- Today’s main news: SoFi to shut down Zenbanx. Red Ventures to buy Bankrate website for $1.24B. BofE to get tough on consumer lending. UK P2P lending surpasses 10B GBP. China re-thinks social credit. Korean P2P lending passes 300B won. LendInvest out of P2P lending.
- Today’s main analysis: US ABS market overview. Traditional wealth management challenged by robo boom.
- Today’s thought-provoking articles: How the market pushed Realty Mogul out of residential fix and flips. MYBank pushes deeper into small business lending. The growth of alternative finance.
- SoFi to shut down Zenbanx. GP:”We do not know the details of the acquisition but we assume part of the due diligence SoFi was aware of this issue and therefore they didn’t purchase Zenbank for their customers or services, but perhaps for their team and know how?”AT: “I suspected this would happen. If they have the technology and the talent, what else do they need?”
- US ABS market overview. GP:”steady growth in all segments except maybe auto”
- How the market pushed Realty Mogul out of residential fix and flips. GP:”I continue to believe that fix and flip is highly correlated with the economic cycle and if a company relies on it there will be years with no origination in that market at some point.”AT: “Markets, and market conditions, change. This looks like a smart move for Realty Mogul. A good rationale, at least.”
- Ally Bank online savings APY increases to 1.15%. GP:”Goldman Sachs online Bank increased it, Ally increased it… perhaps the FED rate adjustment is having an impact or perhaps the competition for savings dollars is increasing. Or both. “AT: “If consumers can get better savings interest rates at online banks, why wouldn’t they?”
- Inside the arms race between banks and startups. AT: “Focuses on negatives for banks. Seems a bit one sided. I don’t believe banks are out of the picture just yet, but we will likely see a steady decline soon. The survivors will be those banks that adapt and adopt the technology of online lenders.”
- LendingTree, LeadsCon unveil first $25K startup innovation spotlight.
- Tide raises $14M. GP:”Congratulations!”
- Lifshitz&Miller investigate LendingClub. GP:”All public companies have an ongoing litany of lawsuits as soon as their stock does something un-usual. This is normal life for a public company in the US.” AT: “I don’t understand why now, a full year after the Renaud Laplanche issues.”
- Red Ventures to buy Bankrate website for $1.24B. GP:”This is big news, and an amazing valuation. There is money in customer acquisition for fintech.”
- Goldman raises $1B for real estate fund. GP:”Goldman has been in the real estate funding business for long time. focused on large commercial properties. Perhaps a good usage of the savings capital from Goldman Sachs bank could be real estate crowdfunding as well in the same way as Marcus works for unsecured personal lending? $1B for Goldman is not much money, this is not big news anyway. “
- Suretly launched initial chocolate offering. GP:”Very amusing, but looks a little desperate.”
- Bank of England prepares to get tough on consumer lending.
- Orca celebrates UK P2P lending surpassing 10B GBP mark. GP:”A great milestone, congratulations!”
- Traditional wealth management challenged by robo-adviser boom. GP:”While many people look dissapointed by the under delivery of robo-advisers, they still managed to endanger a large financial market. So perhaps fintechs don’t have to be perfect to have significant impact on the rest of the financial space.”
- LendInvest out of P2P lending. GP:”Some more comments on the news announced last week.”
- Kuflink debuts property-backed IFISA.
- Assetz Capital bids to lend 300M GBP. GP:”Assetz Capital continues to grow. Congratulations!”
- It’s time to bring back ghost houses.
- Londoners borrowed 17B GBP in new mortgages in 2016.
- AI savings platform launches 700K GBP crowdfunding campaign.
- NatWest trials AI compliance tool. GP:”Reg-tech is coming? Nobody is scared of reg-tech and I think everybody is looking forward to it, except maybe attorneys.”
- P2PFA announces new associate membership. GP: ” Notable: Equifax, Grand Thornton UK, Orca Money, Simmons and Simmons. I find interesting that non lenders are also joining.”
- Hive launches blockchain-based invoice financing platform.
- WiseAlpha founder/CEO comments on Crowdcube funding round. GP:”Blockchain and lending; I expect this combination to grow and accelerate due to the recent crypto markets significant growth ( see : https://coinmarketcap.com/ )
- RateSetter targets new business borrowers.
- Lewis appointed on B2B brief for ArchOver.
- China re-thinks social credit.
- MYBank pushes deeper into business lending.
- Chinese tourists drive mobile payments globally.
