- Today’s main news: Rumor: Former SoFi CEO Mike Cagney is planning a comeback with new HELOC startup. Funding Circle preparing 1B GPB float. Morgan Stanley to offer robo-advice. New bill could make IRS use API. Spice Mobility to invest $1.95M in P2P lending startup.
- Today’s main analysis: Yirendai still growing, and at a good price.
- Today’s thought-provoking articles: Will open banking boost UK’s fintech sector? The biggest stories of 2017. Australia sees lowest loan rate since 1956. Is it time for India to make the digital leap? Hope for Indian startups in 2018. Bank-fintech collaboration in 2018.
- Is Mike Cagney making a comeback? AT: “I figured Cagney would plot a new startup at some point. I didn’t think it would be so soon. If true, this just proves you can’t keep a–eh, good–visionary down.”
- Morgan Stanley to enter robo market. AT: “At this point, the big players have to do it just to stay relevant. But is it too late?”
- How a tech upgrade at the IRS could transform the economy. AT: “If consumer information can be kept secure, why not? It’s time for an upgrade.”
- Consumers want biometrics. AT: “Biometrics technology is poised to make big strides in 2018.”
- The best of PeerIQ in 2017. AT: “If you missed any of these stories, now is the time to catch up.”
- Five ways financial laws could change this year.
- Payday, auto lending rules in jeopardy.
- Oregon bank transforms to digital with a human touch.
- Real estate and alternative lending.
- What consumer need to know about OnDeck’s line of credit.
- Investments you should make in 2018.
- Funding Circle preps for 1B GBP float.
- Will open banking boost the fintech sector?
- Mitty Group gets 2M GBP from Assetz Capital.
- How to be a property investor with crowdfunding.
- Players that swapped bit parts for leading roles.
- Robos see need for human touch.
- Insight from Zopa on delivering an awesome customer experience.
- Yirendai still growing.
- The right balance between financial innovation, risk.
- Recent news in China fintech.
- Mobile payment scale rises.
- Spice Mobility to invest $1.95M in anytimeloan.in.
- Spice Mobility to buy 30% stake in startup.
- It may be time to make the digital leap.
- There is hope for Indian startups.
- Fintech collaborations.
- Top fintech trends in 2018.
- 7 key trends to watch for in 2018.
- P2P lending NBFCs see a promising year.
- What to expect in 2018 in payments.
- United States
- The SoFi CEO who was ousted amid sexual harassment allegations is already back with a new startup (recode), Rated: AAA
- Morgan Stanley enters robo-advice investment market (Financial Times), Rated: AAA
- How a simple tech upgrade at the IRS could transform the economy (TechCrunch), Rated: AAA
- Consumers Want Biometrics – How Will Payments Respond? (PYMNTS), Rated: A
- Ebullient Equity And Credit Markets (PeerIQ), Rated: A
- Five ways financial laws could change in 2018 (The Hill), Rated: A
- CFPB’s Payday Loan, Auto Lending Rules in Jeopardy (Manatt), Rated: A
- Umpqua’s next transformation (Banking Exchange), Rated: A
- Always Search for the Best Option (Scotsman Guide), Rated: A
- OnDeck Line of Credit: What You Need to Know (Fundera), Rated: A
- 3 Other Investments You Should Consider Making in 2018 (LearnBonds), Rated: B
- United Kingdom
- Peer-to-peer giant Funding Circle lines up banks for £1bn float (Sky News), Rated: AAA
- A Brave New World – Will Open Banking Boost The UK Fintech Sector? (Forbes), Rated: AAA
- Mitty Group Secures Nearly £2 Million in Funding From Assetz Capital (Crowdfund Insider), Rated: A
- Becoming a property investor – the crowdfunding option (LinkedIn), Rated: A
- Players who swapped the bit parts for starring roles (The Times), Rated: A
- Robo advisers recognise the need for human touch (Financial Times), Rated: A
- 57 Insights from leading brands and experts on what it takes to deliver a Wow customer experience (Customer Think), Rated: B
- Yirendai Limited: Still Growing, Still At A Good Price (Seeking Alpha), Rated: AAA
- China looks for right balance between financial innovation, risk (Xinhuanet), Rated: A
- WeiyangX Fintech Review (Crowdfund Insider), Rated: A
- Mobile payment scale rises in 3rd quarter (Xinhuanet), Rated: A
