- Today’s main news: Zopa’s 6.1% return IFISA to launch June 15. CFPB’s Corday extends small biz lending RFI comment period. Zopa looking for 40 tech whizzes. WeChat Pay available globally through Paymentwall.
- Today’s main analysis: Lending Club and the rise of securtization club deals.
- Today’s thought-provoking articles: China urges banks to devolve loan approval responsibility. How Thailand could become fintech hub of Southeast Asia.
- Lending Club and the rise of club deals. GP:”By standardizing documents in a deal it allows for a faster and cheaper securitization. A model worth noting and perhaps even adopting. A must read in all cases.”
- CFPB comment period for small business lending RFI extended. GP:”As our readers are aware the CFPB is looking into small business lending regulation. Most lenders are concerned that small business lending could be regulated as personal lending because the loan is in fact underwritten on the business owner him-or-her-self. While it seems unlikely, we look forward to the RFI and the following CFPB decision.”
- Elevate launches Elevate Labs. GP:”I find data interesting and we learn that Elevate is using a terabyte-scale Hadoop database with 1.5mil customer records with data from bureaus, web behavior, performance, bank account and other non-traditional data. And they employ 35 people in the analytics team. “
- Here are all the financial reforms that will disappear with Dodd-Frank. AT: “Few people will disagree with most of the principles of the CHOICE Act. The real issue is, how do we get to the promised land from here? Even if the Republicans win on Dodd-Frank, this battle won’t go away. It will live on in the mid-term elections and then the next presidential election.”
- The death of basis points?
- Industry power players join RealtyShares. GP:”We believe the fix and flip model to be extremely correlated to particular times in the real estate market. I hope RealtyShares is diversified enough beyond this particular market whent he turn comes.”
- U.S. business schools embrace fintech. AT: “I’m not quite sure what colleges and universities can teach about fintech that they haven’t already been teaching about business. Fintech is not a business model any more than science fiction is a storytelling technique. It’s one genre in the business world, so why not stick to teaching business principles?”
- Lending Club shareholders approve election of directors. GP:”Scott Sanborn is re-elected as well as Lawrence Summers and Simon Williams”
- Approach alternative investments with care.
- Marketplace lending news roundup. AT: “Most of this has already been reported.”
- LendingTree to present at RBC Financial Technology Investor Day.
- The week in real estate industry deals.
- Zopa hunts for 40 tech whizzes. GP:”It is probably going to be expensive but I am sure they will find it. The Zopa office is cool enough where people really want to work from there. Adn yes, do they really need 40 developers to launch a tech-bank? Usually teams of 6-8 people are ideal so I would expect Zopa has 4-6 systems to build for the bank , hense this many developers.”AT: “This is the first I’ve seen of a number for new employees to help launch bank. Does it really take 40 technology superstars to start a bank?”
- Zopa clarifies coverage ratios ahead of Core account launch.
- Zopa’s IFISA to launch June 15. GP:”A Tax-deferred product that delivers 6.1%, I expect they will need more borrowers.”
- Landlordinvest reports high demand for secondary market loans.
- P2P comes of age as alternative asset class for investors.
- Othera, Credit Crowd strike a blockchain partnership.
- P2P lenders stay away from apps.
- Will robo-advice mean checkmate for human financial advisors?
- Meet the next generation of fintech startups.
- China urges banks to devolve loan approval responsibility to boost lending.
- Alibaba’s market value reaches $360B.
- Ping An launches fintech fund.
- China Rapid Finance confident in its business model.
- CreditEase CEO shares insights on fintech.
- WeiyangX Fintech Review.
- Loanmeet raises seed funding.
- Flipkart to add online loans to marketplace.
- Lendingkart gets Rs 50 crore loan from Yes Bank.
- How the rise of P2P lending presents several opportunities to banks.
- How Thailand could become Southeast Asia’s next fintech hub.
- Hong Kong, Singapore rivalry hobbling Asia in $100B fintech race.
