- Today’s main news: SoFi brightens startup scene in Helena, Montana. LendingTree rates Upgrade #1 personal loan. UK P2PFA gets a new head. India considering digital payments tax rebate for P2P lenders.
- Today’s main analysis: Why point-of-sale lending is hot.
- Today’s thought-provoking articles: Industrial loan company (ILC) applications may soon be seen in a positive light. P2P lending a significant income source for millennials. Higher education funding in India.
- SoFi feeds startup fever in Helena, Montana. AT: “Thanks to technology, anyone can run an international company from anywhere in the world, even small town and rural areas. Your truly hails from just outside Gettysburg, Pa.”
- LendingClub schedules Q4 earnings release.
- Elevate posts Q4 and full year 2017 earnings on investor relations website.
- LendingTree rates Upgrade the #1 personal loan. AT: “This is Renaud Laplanche’s comeback story. Congratulations.”
- Why point-of-sale lending is hot right now. AT: “I think POS financing is going to be hot for some time. It has been growing hotter over the last year thanks to companies like Affirm and Klarna, but those are not by any means the only companies working in this space. There will be plenty more, and I think many online commerce companies will begin to realize they will have to offer some form of financing to remain competitive. Amazon has led the way in this. Others will follow. It will become the norm, both online and off line, for the next generation.”
- Inside Overstock’s financial services strategy. AT: “Overstock is a good example of an online merchant who has taken advantage of their financial strength and available technology to improve access to financial services, including POS loans.”
- The revival of the industrial loan company. AT: “We may soon see the first online lender approved for an ILC.”
- Ripple founder, co-founder of Prosper, is the wealthiest crypto entrepreneur. AT: “And I would add, the first of many blockchain-based billionaires to come.”
- Goldman Sachs is building the ultimate financial destination for the masses.
- Personal Capital launches social responsible investing.
- Autobooks raises $10M.
- Toyota, Aire partner on finance delinquency.
- Confluent sees 4x subscription growth.
- What Mulvaney can do instead of killing the payday lending rule.
- Senate Democrats seek answers on Consumer Financial Protection Bureau’s (CFPB) Equifax investigation.
- CFPB wants your comments on enforcement processes.
- Altegris to merge with Artivest.
- SharesPost launches unit for initial coin offerings.
- Lenders to allow Airbnb income on mortgage forms.
- SEC exams focus on disclosures, robos, crypto.
- Former Keller Williams CEO become mello Home CEO.
- T3 to focus on the future of financial advice.
- UK P2P Finance Association gets new leader.
- Job switches at Lendy, RegTek.Solutions.
- Rebuildingsociety partners with Leeds Council.
- P2P lending a significant income for young investors.
- Lithuania’s fintech influence is growing.
- The country registered 35 new entrants last year.
- IOU Financial partners with goEBT.
- Lenddo, EFL partner on financial inclusion. AT: “Mynt uses platform to finance pigs.”
- Foxconn’s Gou may have invested in U.S. crypto company.
- India could offer digital payments tax rebates to fintech companies.
- Higher education funding.
- What’s ahead for fintech?
