Prosper unvails Prosper Daily mobile app for consumer budgeting and financial tools.
Trends and difference in version 1.0 Early Movers originators, 2.0 Followers vs Alt Lending 3.0.
KPMG reports pulse of Fintech.
2015 fintech investment of $13.8 vs $6.7bil in 2014.
View on the banking world of 2020.
LendingTree names top consumer-rated lenders.
|March 10th 2016|
|Prosper Releases Mobile App Prosper Daily as it Migrates Bill Guard Users to New Platform||Marketplace lending platform Prosper has moved quickly to leverage their recent acquisition of Israel-based BillGuard. Prosper has unveiled the “Prosper Daily” mobile App designed to give consumers a suite of tools to make better financial decisions, including viewing all their financial accounts in one place, budgeting and tracking spending by category, identifying questionable charges, and monitoring their free credit score, which is updated monthly.||AAA||Crowdfund Insider|
|The Short History And Long Future Of The Online Lending Industry||The debate around marketplace lending is a bit of a sideshow. The fundamental questions are: Can non-bank lenders take share from banks? If so, in what categories? Can it be done in such a way that equity investors can earn venture-type returns?
Fundamentally, you can’t figure out how to distinguish between the “goods” and the “bads” without sufficient “bads”, and “bads” cost you money. The recipe for success here starts with picking a truly underserved segment. Developing an advantage in Customer Acquisition is harder than it might appear.
Things are going to get harder before they get easier. Valuations are down significantly, and the market volatility combined with a slowing economy will produce challenges with both default rates and access to liquidity. It will be hard for 2.0 originators, which tend to be only slightly differentiated fast followers. Alt Lending 3.0 have gotten the memo about appropriate valuations and capital efficiency. Instead, they are motivated by legitimately unmet needs and the prospect of meaningful moats.
|The Pulse of Fintech, 2015 in Review||’The Pulse of Fintech’ is a quarterly report created by KPMG Enterprise and KPMG Fintech along with CB Insights (the ‘go to’ name for insights related to venture capital investment). The series analyzes the latest global trends in venture capital investment data on the fintech sector and was created as the sister report to the Venture Pulse Report.||AAA||KPMG|
|Funding Circle announces Jörg Asmussen as new board member||Former Executive Board Member of the European Central Bank (ECB), Jörg Asmussen, will join the Funding Circle board as non-executive director.||B||PR Newswire|
|Funding Circle added an economic heavy-hitter to its board||smussen is a big name when it comes to European economics and politics. He was on the European Central Bank (ECB) executive board from 2012 to 2013, during which time the Financial Times dubbed him: "One of the most influential members of the European Central Bank's governing council."||A||Business Insider|
|Global funding for VC-backed fintech firms doubles to $13.8bn||2014 Investment : $6.7bil. 2015 Investment : $13.8bil. KPMG and CB Insights estimate VC-backed fintech firms began having a serious impact in every area of banking and insurance. The report also highlights another trend - corporates are becoming increasingly active, with players from industries such as financial services, telecoms and technology participating in at least a quarter of all fintech deals for three quarters straight. Citigroup has been the most active bank investor over the last few years, followed by Goldman Sachs.||AAA||Finextra|
|Kabbage vs. OnDeck: Which Is Right for You?||KABBAGE IS A GOOD FIT IF: Your company earns at least $60,000 in annual revenue. You have bad personal credit. You need working capital.
ONDECK IS BETTER IF: Your company earns at least $100,000 in annual revenue, for term loans, or $200,000, for lines of credit. You have a credit score of at least 500. You need money for an expansion or working capital.
|On GenNext lenders||At $1.2 trillion, India is estimated to be one of the largest markets for consumer finance in the world, behind US and China. It is also one of the least evolved markets for lending, with close to 70 per cent of the market being underserved by institutional lenders. According to a report by international philanthropic investment firm Omidyar Network, over 400 million people borrowed money in India in 2014, but fewer than one in seven were approved for a formal loan.||A||The Hindu Business Line|
|Impressions from the P2P Investing Day in Prague||150-200 attendees. Lucie Tvaruzkova, CEO of Zonky (p2p originator for SME) : "at the moment there is a waiting list of 7,000 investors wanting to use the platform but to scale it properly in line with loan demand, she lets those in only bit by bit." David Bradley-Ward, CEO of Ablrate expects to put more airplane loans on the platform in 2016.||A||p2p Banking|
|China to act against gray-market home loans||Pan Gongsheng, deputy governor of the People’s Bank of China, said yesterday that the central bank will tie up with the China Banking Regulatory Commission and the Ministry of Housing and Urban-Rural Development to scrutinize mortgage applications and reject down payments raised through property agencies, small-loan companies and peer-to-peer networks.||A||Shanghai Daily|
|China property, Tier-1 vs the rest||In February, prices of new homes in Shenzhen surged 72% yoy or 3.4% mom to RMB48,095/sqm, and the yoy home price inflation was also quite staggering at 45% in Beijing and 28% in Shanghai. Meanwhile, it was on average 1.5% yoy in Tier-2 cities and -0.1% in Tier-3/4 cities. Moreover, there has been extensive media coverage recently on rapid home price increases and booming peer-to-peer (P2P) lending business to fuel speculation through amplified leverage ratio.||A||FT Alphaville|
|The digital revolution moves from existential threat to potential survival strategy for world’s retail banks||The banking world of the future. By 2020 bankers expect the banking environment to be shaped strongly by technology and non-traditional competitors. They believe that retail peer-to-peer (P2P) lending will be available via banking platforms (65%); retail banking will be fully automated (64%); and more money will flow via fintech firms than traditional retail banks (57%). Profits face multiple attacks. Business models must adapt to survive. Individually, the "scare scores" attached to changing customer behaviour (22%), new entrants (26%) and new technology (24%) are significantly lower than in previous years; collectively, however, they still represent a significant threat. A multi-headed monster. That competitive threat will come from many quarters. Apple Pay and its ilk (20%) and other non-financials (20%) may yet emerge to really upset the traditional banking sector. Robo-advisers could lure away more profitable wealthy (and the not-so-wealthy) clients (17%), and P2P lenders attract dissatisfied borrowers and savers (21%).||AAA||Bobs Guide|
|How internet finance fuels China property bubble||But these underregulated lending platforms are also fanning the flames of a hot property market in China’s top-tier cities.||A||EJI Insight|
|Online Lenders Eye Enormous Marketshare In Small Business Loans||At the current rate, it is anticipated that the online SME lending could claim as much as 20% of the total loan market by 2020 and could even become a $200 billion market on an annual basis.||B||Market Exclusive|
|LendingTree Names Top Customer-Rated Lenders for 4Q||In the personal loans category, Springlead Financial Services took the top spot based on customer ratings. Lending Club and Avant also earned spots on the list. HomePlus Mortgage was rated top for Mortgages. SoFi was the top lender in the student loans category, and BMW Bank of North America subsidiary up2drive placed highest for the auto loans category.||AAA||National Mortgage News|
Author: George Popescu