- The Biggest Fintech Stories of 2017 (Crowdfund Insider), Rated: AAA
- Lowest loan rate since 1956 sparks regulatory fears and raises pressure on debt (Financial Review), Rated: AAA
- Spice Mobility to invest $ 1.95 mn in P2P lending startup (VC Circle), Rated: AAA
- Spice Mobility to buy 30% stake in P2P lending startup for ₹12.5 crore (TechStory), Rated: A
- Start-ups all geared, it may well be time for India to make ‘Digital leap’ (Financial Express), Rated: AAA
- Good or bad in 2017, there is lot of hope for Indian startups in 2018 (Tech Observer), Rated: AAA
- Year 2017-FINTECH Collaboration Kick-start Year (the Banking Finance Post), Rated: AAA
- Indian Startup Funding Of The Week [25-30 Dec] (Inc42), Rated: A
- Top fintech trends that India can expect in 2018 (Economic Times), Rated: A
- The 7 Key FinTech Trends To Watch Out For In 2018 (Inc42), Rated: A
- P2P lending NBFCs to see a promising year ahead (MoneyControl), Rated: A
- What to Expect in 2018 in the Payments Industry (BW Disrupt), Rated: B
- PLDT fintech unit reaching out to unbanked Filipinos (Inquirer), Rated: AAA
- Indian-led global fintech InstaReM looks at 600 percent growth (ANI), Rated: B
The SoFi CEO who was ousted amid sexual harassment allegations is already back with a new startup (recode), Rated: AAA
Cagney has been approaching investors in recent weeks about a new fintech startup with a plan to raise about $25 million, according to multiple people familiar with his outreach. He has pitched investors such as Peter Thiel along with several others who were backers of SoFi, a company that Cagney pushed to become worth almost $5 billion.
Cagney is starting the new company alongside his wife, June Ou, who previously served as SoFi’s chief technology officer, the people said. The company does not yet have a name and has yet to be publicly announced — Ou’s LinkedIn page says she will serve as the COO of a “#newCo.”
The company is said to focus on HELOC, or home equity lines of credit, though the people said the idea was in the early stages and still required more sharpening. Ou this month shared a job posting on GlassDoor for engineers at a company soon to launch.
Morgan Stanley enters robo-advice investment market (Financial Times), Rated: AAA
Morgan Stanley has made a late push for dominance in the fast-growing market for “robo-advice” in America, launching an automated service aimed at the offspring of its well-heeled customers.
Funds managed by software will grow to $385bn by 2021, according to Cerulli Associates, more than quadrupling from today’s levels.
Morgan Stanley is the latest to pitch in, offering a choice of ETFs, mutual funds and seven themed portfolios, among them sustainability, gender diversity and next-wave technology. The new online tool, known as Access Investing, is designed to appeal to a younger generation, many of them members of wealthy families.
How a simple tech upgrade at the IRS could transform the economy (TechCrunch), Rated: AAA
Our credit system runs on the power of data. A simple IT upgrade at the IRS would put more of this power in your hands.
The IRS Data Verification Modernization Act of 2017, recently introduced in Congress by Rep. Patrick McHenry (R-NC) and Sen. Cory Booker (D-NJ), would set up an application programming interface (API) at the IRS.
This API would turn a cumbersome, manual process into an automated one. An API would allow the agency to provide your transcripts the instant you give your authorization. Credit providers would then have more information to make better decisions about your approval and rate. This could cut financial fraud and improve credit prices, speed and access for everyone.
Consumers Want Biometrics – How Will Payments Respond? (PYMNTS), Rated: A
A recent study by Visa showed that, unsurprisingly, consumers are ready to say goodbye and good riddance to passwords, both because of the friction they create when trying to remember them – and the inevitable stutter step that the “forgot password” prompt creates – and because in the aftermath of the Equifax breach, the public has never been more conscious of how far passwords fall short in preventing fraud and keeping their data secure.