- United States
- Weekly Industry Update: Lending Club and The Rise of Club Deals (PeerIQ Email), Rated: AAA
- Corday announces extension of comment period for small business lending RFI (Ballard Spahr), Rated: AAA
- Elevate Launches Elevate Labs (News Channel 10), Rated: AAA
- Here Are All The Financial Reforms That Will Disappear With Dodd-Frank (Forbes), Rated: A
- The Death of Basis Points? (ETF Trends), Rated: A
- Industry Power Players Join RealtyShares (RealtyShares Email), Rated: A
- U.S. business schools embrace ‘fintech’ as students clamor for courses (Reuters), Rated: A
- Lending Club Shareholders Approve Election of Directors (Crowdfund Insider), Rated: A
- Approach alternative investments with care (Business-Standard.com), Rated: A
- Marketplace Lending News Roundup – June 10 (Lend Academy), Rated: A
- LendingTree, Inc. to Present at RBC Financial Technology Investor Day (PR Newswire), Rated: B
- The week in real estate industry deals: June 5-9, 2017 (Inman), Rated: B
- United Kingdom
- Zopa hunts for 40 tech whizzes as it narrows focus on bank launch (The Telegraph), Rated: AAA
- Zopa clarifies coverage ratios ahead of Core account launch (P2P Finance News), Rated: AAA
- Zopa’s innovative finance Isa, paying projected 6.1%, to launch on 15 June (Which), Rated: AAA
- LandlordInvest reports high demand for secondary market loans (P2P Finance News), Rated: AAA
- Peer-to-peer comes of age as alternative asset class for investors (Financial Times), Rated: A
- Othera and Credit Crowd strike a blockchain partnership (AltFi), Rated: A
- P2P lenders stay away from apps (P2P Finance News), Rated: A
- Will robo-advice mean checkmate for human financial advisers? (Lexology), Rated: A
- Meet the next generation of fintech startups set to revolutionise the world of finance (Wired), Rated: A
- China urges banks to devolve loan approval responsibility to boost lending (BusinessLine), Rated: AAA
- P2P Industry News (Xing Ping She Email), Rated: A
- Ping An Launches Fintech Fund (Crowdfund Insider), Rated: A
- NYSE-listed P2P firm confident on its business model (ShanghaiDaily), Rated: A
- CreditEase’s CEO Tang Shares Insights on FinTech in China at The Asian Banker Summit (PR Newswire), Rated: A
- China: WeiyangX Fintech Review (Crowdfund Insider), Rated: A
- WeChat Pay is now available globally via Paymentwall (Payment Wall), Rated: AAA
- Human-robo combo has greatest chance of success (International-Adviser.com), Rated: A
- NAB Ventures provides seed funding to Australian start-up Basiq (Banking Business Review), Rated: A
- Lending startup Loanmeet raises seed funding (VC Circle), Rated: AAA
- Flipkart to Add Online Loans to its Marketplace (Crowdfund Insider), Rated: A
- Lendingkart gets Rs 50 crore loan from Yes Bank (Medianama), Rated: A
- How the rise of P2P lending presents several opportunities to banks (India Times), Rated: A
- How Thailand Could Become Southeast Asia’s Next Fintech Hub (Forbes), Rated: AAA
- Hong Kong, Singapore rivalry hobbling Asia in $ 100 billion fintech race (Reuters), Rated: A
- Consolidated credit database likely to improve lending in the Philippines in 2018 (ASEAN Today), Rated: A
Weekly Industry Update: Lending Club and The Rise of Club Deals (PeerIQ Email), Rated: AAA
Corday announces extension of comment period for small business lending RFI (Ballard Spahr), Rated: AAA
Last month, in conjunction with a field hearing, the CFPB issued the RFI, together with a white paper on small business lending. In his remarks, Director Cordray revealed that, in response to requests for additional time to respond to the RFI (which currently has a July 14, 2017 comment deadline), the CFPB is extending the comment period by 60 days.
With regard to the CFPB’s debt collection rulemaking, Director Cordray discussed thedebt collection proposals under consideration by the CFPB which it released last July in anticipation of convening a SBREFA panel.
Elevate Launches Elevate Labs (News Channel 10), Rated: AAA
Elevate Credit, Inc., a leading tech-enabled provider of innovative and responsible online credit solutions for non-prime consumers, today announced the launch of Elevate Labs at its new San Diego-based Advanced Analytics center. The center of excellence underscores the company’s commitment to innovation in the non-prime credit market.
Elevate’s industry-leading technology and proprietary risk analytics are optimized to help non-prime consumers meet their immediate financial needs while improving their financial futures. The company annually invests $40 million in its technology and analytics capabilities, including substantial investments in its proprietary IQ and DORA risk technology and analytics platforms, to support rapid scaling and innovation, robust regulatory compliance and ongoing improvements in underwriting.