- Clobotics raised third round from GGV Capital.
- Police arrest 32 employees of crowdfunding company.
- The growth of alternative finance.
- European Investment Bank pledges 18.5M Euro for continental European SMEs. GP:”Great source of capital!”
- Karma bagged $4M for food waste app.
- VIAINVEST hit 10M EUR in loans funded.
- United States
- Six months after acquisition, SoFi is shutting down Zenbanx (TechCrunch), Rated: AAA
- US ABS Market Overview (Finsight.com), Rated: AAA
- The Market Pushed Us Out of Residential Fix and Flip (Realty Mogul), Rated: AAA
- Ally Bank online savings APY increases to 1.15% (Reddit), Rated: A
- Peek Inside The Fintech Arms Race Between Banks And Startups (International Business Times), Rated: A
- LendingTree, LeadsCon Unveil First-Ever $ 25,000 Startup Innovation Spotlight (IT Business Net), Rated: A
- Banking startup Tide raises $ 14 million to ‘give small businesses back their time (Business Insider), Rated: A
- Lifshitz&Miller LLP Announces Investigation of LendingClub Corporation (PR Newswire), Rated: A
- Bankrate website to be bought by Red Ventures for $ 1.24bn (Financial Times), Rated: A
- Goldman Raised $ 1B For A Real Estate Fund (Bisnow), Rated: B
- Suretly launched an Initial Chocolate Offering (Newsbtc), Rated: B
- United Kingdom
- The Bank of England is preparing to get tough on consumer lending (Business Insider), Rated: AAA
- ORCA celebrates peer to peer lending uk surpassing £10 billion mark (Orca Money), Rated: AAA
- Traditional wealth management challenged by robo-adviser boom (Raconteur), Rated: AAA
- LendInvest out of P2P sticks to managing funds (Anonymous Email), Rated: A
- Kuflink Debuts Property-Backed Innovative Finance ISA & New Investment Options (Crowdfund Insider), Rated: A
- Assetz Capital bids to lend £300m after profitable year (Bridging&Commercial), Rated: A
- It’s time to bring ghost houses back to the land of the living – Lendinvest (Mortgage Solutions), Rated: A
- Londoners Borrowed £17B in New Mortgages in 2016, Wimbledon & Wandsworth Top Borrowers (Crowdfund Insider), Rated: A
- AI savings platform launches £700,000 crowdfunding campaign (P2P Finance News), Rated: A
- NatWest trials AI compliance tool to ensure financial advice is spot on (Internet of Business), Rated: A
- P2PFA Announces New Associate Membership, Publishes Names of First New Members (Crowdfund Insider), Rated: A
- Hive Project Launches Blockchain-Based Invoice Financing Platform, Targets SMEs (Finance Magnates), Rated: A
- WiseAlpha Founder & CEO Rezaah Ahmad Comments on Successful Crowdcube Round (Crowdfund Insider), Rated: B
- UK P2P Lender RateSetter Update: Targets New Business Borrowers (Crowdfund Insider), Rated: B
- Lewis appointed on b2b brief for p2p lending platform (PR Week), Rated: B
- China changes tack on ‘social credit’ scheme plan (Financial Times), Rated: AAA
- MYbank Deepens Push for Business Big Banks Won’t Touch (Bloomberg), Rated: AAA
- Chinese tourists are driving mobile payments across the globe (IBS Intelligence), Rated: A
- UAV Startup Clobotics Raised its First Round of Financing from GGV Capital (Xing Ping She), Rated: A
- Police Arrest 32 Employees of Company Behind ‘Straddling Bus’ (Sixth Tone), Rated: B
- European Union
- Investor protection vs Access to Finance: The Growth of Alternative Finance (Crowdfund Insider), Rated: AAA
- The European Investment Bank Pledges €18.5 million to Finance Continental European SMEs through Lendix (Crowdfund Insider), Rated: A
- Swedish tech elite’s darling startup Karma just bagged $ 4 million for its hyper-growing food waste app (Business Insider), Rated: A
- P2P Lender VIAINVEST Hits €10 Million in Funded Loans (Crowdfund Insider), Rated: A
- Australia/New Zealand
- Xpress Super and Australian P2P lender RateSetter announce partnership (Finder.com), Rated: A
- Introducing HashChing – an online marketplace for home loan deals (sa real estate news), Rated: A
- Colliers’ alternative to bank funding (True Commercial), Rated: B
- UrbanClap Raises $ 21M in Series C (BW Disrupt), Rated: A
- Reliance Capital arm invests $ 1 mn in P2P lending platform Billionloans (VC Circle), Rated: A
- Peer-to-peer loans pass 300 billion won for first time (Korea JoongAng Daily), Rated: AAA
- Singapore fintech startup Instarem raises $ 13 mn to expand payment infra (VC Circle), Rated: A
- Singapore fintech startup Validus Capital raises US$ 2.9M to grow SME lending platform (e27), Rated: A
- Chinese investors eye Indonesia’s P2P lending marketplace Investree for Series B (udaipur kiran), Rated: A
Six months after acquisition, SoFi is shutting down Zenbanx (TechCrunch), Rated: AAA
Online lending company SoFi is closing down Zenbanx, the online banking provider it bought earlier this year. In an email sent to Zenbanx customers, the company announced that it will close all accounts at the end of next month.