It was one of the big drivers, Nelsen said, behind the development of Visa ID Intelligence. Nelsen said that ID Intelligence is an ecosystem of authentication solutions to which issuers connect via a single API.
Over the last four years, Nelsen said there’s been an enormous increase in credit applications – a healthy portion of which are from fraudsters who’ve stolen legitimate credentials and have attempted to use them to open new accounts. Banks now recognize that the best way to combat new account fraud is to put knowledge-based authentication in their rearview mirror, in favor of using tools like identity documents and device data to help determine whether an identity is legitimate, stolen or synthetic.
Ebullient Equity And Credit Markets (PeerIQ), Rated: A
2017 has been a great year for equity and credit markets. The S&P500 ended the year up 20%, while CDX IG and CDX HY spreads tightened 46bps. ABS markets enjoy record issuance and all-tight time spreads.
Best of PeerIQ:
Five ways financial laws could change in 2018 (The Hill), Rated: A
Republicans have made limited progress on President Trump‘s pledge to “dismantle” the Dodd-Frank Act, which the GOP had hoped to gut by the end of 2017. But the GOP and independent regulators could still make critical changes to key parts of the law’s legacy.
Senate Majority Leader Mitch McConnell told reporters last week that he’d like to hold a vote on a bipartisan Senate Banking Committee bill to exempt small and mid-size banks from aspects of Dodd-Frank.
House members from both parties have lined up behind a Congressional Review Act resolution to repeal the CFPB’s October rule on high-interest, short-term loans.
Tinkering with the Volcker Rule
Comptroller of the Currency Joseph Otting, a former bank CEO, said that his agency would consider ways to make the rule clearer and less costly to comply with for smaller banks. Republicans and some moderate Democrats are also support exempting community banks and credit unions from the rule altogether.
Action on credit reporting agencies
Cyber breaches of financial companies reach across several committees of jurisdiction, and senators on the Banking Committee have expressed interest in a bill meant to protect credit-reporting information.
During the Banking panel’s markup of bipartisan Dodd-Frank rollback bill, Sen. Brian Schatz (D-Hawaii) sought to add language meant to boost accountability and transparency when credit reporting agencies are breached.
CFPB’s Payday Loan, Auto Lending Rules in Jeopardy (Manatt), Rated: A
As we have previously reported, the Bureau’s final rule on payday, vehicle title and other so-called high-cost installment loans created new consumer protections for a wide variety of short-term loans and provided official staff interpretations of the rules. Nearly 1,700 pages in length, the rule was issued on Oct. 4.
One of the more controversial provisions of the rule declares it an “unfair and abusive practice” for any lender to make covered short-term or longer-term balloon-payment loans, including payday and vehicle title loans, before reasonably determining that consumers have the ability to repay the loans according to their terms. Pursuant to the rule, it would also be an unfair and abusive practice to make attempts to withdraw payment from consumers’ accounts after two consecutive payment attempts have failed, unless the consumer provides a new and specific authorization to do so.
Now the rule—which is currently set to take effect Jan. 16, 2018—may see the same fate as the arbitration rule. H.J. Res. 122, introduced by Rep. Dennis Ross (R-Fla.), states “That Congress disapproves the rule submitted by the Bureau of Consumer Financial Protection relating to ‘Payday, Vehicle Title, and Certain High-Cost Installment Loans’ and such rule shall have no force or effect.” Significantly, H.J. Res. 122 includes Democratic co-sponsors.
Auto Finance—Another Bureau rule may soon be on the road to CRA repeal after the Government Accountability Office (GAO) wrote to Sen. Pat Toomey (R-Pa.) in response to a query about CFPB Bulletin 2013-02.
Umpqua’s next transformation (Banking Exchange), Rated: A
The long-term vision of the company has not changed: to provide banking products and services to people when they want it. We call it personalized banking for all—anytime, anywhere.
But how do you create a human relationship when more and more business is being done electronically?
So we’ve decided as a long-term strategy to combine the human element with digital components. We call it “human-digital banking.”
