- Today’s main news: Lending Club losses extend to Q4 2017. LendingClub to settle lawsuit for $125M. Groundfloor launches online public offering. Even Financial gets backing from American Express. LendInvest launches buy-to-let calculator online.
- Today’s main analysis: Lend Academy reviews LendingClub’s Q4 2017 results.
- Today’s thought-provoking articles: Equity sharing and home ownership. How millennials move emerging markets. Why Australia needs a better credit scoring system.
- LendingClub’s losses extend into Q4 2017. AT: “This is an example of how litigation can eat into profits and impact growth. Nevertheless, despite continued losses and expected pending losses, LendingClub is looking good with increased originations. But it’s not out of the water yet.”
- LendingClub to settle shareholder litigation. AT: “It could have been worse. Insurance will cover some of this.”
- LendingClub shares sink.
- LendingClub’s earnings results. AT: “Also includes some projections for 2018.”
- Stocks making the biggest moves after hours. AT: “Hint: LendingClub is among them.”
- Groundfloor launches online public offering. AT: “This is significant because Groundfloor offers the first SEC-authorized opportunity in payment-dependent notes for non-accredited real estate crowdfunding investors. For $10 per share, anyone–literally–can invest in Groundfloor. While I applaud this opportunity for opening doors to virtually everyone, a part of me wonders if Groundfloor can raise enough operating capital by selling common stock for $10 per share. How long will it be before they are profitable? Is this a good ground floor price?”
- Equity crowdfunding in real estate.
- RealtyInvest allows beginning investors to get in on commercial real estate opportunities.
- Home equity sharing, a good idea?
- Even Financial secures $3M raise led by American Express.
- Fundrise reports 11.44% return for 2017. AT: “Congratulations.
- Yalber closes $20M senior credit facility.
- Blinker, Ally partner on P2P auto financing and sales.
- Zelle users discover lack of fraud protection.
- Cyberattacks extracted $56B from U.S. economy in 2016.
- BlockFi raises $1.55M.
- The most innovative companies in 2018.
- Elevate Credit to increase Pinterest use.
- OpenClose adds to support, integration teams.
- 3 loans students should avoid.
- Funding Circle planning two mobile app launches this year.
- LendInvest launches online buy-to-let calculator.
- P2P business lending up 51%.
- Online lenders, bank could operate as joint ventures.
- Crowdfunding sites not explaining the dangers.
- Lendingblock close to launch.
- Farming building conversions fell 20% in one year.
- Finnest expands financing to larger corporations, adds institutional investors.
- Why it’s okay that consumers don’t know about open banking.
- How millennials move emerging markets.
- ICO update on Valorem.
- Wealth managers must go digital.
- An interview with Finom CEO, TabTrader founder.
- United States
- Lending Club extends losses for fourth straight year (Financial Times), Rated: AAA
- LendingClub agrees to settle shareholder litigation for $125M (American Banker), Rated: AAA
- LendingClub Corp (LC) Shares Sink on Q4 Earnings Miss (InvestorPlace), Rated: A
- LendingClub Q4 2017 Earnings Results Review (Lend Academy), Rated: AAA
- Stocks making the biggest moves after hours (CNBC), Rated: B
- Groundfloor Launches Online Public Offering Amidst Increased Stock Market Volatility (PR Newswire), Rated: AAA
- Real Estate Equity Crowdfunding: A New Investment Opportunity for the Investors (EIN News), Rated: A
- RealyInvest App Empowers Beginners to Invest in Commercial Real Estate (PR Newswire), Rated: A
- Silicon Valley Explores a New Investment: Your Home (WSJ), Rated: AAA
- Even Financial inks $ 3 mln (PE Hub Network), Rated: AAA
- Fundrise Reports 2017 Performance. Total Return for the Year Stands at 11.44% (Crowdfund Insider), Rated: A
- Online SMB lending platform Yalber closes $ 20M senior credit facility (Bankless Times), Rated: A
- Blinker Joins With Ally To Enhance The Auto Industry’s Only Peer-To-Peer E-Commerce Platform (PR Newswire), Rated: A
- Zelle users are finding out the hard way there’s no fraud protection (TechCrunch), Rated: A
