March 9th 2016, Daily News Digest, Lending Times

Renaud Laplanche “No sign US economy slowdown”.
In exponential growth risk management standards slip.
SoFi setting up a fund to serve investors who don’t want to buy whole loans or asset-backed securities directly.
Frankfurt pushing to catch up with entrepreneurial London.
Typical problems in building fintech companies.
Just 12.5% of advisors would invest their own money in IFISAs.

March 9th 2016
Title Description Interest level Publication
LendingClub CEO: Not Seeing Broad Credit Deterioration VIDEO : Turn in credit cycle ? Same as during earnings call " No sign in US economy slowing down, no increase in defaults. But turbulence in capital markets. LC increasing loss coverage, that was the rational behind increase in interest rates. 55% of funding comes from retail investors with no exposure to capital markets. 20-25% comes from small community banks. Remainder is institutional investors with direct exposure. Diversification is a main asset of marketplace lending , ability to use different funding in different market conditions. ". AAA MSN Money
Something Big Is Happening In Fintech When a line of business in the financial industry grows very quickly, what sometimes happens is that risk management standards slip. The business sometimes prioritises growth over safety. The sort of thing we famously saw in the mortgage back security business in the US in the mid 2000s. AAA Daily Reckoning UK
Volume of keyword fintech search on is growing exponentially AAA Google
SoFi launches hedge fund to nurture growth "Closely held SoFi is setting up the new fund to tap investors that don’t want to buy the firm’s whole loans or asset-backed securities directly," "This includes some wealthy individuals, funds of hedge funds and even some institutional investors. A fund would allow SoFi to support the market for its loans without needing to raise cash by selling shares." AAA Tech Flash
At Execfintech: Frankfurt Vies to Become the New FinTech Capital Execfintech in Frankfurt- 600 participants from 30 nationalities including 53% startups, 23% corporate and 20% investors .The German FinTech community is now buoyant, as can be seen from the yearly doubling in the number of attendees at Execfintech which went from 160 in 2014 to 350 in 2015 and 600 this year. Berlin is still active but Frankfurt has become the place to be. AAA Crowdfund Insider
'Perfect storm' of FCA authorisation work behind P2P delays, says expert The FCA said: "We have received a very high number of applications from P2P firms, which coupled with recent regulatory changes, has created particular pressures on our authorisation process. The FCA has already authorised a number of firms and we are working hard to get as many firms that meet our standards authorised as we can by 6 April. We will be keeping firms informed about progress over the next few weeks." A Out Law
Online lenders drawing more scrutiny by regulators Both the state Department of Business Oversight and the CFPB have turned their attention to so-called marketplace or peer-to-peer lenders — online firms that offer loans to consumers and small businesses, then sell those loans to investors. A Los Angeles Times
These are the 20 fastest-hiring tech employers in San Francisco Lending Club, after Uber and Salesforce, is hiring the most people in San Francisco B Biz Journals
Fintech Thought Leader: 5 Reasons Why Fintech Marketplace Is 'The Worst' Fintech businesses don’t scale quickly. Early adoption can be misleading. There are a relatively small number of fintech buyouts. Sale cycles are extremely long. There are no shortcuts to customer acquisition. AAA Benzinga
Singapore p2p online lending sector may see first loan default Capital Match says troubled customer is in construction business; MoolahSense and Funding Societies claim their loans at no risk of default A Banking and Finance
Inside the Rise of Online Lending VIDEO LendingTree CEO Doug Lebda discusses the company's valuation and the rise of online marketplace lenders. He speaks on "Bloomberg Markets." A Bloomberg Business
Ex-ECB, Germany Official Asmussen Jumps Into Online Lending Boom Funding Circle says Joerg Asmussen to join its board Startup focuses on providing credit to small businesses Bloomberg Business
LENDING CLUB'S ENHANCED RELATIONSHIP WITH WEBBANK COMES INTO FOCUS Questions remain as to how courts will view the retention of the Borrower Account when determining whether there is enough of an ongoing relationship between WebBank and the borrower to make a substantive difference in both a Madden context and a “true lender” analysis. A Pepper Hamilton
PROGRESSA APPOINTS COO, CFO & CRO Vancouver-based financial technology company, is pleased to announce the appointment of new Chief Operating Officer, Tony Vardy and new Chief Financial Officer, Mary Lynn Tardelli. The company is also pleased to announce that Michael Jover, previously Chief Operating Officer, will move to the newly created role of Chief Revenue Officer. B EIN News
MetLife Says Financial Advisors are “Cautious” About Investing in Innovative Finance ISAs 16% of investors aged 55 or older may consider investing in the new IFISAs that will hold peer to peer lending assets. But while there is growing interest from savers, MetLife states that just one in eight (12.5%) advisors would invest their own money. AAA Crowdfund Insider
Woodford & Barnett love them, advisers shun them but could these high yielding funds be right for your ISA? The manager of the £8bn CF Woodford Equity Income fund and the £800m Woodford Patient Capital investment trust is one the highest profile backers of the rapidly expanding Peer to Peer (P2P) lending market. A Turstnet
Fintech and fraud, like a horse and carriage The democratisation of the industry has also increased the potential and impact of fraud, citing global examples like the Bernie Madoff and Ezubao Ponzi schemes AAA The Malay Mail Online


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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