DORA, Elevate’s proprietary risk analytics platform, utilizes a terabyte-scale Hadoop database composed of thousands of elements, 1.5 million customer records and other wide-ranging data inputs including credit bureau data, web behavioral and performance data, bank account data and other non-traditional data, to accurately assign risk to customers.
Elevate’s cutting edge technology and analytics team, worldwide, consists of the most advanced thinkers in risk analytics with more than 35 data scientists in our Risk Management department including over 25 staff members with advanced degrees and eight with PhDs. While the San Diego location is the company’s most concentrated and fastest growing analytics center, the team is spread across offices in Texas and the United Kingdom.
Here Are All The Financial Reforms That Will Disappear With Dodd-Frank (Forbes), Rated: A
The U.S. House of Representatives on Thursday passed the Financial CHOICE Act.
The Act has seven principals:
1. Taxpayer bailouts of financial institutions must end and no company can remain too big to fail.
2. Both Wall St. & Washington must be accountable
3. Simplicity must replace complexity
4. Economic growth must be revitalized
5. Every American must be able to achieve financial independence
6. Consumers must be protected
7. Systemic risk must be managed via profit & loss
The Act proposes to restructure the Consumer Financial Protection Bureau, an agency that monitors financial products from loans to high-fee investment products.
Stress tests for America’s big banks, another Dodd Frank invention, are also contentious. The CHOICE Act proposes major changes.
In mortgages, the CHOICE Act will aim to allow smaller banks to increase lending by minimizing a rule about qualified mortgages. The rule increases costs of lending to higher risk borrowers and often precludes banks from holding mortgages on their books. Modifying the rules may allow local banks to increase lending.
Industry Power Players Join RealtyShares (RealtyShares Email), Rated: A
We recently had the honor of welcoming Edward Forst to the RealtyShares Board of Directors. Ed is the former CEO of Cushman and Wakefield and partner at Goldman, Sachs & Co, and should be a stellar addition to our already robust leadership group. And he wasn’t the only new arrival. We also added two new members to our advisory board: Joe Azelby, the senior partner at Apollo and former CEO of JPMorgan’s Global Real Assets Group, and Keri Findley, former partner at Third Point. Some of the top commercial real estate publications jumped on the news, including Commercial Property Executive, GlobeSt., Bisnow and many more.
Our CEO Nav Athwal said it best when we made the announcement: “These powerful real estate industry veterans are coming to the table because they are excited about what we’re building here at RealtyShares and how, through technology, we’re helping to permanently change real estate investing and capital raising for the better.”
Nav’s last few weeks have been busy. In addition to recruiting these heavyweights, he was also named a founding member of the Forbes Real Estate Council, and RealtyShares was listed as one of the top financial technology companies in the Bay Area by number of employees by the San Francisco Business Journal. Another great month as we cement our leadership role within the industry.
- RealtyShares’ Texas Investment Hits The $28.1 Million Mark: After recently raising $3.5 million for a Class A multifamily property there, RealtyShares lauds Texas as one of its top investment markets.
- Varying Our Real Estate Deals: Amy Kirsch, Director of Investor Relations, illuminates the eye-opening variety of real estate deals in the RealtyShares marketplace.
- Creating A Diversified Investment Portfolio: Head of Capital Markets, Javier Benson, elaborates on the importance of having diverse investments in any portfolio.
- Building Operational Scale For The Next Level: Come meet our new VP of Operations Mark Hoogs, and find out what exciting plans he has for taking RealtyShares to the next operational level.
- Why Millennials Are Interested In Real Estate Investing: In our recent RealtyShares/Harris Poll survey, millennials expressed an unmatched enthusiasm and curiosity in real estate investing. CEO Nav Athwal investigates the underlying reasons behind this attitude.
U.S. business schools embrace ‘fintech’ as students clamor for courses (Reuters), Rated: A
Stanford University and Georgetown University business schools are planning to offer “fintech” courses for business school students for the first time this fall. New York University is planning a new course for undergraduates after launching a fintech specialization in its business school last year.
They join the University of Pennsylvania’s Wharton School, Columbia University’s business school and the Massachusetts Institute of Technology’s (MIT) Sloan School of Management, which all launched similar programs in recent years.
A number of prominent startups have exploded onto the fintech scene in recent years, fostering interest in mobile payment apps like Venmo, digital loan platforms like SoFi and robotic wealth managers like Betterment.