- Cyberattacks took $ 56B from U.S. economy in ’16 (American Banker), Rated: A
- BlockFi Raises 1.55M in Seed Funding (Finsmes), Rated: A
- The 2018 World’s Most Innovative Companies (Fast Company), Rated: A
- ‘Pinterest will get even bigger for us’ says fintech lender Elevate Credit (The Drum), Rated: A
- OpenClose Bolsters Software Integration and Support Teams (Send2Press), Rated: B
- 3 Loans for Students You Should Avoid Like the Plague (Student Loan Hero), Rated: B
- United Kingdom
- Funding Circle to launch two new mobile apps this year (P2P Finance News), Rated: AAA
- LendInvest Announces Launch of Buy-to-Let Online Calculator for Intermediaries (Crowdfund Insider), Rated: AAA
- P2P business lending up 51% (Bridging&Commercial), Rated: A
- Online lenders and banks may operate as ‘joint ventures’ (P2P Finance News), Rated: A
- Crowdfund sites ‘are not explaining the dangers’ (The Times), Rated: A
- Crypto lending platform nears launch (AltFi), Rated: A
- Number of farming building conversions falls 20 percent in a year (FarmingUK), Rated: B
- The New Year to Bring a New Flood of IPOs (CapitalWatch), Rated: A
- European Union
- Finnest Expands Online Financing to Larger Corporations, Adds Institutional Investors (Crowdfund Insider), Rated: AAA
- Why it’s OK that the majority of consumers don’t know about Open Banking – for now (AltFi), Rated: A
- How Millennials are Moving Emerging Markets (Morningstar), Rated: AAA
- Latest ICO Updates on VLR Token – Valorem Foundation ICO is LIVE! (TechBullion), Rated: A
- Wealth managers must go digital (Raconteur), Rated: B
- An Interview with Kirill Suslov – The CEO at Finom and TabTrader Founder (NewsBTC), Rated: B
- Peer To Peer Lending Increasingly Popular In Australia (compare dinkum), Rated: AAA
- Why Australia needs a better system for credit scores (The Converstion), Rated: AAA
- Refer to these fintech startups for range of medical loans (Business Standard), Rated: A
- They couldn’t get loans from their banks so turned to a legitimate-looking lender online (The Star), Rated: AAA
- Blackchain Announces Private Placement (Stockhouse), Rated: A
Lending Club extends losses for fourth straight year (Financial Times), Rated: AAA
Lending Club lost money for a fourth year in a row last year, as it wrote a big cheque to settle class-action lawsuits connected to its governance glitches of 2016.
The San Francisco-based company, the biggest listed online lender in America, said on Tuesday that net losses for the fourth quarter almost tripled from a year earlier, to $92m, as it agreed a $125m settlement to resolve civil suits stemming from the loan-mis-selling scandal that blew up almost two years ago. About $48m of the sum would be covered by insurance, the company said, with the remainder to be paid from liquid assets of about $650m.
The loss for the full year came to $154m, wider than the previous year’s $146m.
LendingClub agrees to settle shareholder litigation for 5M (American Banker), Rated: AAA
Under the agreement, which was announced Tuesday, the San Francisco-based online lender expects to pay $77.25 million. An additional $47.75 million is expected to be covered by LendingClub’s insurance, bringing the total payout to $125 million. The deal is subject to court approval.
LendingClub Corp (LC) Shares Sink on Q4 Earnings Miss (InvestorPlace), Rated: A
Lending Club also underwhelmed in its revenue as the company raked in $156.5 million during its fourth quarter, below Wall Street’s consensus estimate of $157.6 million, according to FactSet. The figure did increase 20% compared to the year-ago quarter.
On an adjusted basis, the company posted earnings of a penny per share, compared to a loss of 2 cents in the year-ago quarter.
The company also experienced a 23% annual growth in originations, which reached over $2.4 billion.
LendingClub Q4 2017 Earnings Results Review (Lend Academy), Rated: AAA
LendingClub delivered another record quarter of $156.5 million in revenue up slightly from their previous quarter. Originations were slightly down from the third quarter at $2.436 billion. They reported a GAAP net loss of $92.1 million in the fourth quarter which was affected by the class action litigation settlement expense.