According to a SoFi spokesperson, Zenbanx had a partnership with Wilmington Savings Fund Society (WSFS) that expired this month and, rather than renew it or find another partner, the company decided to just close existing accounts.
US ABS Market Overview (Finsight.com), Rated: AAA
Recent New Issue
The Market Pushed Us Out of Residential Fix and Flip (Realty Mogul), Rated: AAA
If you are like many investors, you loved our residential loan product. Short term investments with high yield (9-12%) and monthly distributions, what’s not to love? And as much as our investors love them, you will no longer find them on RealtyMogul.com. We stopped originating them.
The purely local nature of fix and flip lending changed with online lenders having nationwide reach and access to tremendous amounts of capital, either from retail or institutional investors. At one point, RealtyMogul.com had in hand nearly $1 billion in capital commitments to purchase fix and flip loans from institutional buyers – that’s a lot of homes!
In late 2015 we started to notice a market shift. Fix and flip loan pricing started to drop. First it was 11%, then 10%, then 9%, and in many major markets it dropped to 8%. Throw in the cost of servicing these loans and on an 8% loan, investors’ estimated return is 7%.
At 8%, there should be a relatively lower risk profile to a loan. But in fact, the opposite was true. The dramatic increase in capital in the market meant that riskier loans were demanding lower and lower rates. Borrowers with great experience, credit and lower leverage were able to get rates in the 4-5% range from banks, whereas the 9-12% loans were only available in markets where there were no alternatives and the risk was fairly high.
Ally Bank online savings APY increases to 1.15% (Reddit), Rated: A
Peek Inside The Fintech Arms Race Between Banks And Startups (International Business Times), Rated: A
Capital One is opening Capital One Cafes in major cities across the U.S., with hip decor and more laidback consulting vibes than traditional branches. JPMorgan is trying the same idea with its Manhattan technology hub. Bloomberg reportedthe bank’s $9.6 billion technology budget coincided with new startup-style offices featuring foosball tables, open workspaces and snacks. But it might be too little, too late.
While, money transfer apps like Apple Pay, Venmo and WorldRemit garner widespread adoption, some experts predict banks could also lose well over half their retail profits to fintech startups. Flashy offices won’t change the fact that the days of traditional banking are over.
Nubank looks beyond traditional credit scores, using cellphone data and driver’s license information to find creditworthy customers who would never meet the requirements of a traditional bank. Like SoFi mortgages in the U.S., Nubank interest rates are flexible and can change as the customer’s financial security increases. Combine that with a lack of fees plus a smooth mobile experience, and traditional credit cards seem very outdated by comparison.
According to a Gallup poll, the amount of Americans who feel confident in U.S. banks dropped from 49 percent in 2006 to just 27 percent by 2016.
A nationwide survey of 500 chief financial officers byWEX Virtual Payments found 55 percent consider mobile payment options very important, in addition to 54 percent who say to same of blockchain solutions.
“53 million Americans aren’t served by the current credit score market, but have great cash flow,” Thomas told IBT. Nubank in Brazil and the fintech startup Tala, which has distributed around 2 million micro-loans in places like in Kenya and Tanzania, prove there’s no need to restrict loan eligibility to traditional metrics.
LendingTree, LeadsCon Unveil First-Ever $ 25,000 Startup Innovation Spotlight (IT Business Net), Rated: A
LendingTree, the online loan marketplace, and Access Intelligence, a business information and marketing company, today announced a new initiative to showcase the top startup companies in financial technology (fintech) lead generation at LeadsCon this summer.