- United States
- Startup Fever is Catching on Everywhere (Even in this Little Montana Town) (Inc.), Rated: AAA
- LendingClub Schedules Fourth Quarter 2017 Earnings Release and Conference Call (PR Newswire), Rated: AAA
- Elevate Credit Fourth Quarter and Full Year 2017 Earnings Release Available on Its Investor Relations Website (BusinessWire), Rated: B
- Upgrade, Inc. Rated #1 Personal Loan by LendingTree (PR Newswire), Rated: AAA
- Why point-of-sale lending is hot right now (American Banker), Rated: AAA
- Inside Overstock.com’s financial services strategy (Tearsheet), Rated: A
- Fintech Firms Look to Enter Banking Via Century-Old Tactic (WSJ), Rated: AAA
- Who Is Chris Larsen? Founder Of Ripple Tops Forbes Cryptocurrency List (International Business Times), Rated: A
- Goldman Sachs is trying to build the ultimate financial destination for the masses (Business Insider), Rated: A
- Personal Capital Launches Socially Responsible Investing (Finovate), Rated: A
- Autobooks Raises $ 10M in Series A1 Funding Round (Finsmes), Rated: A
- Toyota partners with AI firm Aire to spot finance delinquency (Motor Finance), Rated: A
- Confluent Continues Momentum in 2017 with 4X Subscription Growth (Digital Journal), Rated: A
- Fintech partnerships can work (American Banker), Rated: A
- Mulvaney can’t just kill CFPB payday rule, but here’s what he can do (American Banker), Rated: A
- Democratic senators demand answers on CFPB’s stalled Equifax data breach investigation (Housingwire), Rated: A
- CFPB Seeks Comment on its Enforcement Processes (The National Law Review), Rated: A
- Altegris To Merge With Artivest (PR Newswire), Rated: A
- SharesPost Launches Unit Focused On Initial Coin Offerings; Hedge Fund Executive John Wu To Lead Group (BusinessWire), Rated: A
- Lenders to allow Airbnb income on mortgage forms (MarketWatch), Rated: A
- SEC Exams to Focus on Disclosures, Robos, Cryptocurrencies (Financial Advisor IQ), Rated: B
- Former Keller Williams CEO Chris Heller joins loanDepot brand family as CEO of mello Home (loanDepot), Rated: B
- Fintech looks to the future of financial advice at T3 (InvestmentNews), Rated: B
- United Kingdom
- UK P2P Finance Association Announces a New Leader (Lend Academy), Rated: AAA
- City Moves for 9 February 2018 – who’s switching jobs at Lendy, RegTek.Solutions and M&G? (City A.M.), Rated: B
- Rebuildingsociety partners with Leeds Council to support local businesses (P2P Finance News), Rated: A
- European Union
- P2P Lending Is Becoming A Significant Income Source For Young Investors (Crowdfund Insider), Rated: AAA
- Is Lithuania the most fintech-friendly destination in Europe? (Finextra), Rated: A
- Lithuania Registered 35 New Fintech Companies in 2017 (Crowdfund Insider), Rated: B
- IOU financial partners with goEBT to offer funding to network of 25,000 convenience store owners (Business Insider), Rated: AAA
- LENDDO AND EFL TEAM UP FOR FINANCIAL INCLUSION (#Include1Billion), Rated: A
- Foxconn’s Gou said to invest in US crypto merchant bank venture (EJ Insight), Rated: A
- Google search bias fine, Swiggy funding, Digital payments tax rebate & more (ET Tech), Rated: AAA
- HOW TO FUND YOUR HIGHER STUDIES (Money Today), Rated: AAA
- What Lies Ahead For India’s Fintech Sector? (CXO Today), Rated: A
- A Canadian Way to Access US Small Business Lending (Stockhouse), Rated: AAA
- Grounded Kitchen & Coffeehouse is OnDeck’s Small Business of the Month (PR Newswire), Rated: A
- Glaring Ponzi Schemes In Ghana Now (Modern Ghana), Rated: A
Startup Fever is Catching on Everywhere (Even in this Little Montana Town) (Inc.), Rated: AAA
There is a new millennial-friendly mixed-use development with a high-end steakhouse, movie theater, and hotel. And yes, even a town of 30,000 located more than 500 miles from the closest major metropolitan areas (Salt Lake and Seattle) has an entrepreneurial ecosystem. In fact, in some ways Helena has a startup scene larger cities would be jealous of. A few years ago, SoFi, the online student loan servicer that also provides personal loans and mortgages, contracted with two local programmers to help build their platform.
One of those programmers, David Thompson, is a graduate of the University of Montana-Western, Montana Tech, and the University of Montana. David had no interest in moving to the Bay Area, and successfully convinced SoFi to locate a substantial portion of its engineering team in Helena. Today SoFi is multi-billion-dollar startup, and David is the VP of Engineering, managing more than 100 programmers and engineers out of two locations in Helena.
For the last several decades–and especially over the last few years–we’ve heard a lot about the death of small towns and middle America. However, the success of SoFi and the emerging startup scene in Helena shows the potential for tech companies to be agents of economic revitalization in small towns and cities outside of the coasts.
LendingClub Schedules Fourth Quarter 2017 Earnings Release and Conference Call (PR Newswire), Rated: AAA
LendingClub (NYSE: LC), America’s largest online marketplace connecting borrowers and investors, announced that it will report earnings for the fourth quarter of 2017 on Tuesday, February 20, 2018, after market hours. LendingClub will host a conference call to discuss the fourth quarter financial results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day.
