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|
|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, StockTargetPrices.com 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