Lending Club Shareholders Approve Election of Directors (Crowdfund Insider), Rated: A
Present at the Annual Meeting in person or by proxy were holders of 313,460,225 shares of common stock, representing 77.7% of the shares of common stock outstanding.
The vote tallies were as follows:
Approach alternative investments with care (Business-Standard.com), Rated: A
Unlike the wealthy, retail (individual) investors have limited options to invest in high-risk, high-return alternative instruments. The ticket size of such products — private equity, exclusive wines and paintings — are too high for small investors. But, in recent times, more avenues have opened that allow retail investors to make risky bets in assets other than stocks. For example, bitcoins is one such asset that younger investors are looking at. The price of this virtual currency has gone up from $579.13 a year back to $2,825.03 — a return of 488 per cent.
Marketplace Lending News Roundup – June 10 (Lend Academy), Rated: A
Fintech’s ultimate value: Making sense of the data explosion from American Banker – Interesting piece what the true role of fintech should be: making sense of the masses of data.
U.S. business schools embrace ‘fintech’ as students clamor for courses from Reuters – Today fintech is one of the hottest courses at MBA schools, driven by student demand.
Peer-to-peer lender calls hung parliament “the worst of all outcomes” from AltFi – Commentary on yesterday’s UK election from an online lending perspective.
Marketplace Lending: The Next 10 Years from deBanked – Interesting thoughts on where marketplace lending may be heading.
LendingTree, Inc. to Present at RBC Financial Technology Investor Day (PR Newswire), Rated: B
LendingTree, Inc. (NASDAQ: TREE), operator of LendingTree.com, the nation’s leading online loan marketplace, today announced that it will participate in RBC Financial Technology Investor Day at The Westin New York Grand Central in New York, NY.
Doug Lebda, LendingTree Founder and CEO, is scheduled to present on Wednesday, June 14 at 8:55am ET. The presentation will be webcast live and archived at https://www.veracast.com/webcasts/rbc/financialtech2017/56102255062.cfm
The week in real estate industry deals: June 5-9, 2017 (Inman), Rated: B
RealtyeVest lowered its required minimum investment amount to $5,000 for all offerings on their real estate crowdfunding platform for accredited investors. Previous minimum investment amounts ranged from $15,000 to $50,000, depending on the real estate project. The new $5,000 threshold is intended to draw first-time investors to experience RealtyeVest’s high-caliber performance with a nominal financial commitment. “We are seeing significant activity on our platform, however we feel there is a corner of the market we are not appealing to,” said Daniel Summers, RealtyeVest CEO, in a statement. “So we are offering investors a taste of our service with a new lowered investment amount for all projects. Once they see the quick return on their investments, they will no doubt want to increase their contribution amounts.”
Zopa hunts for 40 tech whizzes as it narrows focus on bank launch (The Telegraph), Rated: AAA
Britain’s largest peer-to-peer lender has heightened its focus on building a bank, firing the starting gun on a recruitment push that will see it hire at least 40 developers for the project.
However its tune changed late last year, when it emerged that the technology firm wanted to challenge high-street lenders by offering deposit accounts and overdrafts.
Having raised £32m from investors eager to support the project earlier this month, the group is now looking to bulk out its workforce by at least 16pc – bringing in tech experts able to build a digital bank from scratch.
The hires will come from London and Barcelona, where Zopa opened a technology hub last week.
Zopa clarifies coverage ratios ahead of Core account launch (P2P Finance News), Rated: AAA
ZOPA has clarified the expected implications of phasing out of its provision fund as it prepares to launch Zopa Core on Thursday, a new account which will not be backed by the fund.
On 15 June, the peer-to-peer platform’s target date for unveiling its Innovative Finance ISA, the new account will formally take over from the firms’ existing Access and Classic products, whose safeguard fund will be phased out by December this year.
Existing safeguarded loans and new loans purchased before that deadline will continue to be covered by the fund until they reach maturity.
Zopa’s innovative finance Isa, paying projected 6.1%, to launch on 15 June (Which), Rated: AAA
Zopa’s long-awaited innovative finance Isa (Ifisa) will be made available to existing customers on Thursday 15 June, but it won’t be protected by the company’s Safeguard scheme.
The Isa, offering projected returns of up to 6.1%, will initially be made available to existing Zopa customers wanting to invest new money. It will then be possible to move existing Zopa loans into an Isa wrapper from 1 July, and transfer funds from third-party Isas from 17 August.
