- Today’s main news: Lending Club considering bid for bank charter. N26 to launch in the UK. TransferWise hooks $280M investment for APAC expansion. Zopa vows rate hike won’t impact loan performance. Hexindai debuts on NASDAQ with 60% increase. Westpac profits AU$7.99B. Kaodim raises $7M.
- Today’s main analysis: SoFi’s latest consumer lending deal.
- Today’s thought-provoking articles: How payment tech is being disrupted. Chinese unicorns questioned over fundraising. Fintech capital raising picking up speed. 7 in 10 UAE residents not sure how to achieve financial goals.
- LendingClub eyes bank charter. AT: “The question that comes to mind is, what are the specific lending and regulatory changes that are leading to this thought process?”
- How payment technology is being disrupted. AT: “Reading this, I’d draw the conclusion that millennials are driving this change, but I think it’s a bit more complex than that.”
- SoFi’s latest consumer lending deal. AT: “So, are natural disasters driving this train?”
- Jack Dorsey says Square is moving as fast as they can on bank application.
- A perfect storm in MPL ABS.
- MoneyLion launches MoneyLion Plus.
- Credit Karma launches online vehicle center.
- Alternative lenders hold a larger portion of the personal loan market.
- Wells Fargo launches new banking app.
- MPL news roundup.
- Redpoint Capital Group sells stake to Dundon Capital Partners.
- Digital lending innovation starts with simple things.
- Citizens Bank digitizes SMB lending process using Fundation.
- BlackRock sets up in west coast.
- loanDepot JVs with OfferPad.
- Better Mortgage names new business development director.
- Karma to speak at Blockchain Expo North America.
- Goji appoints new CEO.
- BrightPlan launches hybrid robo.
- N26 to launch in UK in 2018.
- TransferWise hits $280M investment for APAC expansion.
- Will Zopa rate hike impact loan performance?
- LendInvest reaches 500M GBP assets under management.
- UK interest rates rise for first time in a decade.
- Cashplus seeks bank license.
- Volkswagen looking at obtaining a bank license.
- Lendy may offer auto-invest products.
- Interview with Simon Champ of P2PGI, Pollen Street Capital. AT: “A Lend Academy podcast.”
- CoInvestor provides first digital access to LendInvest Real Estate Opportunity Fund advisors.
- Interview with CEO of Assetz Capital.
- Singaporean wealth fund invests in OakNorth.
- What about Crowd VCT?
- Three alternative reasons to consider P2P investing.
- Hello Soda raises 5.5M GBP.
- Hexindai rises more than 60% with NASDAQ debut.
- Chinese unicorns face greater scrutiny over fundraising.
- Is Yixin a lemon?
- IDG Capital, CreditEase help retail investors.
- How fintech fundraising is picking up speed. AT: “A good run down of the latest capital raises globally.”
- How banks can use ETHlend to reduce interest rates.
- Introduction to Lendoit.
- Efficiency and convenience through Lendoit.
- Alegra, Bankity to compete for funding in Miami.
- Blockchain brings sharing economy to everyone.
- Westpac registers AU$7.99B in profit.
- How bank wealth models are unraveling.
- SelfWealth IPO offers self-directed investors an alternative.
- 4 lending platforms helping unbanked SMEs.
- Fosun invests in Kissht.
- State Bank of India uses blockchain for Know Your Customer.
- Kaodim raises $7M.
- Transforming Singapore’s financial services.
- Singapore plays evangelist to global fintech.
- 7 in 10 UAE residents not sure how to achieve financial goals. AT: “This looks like an opportunity for financial advice firms.”
- United States
- Lending Club eyes charter as landscape evolves (Global Capital), Rated: AAA
- How payment technology is being disrupted (The Next Web), Rated: AAA
- SoFi’s Latest Consumer Lending Deal (PeerIQ), Rated: AAA
- Square’s Jack Dorsey: We’re moving as fast as we can with bank application (Fast Company), Rated: A
- Investors see “perfect storm” in marketplace loan ABS (Global Capital), Rated: A
- MoneyLion takes on America’s savings crisis with the launch of MoneyLion Plus (BusinessWire), Rated: A
- Credit Karma Launches Online Vehicle Center (Finovate), Rated: A
- Fintech Lenders Are Holding Larger Portion of the Personal Loan Market (Lend EDU), Rated: A
- Wells Fargo Launches New Banking App “Greenhouse” (Crowdfund Insider), Rated: A
- Marketplace Lending News Roundup – November 4 (Lend Academy), Rated: A
- Redpoint Capital Group Sells Stake to Dundon Capital Partners (BusinessWire), Rated: A
- Digital Lending Innovation Starts with the Simple Things, Bank of America Says (Bank Innovation), Rated: A
- Citizens Digitizes SMB Lending Process With Fundation (PYMNTS), Rated: A
- BlackRock pivots to US west coast as part of tech push (Financial Times), Rated: A
- New Online Portal Offers Loans Up to $ 500,000 to African American Entrepreneurs in Chicago (Black Enterprise), Rated: A
- LoanDepot Starts JV (Orange County Business Journal), Rated: B
- Online Lender Better Mortgage Names Jeff Corbett New Director of Business Development (Crowdfund Insider), Rated: B
- Silicon Valley Start-ups Join the Line-up for Blockchain Expo North America (Coinspeaker), Rated: B
- Goji Appoints Peter Breitstone As New CEO (Crowdfund Insider), Rated: B
- Weekly WealthTech Report: The First CEFEX-Certified Robo (Wealth Management), Rated: B
- United Kingdom
- European Fintech N26 to Launch in the UK in Early 2018 (Crowdfund Insider), Rated: AAA
- TransferWise announces $ 280m investment round as company looks towards APAC expansion (AltFi), Rated: AAA
- Zopa says rate hike will not impact loan performance (P2P Finance News), Rated: AAA
- LendInvest to enter BTL market after securing new funding line (Bridging&Commercial), Rated: A
