- Today’s main news: SoFi’s adjusted 2017 profit was $126M. Funding Circle lent over 117M GBP in January. CreditEase Fintech Investment Fund invests in Fair. FT Partners advises Yapstone on $71M Series C round. LendingKart raises Rs1,129 crore.
- Today’s main analysis: Why China isn’t worried about the slowdown in asset-backed securities.
- Today’s thought-provoking articles: Goldman’s fintech approach to consumer lending. The future of banking. The most important fintech innovations. Payday loan use in Canada heaviest among indebted borrowers. Startup funding options.
- SoFi’s adjusted 2017 profit was $126M. AT: “Scandal’s like last year’s surrounding SoFi CEO Mike Cagney are unexpected and often send companies into financial tailspins. The company wasn’t expecting to make new hires, the expense of which often involves more than the salaries of personnel onboarded. It also includes the cost of searching for necessary talent. Add those costs to unexpected missed borrower payments and you can see SoFi’s situation clearly.”
- One company handles 40% of student-loan payments. AT: “I didn’t see anything about how much of this comes from online lenders, but there must be some.”
- SoFi tuns losers into winners.
- Goldman Sachs takes a fintech approach to consumer lending. AT: “Who can argue that Goldman isn’t one of the true innovators in alternative lending?”
- The future of banking. AT: “While there isn’t a great deal new here for our readers, it does provide some food for thought.”
- An interview with Chase Sapphire Reserve creator.
- Podcast interview with Citi Ventures’ Vanessa Colella.
- Sharestates launches in Arizona.
- Realty Mentors launches new investment advisory business.
- Lend Academy interview with Vishal Garg of Better Mortgage.
- Robo-advice or human financial advice?
- Klarna issues new progressive parental leave policy in the U.S.
- Consumer Financial Protection Bureau drops case against online lender Golden Valley.
- Rent-a-Bank bill may harm financially distressed consumers.
- Funding Circle lent over 117M GBP in January.
- Zopa’s referral reward.
- FSB launches SME funding platform.
- LendInvest to launch product transition support platform for developers.
- Fiinu launches Seedrs campaign.
- CreditEase FinTech Investment Fund to invest in Fair.
- Why China isn’t worried about slowdown in asset-backed securities market.
- WeChat bans over 1,000 cash loans.
- The most important fintech innovations coming down the pike.
- FT Partners advises YapStone on $71M Series C round.
- ETHLend alters digital currency lending terms.
- United States
- Fintech SoFi blames missed earnings on borrowers skipping payments, increased hiring costs (San Francisco Business Times), Rated: AAA
- One company will now handle close to half of all student-loan payments (MarketWatch), Rated: A
- SoFi Turns Losers Into Winners (and Investors) with the So Money Sweepstakes (PR Newswire), Rated: A
- Goldman Sachs is taking a fintech approach to grow its consumer lending business (Econsultancy), Rated: AAA
- The Future of Banking (Crowdfund Insider), Rated: AAA
- We spoke with the creator of the Chase Sapphire Reserve about millennials and the other challenges she’ll confront at JPMorgan (Business Insider), Rated: A
- Citi Ventures’ Vanessa Colella: ‘No one runs innovation, it’s all about unleashing it’ (Tearsheet), Rated: A
- Real Estate Investment Platform, Sharestates, Continues Impressive Growth Launching New Marketplace in Arizona (AltFi), Rated: A
- Realty Mentors Launches Its New Investment Advisory Business (Realty Biz), Rated: B
- Vishal Garg of Better Mortgage (Lend Academy), Rated: A
- Stock Market Volatility & Your Retirement, Who You Gonna Call? Robo Or Human Advisor (Forbes), Rated: A
- Klarna Announces Progressive Parental Leave and Benefit Policy for U.S. Employees (PR Newswire), Rated: A
- Trump Administration Plans To Defang Consumer Protection Watchdog (NPR), Rated: A
