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March 4th 2016 Daily News Digest Lending Times

FCA delaying the Innovative Finance ISA rules.
Wedding financing Promise Financial lending $1m per month.
80% of SME that sought financing in 2015 in the US got it vs 65% previous year.
Goldman Sachs laying off 5% of sales and traders in fixed income.
There are 1,300 online lending companies servicing about 1% of the overall market.
In the UK Banks borrowed 3 times more and lent 20% less in 2015.
Deloitte forecasts that reliance on third parties for noncore infrastructure and talent will be a common phenomenon.

March 4th 2016
Title Description Interest level Publication
Wait a little longer, regulator tells P2P lenders Today, the FCA sent out a letter to 31 lenders telling them they may have to wait a little longer for the Innovative Finance ISA rules due to regulatory tweaks that have made them “unable to make authorisation decisions,” according to a copy seen by FT Alphaville. AAA FT Alphaville
Wedding Financing Platform Promise Financial Surpasses $5 Million In Loan Originations Specialty niche lender is getting traction. A great example that there is still plenty of space to enter the online lending space. Promise Financial surpassed $5 million in loan originations and now arranges more than $1 million of financing each month. The company is experiencing rapid growth by addressing a growing need in the U.S. where there are 2,000,000 weddings annually with an average cost of $30,000. Promise Financial's online platform provides access to financing that allows people to pay for weddings over time, with low rates and transparent pricing. AAA PR Newswire
Federal Reserve Survey Of Small Business Credit: Higher Approval Rates, But Many Still See Shortfall Approval rates substantially better in 2015 versus 2014: 80% of small businesses that sought financing got it, compared with 65% the previous year. And 45% of those that asked for funds received all the financing they requested, versus 38% the previous year. Microbusinesses (with revenues less than $100,000) had the greatest unmet financing needs, with 63% reporting shortfalls, followed by startups (in business two years or less) with 58% reporting shortfalls. More than 90% of loan applicants went to banks, compared with 20% that applied to online lenders. In Florida, for example, which reported much lower approval rates, below 50% at both small and large banks, 35% turned to online lenders versus 20% for the survey as a whole, Wiersch says. AAA Forbes
Goldman, BofA Dismiss Traders After Getting Taste of 2016 Markets Goldman Sachs plans to lay off more than 5% of the traders and salespeople in its fixed income unit, according to Bloomberg. Meanwhile, the same story reports that BofA Merrill Lynch next week plans to lay off around 150 traders and investment bankers. AAA Bloomberg
Dynamic Pricing in Alternative and P2P Lending Online Lending : "there are still approximately 1,300 companies in the US offering services to about 1% of the overall market" . Dynamic pricing analysis : "Abandoning Strict Cohort Analysis Pricing" . Relationship pricing is difficult in singularity, but a competitive differentiator and a smart strategy when offerings are bundled. AAA The Financial Brand
Lending to small businesses drops as banks increase borrowing under funding for lending scheme Bank lending to smaller businesses fell at the end of last year. Only £599bn was lent to smaller businesses in the final three months of 2015 from £755bn in the three months to September, according to data released by the Bank of England this morning. However, banks borrowed £6.3bn from the Bank of England of cheap loans over the period, up from £2.4bn in the three months to September. AAA City A.M.
Bondora Celebrates 7 Years of Marketplace Lending (Infographic) Estonia-based marketplace lending platform Bondora is now 7 years old. A few interesting data points for Bondora (né isePankur): €10 million in total interest paid Over 13,000 investors Average loan size is €2363 Average interest rate is 28.97% A Crowfund Insider
First Associates Loan Servicing, LLC Hosted a Ribbon Cutting Ceremony Symbolizing Continued Growth and Leadership in the Financial Services Industry 1st Associates , a servicing company, celebrates 30 years in business. B Nasdaq Globe Newswire
Financial services set for a fundamental shake-up - Deloitte Deloitte forecasts that reliance on third parties for noncore infrastructure and talent will be a common phenomenon as banks become increasingly connected via a complex network or web of vendors and third parties. Brand equity in the industry will also likely flow from partnerships with others in the ecosystem as banks play catch up with super-consumer brands such as Google and Apple. AAA Finextra
Exchanging Liquidity for Returns NSR Invest's monthly newsletter. In general, illiquid asset investors are spared from unnecessary losses resulting from irrational market pricing and trading effects. Illiquid asset investors may expect to receive a premium return from their investment as a reward for the ability to stay invested throughout an asset's duration. Peer-to-peer loans are one of the market’s most readily investable illiquid assets, providing an ideal example of the liquidity premium opportunity available for retail, accredited, family office, and institutional investors. . A Email campaign
Cloud Lending Solutions Introduces CL Lease to Power Equipment and Vehicle Lease Markets CL Lease™, a proven end-to-end, cloud-based asset leasing solution that enables efficient servicing and asset management for institutional, independent and captive lessors. B Cloud Lending Marketing

 

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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