The “LendingTree Startup Innovation Spotlight” at LeadsCon’s Connect to Convert will recognize the most innovative fintech startups across the consumer lead generation, call center and customer experience sectors. Startups around the world can apply today at http://www.leadscon.com/connecttoconvert/start-up-spotlight/ for a chance to receive exposure, bragging rights and $25,000 in cash. Finalists will be announced in August and selected live on stage amid 1,000 industry executives at LeadsCon’s Connect to Convert industry conference and expo, August 21-23 at the New York Hilton Midtown.
Banking startup Tide raises $ 14 million to ‘give small businesses back their time (Business Insider), Rated: A
Banking startup Tide raised $14 million in one of the largest Series A funding rounds closed by a fintech company this year.
Tide, a digital-only banking app aimed at small businesses, has also partnered with online lender iwoca, in a move to allow small companies access to loans of up to £100,000.
The funding round was led by specialist fintech investor Anthemis, along with Passion Capital, LocalGlobe and Creandum, the company that backed Spotify.
Lifshitz&Miller LLP Announces Investigation of LendingClub Corporation (PR Newswire), Rated: A
Lifshitz & Miller announces investigation on behalf of LC investors concerning whether LC’s former CEO, Renaud Laplanche, engaged in improper loan transactions and personal investments as a result of material weaknesses in LC’s internal controls.
If you are an LC investor, and would like additional information about our investigation, please complete the Information Request Form or contact Joshua Lifshitz, Esq. by telephone at (516)493-9780 or e-mail email@example.com.
Bankrate website to be bought by Red Ventures for $ 1.24bn (Financial Times), Rated: A
Bankrate, the US personal finance website, is to be bought for $1.24bn by Red Ventures, a digital marketing company which is expanding its footprint in financial services.
Private equity-backed Red Ventures has agreed to pay $14 per share in cash for Bankrate, which produces online content focused on financial advice and research, such as mortgage and savings calculators and credit card and insurance comparison tools.
Goldman Raised $ 1B For A Real Estate Fund (Bisnow), Rated: B
Documents filed with the Securities and Exchange Commission show that the investment bank has raised $1B for a new real estate fund, Broad Street Real Estate Credit Partners III. Further documents show it is on the road looking to raise more capital for the fund, with a source indicating to Bisnow that it is looking to pull in the same amount again over the coming months.
Around $600M came from U.S. investors and the rest from overseas, the documents show. Goldman typically puts around 20% of the equity into the funds it manages.
Suretly launched an Initial Chocolate Offering (Newsbtc), Rated: B
NYC-based startup Suretly, which raised $350K during preICO round this May, launched an Initial Chocolate Offering.
The event took place in Copenhagen, Denmark during Money2020 conference. All guests, who has visited Suretly’s booth, were gifted with a chocolate souvenirs shaped in SUR-token. Each token was packed in the individual memorable wrapping with the future Suretly ICO information.
The Bank of England is preparing to get tough on consumer lending (Business Insider), Rated: AAA
The Bank of England ordered British banks and other lenders on Tuesday to prove by September that they are not taking on too much risk with their increased lending to consumers.
The BoE’s Prudential Regulation Authority did not set out any new rules on Tuesday but its move was the first time it has ordered firms it supervises to apply consumer credit rule more conservatively.
The PRA said it was “requesting evidence from all firms with material exposures to consumer credit of how they will – across consumer credit portfolios- ensure” they are not taking too much risk after years of low interest rates.
Lenders will have until September to respond and could then be asked to fix any specific areas of weakness by the PRA.
ORCA celebrates peer to peer lending uk surpassing £10 billion mark (Orca Money), Rated: AAA
Peer-to-peer lending has reached a significant milestone since Zopa launched the world’s first P2P platform in 2005. Over £10 billion has been cumulatively lent across 23 UK P2P platforms. In the first half of 2017 alone, over £2 bn was invested through P2P.
Take a look at the UK alternative lending ecosystem.
Traditional wealth management challenged by robo-adviser boom (Raconteur), Rated: AAA
Survey after survey shows that millennials, and indeed most potential investors aged under the age of 60, are happy to entrust their savings to a digital platform or mobile app, so long as it’s credible, secure, trustworthy, capable of offering them a range of low-cost funds and some personal investment advice.
Of the robo-advisers in the UK, the largest is Nutmeg. Launched in 2012, it has so far raised £71 million in five funding rounds from venture capitalists and others. Nutmeg has more than £600 million under management, though it remains loss making, and escalating marketing and advertising costs meant that in 2015 its losses widened from 2014.