- Federal Rent-a-Bank Bill May Harm Financially Distressed Consumers (Pagosa Daily Post), Rated: A
- United Kingdom
- Funding Circle lends over £117m in January (Bridging&Commercial), Rated: AAA
- Referral schemes: make money from your friends and family (Love Money), Rated: B
- FSB launches new FinTech funding platform for SMEs (Tamebay), Rated: A
- LendInvest Announces Launch of Product Transition Process to Support Developers Throughout Their Projects (Crowdfund Insider), Rated: A
- Mobile banking start up Fiinu launches Seedrs crowdfunding campaign (AltFi), Rated: B
- CreditEase FinTech Investment Fund to Invest in Automotive Financial Technology Company Fair (Business Insider), Rated: AAA
- Why China Isn’t Worried About a Slowdown in This Lending Market (WSJ), Rated: AAA
- China: WeiyangX Fintech Review (Crowdfund Insider), Rated: A
- European Union
- Robo firms signal their advice intentions (Money Marketing), Rated: A
- The Most Important FinTech Innovations that Will Change Our Lives in the Near Future (Interesting Engineering), Rated: AAA
- FT Partners Advises YapStone on its $71 million Series C Financing Round (FT Partners), Rated: AAA
- ETHLend alters terms to encourage use of its own digital currency (P2P Finance News), Rated: A
- DirectMoney a leading ASX gainer after revealing Alceon investment (Proactive Investors), Rated: AAA
- Lendingkart raises total of Rs1,129 crore after latest funding round (livemint), Rated: AAA
- India fintech seeking to raise at least US$ 87m to grow tech capabilities (Business Times), Rated: A
- Payday Loan Use Among Heavily Indebted Borrowers On The Rise (Payment Week), Rated: AAA
- Borrowell Gives Birth To New TV Campaign (Borrowell Email), Rated: A
- Saudi startups have wider funding options amid huge fund volumes (Saudi Gazette), Rated: AAA
- UAE ranked third for Islamic Fintech start-ups (Gulf Today), Rated: A
Fintech SoFi blames missed earnings on borrowers skipping payments, increased hiring costs (San Francisco Business Times), Rated: AAA
SoFi said it made an adjusted profit of $126 million after pulling in revenue of $547 million for all of 2017, but did not break out figures for the fourth quarter.
One company will now handle close to half of all student-loan payments (MarketWatch), Rated: A
SoFi Turns Losers Into Winners (and Investors) with the So Money Sweepstakes (PR Newswire), Rated: A
From February 12th through 16th, SoFi will award $25 in a SoFi Wealth account to 200 losers of HQ Trivia each day. To enter for a chance to win, all people need to do is Tweet to @SoFi on Twitter with a screenshot of their HQ loss screen and the hashtag #SoMoneyEntry. In addition to the $25, winners will also receive SoFi’s new card game, “So Money,” featuring playful questions that aim to encourage people to talk more openly about their financial lives.
Goldman Sachs is taking a fintech approach to grow its consumer lending business (Econsultancy), Rated: AAA
Two of the biggest proofs of Goldman’s transformation were its launch of GS Bank, a internet bank with a $1 deposit requirement, and Marcus, an online consumer lending platform through which well-qualified consumers could obtain personal loans of up to $30,000. GS Bank has since been merged into Marcus, which now serves as Goldman’s consumer brand.
As QZ pointed out, “Goldman thinks it can make $1 billion in extra revenue from its consumer lending business over the next three years, as much as it expects for its trading operations.”
As detailed by the Wall Street Journal, Goldman is reportedly in talks with Apple to offer buyers of Apple devices financing at point-of-sale. “Customers purchasing a $1,000 iPhone X could take out a loan from Goldman instead of charging it to credit cards that often carry high interest rates,” the Journal explained.
This type of financing is big business: by one estimate, $80bn of the $200bn consumers borrowed using retailer-affiliated credit cards or point-of-sale loans went towards big-ticket items including electronic gadgets.