It is expected that new customers will have to wait two months or longer before being invited to open a Zopa Ifisa, due to expected high demand.
Zopa’s Safeguard scheme is a central compensation fund that aims to pay out to lenders whenever a borrower defaults on a loan. This fund is limited, so it could run out if lots of borrowers fail to repay, but it has covered 100% of eligible loans to date.
However, this scheme won’t be offered to Isa customers, nor will it be available to any new investors after December 2017.
It will offer two savings products in an Isa wrapper.
- Zopa Core, in which your money will only be lent to lower-risk borrowers, offers expected returns of 3.9%.
- Zopa Plus lends your money to a wider range of borrowers, offering expected returns of 6.1%.
LandlordInvest reports high demand for secondary market loans (P2P Finance News), Rated: AAA
ACTIVITY on LandlordInvest’s newly-launched secondary market has been better than expected, with investors shrugging off political uncertainty to snap up loan parts in record time.
The peer-to-peer lender, which specialises in buy-to-let finance, launched its secondary market in the middle of May.
Filip Karadaghi, the firm’s co-founder and chief executive, told Peer2Peer Finance News that uptake had been higher than expected, with no signs of a slowdown ahead of Thursday’s UK General Election.
Peer-to-peer comes of age as alternative asset class for investors (Financial Times), Rated: A
More than a decade after the first peer-to-peer sites launched in the UK, the sector that allows investors to lend directly to individuals and small businesses is coming of age. Two of the largest sites in the UK — Zopa and Funding Circle — were last month authorised by the City watchdog, marking a seal of approval for the lenders and providing a boost to the broader sector.
Institutional investors are already piling in. High-profile fund managers including Neil Woodford and Artemis invested more equity capital into RateSetter in recent weeks, valuing the company at more than £200m. Zopa completed a £32m funding round, led by Wadhawan Global Capital, an Indian financial services company.
The rise of peer-to-peer sites means that lending, which as an asset class has been a monopoly for the banks, is opening up to ordinary investors.
Othera and Credit Crowd strike a blockchain partnership (AltFi), Rated: A
Credit Crowd gets on Othera’s blockchain, citing transparency as the key issue.
Blockchain provider Othera has linked up with Australian fintech lender Credit Crowd, allowing the Sydney fintech to digitise its loans on blockchain.
The partnership will allow Credit Crowd’s loans to be tokenised and traded on digital asset token exchanges—in effect, a kind of securitisation.
Credit Crowd is a P2P marketplace that specialises in short-term loans, secured by first mortgage properties. The company claims to have facilitated more than A$100 million worth of loans since its founding in 2012 and managed over A$50 million in their retail fund.
P2P lenders stay away from apps (P2P Finance News), Rated: A
APPS may be seen by some as a vital tool for any fintech business but peer-to-peer lenders have largely avoided this area so far.
Of the biggest UK P2P players, only Funding Circle has an app for investors, while Zopa has one in development.
Instead, others such as RateSetter, MarketInvoice and Landbay have focused on the overall web, desktop and mobile user experience.
Julian Cork, chief operating officer at buy-to-let lender Landbay, said the platform had considered making an app but decided against it.
Will robo-advice mean checkmate for human financial advisers? (Lexology), Rated: A
To date, robo-advice offerings have tended to focus more on the less complex end of the financial advice spectrum. The FCA’s enthusiasm for robo-advisers stemmed largely from concerns about an ‘advice gap’, situations where consumers (particularly those with limited assets) are unable to get advice and guidance on a need they have at a price they are willing to pay. The FCA has therefore seen robo-advisers as a way of providing quick and inexpensive advice primarily in relation to lower value or less complex scenarios. Robo-advice is still in its infancy and is generally not yet at the stage where it can provide sophisticated advice in relation to complex circumstances. Certain external factors are also slowing the spread of robo-advice. For example, recent research sponsored by ING suggests that the majority of the public remains uncomfortable with the idea of automated advice and this attitude will take time to change. In addition, PI Insurers may feel, by necessity, that they need to take a relatively cautious view in relation to new and untested technology. Firms implementing robo-advice solutions may therefore face increased insurance premiums, which is a further potential brake on innovation.
For the foreseeable future then, it appears that human advisers have no need to be concerned. Robo-advice is in the process of automating only one part of the wider industry and even then at a relatively restricted pace. But what about the longer term? If we make the reasonable assumption that advances in robo-adviser technology are inevitable does that mean that robo-advisers will one day become so sophisticated and accepted as to render human input redundant?