What does that mean? We have a new retail application in pilot called BFF—Best Financial Friend—created by Pivotus Ventures [Umpqua’s Palo Alto, Calif.-based fintech/research unit], that customers download on their phones. The first phase of the pilot was a centralized hub. Now we’re rolling it out in stores in the Portland [Ore.] market, training associates to serve as a BFF digitally in addition to working with customers in person. Our intent, as a more robust application becomes available early in 2018, is to introduce it into other metropolitan markets.
Using the app, customers pick a banker in the bank who will be kind of their personal concierge—almost like a personal shopper. They will help the customer do anything with Umpqua except get cash.
Always Search for the Best Option (Scotsman Guide), Rated: A
More than 53,000 single-family homes and condos were flipped nationwide in the second quarter of 2017 alone for a home-flipping rate of 5.6 percent of second-quarter home sales, according to Attom Data Solutions. The estimated total dollar volume of financing for homes flipped in second-quarter 2017 was $4.4 billion, the highest level since third-quarter 2007, nearly a 10-year high.
More than 35 percent of homes flipped in second-quarter 2017 were purchased with financing, according to Attom. That’s the highest level since third-quarter 2008, or a nearly nine-year high.
A joint study by the University of Cambridge and the University of Chicago suggests that the alternative lending sector, which includes crowdfunding, “hit a stride” in 2016 and has plenty of room for growth. Total market volume in 2016 for alternative financing in the U.S., Canada, Latin America the Caribbean was $35.2 billion, up 23 percent versus 2015. Real estate crowdfunding accounted for just 2.3 percent of the alternative lending market in 2015, but its volume rose by 70 percent in 2016.
OnDeck Line of Credit: What You Need to Know (Fundera), Rated: A
And finally, short-term lines of credit are more expensive than products that you’d get at a bank. The exact interest rate you’d get on an OnDeck line of credit, for instance, depends on the exact qualifications of your business, but in general, you can expect them to range from 10% to 80%.
3 Other Investments You Should Consider Making in 2018 (LearnBonds), Rated: B
There are several ways you can invest in small businesses. Peer-to-Peer (P2P) lending is a popular way that you definitely need to look into. This lending system eliminates middlemen completely and lets you connect with small businesses across the country with ease.
Funding Circle, the UK’s biggest peer-to-peer lending platform, is preparing to hire advisers to oversee a £1bn-plus London flotation.
Sky News has learnt that the company has told investment banks that it will hold a beauty parade towards the end of the first quarter of 2018, with a listing possible as soon as the late autumn.
A Brave New World – Will Open Banking Boost The UK Fintech Sector? (Forbes), Rated: AAA
Open banking is coming to the UK. To be more precise, from January 13, 2018, Britain’s nine largest banks and one building society will be required to make customer account data available to approved rivals. If all goes according to plan, the new regime will herald a bold era of competition by allowing up-and-coming challenger banks and fintech (financial technology) businesses to compete on a more-or-less level playing field with the giants of the financial services industry.
In the business loans market, peer-to-peer platforms have become increasingly accepted as a source of debt finance. For instance, in the three months to September, pioneering peer-to-peer platform, Funding Circle rang up £114m in new net lending to small businesses. This compared with £95m in new net lending by the big four banks.
According to a survey conducted by Decision Technology, 43% of bank retail customers would consider sourcing a personal loan from a fintech provider. Although consumers were less amenable to opening savings accounts (only 26% would do so).
Mitty Group Secures Nearly £2 Million in Funding From Assetz Capital (Crowdfund Insider), Rated: A
Earlier this month, Liverpool-based property developer Mitty Group secured £1,982,000 worth of funding from UK-based peer-to-peer lender Assetz Capital to develop two new residential and leisure sites in Merseyside.
According to Assetz Capital, Mitty Group has secured a £942,000 loan from the online lender to fund its Regency Court Development in the Old Swan area of Liverpool.
Assetz Capital also reported that Mitty Group secured a £1,040,000 loan to fund its Burscough Street Development in Ormskirk town center.