The Future of Banking (Crowdfund Insider), Rated: AAA
The Use of Artificial Intelligence (AI) Will Increase
Artificial Intelligence (AI) will have a major role in banking for both the short-term and long-term. First, we will see AI help banks with fraud mitigation. Today, most fraud is detected through computer patterns that alert a fraud team who would then take the necessary steps to try to prevent or mitigate the threat. Now that technology has made access to money fast and easy, the transaction volume has increased exponentially.
Banks and Non-Banks Will Form Closer Partnerships
By tapping into a non-bank’s customer base, it will lower the bank’s cost of acquisition while providing more value for the customer. Banks will also realize that non-banks provide them with valuable data from their customer bases that they can leverage to provide a customized banking experience as well as a source for additional revenue streams.
There Will Be More Competition in the Digital Banking Space
Whether it’s JPMorgan Chase with Finn, or Greenhouse by Wells Fargo, big banks are entering into the digital banking space full force with the hope of attracting young consumers. Then you have digital banks like Ally, USAA and Capital One 360 who truly made a major effort in 2017 to attract millennials by tweaking their product, tone, messaging and branding to make sure they start penetrating that segment. We will continue to see that this year.
You still have niche financial products like Sofi that focuses on student loans or Stash Invest that focuses on investing, which are playing in the digital banking space.
Lastly, you have neobanks like Moven, GoBank, Simple and Varo who will continue to flourish and grow, but will be threatened by giants like Amazon, Google and Apple.
Cybersecurity will Get an Upgrade
After the highly publicized and damaging Equifax security breach that affected approximate 145 million Americans, we will surely see a modernization and upgrade of cybersecurity.
We spoke with the creator of the Chase Sapphire Reserve about millennials and the other challenges she’ll confront at JPMorgan (Business Insider), Rated: A
JPMorgan Chase, on the other hand, recently announced plans to expand its network. It’ll add 400 new branches in 15 to 20 new markets over the next five years — an investment spurred in part by the savings from the recently enacted tax law.
JPMorgan has, of course, culled some branches over the years, but far fewer than its peers — just 484, or 8.6%, since 2012, compared with cuts of more than 30% by its competitors Citigroup and Capital One over the same period.
BI: How does what happened with the Chase Sapphire Reserve phenomenon translate to the rest of the Chase consumer business?
Codispoti: The fact that we were able to break some myths with millennials. When I first took the job there was kind of this general consensus in the market that millennials wouldn’t pay a fee for a credit card or wouldn’t be interested in premium products — it just isn’t true. So I think we’re kind of breaking those myths when we think about banking and home lending as well.
We’ve shared in the past that we’ve had some extremely successful initial tests with the Sapphire Reserve customer, offering them a home lending offer of 100,000 points if they completed a home-lending mortgage with us. And 50,000 points for those who upgraded to Chase Private Client and deposited $100,000 into an account. We saw extraordinary results, greater than we ever expected. So clearly this is an engaged customer base, they love the Reserve brand. It transcends card into other areas of their financial life.
Citi Ventures’ Vanessa Colella: ‘No one runs innovation, it’s all about unleashing it’ (Tearsheet), Rated: A
As one of the largest financial institutions in the world, Citi takes its innovation efforts seriously. Combining internal and external models of collaboration with a disciplined corporate venture arm, the financial services giant ensures that it has a lot of coals in the innovation fire.
Real Estate Investment Platform, Sharestates, Continues Impressive Growth Launching New Marketplace in Arizona (AltFi), Rated: A
Today, Sharestates, an online real estate investment platform, announced today their inception into the Arizona Banking Department roster of lenders as Sharestates Investments LLC, NMLS ID number 1538766. With this launch, Sharestates will be offering their loan products to the real estate speculation and development community in a statewide effort.
As a part of Sharestates’ launch into the Arizona market, the company will be attending the 45th Pitbull Hard Money Conference located at the We-Ko-Pa Resort and Conference Center in Scottsdale, Arizona. The event will be held March 14-15, 2018 and members of the Sharestates team will occupy booth #417.
