- Today’s main news: RateSetter opens IFISA to new investors today. Amazon customers would bank with e-tailer. Zopa’s VC firm raises 500K GBP in 24 hours. Collateral goes off line. Auxmoney hits profitability. Credy raises $1.4M.
- Today’s main analysis: Is JPMorgan’s tech investment paying off?
- Today’s thought-provoking articles: Presenters at LendIt Fintech USA 2018. Klarna’s end-of-year report. Asia’s fintech investment drops.
- Amazon customers would use e-tailer for banking services. AT: “Interestingly, almost half of surveyed Amazon customers would use the e-tailer for banking services, and about half would use Amazon to obtain a personal loan. If that doesn’t give Amazon incentive to encroach upon the space of consumer lending, then what bigger invitation do they need? Maybe a more substantive poll.”
- Meet this year’s LendIt presenters. AT: “The exciting thing about this year’s conference is the conference-within-a-conference setup on blockchain and financial services.”
- Will JPMorgan’s tech investment pay off? AT: “Just because they’ve got financial clout and spot an opportunity doesn’t mean they know how to capitalize on the opportunity. JPMorgan is really coming to this party late, and they’re not Goldman Sachs.”
- Current receives strategic investment from Fifth Third.
- Honcker secures $23M funding for expansion. AT: “This car leasing app is an interesting take on auto financing where there is plenty of room for growth.”
- How proptech is changing real estate.
- InvestFar takes real estate investing beyond local boundaries.
- Kabbage survey on small construction companies and technology.
- Did the ACLU mislead on debt collection?
- Tiny Kansas bank invests in Greenlight.
- RateSetter’s IFISA opens to new investors today.
- Zopa’s VC firm raises 500K GBP for fund in 24 hours. AT: “Congratulations.”
- Collateral goes offline, but are they done? AT: “It isn’t looking for–for Collateral or their investors. This proves investors must perform stringent due diligence on any platform they want to get into.”
- Collateral investors in limbo.
- Assetz Capital registers 2K investors for IFISA.
- Finance startup funding hits all-time high.
- Banks scramble to be more open.
- Klarna’s year end report.
- auxmoney hits profitability. AT: “Congratulations.”
- BNI Europa looks at more P2P lending deals.
- JSC VIA SMS Group’s 12-month report.
- United States
- Many Amazon customers would welcome banking services (RetailDive), Rated: AAA
- Broad Mix of Thought Leaders to Present at LendIt Fintech USA 2018 (Lend Academy), Rated: AAA
- Will JPMorgan’s splashy tech investment pay off? (American Banker), Rated: AAA
- Fintech Platform Current Announces Strategic Investment from Fifth Third (Crowdfund Insider), Rated: A
- Leasing App Honcker Plans Expansion With $ 23M Funding From IAC (Auto Finance News), Rated: A
- How Are Fintech And Proptech Changing The Real Estate Industry In 2018? (Forbes), Rated: A
- LA tech startup InvestFar’s innovative platform spearheads globalization of real estate investing (Digital Journal), Rated: A
- Small construction companies lukewarm on tech investment (ConstructionDive), Rated: A
- ACA International Responds to Misleading ACLU Report on Debt Collection Industry (ACA International), Rated: B
- Tiny Kansas bank bets big on fintech (American Banker), Rated: B
- United Kingdom
- RateSetter to open IFISA to new investors on Thursday (P2P Finance News), Rated: AAA
- VC firm behind Zopa raises £500,000 for fintech fund in just 24 hours (P2P Finance News), Rated: AAA
- What’s Up at Collateral? (P2P-Banking), Rated: AAA
- Collateral investors in limbo after lender shuts down site (P2P Finance News), Rated: A
- Assetz Capital introduces manual lending Isa (Bridging&Commercial), Rated: A
- Funding for finance start-ups hits all-time high in threat to big banks (The Telegraph), Rated: A
- Banks scramble to be open as clients shrug (Royal News 24), Rated: A
- European Union
- Klarna year-end report January – December 2017 (Cision), Rated: AAA
- German fintech lender auxmoney hit profitability in 2017 (AltFi), Rated: AAA
- BNI Europa eyeing up further P2P lending deals (P2P Finance News), Rated: A
- JSC VIA SMS Group interim twelve month report for year 2017 (GlobeNewswire), Rated: B
- Cerberus Capital Management to Acquire Bluestone Group’s Australasian Operations (PR Newswire), Rated: B
- Credy raises US$ 1.4 million in seed round (Tech in Asia), Rated: AAA
- ASIA SEES MASSIVE DROP IN FINTECH INVESTMENT AS CHINA LOSES MOMENTUM (CFO Innovation), Rated: AAA
- Katipult Named Among Industry Giants as Finalist for “Most Promising Partnership” Award (Cision), Rated: A
- National Bank CEO praises federal cybersecurity plan (Financial Post), Rated: A
- Crypto KABN launches Blockchain-Enabled Biometric ID Validation (Yahoo! Finance), Rated: B
Many Amazon customers would welcome banking services (RetailDive), Rated: AAA
- More than half of 1,000 U.S. Amazon customers recently surveyed said they would be willing to use an Amazon-created virtual currency for purchases, according to a survey conducted by student loan marketplace LendEDU.