- UK interest rates rise for first time in 10 years (Growth Business), Rated: A
- British fintech lender Cashplus seeks licence (Times of Malta), Rated: A
- Volkswagen explores obtaining UK banking licence (Financial Times), Rated: A
- Lendy considers offering auto-invest products (P2P Finance News), Rated: A
- Simon Champ of P2PGI and Pollen Street Capital (Lend Academy), Rated: A
- CoInvestor Provides First Digital Access For Advisers Into LendInvest’s Real Estate Opportunity Fund (MondoVisione), Rated: A
- Interview with Stuart Law, CEO and co-founder of Assetz Capital (P2P-Banking), Rated: A
- Singaporean sovereign wealth fund piles into OakNorth fundraise (AltFi), Rated: A
- Anyone for a Crowd VCT? (AltFi), Rated: A
- Three alternative reasons to consider peer-to-peer investing (Your Money), Rated: B
- Hello Soda Raises £5.5M in Funding (FINSMES), Rated: B
- Chinese peer-to-peer lender Hexindai shrugs off tighter scrutiny concerns, rising more than 60pc on Nasdaq debut (SCMP), Rated: AAA
- China’s unicorns face questions over fundraising (Financial Times), Rated: AAA
- Chinese auto-trading IPO may prove to be a lemon (NASDAQ), Rated: A
- IDG Capital, CreditEase help retail investors tap new economy (China Daily), Rated: B
- European Union
- Early Facebook Backer Tied to Russia Bank, Kushner Platform (Bloomberg), Rated: A
- You too can become an investor in exciting new Irish innovation (Independent), Rated: A
- An Acceleration in Fintech Capital Raising (Lend Academy), Rated: AAA
- How banks can use ETHLend to reduce interest rates globally (TechBullion), Rated: A
- Lendoit – The Decentralized Marketplace Lending Platform Where Everyone Benefits (Chipin), Rated: A
- P2P Lending Offers Participants More Efficiency and Convenience in the Financial Services Sector (NewsBTC), Rated: B
- Colombia Fintech Startups Alegra and Bankity to Compete for Funding at Finnosummit in Miami Next Week (Finance Colombia), Rated: A
- Blockchain is bringing the sharing economy to everyone (VentureBeat), Rated: A
- Westpac posts AU$ 7.99b yearly profit, sends digital Customer Service Hub live (ZDNet), Rated: AAA
- Banks wealth models are ‘unravelling’ (Financial Review), Rated: A
- Australian FinTech SelfWealth IPO Offering Self Directed Investors Alternative to Traditional Broker Trading (BusinessWire), Rated: A
- Here are four lending platforms that are helping unbanked SMEs (The Hans India), Rated: A
- China’s Fosun leads $ 10 million round in fin-tech startup Kissht (VC Circle), Rated: A
- India’s Largest Bank Goes Big on Blockchain (Cryptocoins News), Rated: B
- Square Peg, SIG Asia lead $ 7m round in SEA service marketplace Kaodim (Deal Street Asia), Rated: AAA
- A clear path to transforming Singapore’s financial services sector (Channel News Asia), Rated: A
- Singapore plays fintech evangelist on global mission (Business Times), Rated: A
- Middle East
- Seven in ten UAE residents unsure how to achieve their financial goals (The National), Rated: AAA
Lending Club eyes charter as landscape evolves (Global Capital), Rated: AAA
Lending Club is exploring the idea of operating as a bank or obtaining a fintech bank charter in order to keep pace with a changing lending and regulatory landscape, an executive from the marketplace lender said on Thursday.
Speaking at the Digital Lending + Investing conference in New York, Valerie Kay, Lending Club’s head of institutional investor group, said that the platform is considering both pathways as the business grows.
How payment technology is being disrupted (The Next Web), Rated: AAA
One of the earliest changes involving the payment industry is how banks and customers behavior is shifting with one another. Quite simply, people have different expectations with how money should move, as well as how quickly. This is a cross-generational phenomenon and something that banks are trying to keep up with.
According to Bank Innovation, approximately 70 percent of millennials now do their banking online.
According to Business Insider, peer-to-peer payments alone are on pace to be worth $86 billion by 2018. And with the popularity of apps like Venmo, PayPal, and even Square Cashcontinuously on the rise, this trend doesn’t show signs of slowing down anytime soon.
CurrencyPay, an online payment system that not only finances major equipment for businesses, but extends online payment methods from credit and debit cards to include ACH or wire, all the while reducing fees across the board.
SoFi’s Latest Consumer Lending Deal (PeerIQ), Rated: AAA
On Thursday, President Trump announced his nomination of Jerome Powell to succeed Fed Chairwoman Janet Yellen as the next chairman of the central bank.
Also on Thursday, President Trump rolled out his new tax plan which reduces the number of tax brackets from seven to four and cuts the corporate tax rate to 20% from 35%. Relevant to marketplace lenders, the tax plan reduces the mortgage interest deduction cap by half.
SoFi’s Latest Consumer Lending Deal
SCLP 2017-6 is the largest deal on SoFi’s shelf, and the first since SCLP 2017-5, which priced concurrently with Mike Cagney’s resignation. As we discussed in our previous blog post, SCLP 2017-5 priced slightly wider on the news (10 to 15 bps). SoFi’s latest consumer lending deal, SCLP 2017-6, is the first deal from SoFi with borrowers living in FEMA declared disaster areas, comprising approximately 12% of the deal.
SCLP 2017-6 Structure
Although it may seem that SoFi is structuring deals more aggressively, the A and B classes have higher initial CE when compared to SCLP 2017-5 by 2.38% and 0.76% respectively.