Meet the next generation of fintech startups set to revolutionise the world of finance (Wired), Rated: A
Winner of the startup stage Curve, started out in 2015 to cut out the noise and disconnection in the banking landscape. The digital wallet platform is designed to connect all of a person’s financial services into a single go-to place online, which is accessed with a Mastercard.
Finimize has grown an online community of 100,000 people. Each day, members receive a newsletter that digests the biggest finance stories of the day and why they should matter to them.
AgentCASH is an enterprise grade omnichannel platform that enables SMEs to sell and manage their products on multiple channels in real time.
Crowdsurfer brings big-data engineering expertise to crowd and peer finance to help the world understand where funds are flowing to.
Reposit was developed by its CEO Curran McKay as a faster, more affordable alternative to the £3.5 billion tenancy deposit system.
Lendr uses artificial intelligence to act as a reverse auction platform for mortgages.
Co-founder of Capitalise Paul Surtees has built technology that enables SMEs and their advisors to find, compare and select the best lenders available to them – allowing them to access the funding available. The platform matches SMEs with lenders, who are ranked based on their past successes.
London-based Paybase rolls an end-to-end solution for payments, compliance and risk into one unified API. The platform is designed for marketplaces such as the sharing economy or crowdfunding sites, as well as fintech apps and products that have complex payment processes.
China urges banks to devolve loan approval responsibility to boost lending (BusinessLine), Rated: AAA
China’s banking regulator has urged lenders to devolve responsibility for loan approvals to boost credit to small and micro businesses, but also emphasised that risks need to be kept under control.
Guo’s comments were made at a forum on Friday, according to a statement on the website of China Banking Regulatory Commission.
P2P Industry News (Xing Ping She Email), Rated: A
The Chinese Internet Investment Fund was founded jointly by the Cyberspace Administration of China and the Ministry of Finance. The total size of the fund is around $14.9billion. The initial subscription (almost $4.4 billion) has been finished with $300million was acquired by central government as guiding fund, and the rest was raised from strategic investors. Thus, the driven coefficient of the government funds reached to 1:14.
On 9th June, shares of Alibaba jumped by 13.29% and closed at $142.34 per share, the companies’ total market value reached to $362.3 billion. Exceeding Tencent for the second time and become Aisa’s most valuable company.
Previously, Alibaba issued its annual report of 2017 fiscal year, showing that Alibaba has surpassed Tencent on core metrics such as revenue, net earnings and cash flow.
According a report released by Deutsche Bank, Alibaba's estimated revenue for 2018 fiscal year will be far higher than expected, and the disclosed information will drive its stock price up further.
Ping An Launches Fintech Fund (Crowdfund Insider), Rated: A
Sepaking at the recent WSJ D.Live Asia event in Hong Kong, Ping An CIO Jonathan Larsen said Ping An is launching a new fund to invest in early stage Fintech ranging from $10 million to $30 million, according to a report from Dow Jones (here).
NYSE-listed P2P firm confident on its business model (ShanghaiDaily), Rated: A
CHINA Rapid Finance will follow the strategy of “low and grow” to realize a stable and sustainable growth after its debut on the New York Stock Exchange on April 28, Wang Zhengyu, founder and CEO of the Shanghai-based peer-to-peer lender, said in Shanghai yesterday.
CreditEase’s CEO Tang Shares Insights on FinTech in China at The Asian Banker Summit (PR Newswire), Rated: A
CreditEase’s founder and CEO Ning Tang was invited to deliver a keynote speech today at The Asian Banker’s 18th flagship Summit “The Future of Finance” in Singapore. The Summit gathered leading industry, government and academic speakers such as Barney Frank, former US Congressman and a leading co-sponsor of the 2010 Dodd–Frank Act, David Shrier, Managing Director, MIT Connection Science and Engineering, and representatives from: ANZ, Bank of the Philippine Islands, DBS Bank, the Federal Reserve Bank of Chicago, Prosper Marketplace, Prudential, and Uber.
Future Life, Future Finance
The theme of this year’s Summit shares the same vision as CreditEase at its 11th anniversary – “Future Life, Future Finance”.
In his keynote speech, Tang shared his insights as a pioneer and thought leader in the FinTech industry, giving an overview of the current landscape, and anticipating where opportunities will be against the backdrop of potential or inevitable changes.