LendingClub provided the below guidance for Q1 2018 and reaffirmed their guidance for 2018:
First Quarter 2018
- Total Net Revenue in the range of $145 million to $155 million
- Net Income (Loss) in the range of $(25) million to $(20) million
- Adjusted EBITDA in the range of $5 million to $10 million
- Reconciling Items between net loss and non-GAAP adjusted EBITDA consisting of stock-based compensation of approximately $19 million, and depreciation and amortization and other net adjustments of approximately $11 million
Full Year 2018
- Total Net Revenue in the range of $680 million to $705 million
- Net Income (Loss) in the range of $(53) million to $(38) million
- Adjusted EBITDA in the range of $75 million to $90 million
- Reconciling Items between net loss and non-GAAP adjusted EBITDA consisting of stock-based compensation of approximately $77 million, and depreciation and amortization and other net adjustments of approximately $51 million
Stocks making the biggest moves after hours (CNBC), Rated: B
LendingClub stock plunged 10 percent after the bell. The peer-to-peer lending company reported earnings and revenues that missed Wall Street estimates.
Groundfloor Launches Online Public Offering Amidst Increased Stock Market Volatility (PR Newswire), Rated: AAA
Groundfloor, the first issuer qualified by the U.S. Securities & Exchange Commission to offer real estate based payment dependent notes that are available to non-accredited investors, today announced that it has raised a total of $4.3 million from 687 participating investors in a combination of two recent financings, a private online bridge note closed late last year and an initial closing of its online public offering of equity. In each case, the company kicked off the invitation-only raises to customers and friends of the company with a $1M target, surpassing that in under 48 hours. Due to increased growth opportunities and strong demand, the company has today expanded the equity raise to the public.
Groundfloor is offering a total of up to 530,000 shares of Common Stock at $10 per share in its online public offering. Investor benefits include: no investor fees for life2; access to regular shareholder-only loan offerings; and invitations to attend annual Groundfloor shareholder events.
Recently increased expectations that the Fed may raise interest rates in the future has investors rebalancing their portfolios, with a shift out of equity into debt, as bond yields are expected to increase. Twelve-month bond yields have recently inched up to 1.97 percent.
By comparison, Groundfloor investors have earned an average of 13.6 percent per year over the past three years, which represents over 6x the yield of a current one year Treasury note, and over 1,000 percent more than they would have made if their money had been in a CD or savings account over this period.1 Groundfloor’s retail investors create their own portfolios of real estate debt investments in the fix and flip residential housing market, and the loans on which the investments are based are secured by a first lien position against the underlying real asset.
Real Estate Equity Crowdfunding: A New Investment Opportunity for the Investors (EIN News), Rated: A
Talking in context of real estate, there are 3 ways to invest in a crowdfunded real-estate property:
• Equity crowdfunding
• Syndicated debt crowdfunding
• Platform-issued (‘pre-filled’) debt crowdfunding
Following are the pros and cons of going for equity crowdfunding in real estate:
• High yield potential
• Lower barrier to entry: Even if you have a very less amount of money, you can still invest even in large commercial real estate projects through equity crowdfunding and enjoy the benefits of the real estate i.e., strong returns and lower volatility.
• No self-employment taxes
• Higher returns
• The risks. An investor should know how to evaluate the risk factors like local economy volatility and chances of higher than expected construction costs. Due diligence is what is required.
• Liquidity constraint: These investments need to be held up for a period of five years or so, and hence one should go for this option if this much bandwidth is available, lack of liquidity is not there, and an investor is comfortable with the invested amount to be tied up for several years.
• It’s still an early option: It is still an early option to be considered as the performance track record and validation is still not complete and individual investors are still trying to figure it out.
• Lack of control: Since it is a passive investment, the investors are not involved in the day to day activities and therefore have limited ability and control over the operations required.
RealyInvest App Empowers Beginners to Invest in Commercial Real Estate (PR Newswire), Rated: A
In a rising tide of fintech apps, RealyInvest is emerging as a new way for beginning investors to access the high-priced world of premier commercial real estate right from their smartphones.