Square’s Jack Dorsey: We’re moving as fast as we can with bank application (Fast Company), Rated: A
“I think the [regulatory] environment really changes depending on who you’re talking about,” says Dorsey, who traveled to New York this week for the unveiling of Square Register, a new hardware device. “There’s a lot of appreciation for the fact that we’ve spent eight years serving an underserved customer, an underbanked customer, both on the seller and the individual side.” Before Square unveiled its signature card reader, he adds, micro-merchants “couldn’t participate in the economy in the way that the economy was moving.”
Investors see “perfect storm” in marketplace loan ABS (Global Capital), Rated: A
An investor roundtable at the Digital Lending + Investing conference in New York on Thursday highlighted developments in the securitization of marketplace loans over the last 12-18 months. The transition to a hybrid funding model for lenders, in addition to the emergence of more sophisticated deal structures, have …
MoneyLion takes on America’s savings crisis with the launch of MoneyLion Plus (BusinessWire), Rated: A
Despite solid economic and wage growth in the U.S. since the 2008 crisis, a host of studies point to critically low rates of savings and widening income inequality among American consumers. In the face of this savings crisis, mobile consumer finance platform, MoneyLion has launched MoneyLion Plus to help everyday Americans overcome today’s unexpected expenses while building savings for the future. MoneyLion Plus combines guided savings, simple investing, access to low-cost loans, and the personalized benefits of the MoneyLion platform, including tools to monitor credit, track spending, and earn rewards. The suite of tools is a first-of-its-kind innovation designed for consumers to build their credit, financial resilience, and first $2,000 in savings.
A monthly subscription gives MoneyLion Plus members access to the following benefits:
- Guided savings: MoneyLion Plus makes it easy and convenient to save $50 or more per month. MoneyLion’s technology analyzes each member’s cash flows to determine when to set aside and save money from their checking account. Via the MoneyLion mobile app, members are provided with personalized daily budgeting tips to help them optimize their spending and increase their savings even further.
- Fully-managed investment account: The funds saved are automatically invested into a fully-managed investment account featuring a diversified portfolio of ETFs built to suit the financial needs and life stage of each member, all without any additional trading or management fees. These portfolios are based on simple investment strategies that will help members grow their wealth.
- Low-cost access to credit: Unexpected expenses can reset savings back to square one, preventing longer-term growth of wealth. Access to personal loans with APRs of 5.99% or less, regardless of credit score, offers MoneyLion Plus members an affordable means to manage their cash flow needs and avoid costly overdraft or late payment fees.
- Cashback bonus: MoneyLion Plus offers its members additional rewards, including an instant $1 cashback bonus deposited into a member’s investment account each day they log into the MoneyLion app. Members also earn rewards based on their investment account balance.
- MoneyLion mobile app: Members can access all of their benefits on-the-go via MoneyLion’s mobile app, including viewing their savings progress, getting personalized tips and offers for saving more, and accessing their loan funds in just a few taps.
Credit Karma Launches Online Vehicle Center (Finovate), Rated: A
Consumer credit monitoring and financial health startup Credit Karma has launched a new offering today that changes those routines. The company’s new automotive information center is a one-stop shop for helping consumers to manage and organize their vehicle-related finances and information. Included among the capabilities are an overview of the user’s DMV profile, with vehicle and drivers license information, vehicle value estimations, and manufacturer recall notices.
The two most notable capabilities are the auto insurance score and comparison tool and the vehicle refinancing decision tool.
Fintech Lenders Are Holding Larger Portion of the Personal Loan Market (Lend EDU), Rated: A
During the Digital Lending + Investment Conference in New York, the consumer credit reporting agency Transunion released the results of a study called ”Fact versus Fiction: FinTech Lenders.” In a nutshell, the study concluded that fintech lenders were not riskier than other lenders, and they are starting to represent a more significant part of the loan industry in the USA.
By the end of the year, the fintech lenders comprised 30 percent of outstanding personal loan balances which is up from four percent in 2012. Up through June in 2017, fintechs represented 32% of the personal loan market.
In the second quarter of 2016, 14.8 million people had a personal loan; after one year, that number increased to 16.1 million. Additionally, the total outstanding personal loan volume more than doubled from $45 billion in Q2 2012 to $106 billion by Q2 2017.
Wells Fargo Launches New Banking App “Greenhouse” (Crowdfund Insider), Rated: A
Banking giant Wells Fargo announced on Thursday the launch of its new banking app, Greenhouse. The company described the app as a new mobile banking experience that provides tools to help consumers manage their money and know where they stand financially.
According to Wells Fargo, consumers using the Greenhouse app will be able to have money management with two accounts that work together, immediate access to their Greenhouse account, and the ability to send and receive payments.
Marketplace Lending News Roundup – November 4 (Lend Academy), Rated: A
- Goodbye Liens and Judgments from deBanked – The removal of liens and judgements from credit reporting and the impact on small business finance.
- LoanDepot Starts JV from Orange County Business Journal – The second largest non-bank consumer lender in the US, loanDepot, is partnering with OfferPad on bridge loans.
- Large banks uncertain of path forward on small-dollar loans from American Banker – With the CFPB’s new small dollar loan rule banks are considering an entry point into this market.
- Chinese peer-to-peer lender Hexindai shrugs off tighter scrutiny concerns, rising more than 60pc on Nasdaq debut from South China Morning Post – Another Chinese p2p lending platform has gone public in the US.
- Grand Ambition from Peer2Peer Finance News – Wide ranging interview with CEO and co-founder of Funding Circle Samir Desai.