After 10 years of successful domestic growth, at its 11th anniversary, CreditEase is ready to accelerate its global expansion. The opening of the new Singapore office and Tang’s delivery of the keynote speech at one of world’s renowned financial summits is just part of the global voyage. In addition to Singapore, CreditEase Wealth Management operates overseas offices and affiliate offices in Hong Kong, New York, and Tel Aviv and its domestic mainland China network covers over 40 cities. Its resources are also spread across the US west coast, Germany, UK, and Australia.
China: WeiyangX Fintech Review (Crowdfund Insider), Rated: A
On June 3, 2017 Tsinghua PBCSF Global Finance Forum, which was hosted by Tsinghua University, and organized jointly by the Tsinghua University PBC School of Finance (PBCSF) and Tsinghua University National Institute of Financial Research (NIFR), convened in Beijing.
The highlights of the forum include:
Digital Financial Inclusion: LI Dongrong, President of National Internet Finance Association of China, pointed out in his speech that China and the world had the potential to drive the growth of inclusive economies by promoting digital financial services. While tremendous gains in financial inclusion have already been achieved, digital financial services, together with effective supervision, are essential to close the remaining gaps in financial inclusion.
InsurTech Innovation: JIANG Bo, Director-General of the International Department of China Insurance Regulatory Commission and Member of the strategic Council of PBCSF, said that Insurance technology (InsurTech) is a burgeoning phenomenon that has the potential to help the insurance industry reconnect with its customers following a period of increasing alienation and disengagement.
Three Chinese Fintech Companies Join Slate of Overseas Listing in 2017
- Zhong An Online Property and Casualty Insurance, China’s first online-only insurer, has resumed a plan to raise $1 billion or more in a Hong Kong initial public offering (IPO) in the second half of this year.
- Rong360, an online platform for financial product search, comparison and recommendation, has announced to raise at least $400 million in an initial public offering in the U.S. as soon as 2017.
- With its rapid expansion, Chinese online lending platform Neo Capital has revealed its IPO plan in the U.S. last year.
On June 5, Chinese company Xiaomi, perhaps best known for its smartphones, announced that its affiliate Xiaomi Loan would partner with CITIC Securities to list CNY600 million asset backed securities (ABS) under a shelf registration on Shanghai Stock Exchange.
The ABS product was split into three tranches: AAA, AA and the subprime:
WeChat Pay is now available globally via Paymentwall (Payment Wall), Rated: AAA
Paymentwall has partnered with Tencent to bring WeChat Pay (Weixin Pay) to every online and retail store. The partnership allows every business owner around the world to get instant access to 600 million Chinese shoppers in China and abroad.
With over 600 million active users, WeChat Pay is now one of the most popular payment methods in the world. WeChat Pay processed over $1.5 trillion in Chinese digital payments, representing over 30% of all online transactions made in 2016.
Human-robo combo has greatest chance of success (International-Adviser.com), Rated: A
A combination of human and robo could be the answer for underserved Asian investors seeking low-cost technology-driven financial advice, a market that pure robo-advice providers have found hard to crack.
Inexpensive, automated robo-advisors could be a solution, but unlike in the large markets of US and Europe, in Asia they face difficulties stemming from regulatory fragmentation, lack of scale and investors’ preference for human contact.
The hybrid approach uses automated financial advice systems, but provides a layer of personal contact when dealing with the institution. Some call this approach “cyborg-advisor”, others “bionic advisor”.
Due to low profit margins of robo-advisory services and the necessity to achieve scale in order to be profitable, independent robo-advisors are not likely to succeed in the region under current regulations, according to Aldcroft.
NAB Ventures provides seed funding to Australian start-up Basiq (Banking Business Review), Rated: A
NAB Ventures, a venture capital arm of National Australia Bank, along with Reinventure have provided seed funding to Basiq, an Australian-based start-up that offers open banking API platform.
Lending startup Loanmeet raises seed funding (VC Circle), Rated: AAA
Online peer-to-peer lending platform LoanMeet, which is run by Strivers Solutions Pvt. Ltd, has raised an undisclosed amount of seed funding from a clutch of investors.
Chinese entrepreneur-turned-investors Cao Yibin and Huang Wei, along with KrazyBee.com co-founder and CEO Madhusudan E, participated in this round.