RealyInvestors can purchase fractional shares of REITs (Real Estate Investment Trusts) for as little as $5. Investors can also own shares of commercial real estate NNN Assets, such as a building long-term leased to Starbucks, for as little as $20.
Silicon Valley Explores a New Investment: Your Home (WSJ), Rated: AAA
A handful of companies, including those backed by marquee Silicon Valley names such as Andreessen Horowitz and Mark Zuckerberg’s philanthropic organization, are experimenting with a product that essentially lets them take an ownership position in a house along with the homeowner. The agreements, called shared-equity contracts, provide a new way for investors to get exposure to rising home prices across the U.S.
Shared-equity products are aimed at new buyers who need help with a down payment, or current homeowners looking for an alternative to a cash-out mortgage refinancing or a home-equity loan. The first use has caught the attention of mortgage-finance giant Freddie Mac ,which recently agreed to buy loans on properties where one firm,Unison Agreement Corp. , contributes to the down payment.
Landed Inc. offers these down-payment contracts to teachers and other educators. Last year, the Chan Zuckerberg Initiative , a philanthropy co-founded by Facebook Inc.’s chief executive, gave Landed $5 million to start a new fund.
The length of the contracts can vary from a few years to 30. Homeowners can repay early, including if they sell their house before the term ends. How much they end up owing depends on how the value of their home changes. Because the funds are equity, not a borrowing, they don’t require monthly payments.
Even Financial inks $ 3 mln (PE Hub Network), Rated: AAA
Even Financial, the technology platform powering financial services online, has secured a strategic investment round totaling $3 million. The round includes an investment from American Express Ventures, the strategic investment unit of American Express, as well as Plug & Play and Arab Angels.
With this investment, Even Financial will expand its team and advance its proprietary technology, which allows financial institutions and other partners to scale customer acquisition and remain competitive in the growing online financial services industry.
Fundrise Reports 2017 Performance. Total Return for the Year Stands at 11.44% (Crowdfund Insider), Rated: A
In brief, this is what Fundrise reported;
“In 2017, Fundrise investments earned an 11.44%* total return on investment, including over $16 million in dividends paid out to investors. Delivering attractive, consistent cash flow is a core part of our mission to offer you a better way to invest.”
Online SMB lending platform Yalber closes $ 20M senior credit facility (Bankless Times), Rated: A
SMB lending platform Yalber closed a $20 million senior credit facility this week, the company announced today.
Blinker Joins With Ally To Enhance The Auto Industry’s Only Peer-To-Peer E-Commerce Platform (PR Newswire), Rated: A
South by Southwest Interactive Innovation Award winner and 2018 LendIt Fintech Industry Award finalist Blinker, the only peer-to-peer e-commerce platform that provides an end-to-end solution for anyone buying, selling or financing cars, announced two major milestones for its business today:
- Blinker is now available in the largest car markets in the US – Beginning today, Blinker is expanding its proprietary e-commerce and loan origination platform from Texas and Colorado to California and Florida, allowing millions of customers to buy, sell and finance vehicles easier, quicker and safer with other people. Thirty percent of vehicle sales across the US every year are between people, yet private-party marketplaces including Craigslist, Letgo, Autotrader, Cars.com and Facebook Marketplace don’t have services such as integrated financing or lien payoff support. Leveraging artificial intelligence and machine learning, Blinker customers get guidance and tools to complete the entire purchase process themselves, from instant vehicle valuation to real-time auto loan approval to e-signing documents to secure funds transfer, all for free within Blinker’s mobile app.
- Blinker joins with Ally to offer best-in-class auto protection products – Blinker will now give customers the option to add Ally’s vehicle protection coverage, including Ally Guaranteed Asset Protection (GAP) and Ally Premier Protection vehicle service contracts, for their vehicle purchases in the app. GAP covers the difference between the cash value of a vehicle and what Blinker customers still owe on their loan if the vehicle is totaled or stolen. Ally vehicle service contracts cover the repair cost for over 7,400 mechanical, electrical, safety or digital components, as well as some related expenses like trip interruption, rental car coverage, towing and 24/7 roadside assistance.
