News

March 30th 2016, Daily News Digest, Lending Times

  • Digital Mortgage Platform built from 3rd party eNotarization, eRecording, eWarehousing, eCustodian,MISMO and SMART Docs.
  • Kabbage partnership with 325,000 members of National Federation of Independent Business.
  • An anecdotal analysis of the Ratesetter online available public data with anonymous identifiers.
  • GLI Finance’s annual report following recapitalization and refocus.
  • UK Fintech VC investment $235m in 2015 vs $43m in 2013, report.

eOriginal’s Digital Mortgage Platform Adds Seven Key Partners, ( Virtual Strategy Magazine), Rated: AAA

Comment: a beautiful example of building a modern automated mortgage platform quickly and efficiently with best-of-breed parts. The quality of the end product is still to be seen.

eOriginal today announced an expansion of its Digital Mortgage Platform with the addition of seven major new partners who fill critical roles in the end-to-end process. The platform features the industry’s first truly open, plug-and-play digital mortgage platform.

The collaboration is built around best-of-breed providers of eNotarization, eRecording, eWarehousing, eCustodian services and integration with Mortgage Industry Standards Maintenance Organization (MISMO) compliant SMART Docs and forms. Joining existing partners CSi, DocVerify, NotaryCam, Simplifile, Street Resource Group, and Vidverify, on eOriginal’s Digital Mortgage Platform are:

  • Anacomp provides automated data capture, document management, workflow and business processes to lenders and investors to reduce costs, accelerate loan intake/review, compliance, funding and on-boarding.
  • Contract Cloud modernizes the way people and businesses interact online, using secure video recording and retrieval to demonstrate parties’ identity, capacity, understanding and intent surrounding contractual terms.
  • EyeVerify provides a patented, software biometric solution that is 99.99 percent accurate and extremely scalable with password-free secure authentication on mobile devices.
  • Finlocker is a secure financial data and analytics platform where a consumer can share access to financial information to streamline the lending process for the lender and consumer.
  • Pavaso adds value and streamlines the process for every stakeholder of the real estate transaction, from preliminary contract negotiation to eClosing and post-closing consumer engagement.
  • SafeDocs’ NotaryGo Service provides a notary management and execution platform that completes notarizations digitally, such as video enable online notarization, or by traditional paper means through a network of over 70,000 notaries nationwide.
  • Wolters Kluwer’s Expere® offers compliance content for mortgage and other lines of business. It is utilized by more than 2,000 lenders, including five of the Top 10 U.S. Banks.

NFIB Members Receive New Benefits Through Strategic Partnership With Kabbage,( PR Newswire), Rated: AAA

The National Federation of Independent Business (NFIB), the leading small business association, announced a new strategic partnership with Kabbage Inc.This is the first partnership with an automated lending platform provider that will reach NFIB’s customer base of more than 325,000 members, and growing.

Lifting the bonnet on an online lending business, ( FT Alphaville), Rated: AAA

One of the rallying cries of the new businesses trying to displace old banks is “transparency”.

Many online lenders who have sprouted up since the global financial crisis make their loan data readily accessible to investors and the public at large. The data are heterogeneous across lenders — hence the secondary industry of data analysis companies — but the information is still there, loan by loan, if you can be bothered to take a look.

Ratesetter gives you a loan-by-loan breakdown of the credit it has been extending and a unique borrower ID number, which means you can build a picture of some of the interesting lending the company has been doing.

You can find like this a lot of data about Ratesetter business, auto, persona, etc.

One is that transparency, while an admiral goal, might not always be in the best interest of a business itself — at some point, which Ratesetter has arguably reached, you start to give competitors a blueprint of the inner workings of your operations. Imagine having this level of detail about a bank’s lending.

To date, Ratesetter does not seem to have had significant trouble with defaults — although it has obviously grown up in a very benign credit environment.

Transparency counts for very little unless it’s accompanied by accuracy.

Small Business Owners Losing Faith In Presidential Candidates, ( PR Newswire), Rated: A

A new survey released today by OnDeck reveals that 34 percent do not have confidence in any of the current candidates, up from 25 percent in a survey taken last fall.

small business owners surveyed expressed nostalgia for a past U.S. president they deemed a friend to small business: Ronald Reagan. The 40th President was overwhelmingly selected by more than four in ten small business owners (42 percent) as the best president for small business, trailed by Bill Clinton (17 percent) and President Barack Obama (14 percent).

Small Business and the Electioninfographic

GLI Finance Releases Annual Results for Year of Change, ( Crowdfund Insider), Rated: AAA

GLI Finance invests in, and operates in, niche or complementary SME lending verticals where they believe they can secure enduring competitive positions and take advantage of the disintermediation of lending by banks to SMEs.