LoanMeet provides short-term working capital loans to retailers for inventory financing. The company claims to be growing at 50% month-on-month.
Flipkart to Add Online Loans to its Marketplace (Crowdfund Insider), Rated: A
Flipkart, one of the largest e-commerce platforms in India sales topping $2 billion each year, is getting into Fintech. Flipkart states that with the creation of a new focused team for financial services and products, Flipkart will be providing the public the option of obtaining loans from e-lending firms.
Flipkart is also expected to start offering other financial services such as access to funds.
Lendingkart gets Rs 50 crore loan from Yes Bank (Medianama), Rated: A
Lendingkart, an online platform for lending to small businesses and entrepreneurs, has raised debt funding worth Rs 50 crore from Yes Bank Ltd. The company said that this is the first step towards eventually shifting from non-banking financial companies (NBFCs), who provide loans at a higher rate, to banks.
In June last year, Lendingkart had raised Rs 205 crore ($32 million) in a series B round of funding led by Bertelsmann India Investments (BII) and Darrin Capital Management, with participation from existing investors Mayfield India, Saama Capital and India Quotient. Of this, $20 million was raised through equity sale and remaining $12 million through debt financing.
How the rise of P2P lending presents several opportunities to banks (India Times), Rated: A
Peer to peer lending is hardly new. But it has risen to commercial prominence in the past few years, thanks to technology. The emergence of marketplace lending platforms connecting individual borrowers and lenders is disrupting the business of lending.
Peer to peer lending is hardly new. But it has risen to commercial prominence in the past few years, thanks to technology. The emergence of marketplace lending platforms connecting individual borrowers and lenders is disrupting the business of lending.
A 2015 survey shows that 25% of U.S. millennials have used a P2P lending platform. According to recent research, the cumulative amount of loans that originated via marketplace lending platforms in China was over $150 billion in 2015. In US and UK, it was close to $30 billion and $10 billion respectively.
While the Indian P2P market is much smaller, the scene is heating up. Last year alone, 20 lending firms cropped up to take the total to about 30. What does this imply for our banking industry?
How Thailand Could Become Southeast Asia’s Next Fintech Hub (Forbes), Rated: AAA
Omise, a payment management platform founded by Jun Hasegawa and Ezra Don Harinsut, is Thai fintech’s greatest success story to date. In 2016, it raised a $17.5 million Series B round and currently operates in Thailand, Japan, Indonesia and Singapore.
The Thai Fintech Association formed in 2016 as a networking club that would facilitate connections among fintech startups, big banks and investors, according to Disyadej. But the organization filed as an association with the Ministry of the Interior this year so it could take a more hands-on role in the industry’s development.
Although TechGrind operates in six countries in the region, it has relocated several of its startups to Bangkok so they can make use of TechGrind’s network and resources there. But TechGrind approaches opportunities in fintech — and in all startup sectors — from a cross-border perspective.
One such company is Pymlo, which creates accounting software for small businesses in Thailand and the broader region.
Hong Kong, Singapore rivalry hobbling Asia in $ 100 billion fintech race (Reuters), Rated: A
Governments across Asia – most notably Hong Kong and Singapore – have launched a raft of initiatives to grab a slice of the $100 billion invested in financial technology globally but the regulatory hotchpotch is making it tough for firms to scale up, the Asia Securities Industry and Financial Markets Association (ASIFMA) said in a report on Friday.
Investors poured $19 billion worldwide into fintech – including P2P lenders, distributed ledger technology and crowdfunding platforms – in 2016 alone and thousands of fintech start-ups continue to proliferate, according to a February report by global regulatory body the International Organization of Securities Commissions (IOSCO).
Hong Kong, Singapore, Australia, Japan, South Korea and Malaysia have launched a range of special programs to attract and foster fintech ventures, from incubators and grants, to temporary license waiver schemes, with competition fiercest between Hong Kong and Singapore.
Consolidated credit database likely to improve lending in the Philippines in 2018 (ASEAN Today), Rated: A
The Philippines will launch a credit consumer database in 2018 in a bid to bolster retail lending.
Bulk of lending in the Philippines have been corporate loan, forming more than 80% of loan books. Consumer lending business have been secondary to corporate lending – analysts explained that the lack of consumer level data can explain this.
The gap between corporate and retail lending is the lack of a credible database.
The government’s Credit Information Corporate collects data from banks in the Philippines. This will be extended to rural financial institutions to build a credible database by 2018.