Becoming a property investor – the crowdfunding option (LinkedIn), Rated: A
Real estate crowdfunding is becoming increasingly popular and it was valued at $3.5 billion in 2016. It is also projected to have the value of $5.5 billion by the end of 2017. It is a great time to think of investing in property UK using the crowdfunding option. However, it is important that you proceed with caution. Here are a few tips to help you make savvy decisions about real estate crowdfunding.
- Understand the rules.
- Real estate crowdfunding can be risky too.
- Take baby steps.
- Know your investment company.
- Always remember that real estate crowdfunding is generally the same as other investments.The higher the returns, the higher the risks. Try to limit your investment to 5% of your earnings, or 10% for higher net worth individuals.
Players who swapped the bit parts for starring roles (The Times), Rated: A
Satoshi Nakamoto is the anonymous coder, or group of coders, who created bitcoin as a stateless digital currency nine years ago. It’s a pseudonym. Her/his/their true identity remains a mystery, but, as cryptocurrencies continue to rise in influence and as investors lose faith in traditional institutions, that influence is more than likely to grow.
Imagine, for a moment, what it means to be Satoshi Nakamoto. You are, at least digitally, one of the 50 richest people alive and one of the most important people in the financial world.
Robo advisers recognise the need for human touch (Financial Times), Rated: A
Robo advisers promised to shake up the UK investment market by using algorithms to deliver low-cost automated services to the masses. However, British investors have found a bug in the system — when it comes to managing their money, they want to speak to human beings too.
The new breed of “robos” are morphing their business models to provide over-the-phone and face-to-face advisory services, recognising that more of a personal touch is needed to win over customers.
Scalable Capital, the European online robo-advice company backed by BlackRock, is launching over-the-phone and face-to-face consultations for a one-off fee of £200 from January after finding a number of clients wanted to talk to human advisers rather than answering its online questionnaire alone.
57 Insights from leading brands and experts on what it takes to deliver a Wow customer experience (Customer Think), Rated: B
Andrew Lawson, Chief Product Officer of Zopa.com, a UK online personal finance peer-to-peer lending company, believes that Wow service/experience starts with the customer and solving a problem they face. Too often customer service is a team that is set up to solve the problems that are inherent within the products/services that have been created.
Yirendai Limited: Still Growing, Still At A Good Price (Seeking Alpha), Rated: AAA
- Emerging fintech player Yirendai Ltd. is well positioned in the expanding Chinese P2P lending industry.
- P2P lending has a potentially huge market in China that could actually be enhanced by the government’s development of its Social Credit System.
- Yirendai has strong revenue growth, a good return on equity, an attractive valuation, a nice cash flow, is free of debt, and plans on continuing to pay a dividend.
- An uptrend is on the company’s price chart, reinforced by 50-DMA, 200-DMA, and Relative Strength technical indicators.
China looks for right balance between financial innovation, risk (Xinhuanet), Rated: A
But it has also made things easier for scammers. QR codes are so accessible that a simple scanning of an unidentified barcode can lead to a loss of huge money or massive personal information leakage.
For instance, while offering credit support for small and micro-sized enterprises who may not have enough collateral or sound balance sheets is still a headache for the banking sector, banks now can make better loan decisions by evaluating their conditions more precisely with technologies like big data and blockchain.
WeiyangX Fintech Review (Crowdfund Insider), Rated: A
Last month, a number of private banks (except WeBank, MYbank and XWBank) received notification from CBRC that they should stop offering online lending services, which caused quite a stir within the industry.
On December 23rd, a charity-crowdfunding campaign from Fenbeichou received profound attention and donations on China’s leading social platform WeChat. People were encouraged to donate and help underprivileged children who have same birthday as themselves. Applause for the campaign’s creativity didn’t last long when journalists found that there were some beneficiaries on the platform who were labelled with different names (but for the same picture) or even non-existent date of birth (e.g. 2017.2.29). People suspected this “Same-Birthday Crowdfunding” campaign was a fraud.
On December 28th, the Nanjing Municipal Public Security Bureau posted on its official Weibo that the head of online finance platform Qbao.com had surrendered himself to the local police.
On December 27th, a new range of rules were released to ramp up the security in the mobile payment sectors.