Redpoint Capital Group Sells Stake to Dundon Capital Partners (BusinessWire), Rated: A
Redpoint Capital Group, LLC (“Redpoint Capital”), a leading alternative credit manager, announced today that it has agreed to sell a stake in its affiliated General Partner and Management Company to an affiliate of Dundon Capital Partners, LLC (“DCP”). DCP is led by Thomas (“Tom”) Dundon, one of the founders and former CEO and Chairman of Santander Consumer USA (“SCUSA”), a leading publicly-traded non-captive finance company.
As part of the transaction, both Tom Dundon and DCP Partner, John Zutter, will sit on Redpoint Capital’s Board of Directors along with Redpoint Capital Managing Partners Alex Dunev and Andy Thomas.
Digital Lending Innovation Starts with the Simple Things, Bank of America Says (Bank Innovation), Rated: A
Financial services should focus on “making the easy stuff really easy,” Schleck said yesterday during a panel discussion at the American Banker Digital Lending and Investing conference in New York.
Schleck was the sole representative from a traditional bank during the discussion, with fellow panelists hailing from alternative fintech companies and lenders – Lending Club, Funding Circle, and Varo Money.
The key to BofA’s innovation in this space was a cross between data (also highlighted by others on the panel) and simplicity, Schleck said, pointing to the bank’s success with mobile direct deposit as an example.
Citizens Digitizes SMB Lending Process With Fundation (PYMNTS), Rated: A
Citizens Bank is enhancing its small and medium-sized business (SMB) lending offering by digitizing the loan application process, according to a press release published by the financial institution (FI) on Thursday (Nov. 2).
The bank is launching a new platform, built in collaboration with alternative online lender Fundation, allowing SMB customers of the bank to apply for a loan or line of credit and receive an approval online.
BlackRock pivots to US west coast as part of tech push (Financial Times), Rated: A
BlackRock is pivoting its business to the US west coast, moving Mark McCombe, head of Americas, to San Francisco as part of a broader plan by the world’s top asset manager to step up its focus on technology and innovation.
More than 40 per cent of BlackRock’s $5.9tn in client assets are managed from San Francisco, which accounts for a third of group revenue.
New Online Portal Offers Loans Up to $ 500,000 to African American Entrepreneurs in Chicago (Black Enterprise), Rated: A
The national advocacy group Small Business Majority, national online lender Fundera, and micro-lender Accion have developed SimpleGrowth, a new online lending marketplace. Calling SimpleGrowth a first-of-its-kind local lending portal, officials say the platform will allow African American entrepreneurs in Chicago to connect with area lenders via a website.
Individuals can seek loans ranging from $500 to $500,000 at various rates, depending on the business owner’s readiness and other factors.
There are 230,000 small businesses in Chicago, but an unusually high percentage of those businesses are owned by African Americans. Cook County, Illinois—which includes Chicago—has the most African American-owned small businesses of any county in the country at 110,000, the U.S. Census Bureau’s 2012 analysis of small businesses reports.
The financing will come from Chicago lenders including Accion, Local Initiatives Support Corporation Small Business and the Women’s Business Development Center, all Community Development Financial Institutions that support small business entrepreneurship. Businesses can apply for the loans for free.
LoanDepot Starts JV (Orange County Business Journal), Rated: B
LoanDepot LLC, the nation’s second largest non-bank consumer lender, announced a joint venture with OfferPad, a real estate investment company, to speed up the process of mortgage approval.
The joint venture will be a stand-alone mortgage broker with LoanDepot acting as the wholesale lender, Calle said. It is expected to launch in the first quarter and will be based in Phoenix.
Online Lender Better Mortgage Names Jeff Corbett New Director of Business Development (Crowdfund Insider), Rated: B
Better Mortgage, a digital mortgage company working to improve access to home financing through transparency, honest guidance, and zero loan officer commissions, announced on Friday it has appointed Jeff Corbett as its Director of Business Development and adding him to its growing Strategic Partnership team.
Silicon Valley Start-ups Join the Line-up for Blockchain Expo North America (Coinspeaker), Rated: B
Amongst those speaking is Karma – a cross-border peer-to-peer lending platform, working to eliminate inefficiencies in the P2P lending industry. Karma will be taking to the stage in the ICOs, Tokens and Cryptofinance conference track on November 29, to introduce their service to delegates ahead of their closed ICO sale later this month.
Goji Appoints Peter Breitstone As New CEO (Crowdfund Insider), Rated: B
Specialist provider of P2P and marketplace lending products and services, Goji, announced on Friday it has appointed Peter Breitstone as its new CEO. According to the company, Breitstone has over 20 years of senior executive leadership experience at several global insurance companies, including Insureon, Zurich, and Aon. Breitstone also built and ran Environmental Partners, an insurance brokerage specializing in Environmental Risk and Insurance Management, which he sold to Aon.
Weekly WealthTech Report: The First CEFEX-Certified Robo (Wealth Management), Rated: B
PlanCorp is putting its experience and research into a new hybrid robo advisor called BrightPlan, which it says is the first of its kind to be certified by the Centre for Fiduciary Excellence for providing prudent fiduciary practices to clients. The online service offers goals-based financial planning without requiring users to invest.
Clients can choose either a digital-only service, or tap into Plancorp’s team of wealth managers.
European Fintech N26 to Launch in the UK in Early 2018 (Crowdfund Insider), Rated: AAA
N26, a digital-only challenger bank based in Germany, announced on Friday it is launching its services in the UK in early 2018. This news comes after the fintech startup announced plans to launch in the U.S. next year. UK customers may now get early access by signing up directly on the company’s UK homepage.
TransferWise announces $ 280m investment round as company looks towards APAC expansion (AltFi), Rated: AAA
The international money transfer service raised $280m in a Series E round as it plans for global expansion and challenge to banking disruptors.
The round was led by asset management firm Old Mutual Global Investors (OMGI), investing funds managed by its small and mid-cap UK equities desk, and Silicon Valley venture capital firm IVP.
