(Errata : For Australia in fact).From November 12th, 2016 unfair contract terms for SME borrowers will become prohibited. What is unfair contract terms ? Of course, the definition is vague but the author explained 3 tests.
While Facebook is doing everything possible not to become a credit agency, it is entering payments. A very interesting platform to build on top of for our readers, perhaps.
We have talked repeatedly about APIs and the future of finance where financial platforms will be in large part an aggregation of many APIs. We have also covered yesterday the importance of data in finance through a new type of “data hunters” jobs. Today we report on PSD2 regulation which will mandate, in Europe, banks to have and to open their APIs, more or less. We have reported in the past that the UK and Australian banks and regulators are discussing the pros and cons of an open-API mandate. While this regulation will affect Europe, we feel this is of global interest and worth thinking about.
Optimism of America’s Small Businesses at Record High. LendKey releases a private student loans report. We applaud the initiative. Lending Times sought the student loans report mentioned just above. The meat of the report in our eyes is the Total Student Default curve we reproduced. We, however, find it strange that defaults are decreasing, and most importantly we find it very strange how fast the defaults are improving. I question the data in this report on this basis and we will seek further clarification.