Mobile payment scale rises in 3rd quarter (Xinhuanet), Rated: A
The scale of mobile payment in China exceeded 29 trillion yuan (4.5 trillion U.S. dollars) in the third quarter of 2017, a report indicated.
According to the report released by internet research agency Analysys, the amount is a quarter-on-quarter increase of 28.02 percent.
The Biggest Fintech Stories of 2017 (Crowdfund Insider), Rated: AAA
Online lending, including marketplace lending or peer to peer lending, is entering a new era. Goldman Sachs and their Marcus platform is schooling early entrants with good tech and access to low cost of capital that is hard to beat. Big tech is moving in too, as companies like Square, PayPal and Amazon are now providing loans. In the US, early online lenders are rushing to launch new verticals and update models to remain competitive and relevant. Elsewhere, such as the UK and China, models are becoming more established as the focus has been different and the regulatory environment more welcoming.
Equity-based crowdfunding is now accounting for 17% of all seed and venture stage equity investment in the UK. Peer-to-peer business lending provides 15% of all new loans lent to small businesses by UK banks.
Today, the Fintech Charter has not moved an inch forward and is arguably in retreat. And why is that? Because the States do not want to lose relevance and Congress is unable to do anything about it. Who loses out? Consumers and small business, of course.
In early 2017, the Governor of the Bank of England Mark Carney delivered a pointed speech where he said Fintech could “signal the end of universal banking as we know it.” Why is this important? Because it is the Bank of England: the second oldest central bank in the world.
Australia gets a huge shoutout for being consistently vocal in their advocacy of Fintech from both the private and public sector. FinTech Australia has accomplished quite a bit in a short time as the advocacy group promoting the virtues of financial innovation.
The UK’s impending divorce from the European Union is still meandering down the negotiation path.
The shocking downfall of Mike Cagney, founder of unicorn darling SoFi – a company that once envisioned itself as the future of banking, rocked the Fintech world.
The dramatic rise of cryptocurrency and initial coin offerings (ICO) is nothing short of spectacular.
Lowest loan rate since 1956 sparks regulatory fears and raises pressure on debt (Financial Review), Rated: AAA
Borrowing rates have fallen to their lowest level for 62 years, triggering debate that Australia’s increasing household debt will force regulators to raise further speed limits to contain new lending, despite an already slowing investor market.
Other lenders, including online lender ING and Newcastle Permanent, the nation’s largest building society, are also targeting the owner-occupied fixed-rate sector with cuts pushing the headline rate to below 3.8 per cent.
Mortgages are a key profit generator for lenders, accounting for about 55 per cent of bank loans and 30 per cent of cash earnings.
Spice Mobility to invest $ 1.95 mn in P2P lending startup (VC Circle), Rated: AAA
BK Modi group company Spice Mobility Ltd is set to pick up a 30% stake in Luharia Technologies Pvt. Ltd, which runs peer-to-peer lending platform anytimeloan.in, for Rs 12.5 crore ($1.95 million) in an all-cash deal.
Spice Mobility to buy 30% stake in P2P lending startup for ₹12.5 crore (TechStory), Rated: A
Spice Mobility Ltd is buying 30% stake in Luharia Technologies Pvt. Ltd which operates P2P lending platform anytimeloan.in, in all cash deal of ₹12.5 crore ($1.95 million), the company said in a stock exchange filings.
Start-ups all geared, it may well be time for India to make ‘Digital leap’ (Financial Express), Rated: AAA
THE YEAR 2017 has been somewhat of a twilight zone for digital in India.
India is the world’s second largest online market with 460 million internet users and more than 1 billion mobile subscribers. But internet penetration is still south of 20% of our overall population.
I read recently that over 2.4 billion brand-related conversations happen online every day. In one significant trend, consumers are undergoing digital saturation amidst the social media and marketing barrage. As many as 83% of consumer respondents in a recent survey felt that brands didn’t handle their emotions well across different touchpoints.
