lending Club hikes rates for riskiest borrowers A summary of when LC and Prosper raised rates recently. B FT Alphaville
Goldman Sachs Trims Lending Club (LC) Target Price to $10.00 Goldman Sachs (GS) and Lending Club (LC) are competitors or will be soon. Lending Club (NYSE:LC) had its target price cut by Goldman Sachs from $12.00 to $10.00 in a research report sent to investors on Monday, reports. B The Hilltop News
Tech-fueled online loans face stiff test in 2016 Competition is driving up marketing costs. In addition to industry leaders LendingClub and Prosper, there's SoFi (which bought a Super Bowl ad), Earnest, Avant, Best Egg, Upstart and Payoff Loan, whose board includes Arianna Huffington and ex-Pimco CEO Mohamed El-Erian. On top of the heightened competitive pressure, venture investors are now pulling back from dealmaking, capping future expansion opportunities. The credit market is simultaneously tightening, raising concern that defaults are just around the corner. A CNBC
Marketplace Lending's Big Investors Grow Anxious Delinquencies are rising among the sector's less creditworthy borrowers, which is contributing to smaller returns for investors. This sets up the first major test for an industry that blossomed during a period of unusually low defaults. B American Banker
Online Lenders Are Answer to Unbanked Problem The federal financial regulators have been urging depository institutions to offer payday loan alternatives since at least before the crisis. More recently, Consumer Financial Protection Bureau Director Richard Cordray urged banks and credit unions to implement policies to make it easier for consumers to obtain small-dollar loans. AAA American Banker
Lending Club Reacts to Concerns Over Madden vs. Midland Decision Renaud Laplanche “While the facts of the Madden case were very different from the way we operate and that case did not pose an immediate threat to our business, we believe this new structure will strengthen the foundation of our program to provide borrowers the ability to access affordable credit on a nationwide basis and to provide investors with greater certainty.” A Crowdfund Insider
FCA will consider P2P changes 'if necessary' The FCA it will consider making changes if necessary following last week's P2P provision fund controversy. Last week, RateSetter set out its provision fund’s investment policy, which revealed it was using less than 10% of the money on a temporary basis to facilitate the delivery of larger loans. AAA Bridging and Commercial
Realty Shares closed Series B Funding Round $20 million Series B financing round. Union Square Ventures, a leading venture capital firm in the fintech space, is spearheading the funding. The New York-based firm has previously taken part in financing rounds for other well-known crowdfunding platforms such as LendingClub, Kickstarter and Funding Circle. USV partner John Buttrick will join our board of directors as part of the deal. A Realt Shares


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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"Your daily letter is great!" , Ram , Founder and CEO, PeerIQ

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"Hey George, I must say I really enjoy your site. It has inspired me to do some changes at our platform and we are the biggest consumer lender in Sweden." , Ludwig, CEO @ Savelend Sweden AB

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