A live webcast of the call will be available at http://ir.lendingclub.com under the Events & Presentations menu. To access the call please dial +1 (888) 317-6003 or outside the U.S. +1 (412) 317-6061 with conference ID 8062913 ten minutes prior to 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time).
Elevate Credit Fourth Quarter and Full Year 2017 Earnings Release Available on Its Investor Relations Website (BusinessWire), Rated: B
Elevate Credit, Inc. (“Elevate”), a leading tech-enabled provider of innovative and responsible online credit solutions for non-prime consumers, today announced financial results for the fourth quarter and full year 2017. Elevate has posted its fourth quarter and full year earnings release to its Investor Relations webpage at http://investors.elevate.com/press-releases/2018.
The Company will host a conference call to discuss its fourth quarter and full year financial results on Thursday, February 8th at 4:00 p.m. Central Time / 5:00 p.m. Eastern Time. Interested parties may access the conference call live over the phone by dialing 1-877-407-0792 (domestic) or 1-201-689-8263 (international) and requesting the Elevate Fourth Quarter and Full Year 2018 Earnings Conference Call. Participants are asked to dial in a few minutes prior to the call to register for the event. The conference call will also be webcast live through Elevate’s website at http://www.elevate.com/investors.
Upgrade, Inc. Rated #1 Personal Loan by LendingTree (PR Newswire), Rated: AAA
Upgrade, Inc. (http://www.upgrade.com), a consumer credit platform that combines personal loans with tools that help consumers understand and monitor their credit, announced that it has been named #1 in the personal loans category for the fourth quarter of 2017 by LendingTree.
Why point-of-sale lending is hot right now (American Banker), Rated: AAA
But research conducted by banks and fintechs has found that many younger Americans are uncomfortable carrying credit card balances, partly because they saw their parents struggle with debt during the financial crisis and prefer the more certain repayment terms of installment loans.
Personal loans issued by banks — these exclude credit cards and auto and home equity loans — hit a record $807 billion at Sept. 30, according to data from the Federal Deposit Insurance Corp., up 9% from two years earlier and nearly 30% since 2012. That’s not even including the many billions of dollars of loans made by upstart online lenders that don’t end up on banks’ balance sheets.
San Francisco-based Affirm originated more than $1 billion in point-of-sale loans last year — and, increasingly, regional banks that are funding the loans, either directly or behind the scenes.
Inside Overstock.com’s financial services strategy (Tearsheet), Rated: A
For the past few months, the 19-year-old e-commerce company has been quietly building out FinanceHub, a sort of marketplace for financial services that includes existing Overstock credit cards and insurance products; loans by LendingTree, Prosper and Sofi; a robo-adviser for automated investing, as of last week — and as of Tuesday morning, a discounted trading platform.
Fintech Firms Look to Enter Banking Via Century-Old Tactic (WSJ), Rated: AAA
Financial-technology firms eager to offer banking products are eyeing a century-old model that fell out of favor during the financial crisis but could see a revival under the Trump administration.
The industrial loan company charter, available in a handful of states and particularly popular in Utah, allows nonfinancial companies to enter the banking sector without being subject to many of its restrictions, including oversight by the Federal Reserve. Companies seeking the charters must still obtain deposit insurance from the Federal Deposit Insurance Corp., which last approved insurance for an industrial loan company in 2008.
That could soon change. President Donald Trump’s pick to head the FDIC, Jelena McWilliams, suggested during Senate testimony last month that she would look favorably on new applications.
Who Is Chris Larsen? Founder Of Ripple Tops Forbes Cryptocurrency List (International Business Times), Rated: A
According to Forbes, Larsen’s net worth is between $7.5 billion and $8 billion in cryptocurrency, in large part thanks to his massive holding of Ripple—the cryptocurrency he co-founded in 2012.
Larsen, a Stanford M.B.A. and veteran Silicon Valley player, is no stranger to the world of digital finance. Prior to his involvement in cryptocurrency, he co-founded the online mortgage lender E-Loan. The company was valued at $1 billion in 2000. In 2006, he co-founded Prosper Marketplace—the first peer-to-peer lending marketplace in the United States.