Zelle users are finding out the hard way there’s no fraud protection (TechCrunch), Rated: A
Scammers have taken to Zelle, the Venmo alternative backed by U.S. banks, to defraud consumers who believe the service includes the same protections they’ve come to expect from PayPal. A number of customers report having lost hundreds, or even thousands of dollars, over Zelle, when they used it for transactions with people they didn’t know – like tickets bought off a Craigslist posting, for example.
Cyberattacks took $ 56B from U.S. economy in ’16 (American Banker), Rated: A
Malicious cyber activity cost the U.S. economy between $57 billion and $109 billion in 2016, the White House said Friday.
The estimate comes in a Council of Economic Advisers report on the impact of cyberattacks on U.S. government and industry. The report details the range of threats that U.S. entities face from actors including corporations and countries such as Russia, China, Iran and North Korea.
The council’s estimate represents between 0.31% and 0.58% of the 2016 U.S. gross domestic product. For comparison, the report cites a Center for Strategic and International Studies report that estimated the cost of malicious cyber activities against U.S. entities at $107 billion in 2013, 0.64% of GDP that year.
BlockFi Raises 1.55M in Seed Funding (Finsmes), Rated: A
BlockFi, a New York-based fintech company whose first product is a loan for cryptoasset owners, raised $1.55m in seed funding.
Backers included ConsenSys Ventures, Kenetic Capital, PJC, SoFi, Purple Arch Ventures and Lumenary.
The 2018 World’s Most Innovative Companies (Fast Company), Rated: A
For extending the benefits of banking
19 Social Capital
For putting values into its ventures
‘Pinterest will get even bigger for us’ says fintech lender Elevate Credit (The Drum), Rated: A
Speaking to The Drum in the final instalment of a four-part video series with Falcon.io exploring social media strategies, she admitted that while it can be a challenge, using data to understand her audience’s wants and needs has helped her shape content which is likely to resonate.
Fox says she has been finding success on the unlikeliest of social media platforms – Pinterest.
“All our content is more lifestyle focused than finance focused,” she explained.
OpenClose Bolsters Software Integration and Support Teams (Send2Press), Rated: B
OpenClose, an industry-leading multi-channel loan origination system (LOS) and mortgage fintech provider, announced that it has added staff to its integration and customer support departments. The new hires will help enhance OpenClose’s existing software products, facilitate digital mortgage processes, produce fintech-level innovation and provide excellence in customer support. The company also recently added three senior software engineers to its development team.
3 Loans for Students You Should Avoid Like the Plague (Student Loan Hero), Rated: B
1. Payday loans
You usually have only a couple of weeks to repay the loan, and the typical APR is almost 400.00%, according to the Consumer Financial Protection Bureau. If you can’t pay it back and have to take out a new payday loan to pay off the first, you could end up stuck in a vicious cycle of predatory debt.
What you should try instead: A payday alternative loan (PAL).
2. Auto title loans
The reality is these short-term loans also have three-digit APRs, and you typically have between 15 and 30 days to repay the loan.
What you should try instead: A short-term campus loan.
$20 / $2,000 = 1%
1% x 365 days = 3.65
3.65 / 60 = 6.08% APR
3. Cash advances
This type of loan isn’t as costly as a payday loan or an auto title loan, but it’s not ideal for two reasons:
- Credit cards charge a fee, typically 5% of the advance amount. So, if you withdraw $500, you’ll have to pay $25 upfront.
- There’s no grace period with cash advances, so interest starts accruing immediately.
What you should try instead: A 0% APR promotion. Some credit cards offer a 0% APR promotion on new purchases for a period.
Funding Circle to launch two new mobile apps this year (P2P Finance News), Rated: AAA
The business lender, which currently only has an iPhone app for investors to access, monitor and manage their accounts, is now advertising for a global mobile apps product manager and for an Android developer.
Both positions are based in the UK.
“We have an ambitious roadmap for this year and want to launch two new apps (Android and iOS) for our investors,” the job advert on the Funding Circle website said.