Zopa says rate hike will not impact loan performance (P2P Finance News), Rated: AAA
ZOPA has reassured investors that the Bank of England’s interest rate hike will not impact the performance of the peer-to-peer platform’s loans.
On Thursday, the central bank raised the base rate from 0.25 per cent to 0.5 per cent – the first increase in a decade.
LendInvest to enter BTL market after securing new funding line (Bridging&Commercial), Rated: A
LendInvest now manages over £500m of lending capital on behalf of its institutional investors.
UK interest rates rise for first time in 10 years (Growth Business), Rated: A
For the first time in more than ten years, the Bank of England has raised interest rates. The official bank rate has been lifted from 0.25 per cent to 0.5 per cent, the first increase since July 2007.
The hike has divided opinion and it is yet to be seen how severely the impact will hit the UK. Mr Carney expects banks to pass on the rate rise to savers, but said many mortgages, loans and credit cards would not see an immediate impact.
With an alternative outlook, Giles Cross, CMO at FOLK2FOLK, says, “For years low interest rates have been bad news for consumers wanting a positive return on their money in real terms. So today’s announcement may come as a small relief to many people who are looking for an increase. Whilst the reality is that consumers may not see the outcome passed on from their financial services provider or bank for a long time.
British fintech lender Cashplus seeks licence (Times of Malta), Rated: A
Cashplus said yesterday it will soon apply for a UK banking licence as part of the British fintech firm’s plan to step up its challenge to traditional banks.
The move will allow Cashplus to convert the £200 million of customers’ funds it holds into bank deposits, its chief executive Richard Wagner told Reuters.
Volkswagen explores obtaining UK banking licence (Financial Times), Rated: A
Volkswagen is preparing to apply for a UK banking licence so it can carry on providing finance to motorists after Britain leaves the EU.
Lendy considers offering auto-invest products (P2P Finance News), Rated: A
LENDY is seeking views from investors on the introduction of an auto-invest product.
The peer-to-peer property lender has issued a survey to its customers to find out their views on a product that would self-select loans for lenders.
Simon Champ of P2PGI and Pollen Street Capital (Lend Academy), Rated: A
In this podcast you will learn:
- How Simon first became interested in the online lending space.
- Simon’s original goal when he started P2PGI.
- What it was like trying to raise the initial capital for the fund in 2014.
- How many platforms they launched with initially.
- The scope of the fund: both lending verticals and geographies.
- How Brexit and the currency challenges of the British Pound has impacted the fund.
- How the fund has evolved from P2P to a broader direct lending focus.
- The main challenge of pure peer to peer lending platforms.
- How they are using leverage today at P2PGI.
- The P2PGI approach to due diligence and how they decide to make an investment in a new platform.
- The historical returns of the fund and Simon’s views of the challenges here.
- His view on the poor performance at US consumer platforms in 2015 and 2016.
- Why P2PGI left Marshall Wace and merged with Pollen Street Capital.
- Simon’s view on the evolution of the lending space and where it is going.
CoInvestor Provides First Digital Access For Advisers Into LendInvest’s Real Estate Opportunity Fund (MondoVisione), Rated: A
CoInvestor, the alternative assets platform, has been chosen by LendInvest Capital as a preferred method for UK advisers to invest in its Luxembourg-domiciled Real Estate Opportunity Fund.
Interview with Stuart Law, CEO and co-founder of Assetz Capital (P2P-Banking), Rated: A
Assetz Capital is now the UK’s second-largest peer-to-peer business and property lender and also the second largest in Europe.
What are the three main advantages for investors?
Firstly, we only lend to businesses who we assess as credit worthy businesses with tangible assets.
Secondly, we cater for all types of investors.
Thirdly, we are also the only major UK P2P platform to still offer a manual investment option.
What are the three main advantages for borrowers?
Rather than being just a website with automated credit assessments, Assetz Capital is run by finance, banking, credit and lending professionals with huge industry experience, alongside our large UK-wide network of employed Regional Relationship Directors who visit potential borrowers and help structure the loans.
We’re also a lean business, and as such we have lower overheads than traditional lending institutions. Coupled with the fact that we only lend to credit worthy businesses holding tangible assets, this means our cost of borrowing for businesses is kept low.
Assetz Capital has succeeded in growing loan originations sharply in the past 12 months. How did you achieve that and were intermediaries like brokers a major factor?
To date, more than 350 successfully funded projects have come through brokers, and we predict that this will grow to approaching 1,000 by the end of the 2018 year.
Singaporean sovereign wealth fund piles into OakNorth fundraise (AltFi), Rated: A
Challenger bank OakNorth entered into the UK’s stable of unicorns in October when it raised £154m.
The £154m round valued OakNorth at £934m (approximately $1.3bn). The money came from three investors, The Clermont Group, Toscafund and Coltrane, which collectively took a 16 per cent stake in the company. Today, the trio has been joined by a fourth investor: GIC, Singapore’s sovereign wealth fund.
Anyone for a Crowd VCT? (AltFi), Rated: A
Currently the excellent Wise Alpha is plastered all over the Waterloo and City line. And in recent months Crowdcube has also been blasting out adverts at the Waterloo train station. Not to be outdone, Seedrs is making a regular appearance on the London tube as are a whole number of digital banking apps. Even Abundance in recent years has been making an appearance on billboards at railway stations as far away as Winchester. Now we’re seeing Funding Circle blasting out its message nationwide as part of its multi-million-pound advertising campaign.
This is all very welcome, but I think it poses some broader questions about what the alternative finance space needs to make itself seem more mainstream. I see no reason why a big player such as Funding Circle shouldn’t use big national brand advertising, but I doubt its overall effectiveness. My sense is that much smaller, baby steps are needed to mainstream the sector and originate new customers – and, crucially, build brand acceptance amongst investors.