Sharestates has funded more than 895 individual loans, providing an average return on investment of 10.42%.
Realty Mentors Launches Its New Investment Advisory Business (Realty Biz), Rated: B
Realty Mentors announced a new investment advisory business. According to the article in Crowd Fund Insider.com, the company which is a commercial real estate diligence and underwriting company and is an affiliate company of CreditVest is claiming to be the first of its kind to launch in the commercial real estate crowdfunding industry.
When it comes to the real estate crowdfunding industry, their services will encourage new investors to enter the market because they will have the benefit of an objective and independent third party advising them.
Vishal Garg of Better Mortgage (Lend Academy), Rated: A
Our latest guest on the Lend Academy Podcast also thought it was crazy and decided to actually do something about it. Vishal Garg is the CEO and Founder of Better Mortgage and a few years back he missed out on buying his dream home because of the clunky and slow mortgage process. So, he started a company to completely turn this process on its head.
Stock Market Volatility & Your Retirement, Who You Gonna Call? Robo Or Human Advisor (Forbes), Rated: A
Spooked investors looking for reassurance beyond the panic in the headlines have two options to turn to. They can call up a financial advisor, or they can go on the Internet. Artificial intelligence, or fintech’s application of AI, robo advisors, are viewed by many as the future of affordable and effective retirement and investment advice. These algorithms are seen as thetechnology that will disrupt, if not replace, human advice.
Most robo advisor websites provide real-time quantitative information about the market’s performance. But information alone is not necessarily what people are looking for when they are faced with uncertainty. Market performance is public, but the impact on retirement investments is profoundly personal.
That observation touches on the key difference and perhaps the strategic advantage of human advice versus advice by algorithm alone. Clients, which for now are primarily of the human variety, are looking for someone to help them cope and to care as much as they do, as well as someone who has the discipline and expertise to provide perspective to what is otherwise presented in the news as chaos.
Klarna Announces Progressive Parental Leave and Benefit Policy for U.S. Employees (PR Newswire), Rated: A
Global payments provider Klarna (www.klarna.com) has implemented a new parental leave and benefits policy that offers all of its U.S. employees who become parents a comprehensive package that includes 20 weeks of leave at full pay, a flexible, part-time work week “ramp-up period” on their return and a two-year child care subsidy.
As of January 1, 2018, Klarna’s full-time and part-time female and male employees who become parents—either biologically or through adoption—are eligible to receive the new parental leave and benefits. In addition, applicable benefits of the new policy will be extended retroactively to U.S. employees who became parents in 2017.
The new Klarna parental leave and benefits policy for U.S. employees has three core components:
- Parental Leave: The new parent may take 20 weeks of leave at full pay, and with full health and welfare benefits, during the child’s first two years.
- Ramp-Up Period: Upon returning to work, employees will have the option to return to work on a part-time schedule.
- Child Care Subsidy: Upon their return to work, Klarna will provide new parents with a child care benefit during the child’s first two years that will subsidize parents up to $250 per month to defray costs.
Within weeks of coming on board, Mulvaney has worked to make the watchdog agency less aggressive. Under his leadership, the CFPB delayed a new payday lending regulation from going into effect and dropped an investigation into one payday lender that contributed to Mulvaney’s campaign. In another move that particularly upset some staffers, the new boss also dropped a lawsuit against an alleged online loan shark called Golden Valley Lending. The suit says the lender illegally charges people up to 950 percent interest rates. It took CFPB staffers years to build the case.
Bonenfant sent NPR a screenshot from the Golden Valley website. It says on her $900 loan, her scheduled payments in less than 12 months will total $3,735, or more than four times what she borrowed.
Bonenfant has so far paid more than $3,000 to Golden Valley and rung up more than $1,000 in overdraft fees at her bank.
The lawsuit was moving forward until Mulvaney came on board, when it was suddenly dropped.