Other UK players include Wealthify, launched in 2015; MoneyFarm, launched in Italy in 2012, and in the UK in 2016; and Scalable Capital, launched in 2016.
Brewin Dolphin has launched a robo-adviser that allows customers with between £10,000 and £200,000 to invest in one of six model portfolios at a cost of 0.7 per cent of invested assets, plus underlying charges of between 0.11 per cent and 0.16 per cent.
LendInvest out of P2P sticks to managing funds (Anonymous Email), Rated: A
Our sources reported that LendInvest cancelled their FCA application due to their decision to completely exit the p2p lending space.
As can be seen on the FCA website:
|Firm name:||Lendinvest Limited|
|Interim Permissions reference number:||658890|
|Permission||Description||Status||Limitation Against Permission||Permission End Date|
|Consumer credit business||Entering into a regulated credit agreement as lender; and exercising, or having the right to exercise, the lender’s rights and duties under a regulated credit agreement.||Inactive||02/06/2017|
|Credit brokerage||Credit broking
Credit broking limited to credit intermediation
|No right to canvass off trade premises|
It appears that this decision was due to the 36(H) legal rules around peer top peer in the UK . It has apparently become “more difficul to stay within the new 36(H) rules without becoming a bank or fund manager”. As LendInvest was already a fund manager, the company has decided to remain a fund manager and focus on that structure as opposed to applying for FCA p2p regulation.
In a similar fashion the online lender Wellesley has taken a similar approach having ‘paused’ P2P yet still shows as active.
This change makes Assetz Capital the 2nd largest business and property lender who is P2P in Europe. See
Of £295m lent, c £290m is P2P retail investors.
Kuflink Debuts Property-Backed Innovative Finance ISA & New Investment Options (Crowdfund Insider), Rated: A
UK-based peer-to-peer lending platform Kuflink has launched its Innovative Finance ISA (IFISA) and also two investment options. This news comes just a few months after the online lender received full authorization from the Financial Conduct Authority (FCA).
Assetz Capital bids to lend £300m after profitable year (Bridging&Commercial), Rated: A
Assetz Capital claimed it would lend over £60m during the first quarter of this current financial year as it bids to reach £300m of lending for the whole of the year.
It’s time to bring ghost houses back to the land of the living – Lendinvest (Mortgage Solutions), Rated: A
As the Council of Mortgage Lenders has previously pointed out, even if the government managed to push the building industry into producing 300,000 homes across the UK each year, 90% of the housing stock that will exist by 2025 has already been built. If we are to tackle the housing issues we face, it’s not just down to increasing the rate at which new developments spring up – we need to make far better use of the houses we already have, too.
An obvious problem with some of these ‘ghost homes’ is that in their current condition nobody would want to live in them. They may have been ignored for years, falling into disrepair to the extent that they may actually be unlivable.
But these are exactly the sorts of properties that savvy investors may be looking for, the worst house on the street which can be done up, turned into a nice, respectable home and then sold on at a profit.
Londoners Borrowed £17B in New Mortgages in 2016, Wimbledon & Wandsworth Top Borrowers (Crowdfund Insider), Rated: A
Londoners borrowed another £17 billion in new mortgages last year as the affluent southwest London neighbourhoods of Wimbledon and Wandsworth topped the borrowing league table and and 17 of the top 20 areas for new mortgage lending last year are in London, reported European P2P lending platform Lendy.
The highest non-London area among for new mortgages is Maidenhead, which placed 11th out of the 2,717 postcode areas in the study.
AI savings platform launches £700,000 crowdfunding campaign (P2P Finance News), Rated: A
AN ARTIFICIAL intelligence platform that has partnered with RateSetter to help people save and invest is looking to raise £700,000 through crowdfunding.
The fintech firm, Plum, has launched a crowdfunding campaign on Seedrs, to build its team and platform.
NatWest trials AI compliance tool to ensure financial advice is spot on (Internet of Business), Rated: A
The UK bank will use the Recordsure compliance tool based on artificial intelligence (AI) from regulatory risk specialist TCC Group in order to record face-to-face and telephone conversations between the bank and its customers – with those customers’ consent, naturally.
The AI technology is able to analyze an interaction and then classify sections of the conversation, according to Recordsure’s creators. For example, it could determine which aspects of the conversation were general chitchat, which involved financial advice, and what topics were discussed.
