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Feb 29th 2016 Daily News Digest Lending Times

Data shows defaults deteriorating in US unsecured personal loans in 2015 vs 2014.
Social Media underwriting becoming harder.
Macquarie bank looking for p2p lenders for equity or other investments.
Lending Club changed note legal structure and ownership structure due to Madden vs Midland.
Victory Park Capital continue to see strong pipeline of investments.

 

Feb 29th 2016
Title Description Interest level Publication
US online lending credit is deteriorating, here’s the data Vintage,Delinquencies after 5 months (2015 loans),Delinquencies after 5 months (2014 loans) September, 2.19,1.77 August,2.15,1.69 July,1.79,1.43 June ,1.69,1.46 May ,2.09,1.53 April,1.59,1.4

According to PeerIQ, FICO scores at origination have remained consistently around the 700 mark across the portfolio.

AAA FT Alphaville
Lenders Are Dropping Plans to Judge You by Your Facebook Friends Lenders are no longer looking to your Facebook profile as a metric for creditworthiness, thanks in part to the social media giant’s decision to revamp its data access policies for third parties. The Federal Trade Commission has also made hints that if social media platforms were to use their data for loan criteria purposes, it could then regulate the companies as a consumer-reporting agency. AAA Fortune
UK online alternative finance market grows to £3.2bn The UK online alternative finance sector grew 84 per cent in 2015, facilitating £3.2 billion in investments, loans and donations, according to a new Cambridge report. - A Business Weekly
LendingClub shifts risk ahead of court ruling, others in crowded field may follow LendingClub Corp.’s recent restructuring may save the company the headache of playing catch up on coming legal changes. And it may inspire other online lenders to strike preemptively. AAA Market Watch
Macquarie considers fintech deal, but 'risk retention' a worry Macquarie Bank is looking at a host of possible new online lending partners globally, but is worried regulators are closing in on the new players. Ben Perham, head of strategy and corporate development at Macquarie, said like most banks, it is exploring deals with the various new lenders, including the many small business lenders and P2P lenders. "We are [looking at] collaborating with US lenders and on the equity side as well," he said. "We are hoping to partner with them and get some of their activities into Australia." AAA The Sydney Morning Herald
IFISA to allow pre-existing ISA transfers across platforms Investors may be able to transfer unlimited funds from pre-existing ISAs into IFISAs, and hold multiple IFISAs with different peer-to-peer platforms to accommodate these 'old' ISA monies, according to Lending Works AAA Financial Reporter
LendingClub and the Limits of FinTech Disruption LendingClub showed Friday that it can respond nimbly to regulatory challenges. But in tweaking its business model, the online lender also reminded investors that there are limits to how much newcomers can disrupt the old rules of finance. AAA The Wall Street Journal
OnDeck's Noah Breslow tips online lenders to double, consolidate The number of online business lenders in Australia could double in the coming years to meet growing demand from small business borrowers but will ultimately consolidate to a handful of dominant players, says Noah Breslow, the chief executive of New York Stock Exchange-listed alternative lender OnDeck. A The Sydney Morning Herald
US Bank Completes Fifth Securitization of Refinanced Student Loans Connecticut-based Darien Rowayton Bank (DRB) - a national US bank and marketplace lender – has announced the closure of a $188 million securitization of refinanced student loans. This fifth securitization round brings its total issuance to in excess of $1.1bn. A Alt Fi News
The regulator and marketplace lending A speech by John Price, Commissioner, Australian Securities and Investments Commission, Alternative Finance Australasia Summit (Sydney, Australia). Observations on the regulation of marketplace lending and what they are doing in respect of marketplace lending. A Australia Securities and Investments Commission
P2P pioneers banking on bigger piece of market pie As lending records are beaten on a daily basis, the nation’s biggest peer to peer (P2P) lenders are hopeful the relatively new industry will this year hit that much heralded mark: profitability. A The Australian
An Inside Look At Fintech Marketplace Lenders “Marketplace platforms are already complying with all the consumer lending rules and regulations in order to market, underwrite, and service the loans. These rules include the Truth in Lending Act, the Fair Credit Reporting Act, the Equal Credit Opportunity Act, and the Fair Debt Collection Practices Act, to name just a few. In addition to regulations on the borrower side, there are regulations for the investors who act as the lenders. Platforms accepting Accredited Investors must adhere to proper due diligence through KYC, OFAC rules and AML compliance.” B Forbes / Asia
Lending Works Prepares for April 6th Innovative Finance ISA. Sees Crucial Investment Opportunity for Savers Lending Works is hoping to launch their IFISA product on April 6th, just like most other peer to peer lending platforms. They too, like many others, are awaiting final approval by the FCA to offer the new saving vehicle. C Crowdfund Insider
Auxmoney Raises Series D from Seven Ventures Auxmoney, one of the oldest German p2p lending marketplaces, has completed a Series D round with Seven Ventures as lead investor. Auxmoney trippled loan volume in 2015 compared to 2014. As of January 31st, 2016, according to numbers on file with P2P-Banking.com, the company had originated 441 million EUR in loans since launch, with a monthly loan origination volume of 10.6M for the last month on file (January 2016). B P2P Banking
Tech startup investor David Jackson launches P2P fintech platform FundX Prominent Sydney-based venture capital investor David Jackson has branched out from advisory positions and founded FundX to help small and medium-sized businesses get funding. Despite only being in beta testing since October, his peer-to-peer lending site has processed $1 million in loans and rejected another $5 million. FundX uses big data, machine learning and predictive algorithms to assess the risk of funding SMEs, which may have failed to secure financing from banks. B Financial Review
A third of China’s P2P lending platforms flawed Cumulatively, at least 1,351 P2P lending firms, or one third of the total, were found to have problems of one sort or another, according to China Securities Journal. A EJ Insight
VPC Specialty Lending Continues to See Opportunity in Online Lending VPC Specialty Lending Investments PLC (LSE:VSL), a publicly traded fund that invests in online lending platforms and assets, continues to see a strong pipeline of investment opportunities within the online lending sector. The company’s five largest exposures are to the following platforms: Avant, Funding Circle, Prosper Marketplace, Upstart Holdings and Borro Group Holdings Limited. VPC has exposure to 22 different platforms originating consumer and small business loans, in addition to companies supporting the specialty lending market, across the U.S., U.K., Europe and Australia. AAA Crowdfund Insider
Mike Testa Named President of LendingUSA Mike Testa, former President of CareCredit, is now President of LendingUSA B Benzinga

 

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 ( www.currencymountain.com ), 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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