Federal Rent-a-Bank Bill May Harm Financially Distressed Consumers (Pagosa Daily Post), Rated: A
Recently, it was announced that the U.S. House of Representatives is likely to vote, the week of February 12, on H.R. 3299, the so-called “Madden fix” bill which would preempt state interest rate caps and open the flood gates to online predatory lending. The bill is spearheaded by U.S. Reps. Patrick McHenry (R-N.C.) and Greg Meeks (D-New York).
There are signs that some online lenders are making large numbers of loans that consumers will not have the ability to repay:
- News reports show that delinquencies and charge-offs at marketplace lenders are rising.
- One lender has had so many of its loans fail, that it had to repay investors for their losses in consecutive securitizations of the loans it bundled up and sold to Wall Street.
- One online lender reportedly failed to verify a borrower’s income for a full two-thirds of its loans in 2016.
- Moody’s credit-rating firm likens this industry to mortgage lending in the years leading up to the 2008 financial crisis in that “the companies that market the loans and approve them quickly sell them off to investors,” relieving themselves of the risk of the loan later going bad.
- Many marketplace lenders make very large loans of $30,000-$50,000 or higher, and even 36% is a very high rate for such loans. Many states have tiered rate caps in recognition that interest becomes more unaffordable the larger the loan. Iowa, for example, caps interest at 21% for loans over $10,000.
Funding Circle lends over £117m in January (Bridging&Commercial), Rated: AAA
Referral schemes: make money from your friends and family (Love Money), Rated: B
People using peer-to-peer platform Funding Circle can net £50 if they recommend a friend or relative who goes on to lend at least £2,000.
Normally, Zopa investors can earn up to £50 if the person they recommend lends £2,000 with the platform. They’ll receive £50 too.
FSB launches new FinTech funding platform for SMEs (Tamebay), Rated: A
The Federation of Small Businesses (FSB) has launched a new fintech platform to provide small businesses and self-employed people with greater access to funding to help them grow and develop their enterprise..
The average amount a small business applies for from an alternative finance provider was found to be £39,000 in the survey, with equipment purchases and working capital for short-term operations or late payments being among the top reasons for businesses seeking finance.
LendInvest Announces Launch of Product Transition Process to Support Developers Throughout Their Projects (Crowdfund Insider), Rated: A
On Monday, LendInvest announced the launch of its new process for development finance borrowers to transition seamlessly between products. According to the online lender, the Product Transition process allows existing borrowers to transfer easily between specialized loans that are tailored to support them at each stage in their development project.
Mobile banking start up Fiinu launches Seedrs crowdfunding campaign (AltFi), Rated: B
Banking start up Fiinu has today launched a crowdfunding campaign on Seedrs,as it seeks £500k in seed funding to support its development and an application for regulatory approval from the Financial Conduct Authority (FCA).
CreditEase FinTech Investment Fund to Invest in Automotive Financial Technology Company Fair (Business Insider), Rated: AAA
CreditEase, a Beijing-based leading FinTech conglomerate in China, announced today that its venture fund, CreditEase FinTech Investment Fund (“CEFIF”), recently joined a group of prestigious investors to support California based Fair’s strategic expansion. Other investors in this round of financing include Siemens-backed next47 global venture fund, BMW i Ventures, Millennium Technology Value Partners, 137 Ventures, G Squared and Upfront Ventures.
Fair is a mobile technology platform that allows customers to lease and return a car with flexible terms entirely by using a smartphone.
Why China Isn’t Worried About a Slowdown in This Lending Market (WSJ), Rated: AAA
China’s market for asset-backed securities—which bundle up car loans, mortgages, consumer loans and other receivables into bondlike products—surged in 2017, led by issuers including the financial affiliate of Alibaba Group Holding Ltd. and other nonbank lenders. Total issuance of such instruments, which are mostly denominated in yuan, jumped 90% to over $220 billion last year from 2016, according to S&P Global.
The country is now the world’s second-largest market for securitized assets after the U.S., where issuance reached $510 billion in 2017, it said.