P2PFA Announces New Associate Membership, Publishes Names of First New Members (Crowdfund Insider), Rated: A
The Peer-to-Peer Finance Association (P2PFA) has created a new category of membership to boost its ranks and add perspective to the association that represents the UK’s top online lenders.
These new members include:
- Alterest – Provides non-bank lending markets with loan intelligence infrastructure that enables: seamless exchange of lending data in a secure and timely manner, and flexible analysis of performance and risk of any loan pool or exposure.
- Altus Consulting: A specialist provider of consultancy services to the financial services sector.
- Equifax: A global information solutions company that uses data, analytics, technology and industry expertise to power organisations and individuals around the world by transforming knowledge into insights that help make more informed business and personal decisions.
- Fox Williams LLP: A City law firm with one of the leading Fintech practices in the UK, acting for over fifteen P2P lending platforms.
- Grant Thornton UK LLP: A global consultancy that is part of a network of over forty-thousand people in 130 countries. In the UK they are led by 185 partners and more than 4,500 people.
- Orca Money: A platform that is driving the mainstream adoption of peer-to-peer lending by providing research, analysis and tools to empower investors.
- Simmons & Simmons: An international law firm with a Fintech team that comprises a range of multi-disciplinary lawyers from across their European, Middle Eastern and Asian offices.
- TLT LLP: Supports large corporates, public institutions and high-growth businesses on their strategic and day-to-day legal needs.
Hive Project Launches Blockchain-Based Invoice Financing Platform, Targets SMEs (Finance Magnates), Rated: A
Despite being the backbone of every economy, small and medium-sized businesses have traditionally faced challenges in securing access to short-term financing from traditional lenders. To resolve this issue, the Hive Project today announced the development of a cryptocurrency invoice financing platform to help SMEs overcome the hurdles they face when trying to get the financing they need.
WiseAlpha Founder & CEO Rezaah Ahmad Comments on Successful Crowdcube Round (Crowdfund Insider), Rated: B
WiseAlpha, a UK first online lending platform that gives investors access to high yield institutional bond and loan investments, has overfunded its £500k target on Crowdcube by 258%, raising £1.29 million.
The largest single investment was £150K.
“We’re thrilled to have overfunded our original target and glad that the 1452 people who have invested in us so far are backing our vision of a fairer investment world where everyday investors aren’t shut out from accessing the biggest and best investments.”
UK P2P Lender RateSetter Update: Targets New Business Borrowers (Crowdfund Insider), Rated: B
Now the lender is planning to boost its direct marketing methods to diversify its new business borrowers sources, according to Peer2Peer Finance News.
Lewis appointed on b2b brief for p2p lending platform (PR Week), Rated: B
Lewis has been appointed by ArchOver, a peer-to-peer lending platform for UK SMEs, to run a campaign aimed at business audiences.
China changes tack on ‘social credit’ scheme plan (Financial Times), Rated: AAA
Beijing has pulled back on plans to license big technology companies to develop “social credit” scores for consumers, based mainly on their online activity, because of concern over conflicts of interest, industry analysts said on Tuesday.
The People’s Bank of China, the central bank, selected eight tech companies in 2015 — including e-commerce group Alibaba’s Ant Financial and game developer Tencent — to develop pilot programmes to give consumers credit scores.
The pilots, which monitored spending patterns but also personal behaviour and social media activity, initially raised concerns about consumer privacy. Some of their metrics were seen as irrelevant, including proposals to factor in exercise routines or what time of day people went online. Others were considered more sinister, such as efforts to rate “honesty” or “trustworthiness” by linking credit scores to friends’ social media posts.
Beijing has now decided not to award any licences this year after regulators expressed increasing concern about the potential for conflicts of interest.
MYbank Deepens Push for Business Big Banks Won’t Touch (Bloomberg), Rated: AAA
MYbank, the two-year-old Chinese online lender that already has 3.5 million small-business customers, plans to push deeper into a segment that’s long been shunned by the country’s largest banks.
MYbank wants to capitalize on its links to billionaire Jack Ma’s Alibaba Group Holding Ltd. by offering loans to the more than 10 million smaller merchants that use the company’s e-commerce platforms, MYbank President Huang Hao said in a June 29 interview. Ant Financial, Alibaba’s financial affiliate, owns 30 percent of the online lender.