LendInvest Announces Launch of Buy-to-Let Online Calculator for Intermediaries (Crowdfund Insider), Rated: AAA
On Tuesday, LendInvest announced the launch of its new buy-to-let (BTL) online calculator for intermediaries.
P2P business lending up 51% (Bridging&Commercial), Rated: A
The report also found that the value of SME asset finance deals was up 12%.
Although net bank lending volumes remained positive (£700m in 2017), it was weaker than in both 2016 (£3bn) and 2015 (£2bn).
The BBB found that there had been a significant increase in both the value and number of SME equity deals, up 79% and 12% respectively.
Online lenders and banks may operate as ‘joint ventures’ (P2P Finance News), Rated: A
ONLINE lending platforms may partner with banks to fund and market credit products in the future, even sharing the approval process and compliance, in one scenario outlined by global banking regulators.
A number of peer-to-peer lenders have already partnered with banks on a smaller scale. For example, Metro Bank has lent through Zopa’s platform and Santander has referred borrowers to Funding Circle. However, these tie-ups have not gone as far as the report’s scenario suggests in terms of becoming a joint venture.
Crowdfund sites ‘are not explaining the dangers’ (The Times), Rated: A
Square Pie, which started life as a stall in London’s Old Spitalfields Market, expanded with the help of a “pie bond” that promised 8% annual interest over four years. The bond was offered through one of Britain’s biggest crowdfunding platforms, Crowdcube.
A total of 324 investors signed up, lending more than £650,000 to fund Square Pie restaurants and its efforts to improve supermarket sales. Square Pie has gone into administration — the first failure of a business that issued a mini bond on a crowdfunding site.…
Crypto lending platform nears launch (AltFi), Rated: A
Lendingblock is one such business. The soon-to-launch platform is, in its founder Steve Swain’s words, “an open exchange for cryptocurrency loans”.
Lendingblock is in the middle of a three-stage Initial Coin Offering that will conclude in March. The first phase has already been completed, raising the equivalent of $500,000. The offering has a hard cap of $10m.
Number of farming building conversions falls 20 percent in a year (FarmingUK), Rated: B
The number of conversions of farm buildings into new homes dropped 20% in the last year, denting hopes that these conversions could help solve the rural housing crisis.
According to Lendy, one of Europe’s largest peer-to-peer lending platforms, only 1,511 agricultural-to-residential conversion applications were approved in 2016/17.
The New Year to Bring a New Flood of IPOs (CapitalWatch), Rated: A
Finnest Expands Online Financing to Larger Corporations, Adds Institutional Investors (Crowdfund Insider), Rated: AAA
Finnest is an interesting online lender operating in the DACH countries. The peer to peer platform was launched to provide SME funding supported by individual investors but the company is now expanding by providing loans of €10 million and higher. Institutional investors such as insurance companies, funds, family offices and banks will now be able to invest in large SMEs on “FinnestPro.”
Why it’s OK that the majority of consumers don’t know about Open Banking – for now (AltFi), Rated: A
The new EU legislation on payment services – PSD2 – and the introduction of Open Banking in the UK seem to have passed the vast majority of people in the country by, according to an AltFi News article last month.
This referred to a report by Which saying that 92 per cent of consumers hadn’t even heard of Open Banking.
How Millennials are Moving Emerging Markets (Morningstar), Rated: AAA
Millennials in advanced economies have come under pressure in recent years, thanks to stagnating wages, rising house prices and escalating student debt. But an altogether different trend is taking place in many emerging markets where millennials are seeing their prospects rapidly improve. This in turn is creating an investment opportunity, as millennials in these countries are becoming hugely influential on the prospects for emerging market equities.
Millennials will account for half of the global workforce by 2020, meaning they will be one of the most influential groups in shaping the economy and society, including consumption habits, policy and how companies may want to market and brand themselves. They are disrupting traditional industries and companies are having to adapt. This presents investment opportunities, but it also presents new investment risks.
Latest ICO Updates on VLR Token – Valorem Foundation ICO is LIVE! (TechBullion), Rated: A
Based on ERC-20, the multilayered cryptocurrency platform will host a marketplace that allows developmental phases. The first phase focuses on micro loans (small loans), rent payments, student loans and peer-to-peer payment processing.