In the past couple of months, however, issuance in China of securities backed by unsecured small consumer loans has slowed sharply. This came after Chinese financial regulators took steps to curb a proliferation of internet lenders making microloans, small, short-term loans that typically carry high interest rates. These small loans represent roughly 40% of all consumer loans backing asset-backed securities in the country, according to S&P.
Around $1.3 billion worth of securities backed by unsecured microloans were issued in January 2018, down from $3 billion in the same month a year ago and versus a peak monthly issuance volume of nearly $7 billion last autumn, according to data provider Wind Info.
China: WeiyangX Fintech Review (Crowdfund Insider), Rated: A
WeChat has permanently banned over 1000 “cash loans” mini programs which violated its verification and operation rules. Xinhuanet has reported that there were multiple mini programs about “loans” on WeChat (e.g. unsecured loans and quick loans), ranging from ￥200 to ￥100,000. Complaints about the illegal credit products reached over 1,000 on one of China’s leading complain platform Ts.21.com.
Hong Kong Monetary Authority (HKMA) announced that it would amend the relevant regulations on virtual banks.
Official documents show that the original guidelines require that a virtual bank incorporated in Hong Kong must hold at least 50% of its shares by an officially recognized and reputable bank or financial institution. The new ordinance recommends that non-financial institutions could register an “intermediary holding company” first when setting up a virtual bank, and then use the company to controls the virtual bank. This means that the authorities in Hong Kong have lowered the entry threshold on the financial qualification of virtual bank applicants. Non-financial institutions, including technology companies, can also apply to own and operate virtual banks in Hong Kong.
This week, LähiTaksi, a Finnish taxi company from Helsinki, announced that it would soon accept Alipay payments.
Robo firms signal their advice intentions (Money Marketing), Rated: A
Robo-advisers will increasingly move towards hybrid models over the next year, combining the human touch with machine learning, experts predict.
Scalable Capital, the Europe-wide robo firm, which has received financial backing from investment giant BlackRock, has just started offering telephone and face-to-face advice for clients who want to progress beyond an initial free session.
Nutmeg and Moneyfarm have both signalled plans to move in a similar direction, while Wealthify, which saw Aviva take a majority stake last year, won’t rule out taking this step in the future.
The Most Important FinTech Innovations that Will Change Our Lives in the Near Future (Interesting Engineering), Rated: AAA
It is largely evident that we are looking at inevitable digital disruption in financial services. The traditional banking system is yet to see any major technological innovation in lending whereas the FinTech firms have made huge investments in the same area. China moved96% of its e-commerce sales without the services of a bank. A report by Cisco pegs the peer to peer lending volume in China at approximately $66 billion, for the US that number stands at $16.6 billion, and for the UK it is $5.4 billion. Clearly, the opportunities aren’t fictional, and technology will guide this paradigm change.
American FinTech giants include Stripe, a San Francisco based firm valued at $5 billion, Credit Karma, another Silicon Valley-based FinTech firm valued at $3 billion.
The UK lags behind the US by quite a distance, but is second overall with $5.4 billion investment in the same time frame, thus confirming its position as one of the world’s leading FinTech hubs. Its FinTech bigwigs include TransferWise, DueDil, AstroPay, GoCardless and Digital Shadows.
FT Partners Advises YapStone on its million Series C Financing Round (FT Partners), Rated: AAA
FT Partners is pleased to announce our role as exclusive strategic and financial advisor to YapStone on its $71 million Series C financing round led by Premji Invest, with additional participation from Mastercard and existing investors, Accel and Meritech Capital Partners.
Read the full transaction profile here.
ETHLend alters terms to encourage use of its own digital currency (P2P Finance News), Rated: A
CRYPTO-BACKED peer-to-peer lending platform ETHLend has reached more than £2m of loans as it announces new incentives to encourage users to transact with its LEND token.
Borrowers can post any digital currency as collateral and loans can be made in Bitcoin or Ethereum or LEND. But ETHLend now wants more people to use the LEND token as the means of exchange so it has said anyone providing funds in LEND won’t have to pay any transaction fees.