Formally known as Zhejiang E-Commerce Bank Co., MYbank was able to more than quadruple its lending through 2016, taking its outstanding loans to 33 billion yuan ($4.9 billion).
Its nonperforming-loan ratio was around 1 percent, Huang said, lower than the national average of 1.74 percent. The bank’s technology, which runs loan applications through more than 3,000 computerized risk-control strategies, has kept delinquencies in check, he said.
Still, last year’s lending explosion came at a cost, dragging its capital adequacy ratio down to 11.07 percent by December from 18.51 percent a year earlier.
Chinese tourists are driving mobile payments across the globe (IBS Intelligence), Rated: A
The number of Chinese tourists abroad hit 122 million in 2016, with a vast majority of them paying via their mobile phones. That’s according to a new study from Kapronasia and CANCAN. The survey pool contained 1,000 Chinese consumers abroad and 60 global merchants.
While 67% of respondents reported that they use Alipay or WeChat Pay for overseas purchases. This represents about 41% of overseas consumption and tourists used mobile payments for more than 10% of total transactions.
The report also highlights how Chinese tourists are spending more and more in retail ($900 on average in 2016), instead of luxury items. Only 5.7% spent more than $6,288, with a total amount of $109.8 billion throughout 2016.
80% of merchant respondents cited consumer demand as one of the main reasons for adopting mobile payments, with 70% adding that mainland Chinese consumers were their largest source of global revenue. Clothing, makeup, skincare, food and beverages top the list of goods purchased with mobiles, with travel and accommodation not far behind.
UAV Startup Clobotics Raised its First Round of Financing from GGV Capital (Xing Ping She), Rated: A
Recently, a Shanghai-based Unmanned Aerial Vehicle (UAV) startup—— Clobotics finished its first round of financing from GGV Capital, the amount was not disclosed. According to George Yan, the founder and CEO of Clobotics, this round of financing will focus on developing and iterating their products and technology, expanding the marketing layout, and accelerating the development of Clobotics in the key vertical field.
Set up in November 2016, Clobotics is a provider of business intelligence (BI) and visualizing data, focus on the research of UAV machine vision, industrial big data acquisition, and cloud big data processing and analysis. Unlike many of the domestic manufacturers that focus on hardware plane, Clobotics is good at using leading software, technology and platforms to embed advanced technologies in the field of artificial intelligence, so as to fully explore the value of UAV-collected data.
Police Arrest 32 Employees of Company Behind ‘Straddling Bus’ (Sixth Tone), Rated: B
The test site of China’s fantastical traffic-straddling bus was dismantled in June, and now the peer-to-peer financing company that backed the project is being investigated for illegal fundraising.
Following reports of unlawful conduct, a total of 32 suspects at Beijing-based Huaying Kailai Asset Management Co. Ltd. have been arrested, according to an announcement Sunday by Beijing police on their Weibo microblog.
Investor protection vs Access to Finance: The Growth of Alternative Finance (Crowdfund Insider), Rated: AAA
Clearly in Europe (Brexit aside) the UK has led sector growth. A combination of a culture of entrepreneurship and risk taking has combined with a supportive government and a regulatory body tasked with a mission of fostering competition – perhaps to the frustration of traditional financial firms. The rise of internet finance in the UK has engendered few occurrences of fraud to date. Growth has been sustained. Perhaps the Brits have gotten the balance right so far?
But which country has the largest alternative finance market in the world? China, of course.
Kleverlaan points to Italy as a country that has stumbled out of the gate. Something the country is attempting to rectify with recent rule changes specifically targeting equity crowdfunding.
View the full report on alternative finance here.
The European Investment Bank Pledges €18.5 million to Finance Continental European SMEs through Lendix (Crowdfund Insider), Rated: A
The European Investment Bank Group (EIB) through the European Investment Fund (EIF) has announced that it will provide €18.5 million to back a joint investment fund designed to lend money to SMEs through crowdlending platform Lendix.
Swedish tech elite’s darling startup Karma just bagged $ 4 million for its hyper-growing food waste app (Business Insider), Rated: A
Swedish startup Karma has built an app that helps restaurants, grocers and cafés reduce their food waste by selling their surplus to consumers at reduced prices.
The company has now raised between 30 and 40 million SEK ($3,5 – $4,7m) to take on Europe after a booming start in its Swedish home market.
The seed round comes from Swedish investor Eequity and global VC fund e.ventures, which has also backed the hyped Swedish fertility app Natural Cycles.