Three alternative reasons to consider peer-to-peer investing (Your Money), Rated: B
However, any investment where capital is at risk – such as alternative lending – is not covered by the Financial Services Compensation Scheme (FSCS) and should not be considered as a substitute for cash deposits. So, why should investors look at the burgeoning alternative lending sector? There are three possible reasons:
- Funding your income needs
- Managing pension allowances – Alternative lending certainly offers attractive returns relative to other investment options, as well as against cash at the bank. ThinCats has achieved average returns for investors of 7%-8.5%(as at 11 Oct).
Hello Soda Raises £5.5M in Funding (FINSMES), Rated: B
Hello Soda, a Manchester, UK-based international big data and text analytics company, raised £5.5m in equity and debt funding.
Chinese peer-to-peer lender Hexindai shrugs off tighter scrutiny concerns, rising more than 60pc on Nasdaq debut (SCMP), Rated: AAA
Shares in Hexindai, China’s fifth biggest P2P lender, surged more than 60 per cent on its Nasdaq debut on Friday, shrugging off looming concerns of possible tighter scrutiny on P2P lending platforms by Chinese authorities.
Shares in the company traded up 65 per cent to US16.50, just 20 minutes into the listing under the symbol HX, from its offering price of US$10 per American depositary share. The company aims to raise up to US$88 million through the flotation.
China’s unicorns face questions over fundraising (Financial Times), Rated: AAA
Jianpu Technology, the Chinese financial comparison site poised to list later this year, has been stripped of its status as a “unicorn” worth $1bn after regulatory filings revealed it had inflated the funds raised from investors.
Peer-to-peer lender Ppdai’s fundraisings detailed in its filing also fall short of earlier disclosures, according to calculations by Crunchbase, which collates its data from a variety of mostly publicly available channels, including US Securities and Exchange Commission documents.
Qudian’s initial public offering prospectus put its bad-loan ratio at 0.5 per cent — an unusually low but not impossible figure, especially if was selling off bad debt to third parties, which is a common practice among online lenders.
Qudian’s prospectus did not advertise a clear pre-IPO fundraising figure. However, Crunchbase says the company raised about $873m from a number of investors before it went public.
Chinese auto-trading IPO may prove to be a lemon (NASDAQ), Rated: A
Yixin could raise more than $800 million in a Hong Kong float. The Chinese firm wants to be to cars what Ctrip has become for mainland travellers: a one-stop online shop. It is well-positioned for China’s car boom and changing attitudes towards borrowing, but a punchy valuation means it could struggle after listing.
China’s car market is booming. And Yixin smartly targets people born from the 1980s onwards. They are more open to borrowing than their thrifty parents, and many don’t have credit scores, making it tricky for them to borrow from banks instead.
Yixin Group, an online auto-trading and financing company backed by Chinese internet giant Tencent, is planning to raise up to $867 million through an initial public offering in Hong Kong, Thomson Reuters publication IFR reported on Nov. 2.
IDG Capital, CreditEase help retail investors tap new economy (China Daily), Rated: B
Leading venture capital firm IDG Capital and Credit Wealth Management, an independent wealth management arm of CreditEase Group, has formed a comprehensive strategic partnership at the latter’s 2017 private equity investment forum held in Beijing on Friday.
The system enables analysis of 20,000 institutions via 60 dimensions such as styles of their management teams, when they exit from companies they have invested in and who buy into these companies.
Early Facebook Backer Tied to Russia Bank, Kushner Platform (Bloomberg), Rated: A
A prominent Silicon Valley investor who was an early backer of Facebook Inc.partnered in two investments with the Russian state-controlled bank VTB Bank PJSC before it was sanctioned, his spokesman confirmed Friday.
Yuri Milner, the Russian-born founder of DST Global, also invested $850,000 of his personal money last year in Cadre, a real-estate investing platform co-founded and partially owned by the family of Jared Kushner, President Donald Trump’s son-in-law and senior adviser. Milner’s spokesman said that VTB played no part in his Cadre investment, which was done solely on the business merits of Cadre.
You too can become an investor in exciting new Irish innovation (Independent), Rated: A
Backing young companies sounds expensive and risky but it doesn’t have to be either. Today with no more than €50 you can start lending to fledgling Irish businesses through a peer-to-peer platform like Linked Finance. The same €50 could back numerous new ideas on a crowdfunding platform like Fund It.
Today there are 17,000 people lending a total of over €35m through Linked Finance alone but there’s €99bn more sitting in Irish deposit accounts, according to the Central Bank’s July 2017 figures.
An Acceleration in Fintech Capital Raising (Lend Academy), Rated: AAA
The recent CB Insights Fintech Trends Briefing points to the rise in fintech financings as Q3’17 saw 278 deals to VC-backed fintech companies, the largest quarter since Q1’12. While total capital invested is down 25 percent from Q2’17 to $4bn the pace of the deals show investors appetite for fintech companies is still very strong.
Facial recognition startup Megvii Face++ raised $460mn in their most recent investment round led by China State-Owned Venture Capital Fund and the China-Russia Investment Fund.
German based online lender Spotcap raised $26mn in equity and debt funding.
Credit Sesame, a San Francisco and Mountain View, Calif. – based personalized credit service and financial wellness company, raised over $42mn in funding.
FS Card Inc., a Washington, DC-based financial services company focused on underserved consumers, raised a $150mn credit facility.
Finova Financial, provider of fair and affordable digital alternatives for Americans underserved by the traditional banking system, secured $102.5mn in equity and credit facility funding.
LendingHome, a San Francisco, CA-based real estate marketplace lender, raised $457mn in capital, which includes both permanent equity and the launch of LendingHome Opportunity Fund II.
BlueVine, a Redwood City, CA-based provider of working capital financing to small and medium-sized businesses, secured up to $130mn in debt capital financing.