Following a recapitalization to strengthen the balance sheet, GLI said the last few years “lacked a coherent strategy” for growth.  Reported loss for 2015 was £9.5 million in a period that included write-downs in the value of investments and loans at the year end. GLI stated that Loans processed by their portfolio of platforms increased in FY15 due to the addition of several platforms and “strong origination growth at many of the platforms”. The number of loans completed in the period increased by 113.4% while the average loan size decreased by 12.8%. The dividend policy was updated to pay “not less than” 2.5p per year.

GLI stated an “amicable process for separation” has been agreed upon in regards to Funding Knight.

Following the disposal of its CLO interests, GLI described itself as “a radically different company” with investments in many early stage companies.  This portfolio will take time to mature.

Take that, banks: The UK’s online financial marketplaces attracted $253m in VC money last year as LendInvest, Transferwise and Funding Circle made their mark, (City A.M.), Rated: A

UK financial marketplaces attracting $253m (£176.9m) in VC cash last year, up from $43m in 2013.

“More and more fintech startups are using code to seamlessly move money between buyers and sellers, lenders and borrowers, and entrepreneurs and investors,” said James Allgrove, head of UK growth at Stripe.

Chinese shadow bankers go mainstream, (Global Trade Review), Rated: AAA

A new report outlines how much online platforms have grown throughout Asia, with P2P lending, crowdfunding and invoice trading (factoring) the most common forms.

“China is the world’s largest online alternative finance market by transaction volume, registering US$101.7bn (or Rmb638.7bn) in 2015”. This represents 99% of the total Asia-Pacific region.

“More reputable outfits say 80% of the market is shadow banking providers who are unstable and are going to go under,”

“Excluding mainland China, the rest of the Asia Pacific region recorded a volume of US$1.12bn in 2015 with a 313% year-on-year growth rate from the US$271.94mn raised in 2014. Japan’s online alternative finance market accrued US$360.23mn in 2015, followed by $348.37m originated in Australia, US$267.77mn in New Zealand, US$41.18mn in South Korea, US$39.91mn in India and US$39.76mn in Singapore,” the report reads.

Comment: We have seen this report already 2 weeks ago. This is not a new report but it is still very interesting.

Christian Faes of LendInvest: The Stamp Duty Hike Spells Bad News for Landlords & Their Tenants,( Crowdfund Insider), Rated: A

Christian Faes, CEO of LendInvest, called the Stamp Duty Land Tax (SDLT) increase “bad news” as landlords will be facing additional cost – something inevitably passed on to renters.

Their report states:

  • Landlords in 13% of country to pay SDLT for the first time
  • Darlington, Halifax and Doncaster among worst affected by first-time SDLT payment
  • Outer London landlords hit worse by overall percentage increase in SDLT due
  • Landlords in Tunbridge Wells, Dartford, Romford will see SDLT rise more than 300%, vs <200% in Inner postcode areas
  • Areas with most properties subject to SDLT for first time and lowest average rents

City Moves for 30 March 2016 | Who’s switching jobs, ( City A.M.), Rated: A

Marketplace lender RateSetter has made two senior appoint­ments in credit and risk. Jim Gunner has joined the board as a non-executive director and chair of the risk committee. Nigel Wilkinson has joined as head of commercial credit. Both executives are ex-HSBC. Jim was a senior executive for group risk at HSBC Holdings, representing the group in international banking and regulatory forums and was a frequent speaker at industry events worldwide. Nigel has more than 30 years’ experience with HSBC and JP Morgan in credit risk management and transaction origination and execution.

2016 Marketplace Lending Meet-Up – New York City April 7, 2016 ( Manatt), Rated: B

Manatt is proud to co-sponsor the Marketplace Lending Meet-Up taking place April 7, 2016, in New York City. The event will feature a discussion hosted by professionals from Lending Times, a news, data and analysis portal for the P2P and marketplace lending industries.

Agenda
6:30 – 7:00 p.m. Guest Registration and Networking
7:00 – 8:00 p.m. Presentation, Panel Discussion and Q&A
8:00 – 8:30 p.m. Closing Reception

 

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.

Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *

Testimonials

default image

"Your daily letter is great!" , Ram , Founder and CEO, PeerIQ

default image

"Hi George - just want to tell you that you are doing a great work with Lending Times;-) Brgds, Kasper" , Kasper, Partner and Co-founder at Dansk Faktura Børs A/S

default image

"I've been following your newsletter for some time now and have been very impressed with the content." Charlie,Co-Founder | Bolstr

default image

"Hey George, I must say I really enjoy your site. It has inspired me to do some changes at our platform and we are the biggest consumer lender in Sweden." , Ludwig, CEO @ Savelend Sweden AB

default image

"Your daily email is very useful. It gives quick update on what's going in the market. Thank you very much for all that info." Yann Murciano, Head of Base Metals Trading at Morgan Stanley

Our daily p2p news digest

Daily News Summary Digest Sent Daily To Your Inbox