Goldman Sachs is trying to build the ultimate financial destination for the masses (Business Insider), Rated: A
Individuals looking to saddle up with the prestigious bank needed to fork over a minimum investment of $10 million for wealth management services. The typical client had more than $50 million in investable assets.
Personal Capital Launches Socially Responsible Investing (Finovate), Rated: A
Autobooks Raises $ 10M in Series A1 Funding Round (Finsmes), Rated: A
Autobooks, a Detroit, MI-based fintech startup, raised $10M in Series A1 funding.
Toyota partners with AI firm Aire to spot finance delinquency (Motor Finance), Rated: A
Toyota Financial Services (TFS) has launched an evaluation of AI software from Aire to spot customers with higher risks of delinquency.
Aire’s machine learning technology will identify which lessees have entered customer delinquency by skipping a payment, and will give TFS an estimate on how likely they are to default on further instalments.
Aire’s software has already been used by lenders, including p2p lender Zopa, in the initial credit application phase.
Confluent Continues Momentum in 2017 with 4X Subscription Growth (Digital Journal), Rated: A
Confluent, provider of the streaming platform based on Apache Kafka, today announced 2017 results, which include 4X subscription growth year over year and 98 percent customer satisfaction.
In the 2017 Apache Kafka Report, many companies reported using the distributed streaming platform for more accurate and faster decision making, reduced operating costs, improved customer experiences and reduced risk. 1 in 4 respondents work for organizations with more than $1 billion in annual sales, illustrating how quickly this technology has gained traction across large enterprises. In addition, more than 15% of respondents are processing more than a billion messages a day.
Other 2017 highlights include:
- Raised $30 million from Sequoia, Index Ventures and Benchmark to meet global demand for streaming platforms.
- Expanded employee base by 120 percent, added numerous offices throughout the US and extended its footprint to six additional countries.
- Added new customers around the globe, including Alight Solutions, Capital One, Funding Circle, HomeAway and Nordea Bank.
- Announced the general availability of Confluent Cloud, an Apache Kafka as a Service offering that empowers enterprises and developers to move faster with streaming data.
- Surpassed 200 partners, including some of the largest Systems Integrators and Platform partners in the industry.
Fintech partnerships can work (American Banker), Rated: A
That Radius Bank in Boston would strike another fintech partnership — it announced one Wednesday with the startup Mantl, which is trying to cut down online-account openings to four minutes — is less revealing than its part in Radius’ evolving MO.
When Nathaniel Harley, CEO of Mantl, first visited Radius, he was seeking feedback on a personal financial management technology the company was working on. But he was quickly talked into changing the direction of his company.
The two companies started building an account-opening system for all digital channels in March 2017. They worked to reduce manual entry and other hassles from the account-opening process. Mantl brought in one of its own fintech partners, Alloy, to handle much of the decisions, including anti-money-laundering checks, identity verification and fraud detection. Radius and Mantl used Alloy’s workflow management tool to configure the decision-making process.
Mulvaney can’t just kill CFPB payday rule, but here’s what he can do (American Banker), Rated: A
Banking rules cannot be rewritten overnight, and so acting Consumer Financial Protection Bureau Director Mick Mulvaney has a tall order remaking the payday loan regulation crafted under his predecessor. But observers say Mulvaney has options for altering the rule to the industry’s favor.
One option would be to refocus the rule on disclosure requirements, which would be several steps short of a repeal but more amenable to lenders than the current CFPB regulation.
Democratic senators demand answers on CFPB’s stalled Equifax data breach investigation (Housingwire), Rated: A
Did the Consumer Financial Protection Bureau kill its investigation into Equifax’s data breach that exposed the personal information of 145.5 million U.S. consumers to hackers?
On Thursday, a group of 32 Democratic senators sent a letter to the CFPB, demanding answers on the state of the bureau’s investigation into the Equifax breach.
CFPB Seeks Comment on its Enforcement Processes (The National Law Review), Rated: A
The CFPB has issued a request for information that seeks comment on how the agency can best achieve meaningful burden reduction or other improvement in the processes it uses to enforce federal consumer financial law while continuing to meet the CFPB’s statutory objectives and ensuring a fair and transparent process. Comments on the RFI must be received no later than 60 days after the date it is published in the Federal Register, which the CFPB expects to be February 12, 2018.