OakNorth, a London, UK bank that provides debt finance to fast-growth businesses and established property developers, received a $202mn investment.
SalaryFinance, a London U.K.-based innovative financial wellbeing employee benefits company, completed a $52mn funding round.
How banks can use ETHLend to reduce interest rates globally (TechBullion), Rated: A
P2P platforms are great for smaller loans (i.e. paying off credit cards or repairing a damaged car), but they might not be as affordable and available for larger purchases (i.e. a home purchase or a new car). Especially in developing markets, such larger finance goals might be out of reach due to the lack of credit scoring systems or access to capital in the first place.
Now, how could ETHLend be used to fulfill this market? Let us imagine that a bank or an institutional financer is looking to finance asset backed loans. They have a minimum loan amount of $100,000, and because of this they will be unable to accept loan terms for smaller loans. These banks and institutional financiers would be able to go onto the ETHLend platform, and offer their liquidity to another investor (wholesale borrower) who has large amounts of digital tokens (cryptocurrency) to pledge as collateral.
The investor (wholesale borrower) can then take that $100,000 they got from the bank and turn around and offer loans on a smaller scale to people on the platform or in their local markets, whom do not need to pledge collaterals.
Current P2P platforms are not really P2P because they need to have intermediaries like issuing banks or trust accounts for the system to work. This is a problem as intermediaries usually lack transparency and are also restricted geographically.
For instance, the annual interest of a loan in Brazil may be more than 50% while it is only 1% in Japan.
Lendoit is a decentralized peer-to-peer lending marketplace platform that connects borrowers and lenders globally in a fast, easy, and extremely secure manner by using the blockchain and smart contracts.
With the blockchain, Lendoit is able to automate all of the processes required in P2P money lending without sacrificing anything. Instead, everything will be much cheaper and more efficient which is exactly the solution to problems of cross-border loans.
Smart Loan Contracts contain the borrower’s details including his or her score as well as containing the conditions of loans and their respective tenders.
The Smart Reputation Contract works similarly to credit score; in Lendoit, they act as the global score of an Ethereum address and can be utilized for other purposes other than credit transactions.
The Smart Conversion Contract is responsible for converting currencies into the LOAN token when it comes to making transactions on the platform.
Lendoit Global Payments will launch a token for sale for the aptly named LOAN token.
- Token name: LOAN
- Token base: Ethereum (ERC-20 compliant)
- Token supply: TBA
- Token sale duration: December 13th, 2017
P2P Lending Offers Participants More Efficiency and Convenience in the Financial Services Sector (NewsBTC), Rated: B
The global lending marketplace market is projected to reach $290bn. by 2020, with an expected compound annual growth rate of 51% from 2014-2020.
Colombia Fintech Startups Alegra and Bankity to Compete for Funding at Finnosummit in Miami Next Week (Finance Colombia), Rated: A
Later this month in Miami, a group of 10 Latin American fintech startups will gather in Miami to compete. Two companies, Alegra and Bankity, are from Colombia and will be vying against peers from Mexico, Brazil, Argentina, and Chile for the $50,000 USD prize.
The competition is part of Visa’s Everywhere Initiative and will be taking place within Finnovista’s larger Finnosummit on November 9 in Florida’s largest city.
Bankity offers the first intelligent banking card in Latin America.
Alegra, founded by Santiago Villegas and Jorge Soto, is also great because it aims to help small business owners with tedious tasks like invoicing and reporting with its cloud-based accounting software.
Blockchain is bringing the sharing economy to everyone (VentureBeat), Rated: A
The sharing economy relies on a distributed workforce, shareable assets, and peer-to-peer transactions and contracts. Companies in these emerging marketplaces handle payments through smart contracts and blockchain technology. This greatly lowers costs, improves trust and transparency with the community, and simplifies transactions at a global scale by making them near-instantaneous, even when distributing payments to thousands of digital wallets at once.
One of the biggest markets for data is social media and online retail. DataWallet, based in San Francisco, helps users download their digital identity and upload it to a blockchain-powered data exchange where companies can purchase it, with payments made to users through the blockchain.
Ride-sharing company LaZooz, based in Tel Aviv, is building a decentralized, Uber-like app that uses blockchain to pay drivers and other community participants. WeTrust, in Fremont, CA, is doing something similar in the peer-to-peer lending space, charging only a max fee of .3 percent instead of 1 percent, like LendingClub.
Westpac posts AU$ 7.99b yearly profit, sends digital Customer Service Hub live (ZDNet), Rated: AAA
Westpac has processed its first live home loans through its new technology platform, the Customer Service Hub, with the bank saying the initiative aimed at speeding up and simplifying the home loan process as its largest transformation program to date.
For the 2017 financial year, the bank reported AU$7.99 billion in after-tax profit, on revenue of AU$21.8 billion, an increase of 4 percent year-on-year.
As of September 30, 2017, Westpac boasted 13.8 million customers; 4.53 million were considered digitally active, with 72 percent of them using a mobile platform.
Additionally, through its AU$100 million venture capital firm Reinventure, Westpac has made 16 investments covering areas such as blockchain and digital currencies, payments, peer-to-peer lending, as well as big data and data analytics.
The bank also this year entered into a “strategic” relationship with Australian-listed payments firm Zipmoney, investing AU$40 million by way of a private share placement in August to allow the integration of the fintech’s products and services across Westpac’s network throughout Australia, as well as other initiatives including the provision of in-development business-to-business products and services.
In April, the bank went live with Samsung Pay, opening up the phone-based wallet to debit and credit card cardholders across both Mastercard and Visa. This came a year after it launched Android Pay, in addition to Westpac’s own tap and pay function, which was unveiled to customers in 2014.