As trust grows on the platform, phase 2 will be implemented to cater to sales distribution, global small business investing and global commercial and residential real estate crowdfunding while the third stage will serve charity and insurance. The final phase will be dedicated to maintenance and future developments that may include additional currency adoption, feature adding etc.
Valorem (VLR) is the token offered. The exchange rate stands at 1 ETH= 1000 VLR. There is a total supply of 200 million tokens of which 150 million are available during the ICO and 50 million will be kept in reserve. Valorem will not be mined.
Wealth managers must go digital (Raconteur), Rated: B
People born between roughly 1982 and 2002 are set to receive the biggest inheritance boom of any post-war generation. The Royal Bank of Canada (RBC) estimated the figure will be around $4 trillion in the UK, Canada and United States.
An Interview with Kirill Suslov – The CEO at Finom and TabTrader Founder (NewsBTC), Rated: B
NewsBTC: Now it seems that you have no experience with banking services yet. How do you plan to cover this area?
Now I can say we understand confidently how banking works and how it should work in the crypto industry. By 2020, we’re going to have a licensed bank and transform it into a crypto one with a network of crypto terminals.
A bit sooner, in 2018, we plan to release crypto e-wallets with linked debit cards. Miners will be able to use recently mined coins right away, transferring them to their wallets immediately. We’re also designing a platform for peer-to-peer lending.
Peer To Peer Lending Increasingly Popular In Australia (compare dinkum), Rated: AAA
Australian investors and borrowers are increasingly adopting peer to peer lending platforms according to the results of survey undertaken by ASIC. The results of the survey suggest that as much as $300 million of personal and business loans were underwritten by peer to peer lenders over the course of the last fiscal year. That represents a doubling in the amount that was lent on such platforms during the 2015/2016 financial year.
Why Australia needs a better system for credit scores (The Converstion), Rated: AAA
Australia’s credit rating system is failing both borrowers and lenders. Many borrowers are unaware of their own credit scores and our research shows they have trouble applying for suitable loans. Lenders are also struggling with too little information, causing them to extend loans to those they shouldn’t and restrict loans to worthy borrowers.
Upcoming changes to Australia’s credit reporting system could remedy these issues.
Under the new credit reporting regime, both lenders and borrowers will have access to more data, such as monthly payment histories on loans and credit cards.
More innovation ahead in mortgage lending
For higher-risk borrowers, novel techniques to assess credit risk (such as analysis of social media accounts) may be the answer to distinguish good borrowers from bad.
But prior experience from an over-reliance on credit scores in the United States shows that careful assessment of borrowers remains vital.
Refer to these fintech startups for range of medical loans (Business Standard), Rated: A
Among all the personal loans the medical loan is the most crucial one which is often required on an urgent basis by the applicants.
They couldn’t get loans from their banks so turned to a legitimate-looking lender online (The Star), Rated: AAA
Unable to qualify for a loan from her bank, Johnston searched online for private lenders and found a website for what appeared to be a legitimate company calling itself North Clear Credit.
Everything about it — the variety of loans offered, the glowing testimonials, the company description — seemed professional. In fact, a customer who later reported North Clear Credit to police says an officer told her the website looked legitimate.
For Johnston and Mood, the terms were appealing. The money could be paid back monthly over five years at an interest rate substantially lower than what they would be charged elsewhere.
Johnston completed an online application and was approved for a $20,000 loan.
Within a few days, Johnston and Mood had lost $3,500, and two North Clear Credit “representatives” with whom Johnston had been corresponding had disappeared.
Blackchain Announces Private Placement (Stockhouse), Rated: A
Blackchain Solutions Inc. (the “Company” or “Blackchain”) (CSE: BIS), announces a private placement of up to 3,400,000 units at a price of $0.18 per unit, for gross proceeds of $612,000. Each unit consists of one common share and one share purchase warrant. Each warrant is exercisable at a price of $0.22 per share for a term of two years.
Proceeds generated from this financing will be used to initiate and support the filing of multiple patents and trademarks related to the Blackchain Crypto Credit Rating API and P2P Lending Platform.