In the new RFI, the CFPB now seek comment on all aspects of its enforcement processes but lists the following seven topics:
- Communication between the CFPB and subjects of investigations, including timing and frequency of such communications and information provided by the CFPB on the status of an investigation
- Length of CFPB investigations
- Notice and Opportunity to Respond and Advise (NORA) process, including whether the NORA process should be mandatory rather than discretionary and the information contained in letters the CFPB may send to potential subjects of investigations pursuant to the NORA process
- Whether subjects of potential enforcement actions should have the right to make an in-person presentation to the CFPB before the CFPB decides whether to initiate legal proceedings
- Calculation of civil money penalties, including whether the CFPB should adopt a civil penalty matrix
- Standard provisions in CFPB consent orders
- Manner and extent to which the CFPB can and should coordinate enforcement activity with other federal and/or state agencies with overlapping jurisdiction
Altegris To Merge With Artivest (PR Newswire), Rated: A
Altegris, an alternative investment research and management firm, and Artivest, an alternative investment technology firm, announced today that they plan to merge under the name Artivest, pending customary corporate and regulatory conditions to closing. The joint 100-person team will service over $3 billion in client capital—immediately becoming the largest independent alternative investment technology and solutions firm for wealth managers, fund managers, and independent advisors.
Lenders to allow Airbnb income on mortgage forms (MarketWatch), Rated: A
Homeowners soon will be able to count income they earn from Airbnb Inc. rentals on applications for refinance loans.
A new program — expected to be announced on Thursday by Airbnb, mortgage giant Fannie Mae and three big lenders — will allow anyone who has rented out property on Airbnb for a year or longer to count some or all of that money as income.
SEC Exams to Focus on Disclosures, Robos, Cryptocurrencies (Financial Advisor IQ), Rated: B
In 2018 the SEC’s Office of Compliance Inspections and Examinations plans to pay closer attention to matters involving retail investors, particularly when it comes to disclosures, and zero in on cryptocurrencies, initial coin offerings and secondary market trading, the regulator says in a press release.
The regulator will also continue monitoring digital advice platforms, with a special focus on their compliance programs, including algorithm oversight, investor data protection and disclosures of conflicts of interest, according to the exam priorities. The SEC has made progress in the ratio of investment advisors it examines each year, from just 8% five years ago to 15% in fiscal year 2017, the regulator says. In 2018, the SEC plans to target those advisors it has never examined before, according to the regulator.
Former Keller Williams CEO Chris Heller joins loanDepot brand family as CEO of mello Home (loanDepot), Rated: B
LD Holdings Group, LLC, parent company of loanDepot, the nation’s fifth largest retail lender, today appointed top real estate executive Chris Heller to head its recently-launched mello Home business. Combining digital simplicity and smart local advice, mello Home seamlessly connects home buying, financing, and improvement services into a single consumer experience.
Fintech looks to the future of financial advice at T3 (InvestmentNews), Rated: B
If the theme of the 2017 T3 Conference was the fiduciary rule, 2018 was all about the future of financial advice.
Quovo launched Cue, a new alerts engine that leverages Quovo’s aggregation technology to notify financial advisers about account activity and client milestones.
MoneyGuidePro announced a new partnership with MX, a data aggregation provider, that lets advisers bring held-away assets into the financial planning software.
UK P2P Finance Association Announces a New Leader (Lend Academy), Rated: AAA
It was through the work of the P2PFA, led by Christine Farnish, that these regulations were sensible and promoted the growth of the industry there. And while this initial regulatory framework is currently being reviewed by the FCA, today, the UK is one of the most competitive markets in the world in no small part because of these initial regulations.
Paul Smee brings more than 17 years experience in leading trade bodies in the UK. Previously, he was Director General of the Council of Mortgage Lenders for six years so he comes with experience leading finance trade bodies. He looks like a great choice to take over from Christine.
City Moves for 9 February 2018 – who’s switching jobs at Lendy, RegTek.Solutions and M&G? (City A.M.), Rated: B
Lendy, one of Europe’s leading P2P secured property platforms, is pleased to announce the appointment of Andrew Wawrzyniak as its new head of finance. Andrew was previously head of finance at Fund Partners, a leading fund manager, which specialises in the operation of collective investment schemes.