Good or bad in 2017, there is lot of hope for Indian startups in 2018 (Tech Observer), Rated: AAA
For some startups, especially for Fintech firms like Paytm, 2017 has been an incredible year as they were most ready to reap the benefits of disastrous demonetisation policy announced by Prime Minister Narendra Modi which forced the people to rely on mobile wallet firms for making payment for even their tea. Further, implementation of GST has push an environment wherein individuals and SMEs are looking to go digital.
Lohia says that 2018 will see scaling up of players in the lending space especially in small business lending.
On the other hand, for peer to peer (p2p) lending platform – OMLP2P – that brings investors and borrowers together for a seamless and transparent loan disbursal experience, the year 2017 was a mile stone year because on October 4, 2017, RBI came out with the guidelines for the P2P industry, which paved the way for the P2P players to get themselves registered as “ NBFC- P2P” with RBI.
For starups like CreditMantri, 2017 has been a good year as they were able to reach out to 3.8 million Indians with their CreditMantri platform.
For Pune based startup Loantap, which focuses on providing lending platform to Salaried Professionals, 2017 has been a good year. He bets that 2018 is going to be great year for LoanTap and his firm will cross 100 crore Loan Book within first few months.
Year 2017-FINTECH Collaboration Kick-start Year (the Banking Finance Post), Rated: AAA
In 2017, Banks have targeted below areas to practice Innovation –
- Architecture to innovate: Challenges around quick interfacing between systems through API Banking.
- Operations Overheads: Improvement areas in Operations and Cost optimisation through Robotic Process Automation
- Skillset Availability: Creation of skillset around new technologies was always main Agenda in 2017
- Traditional Banking: Banking Services on limited channels for Customers, It’s very important to provide Banking services through many other non-Banking Channels
- Fintech Experimentations: Challenges around quick partnering with external partners. Availability of API Management interfacing for third-party partnering
- Agility in Solution: Availability of quick solutions for payments & other Banking Services
- Remove Barriers of digital transformation like lack of skills, lack of technology, lack of adoption
- Innovative Culture building for of business Team to drive innovation or digital transformation
- Digital banking Enhance of channels to drive digital services e.g. Customer Onboarding, customer serving, customer engagement, custom education
So far Bank has conducted 5 Hackathons which is something Unique in the banking industry.
Main achievements through Innovation Carnival
- 1st Bank in INDIA: DCB BANK – First Bank to conduct National Hackathon in 6 Cities
- Digital Culture Building at DCB bank – This program touches on all entities in the organisation
- Corporate Partnering & Training – Model to train participants e.g. by IBM, Redhat, NPCI etc Corporate conducted Sessions
- Established Mentorship Collaboration with 60+ Fintech Mentors in various areas added value to boost true evaluation
- 18 Innovation Themes: It keeps motivated internal team thru idea generation for 18 Themes
- Both Virtual & 6 Physical hackathons: It keeps touch with external parties thru Hackathon, Summit
- Meeting Bank’s Strategy Goals: It’s helping to execute the strategy for our Bank and to grow bank
- Unique India Collaboration: Building Innovation Community among Government, Accelerators, Institutes, Corporate, Banks
Indian Startup Funding Of The Week [25-30 Dec] (Inc42), Rated: A
Lendingkart Finance: The Ahmedabad-based SME lending startup raised $3.8 Mn (INR 25 Cr) in debt from the State Bank of India. The latest influx of funds will be utilised to bolster Lendingkart’s loan book. The fresh capital will also enable the startup to expand its geographical reach to over 950 cities.
Anytimeloan.in: Spice Mobility is gearing up to buy 30% stake in Luharia Technologies, which owns and operates P2P lending platform Anytimeloan.in.
Top fintech trends that India can expect in 2018 (Economic Times), Rated: A
The fast-paced digitization has unlocked fresher avenues for fintech players, especially the ones associated with SME-based lending.
With everything going digital, loan officers can’t be too far behind.
Machine Learning and user experience
2018 will also be the year for adoption of new regression models driven by Machine Learning.
All of this is being done through automated algorithms that scrape everything from historic transactions, preferences, and supply chain partnerships, down to critical metadata embedded into user information.
Our nation has taken a giant stride in the realm of technology by developing its own blockchain network.