There is also a 50 per cent discount when the LEND coin is posted by borrowers as collateral.
DirectMoney a leading ASX gainer after revealing Alceon investment (Proactive Investors), Rated: AAA
DirectMoney Ltd (ASX:DM1) is an ASX leading gainer intra-day on news of a strategic investment by alternative investment manager Alceon.
The investment comprises an initial placement of $600,000 at $0.042 per share and is equivalent to a 3.1% interest.
Lendingkart raises total of Rs1,129 crore after latest funding round (livemint), Rated: AAA
What is it? The amount raised in equity funding by Lendingkart Technologies, a fintech start-up that provides online loans to small businesses. The latest fund raise, announced on Monday, takes the total amount raised by the Lendingkart Group to Rs1,129 crore.
Tell me more: Lendingkart’s latest funding round was led by Singapore’s Fullerton Financial Holdings, and also saw participation by existinginvestors, namely Sistema Asia Fund, Bertelsmann India Investment, Mayfield India, India Quotient and Saama Capital.
India fintech seeking to raise at least US$ 87m to grow tech capabilities (Business Times), Rated: A
AN Indian fintech company is seeking to raise over US$87 million of equity funding to expand its technological and analytics capabilities.
Lendingkart Technologies will be doing so through series C capital-raising, with the initiative led by Singapore’s Fullerton Financial Holdings, along with participation from existing investors.
Payday Loan Use Among Heavily Indebted Borrowers On The Rise (Payment Week), Rated: AAA
Payday loan use among heavily indebted Ontarians continues to escalate, as researchconducted by Licensed Insolvency Trustee firm Hoyes, Michalos & Associates Inc. reveals that 3 in 10 (31%) insolvencies in Ontario in 2017 involve payday loans, up from 27% in 2016.
The average number of payday loans outstanding at the time of insolvency declined to 3.2 in 2017, after peaking at 3.5 loans in 2014. However, the average payday loan size in 2017 is $1,095, an increase of 12.4% from $974 in 2016. One in ten (9%) loans are $2,500 or more, up from 6% in 2016.
The average insolvent payday loan borrower owes $3,464 in payday loans, or $1.34 for every dollar of monthly take-home pay, on top of $29,997 in other unsecured debts. They are using payday loans to keep up with existing debt repayment.
Borrowell Gives Birth To New TV Campaign (Borrowell Email), Rated: A
Borrowell is making its first major foray into television with a 30-second spot that launches today, called “Home Birth.” Created by Toronto-based agency Conflict, the commercial aims to raise awareness of Borrowell’s free credit score monitoring service.
Saudi startups have wider funding options amid huge fund volumes (Saudi Gazette), Rated: AAA
In an interview, Nawaf Al Sahhaf, CEO of Badir, said financing options for these startups include without limitation Venture Capital firms, angel investors, accelerators, and incubators in addition to new alternatives such as crowd funding or even P2P lending platforms.
Venture Capital funding is an essential piece of the startup jigsaw.
Venture Funding is unique, however in its characteristic. I define a startup as a company that is looking to receive funding from a venture capitalist. This means that they meet several basic criteria for growth 1) a strong founding team 2) a solution to a clear and identifiable problem 3) a clear path to monetization and most important 4) a scalable product that has a regional if not global market.
All of these criteria are essential to be eligible for Venture Funding. Many of these criteria may not be applicable or sufficient for alternative funding channels including debt, bank funding or grants.
UAE ranked third for Islamic Fintech start-ups (Gulf Today), Rated: A
The UAE is ranked third in an analysis of Islamic Fintech start-ups, according to a survey by Bloomberg Intelligence, issued today. Malaysia and the United Kingdom are ranked first and second.
Crowdfunding and peer-to-peer (P2P) financing could be a game-changer in Islamic finance, it suggests, giving wider reach and potential to close the gap for small and medium enterprises, SMEs, which generated about 60 per cent of UAE GDP in 2014, with Dubai’s regulator introducing the first tailored regulation for crowdfunding in the GCC.