RegTek.Solutions, the market-leading control and compliance software provider for global trade and transaction reporting, has appointed Rob Bernstein as chief financial officer (CFO).
Rebuildingsociety partners with Leeds Council to support local businesses (P2P Finance News), Rated: A
PEER-TO-PEER business lender Rebuildingsociety has secured an agreement with Leeds City Council whereby the local authority funds loans through its platform.
The council will review business loan requests from companies with an LS postcode prefix, consider the industry and location of the company, and contribute to the loan amounts required by suitable applicants.
P2P Lending Is Becoming A Significant Income Source For Young Investors (Crowdfund Insider), Rated: AAA
According to Robo.cash, P2P lending is turning to a significant source of additional income for the growing number of the European investors.
The online lending platform also confirmed:
“The majority of investors are in the age groups: 25-34 years — 40%, 35-44 years — 31%, 45-60 years — 20%. The less number is the age of 18-24 years (6%) and 61 plus (3%). These figures are supported by the employment of investors: employees — 72%, entrepreneurs — 15%, students — 6%, retiree — 2%. At the same time, the most investors are just getting acquainted with P2P-services (52%) and the comparable number already has at least one-year practice: 1-3 years — 34% and over 4 years — 13%.”
Is Lithuania the most fintech-friendly destination in Europe? (Finextra), Rated: A
The country has been actively promoting itself as gateway destination to the European marketplace for non-EU firms and British startups fleeing Brexit. Registering a company takes merely three days, while getting a Payment Institution or Electronic Money Institution license takes only three months, two-to-three times faster than in other EU jurisdictions. Other perks include remote Know Your Customer (KYC) procedures, low profit tax, startup visa options and a sandbox regime for fintech startups in their first year.
The country also boasts a growing talent pool of up to 31,000 trained IT professionals with a further 8000 in the pipeline.
Lithuania Registered 35 New Fintech Companies in 2017 (Crowdfund Insider), Rated: B
This week, Invest Lithuania released the Lithuania Fintech Report 2017, which revealed that a total of 117 fintech companies were operating in the country in 2017, with 35 of them being registered last year.
IOU financial partners with goEBT to offer funding to network of 25,000 convenience store owners (Business Insider), Rated: AAA
IOU FINANCIAL INC. (“IOU” or “the Company”; TSX-V:IOU), an online lender to small businesses (IOUFinancial.com), is pleased to announce a strategic partnership with Marietta, GA-based c-store solutions provider goEBT (goEBT.com). Through this strategic partnership, goEBT’s network of 25,000 convenience store owners nationwide will be able to access IOU’s fast, convenient, non-collateral funding solutions.
LENDDO AND EFL TEAM UP FOR FINANCIAL INCLUSION (#Include1Billion), Rated: A
Our companies come together united by the common vision of providing financial inclusion for more than one billion new and underserved individuals across the globe. We will together provide a suite of credit scoring and identity verification products to more than 20 emerging markets.
Our companies have individually facilitated over 5 million credit assessments since inception, allowing more than 50 financial institutions to disburse over $2 billion USD in credit to people with limited information.
The first joint product offering is already live in Asia and Latin America, with additional products and features scheduled for release in the coming months.
Fuse Business Loans from Mynt began working with LenddoEFL to assess credit risk for its clients that were 80% unbanked.
Foxconn’s Gou said to invest in US crypto merchant bank venture (EJ Insight), Rated: A
Terry Gou, the billionaire chief of Taiwanese electronics giant Foxconn, is said to have invested in a cryptocurrency merchant bank being set up by Mike Novogratz, a former Wall Street macro hedge fund manager.
Citing a source familiar with the matter, Bloomberg reported that Novogratz has raised about US$250 million for his cryptocurrency merchant bank venture through a private placement.
Google search bias fine, Swiggy funding, Digital payments tax rebate & more (ET Tech), Rated: AAA
The government might consider giving tax rebates to merchants accepting payments digitally in order to promote the overall fintech sector, which is at its infancy at present but growing at a rapid pace, suggested the Reserve Bank of India.
Talking about the fintech sector the RBI has identified tech startups working in the space of peer-to-peer lending, blockchain, big data, smart contracts, robo advisors and online aggregators.