Banks wealth models are ‘unravelling’ (Financial Review), Rated: A
Independent investment and superannuation platforms like Hub24 and Netwealth are readying to reap the rewards of the “unravelling” of the bank’s traditional wealth management models.
The best interest duty is a key plank of a package of financial advice reforms, known as the Future of Financial Advice (FOFA), introduced in July 2013. This was tested with the corporate watchdog recently ordering Melbourne-based financial planning firm to pay $1.1 million in fines and costs as part of the first civil penalty imposed for breaching its duty to act in the best interest of its clients.
Last week, BT Financial Group (BTFG) said it would expand its life insurance APL from its sole in-house product, adding a minimum of three alternative insurers by March next year.
Increasingly, these platforms are snaring a fair whack of adviser business in the $750 billion platform market, which is growing at 10 per cent a year.
Netwealth has about $16 billion in funds under advice and more than 2000 financial advisers and planners using its services. When it lists on the ASX with an $879.2 million market capitalisation late next month, it will be the second biggest IPO of the calendar year to date
Australian FinTech SelfWealth IPO Offering Self Directed Investors Alternative to Traditional Broker Trading (BusinessWire), Rated: A
SelfWealth Limited (“SelfWealth” or “the Company”), an Australian FinTech business offering a flat fee brokerage service and social portfolio construction network for Australian investors, is pleased to announce the opening of its Initial Public Offering (IPO) to raise up to A$7.5 million (with a minimum subscription of A$5.0 million).
SelfWealth is offering for issue 37.5 million shares priced at A$0.20 per new share; the indicative market captialisation of SelfWealth will be approximately A$26.1 million. The Company’s ASX ticker code will be SWF.
Here are four lending platforms that are helping unbanked SMEs (The Hans India), Rated: A
Despite being a major part of the Indian economy, Small and medium-sized enterprises (SMEs) in India face multiple challenges.
From inadequate banking to lack of constant cash supply, these SMEs are deprived of the smooth and consistent growth factors
These four SME lending platforms are bridging the requirements digitally:
- Lendingkart – The company aims to transform small business lending by making it convenient for SMEs to access credit easily.
- CoinTribe – Another online loan disbursement platform, CoinTribe provides quick and easy collateral-free loans to small businesses and individuals.
It is the only online lending platform which has back-tested its credit model with large banks.
- Faircent – Largest peer to peer lending website, Faircent caters to retail and business loans.
- TAB Capital – The platform has commissioned an advanced proprietary algorithm that leverages big data and analytics to simplify and accelerate loan application, verification, approval and disbursement.
China’s Fosun leads $ 10 million round in fin-tech startup Kissht (VC Circle), Rated: A
OnEMi Technology Solutions Pvt. Ltd, which runs lending startup Kissht, has raised $10 million (Rs 67 crore) led by China’s Fosun International, a report in a financial daily stated.
In June this year, the startup raised $2 million (around Rs 13 crore) from Endiya and Ventureast.
India’s Largest Bank Goes Big on Blockchain (Cryptocoins News), Rated: B
The State Bank of India is gearing up to implement blockchain solutions in a number of financial processes including the management of its Know Your Customer (KYC) system.
SBI is now pressing ahead with its first implementation of the decentralized technology by using an enterprise blockchain solution for managing its Know Your Customer (KYC) system, via a new partnership with Intel that sees the technology giant become the consortium’s official technology advisor.
Square Peg, SIG Asia lead $ 7m round in SEA service marketplace Kaodim (Deal Street Asia), Rated: AAA
Southeast Asian service marketplace Kaodim Group has raised $7 million (MYR 29.5 million) in a funding round led by Australia venture capital firm Square Peg Capital and Shanghai-headquartered SIG Asia Investments.
A clear path to transforming Singapore’s financial services sector (Channel News Asia), Rated: A
Minister for Education (Higher Education and Skills) and Monetary Authority of Singapore board member Ong Ye Kung unveiled the Industry Transformation Map (ITM) for the financial services sector on Monday (Oct 30).
The ITM outlines key growth strategies for the financial sector that aim to generate greater productivity, attain higher growth rates, and create 4,000 jobs each year up to 2020.
These include strengthening financing channels for small- and medium-sized enterprises (SMEs), simplifying the regulatory framework for venture capitalmanagers, introducing dual class share structures for high-tech companies, and encouraging other sources of private sector financing for start-ups and entrepreneurs.
According to a Deutsche Bank report released last year, debt burdens have risen from less than 240 per cent of GDP in 2009 to 265 per cent in 2015. This is largely due to Singapore’s high levels of private sector leverage, for which there are limits to greater growth.
Singapore plays fintech evangelist on global mission (Business Times), Rated: A
IN TWO short years, Singapore has zipped into pole position in the fintech space, challenging rivals such as London in drawing intellectual and funding capital into the city-state with its open adoption of new technology and more broadly, innovation.
The strategy, led by the Monetary Authority of Singapore (MAS), is now widening to a regional and global endeavour, as MAS expands into cross-border projects that could pay significant digital dividends in time.
This will chiefly include blockchain experiments, with MAS now looking at ways to expand an inter-bank payments pilot to create a cross-border payments system between two countries, Ravi Menon, managing director of MAS, said in a wide-ranging interview with The Business Times.
Seven in ten UAE residents unsure how to achieve their financial goals (The National), Rated: AAA
Seven in ten UAE residents are unsure of the steps needed to achieve their financial goals, a poll by National Bonds revealed on Monday, as the UAE investment company launched a new campaign to encourage better saving habits.
According to the poll of almost 400 residents conducted in the first nine months of the year, 69 per cent of respondents lack awareness about financial planning.
Despite the lack of clarity on how to save and invest their money, 53 per cent were most interested in receiving financial advice related to retirement planning. This was consistent among Arabs, Asians and Western expats, according to National Bonds, while Emiratis are more concerned with advice on financial health.