P2P Lender VIAINVEST Hits €10 Million in Funded Loans (Crowdfund Insider), Rated: A
Newly launched peer to peer lending platform VIAINVEST has announced topping €10 million in loans. The 7 month old Latvian platform said consumer loans issued by VIA SMS Group, came from the Czech Republic, Poland, Latvia and Spain.
Xpress Super and Australian P2P lender RateSetter announce partnership (Finder.com), Rated: A
RateSetter, Australia’s largest peer-to-peer lender, and self-managed-superannuation-fund (SMSF) administrator Xpress Super have today announced a partnership.
Through the partnership, SMSF investors will now have direct access to their RateSetter account via the Xpress Super platform, making it easier for SMSF investors to lend to creditworthy borrowers.
Introducing HashChing – an online marketplace for home loan deals (sa real estate news), Rated: A
Based in the heart of Sydney, HashChing is Australia’s first online home loans marketplace for broker-negotiated home loan deals.
All mortgage brokers are verified and rated through the website Artificial Intelligence Algorithm, selecting the brokers who offer the best services and then recommending them to borrowers in their area. Similar companies that had paved the way before HashChing had simply listed rates to the consumer through the bank or lender’s website.
Home loan rates on HashChing start from 3.59% p.a. and consumers can browse through the home loan deals page to see what offers are available.
Currently the company has helped over 14,500 borrowers with their home loan enquiries, all worth more than $7 billion dollars combined. Of which, $6 billion has come in the last 12 months alone, and the company also currently lists more than 600 verified mortgage brokers – including 30 mortgage brokers from SA.
Colliers’ alternative to bank funding (True Commercial), Rated: B
A new Colliers International service is providing an alternative to traditional bank funding by matching commercial property investors to development and investment opportunities.
The Capital Sourcing unit was established by Tim Lichtenstein, who has a track record in capital raising for commercial real estate assets.
UrbanClap Raises $ 21M in Series C (BW Disrupt), Rated: A
Home services start-up firm UrbanClap has raised $21 million in a series C funding round led by Internet investment fund Vy Capital. Led by Alexander Tamas, Dubai-based Vy Capital is a major investor in Zomato.
Early investors SAIF Partners, Accel Partners and series B investor Bessemer Venture Partners also participated in the round. Existing investors also spent approximately $1 million more to buy shares held by some employees and a part of stakes of angel investors Kunal Bahl and Rohit Bansal, the founders of Snapdeal, UrbanClap co-founder Abhiraj Bhal told LiveMint.
Reliance Capital arm invests $ 1 mn in P2P lending platform Billionloans (VC Circle), Rated: A
Billionloans Financial Services Pvt. Ltd, a Bengaluru-based fintech startup that operates a peer-to-peer (P2P) lending platform, has raised $1 million (around Rs 7 crore) in seed funding from Reliance Corporate Advisory Services Ltd, a wholly owned subsidiary of Reliance Capital Ltd.
Peer-to-peer loans pass 300 billion won for first time (Korea JoongAng Daily), Rated: AAA
The number of peer-to-peer loans more than doubled in just six months, going from 96.9 billion won ($84.5 million) in June last year to over 300 billion won in December.
The change represents a 220.5 percent increase, according to data provided by the Financial Supervisory Service and Financial Services Commission.
The number of users also surged 116.6 percent to 6,632 in June compared to December’s 3,062.
Singapore fintech startup Instarem raises $ 13 mn to expand payment infra (VC Circle), Rated: A
Instarem, a Singapore-headquartered cross-border payments company founded by Indian-origin entrepreneur Prajit Nanu, has raised $13 million in a Series B funding round led by Chinese venture capital firm GSR Ventures, a company statement said.
Singapore fintech startup Validus Capital raises US$ 2.9M to grow SME lending platform (e27), Rated: A
Singapore-based fintech startup Validus Capital has raised S$4 million (US$2.9 million) from Vertex Ventures.
It will use the newly-raised round to expand regionally and grow its online lending platform.
Chinese investors eye Indonesia’s P2P lending marketplace Investree for Series B (udaipur kiran), Rated: A
Indonesian peer-to-peer lending marketplace Investree announced recently that Chinese investors have initiated discussions for an investment in the company for its next Series B round.
If successful, the deal will become one of the first international investments in Indonesia’s fintech space. Previously, the startup has raised an undisclosed Series A round in 2016 from local venture capital Kejora which typically invest US$2 to US$5 million in their portfolio firms.