HOW TO FUND YOUR HIGHER STUDIES (Money Today), Rated: AAA
Traditionally, one’s option was limited to getting an education loan from a public sector bank. Now that the demographics are favourable and the education loan market has the potential to grow, non-banking finance companies (NBFCs), fintech players and peer-to-peer (P2P) lenders are jockeying for a piece of the market.
Seek more funding: Education loans are part of the priority lending category, but unlike the US, there is no provision for student loan waiver in India. It means your loan will not go away until you pay it off. Try and find out if there is any other source of funding available, including financial aid, bursary and scholarship or upfront savings, which will bring down the loan amount.
What Banks Offer
Most of them offer education loans for studying medicine, engineering or management at graduate and post-graduate levels or for pursuing further studies in India and abroad. Some also provide categorised loans. For instance, State Bank of India (SBI) offers Scholar Loan for students who get admitted to premier institutions like IITs, IIMs, NITs and AIIMS, and a Global Ed-Vantage loan for studying in global counterparts. Bank of Baroda offers Baroda Scholar loan for studying abroad and Baroda Gyan loan for higher studies in India while separate schemes are available for courses conducted by the country’s top institutions.
Landing an education loan may not be easy anymore, given the spurt in defaults. And that is where the new-age fintech firms and P2P lenders see a lucrative opportunity. “For those who fail to qualify for education loans from banks and NBFCs, P2P lending platforms can be an alternative way to borrow,” says Gaurav Aggarwal, Associate Director, Unsecured Loans, at Paisabazaar. In other words, aspiring students can raise personal loans from banks or fintech players like MoneyTap and LoanTap, or P2P lenders like Faircent and CreditMantri to cover their educational expenses.
What Lies Ahead For India’s Fintech Sector? (CXO Today), Rated: A
To understand what lies ahead for India’s fintech sector, it makes sense to understand the fintech growth is expected to boom in the Asia Pacific region. A Frost & Sullivan report predicts that the region is expected to grow at a CAGR of 72.5% from 2015 to 2020, reaching US$72 billion.
According to Quah Mei Lee, Industry Principal, ICT, Asia-Pacific, the mobile payments market in Singapore was estimated to be worth US$1.4 billion in 2017. The market is still small but is growing fast.
Indian digital payments industry is expected to reach $700 billion by 2022 in terms of value of transactions.
It is expected that more than 80% of the urban population in India will adopt digital payments as a part of their routine by 2022, and 70% of the retail chains will adopt the same.
Compared to the above, IOU Financial provides easily manageable, working capital term loans for small business, and does so:
The speed of IOU’s loan application process is a big draw for small business owners. IOU’s application generally takes roughly three to five minutes to complete.
Grounded Kitchen & Coffeehouse is OnDeck’s Small Business of the Month (PR Newswire), Rated: A
OnDeck (NYSE: ONDK), the online lender to small businesses, today announced that Grounded Kitchen & Coffeehouse, owned by Amir Rahim, has been selected as the OnDeck Small Business of the Month for February, 2018. The Ottawa-based restaurant is the first small business in Canada to earn the OnDeck spotlight award.
Glaring Ponzi Schemes In Ghana Now (Modern Ghana), Rated: A
So assuming I have $1000.00 I have no use for and would want to make a little interest on, All I have to do is go unto one of these platforms to match me with someone in need of $1000.00. These platforms because of the high risk they take (borrowers don’t provide tangible collaterals) usually charge higher interest and in return given higher interest to lenders than Treasury Bills will normally do. This idea is supposed to be easy and help people financially as there is gap between loans needed and financial institutions willing to give (“The two largest peer-to-peer (P2P) lending platforms, Prosper and LendingClub founded in 2005 and 2006 respectively, have originated over $6 Billion in loans to date. Although they have only begun to scratch the surface of the $3 trillion consumer debt market” Nav Athwal Cofounder and CEO of RealtyShares, a crowdfunding for real estate platform). Yet like most good things miscreants, hooligans and hoodlums find a way to make the system corrupt.
Ways to spot financial scams and Ponzi schemes
1. If your interest is too good to be true, then its probably a lie. When you’re being offered an interest bigger than the T Bills in lending you should be wary and do due diligence.
2. They usually don’t tell the project in which your money will be invested.
3. Pressurised to respond quickly? 4. Are the contact details vague?