News

April 6th 2016, Daily News Digest

  • The list of 11 firms authorized for IFISA as of now.
  • Funding Circle advertising 7% return on £15,240 for IFISA.
  • China’s digital finance ecosystem and p2p markets compared to the US.
  • Germany’s Finanzcheck lender aggregator closes €33M Series C.
  • Aquiline raises $1.1bil fund focused on financial services sector.
  • Canada’s Onex launches direct lending platform for medium and large enterprises.
  • Jon Barlow, ex-CEO of Eaglewood, joins eOriginal advisory board.

 

 

Just 11 providers FCA authorised for IFISA launch, (Financial Reporter), Rated: AAA

The 11 providers that have already secured full FCA permission (as of 5th April 2016) are: Abundance, Crowdstacker, Crowd2Fund, Go2Partners, Funding Tree, Goji, Formax Credit UK, Resolution Compliance, Clasp Investment, Edaid, and Gracombex.

How Will the UK Tax Changes for 2016/2017 Affect You?, ( Gizmodo), Rated: AAA

Innovative Finance Isa
This is quite exciting if you live in a modern digital sphere. The Innovative Finance Isa is the same as a normal Isa, only the money you put into the tax-free wrapper can be invested in alternative funding vehicles, such as crowd-funded lenders like Zopa and Funding Circle. Funding Circle says you can hope/expect a 7 per cent tax-free return, should you live in a universe in which you have a spare £15,240 to put into it.

Citi fintech disruption study predicts 17% of consumer banking revenue to go digital by 2023, (Fierce Finance IT), Rated: AAA

Comment: article commenting on the Citibank report published recently.

Despite the rapid proliferation of fintech providers, only 1.1 percent of consumer banking revenue has been lost to digital disruption. By 2023, the migration to digital as a result of disruptive technologies is expected to rise to 17 percent of total market value, the report projects.

Alibaba’s total payment volume, at $931 billion, is more than triple PayPal’s $282 billion.

China’s e-commerce ecosystem at $0.67 trillion is now larger than any other country in the world. It dwarfs e-commerce in the U.S., at $0.34 trillion.

In addition, while peer-to-peer lending has reached $16.6 billion in the U.S. and $5.4 billion in the U.K., those numbers pale in comparison to China. The peer-to-peer lending industry in China is the largest in the world – by far – at $66.9 billion.

German consumer loans marketplace Finanzcheck closes €33M Series C, (Tech Crunch), Rated: A

Hamburg-based Finanzcheck, the consumer loans marketplace, which today is disclosing it has closed €33 million in Series C funding.

The problem that Finanzcheck has set out to solve is to reduce the time it takes and complexity of shopping around for an appropriate loan, including actually applying for said loan. To that end, Finanzcheck compares up to 35 bank and P2P lender’s scorecards, “increasing the matchability of client and bank from 40 per cent to over 85 per cent, which is a big deal if you’ve ever applied for and been turned down for a loan.

Finanzcheck says it will use the new capital to consolidate its claimed leadership position in Germany’s €70 billion consumer loan market, as well to accelerate growth and roll out new products. The company has brokered more than €1.3 billion in consumer loans since being founded in 2012.

FCA under fire over Innovative Isa approval, ( FT Adviser), Rated: A

IFISA providers must be licensed by the FCA – a process which can take up to 12 months – before applying to HM Revenue & Customs for Isa manager status, which takes an additional two weeks.

The heads of peer-to-peer lending platforms have criticised the Financial Conduct Authority (FCA) and the government for mishandling the launch of the Innovative Finance Isa.

The FCA was also made responsible for 30,000 consumer credit firms, which meant platforms have had to apply for new licences.

Stuart Law, the founder of P2P platform Assetz Capital, said the handover has “completely drained the FCA”, suggesting P2P platforms have been pushed to the bottom of the authorisation pile as a result.