UPI (Unified Payment Interface) and AEPS (Aadhaar-enabled Payment System) have paved the way for an open banking channel in 2018.
Physical and Digital Merger
In India, despite a commendable effort to bank the unbanked, a majority of the Indian population is still deprived of access to banking services till date. Businesses, on the other hand, have enough data to prove their creditworthiness but fail to acquire credit because of conventional scoring mechanisms that banks use. Lately, fintech startups have begun collaborating with banks and helped them in making good use of their data and increasing ..
The 7 Key FinTech Trends To Watch Out For In 2018 (Inc42), Rated: A
EY’s Fintech Adoption Index (2017), a survey of more than 22,000 digitally active consumers, ranks India second (52%) behind China (69%) in terms of percentage of the digitally active population.
Digital payments reached 1,162 crore transactions between April and November and are expected to exceed 1,800 crore in the current fiscal.
Wallet Usage To Rise
2017 has been the year which saw e-wallets and digital payments come to the fore, placating the masses post demonetization. Come 2018, this trend will likely mature as more and more Indians turn to the digital side of things.
More Emphasis On Data Analytics And AI
Banks And Fintech Companies Collaborating
A Secure Digital India
The rise in digital payments and online lending also makes the sector exposed to hackers who are always on the prowl to feed on vulnerable security.
Motivated by the intention of democratising financial services while aiming for exponential growth, these FinTech startups will come up with newer models for lending, especially in the P2P Lending space.
Open banking – With initiatives such as Unified Payments Interface (UPI) and Aadhaar Enabled Payment System (AEPS), banking will become more ‘open’ in 2018.
Proliferation Of Chatbots
In 2018, we can expect more chatbots to be deployed with improved quality of interactions, the speed of responses and accuracy in decision-making.
P2P lending NBFCs to see a promising year ahead (MoneyControl), Rated: A
India will be more than USD 4-trillion economy by 2022. Out of this, USD 1-trillion would be digital economy—and it’s the most conservative estimate the government is working with. As Indians become digitally more aware, India’s emerging Peer-To-Peer (P2P) lending industry will flourish in 2018.
Here’re the top 5 trends to watch out for:
- P2P lending platforms to become an important contributor to India’s growth story… Micro, Small and Medium Enterprises (MSMEs) contribute about a third of India’s manufacturing output and provide employment to over 10 crore people. Despite this, the share of institutional lending in the total borrowings of MSMEs is less than 10%.
- Faster and cheaper loans to SMEs and self-employed borrowers
- Fund raising activities of the P2P lending platforms may gather pace… RBI has given 3 months to the existing players and 12 months to the new players for registration. The regulator has made it mandatory for an aspirant P2P lender to have a minimum net worth of Rs 2 crore.
- Personal loans to grow at a healthy pace
- Awareness about the P2P lending sector to grow among investors
What to Expect in 2018 in the Payments Industry (BW Disrupt), Rated: B
- The infrastructure to enable digital payments has been strengthened through issuance of debit cards, roll-out of Point of Sale machines, launch of phone-based acceptance through the BHIM app and the Bharat 4.0 app that allows seamless acceptance of QR code and UPI based payment.
- At the same time, incentives have been provided to merchants to accept digital payments through the new Merchant Discount Rate rules
- The RBI is helping make digital payment instruments like Wallets more viable
- Along with these initiatives, the Government has concomitantly undertaken a massive consumer education and information campaign.
PLDT fintech unit reaching out to unbanked Filipinos (Inquirer), Rated: AAA
FINTQ, the PLDT group’s financial technology (fintech) arm, seeks to bring insurance, investment and savings solutions to 30 million unbanked Filipinos by 2020 through a grassroots-based financial inclusion program KasamaKA.
Launched to veer Filipinos away from usurious informal lenders, KasamaKA enables members to earn by referring applicants to any of the digital financial services offered by Lendr, FINTQ’s digital loan platform.
Indian-led global fintech InstaReM looks at 600 percent growth (ANI), Rated: B
Singapore headquartered fintech start-up, InstaReM, which offers convenient and cost-effective international money transfers to individuals and businesses aims to grow 600 percent in financial year 2018-19.