Aquiline Capital Partners Closes Fund III with Total Capital Commitments in Excess of $1.1 Billion, (Business Wire), Rated: A

Aquiline will continue its strategy of investing in middle-market businesses across the financial services sector, including banking and credit, insurance, investment management and markets, and financial technology and services businesses. Aquiline has made to date five investments in Fund III, including:

Engs Commercial Finance, a U.S. truck lending and leasing company;
Fenergo, a global capital markets compliance software company;
OmegaFi, a payment software and processing business;
Ascensus, the largest independent U.S. retirement and college savings service provider; and
Wellington Insurance Group, an outsourced underwriting business for residential property insurance

Onex Corp launching direct lending platform, ( PE Hub), Rated: A

Comment: Article covering the Canadian (Ontario) market.

Onex is one of the oldest and most successful private equity firms. Onex’ businesses have assets of $36 billion, generate annual revenues of $22 billion and employ approximately 144,000 people worldwide.

Onex Corporation (“Onex”) (TSX:OCX) today announced Walt Jackson has joined Onex Credit to establish a direct lending platform. Direct lending is a pool of committed capital providing non-investment grade loans to middle-market and larger businesses. Mr. Jackson has thirty years of experience in the leveraged loan, high-yield and mezzanine markets, most recently as Chief Operating Officer of the Private Credit Group at Goldman Sachs’ merchant banking division, a provider of senior loan and mezzanine solutions for corporate borrowers.

New OnDeck Workshop Empowers SCORE Mentors and Chapters Nationwide, ( PR Newswire), Rated: A

OnDeck® (NYSE: ONDK), teamed up with SCORE—introducing a small business financing workshop to SCORE’s volunteer mentors in more than 300 chapters across the country.

Workshop participants will also be guided through OnDeck and SCORE’s interactive Business Fundability Quiz. The quiz—used by over 3,000 entrepreneurs to date—helps small business owners assess their current financial standing and evaluate what types of financing they may qualify for. Workshop facilitators will help attendees find ways to improve their profile and increase their odds of successfully funding their business needs. SCORE will also offer participants free one-on-one mentoring to talk through their individual business aspirations and chart a customized pathway to achieve those goals.

JD Finance Invests In P2P Lender Meili Jinrong, ( China Money Network), Rated: B

Comment: Article covering the Chinese market.

Meili Jinrong focuses on providing consumer credit to middle-income workers with funding from savers who want to earn higher returns on their savings.

Beijing-based P2P (peer-to-peer) lending platform Meili Jirong has received an undisclosed strategic investment from JD Finance, according to Chinese media reports.

The news follows a US$65 million series A round of financing led by Bertelsmann Asia Investments the start-up raised last November.

RBI calls for strengthening of business correspondent model, ( The Economic Times), Rated: A

Comment: Article covering the Indian market.

“A concept note on P2P lending will be put up on the RBI website for public comments by April 30 for regulating this sector,”

Fintech VendorMach Selected for Startupbootcamp, CEO Ojinnaka Shares Vision, (Crowdfund Insider), Rated: B

Now in beta, VendorMach’s cloud platform parses and aggregates multiple data sets, then uses machine learning to score trust, offering watchlists and risk notifications with particular emphasis on SMEs and international markets.

Jon Barlow Joins Advisory Board to Further eOriginal’s Position as Leading Digital Financial-Asset Management Solution for Marketplace Lenders, (Benzinga), Rated: B

Barlow is the founder and former CEO of Eaglewood Capital Management, a leading asset-management firm with $2 billion of assets under management that specializes in online and marketplace lending investment strategies. Under Barlow’s leadership, the firm completed the first-ever securitization of P2P loans, earning Eaglewood Capital the Innovator of the Year Award at the 2014 LendIt Conference. He also serves on the board of directors of Money360 and as an advisory board member of Harmoney and Crowdnetic.

Founded in 1996, eOriginal is focused on digital transaction management solutions, specializing in the post-execution management of financial asset documentation. eOriginal SmartSign® and eAsset® Management Services enable an end-to-end solution for fully electronic transactions that must be managed with the highest levels of security and compliance throughout their lifecycle. By treating every transaction as having assets that must be verifiably secure, legally compliant and enforceable, eOriginal provides its customers and partners with eCertainty®.

 

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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