- Among other findings, the survey (which questioned consumers, including some Amazon Prime members, that made purchases on Amazon within the previous 30 days) found that 44.5% said they would also keep their primary bank account with Amazon if the e-commerce giant offered such a service.
- Furthermore, about half of respondents said they would seek personal loans from Amazon if they were available, and roughly 45% said they would use an auto loan offering from the company. Another 30% claimed they would be ready to take out an Amazon-created mortgage.
Broad Mix of Thought Leaders to Present at LendIt Fintech USA 2018 (Lend Academy), Rated: AAA
- Jay Farner, CEO, Quicken Loans
- Max Levchin, Co-Founder & CEO, Affirm
- Anthony Noto, CEO, SoFi
- Renaud Laplanche, CEO, Upgrade
- Yolande Piazza, CEO, Citi FinTech
- Suresh Ramamurthi, Chairman & CTO, CBW Bank
- Luvleen Sidhu President, Co-Founder & Chief Strategy Officer, BankMobile
- Jeremy K. Balkin, Head of Innovation, HSBC Bank USA
- Nicolas Kopp, U.S. CEO, N26 Inc.
Blockchain for Financial Services
For 2018 we looked at one of the biggest new trends in financial services, blockchain and decided to create an event within our event. We are debuting our new blockchain event Blockfin by LendIt.
- Tim Draper Founder & Managing Director DFJ
- Richard Craib, CEO, Numerai
- Tom Ding, Co-founder & CEO, String Labs/Dfinity
- Vincent Wang, Chief Innovation Officer, China Wanxiang Group
- Kathleen Breitman, Co-Founder, Tezos
- Catherine Wood, CEO/CIO, ARK INVEST
Will JPMorgan’s splashy tech investment pay off? (American Banker), Rated: AAA
“Retail distribution is like a muscle,” Chief Financial Officer Marianne Lake said in discussing the company’s recently announced plan to open 400 branches in up to 20 new markets. “You have to exercise it or it goes to waste.”
Nonetheless, the New York megabank raised eyebrows when it said it would invest an additional $1.4 billion in technology in 2018 — the driving factor in projections for noninterest expenses to rise 6% in the year ahead.
Fintech Platform Current Announces Strategic Investment from Fifth Third (Crowdfund Insider), Rated: A
Current, the fintech platform that allows teens to connect their money with the people, brands and experiences they value, announced on Tuesday that Fifth Third Capital, a direct equity investment subsidiary of Fifth Third Bancorp (NASDAQ: FITB), has joined the recently announced Series A funding, led by QED Investors.
Leasing App Honcker Plans Expansion With $ 23M Funding From IAC (Auto Finance News), Rated: A
Vehicle leasing startup Honcker secured $23 million in series A funding this week and is using the capital injection to expand nationwide and bring some added features to its app, founder and Chief Executive Nathan Hecht told Auto Finance News today.
InterActive Corp. (IAC) — the media investor behind Investopedia, Tinder, Vimeo, and many others — is making its foray into the vehicle marketplace with this funding round to take a minority stake in the company. Honcker partners with dealers and plugs into their existing lender network to provide an online leasing marketplace.
How Are Fintech And Proptech Changing The Real Estate Industry In 2018? (Forbes), Rated: A
2. Ability To Reach New Investors Online
The ability to raise capital online and reach new accredited investors through online portals is still in its infancy.
5. Data Analysis To Drive Investment Decisions
Really use data analysis to drive your investment decisions, don’t just look at the headlines. Utilize big data and predictive analytics to dig into what is responsible for the migration of renters, and what those renters are seeking in their new apartment.
7. Reduced Friction In Buying, Owning And Selling
We are constantly pushing to incorporate or develop technologies to improve our business and customer experience by reducing cost, friction and time, as well as improve transparency and security. Some of these we develop ourselves, like application of machine learning and AI to develop a national neighborhood rating system. Others we adopt, like animated 3D visualization software. – Gary Beasley,Roofstock
LA tech startup InvestFar’s innovative platform spearheads globalization of real estate investing (Digital Journal), Rated: A
Rising LA startup InvestFar; recently launched its signature mobile app to help aspiring investors with informed investment decisions. Titled as “InvestFar”, the app is the first platform to boast all the tools and resources needed for successful investments in long-distance or local markets nationwide.
Built in LA, this real estate tech startup is on a path to innovating how real estate and investors in this industry scale and manage their investments beyond local markets, especially in markets like Los Angeles, San Francisco and New York – where we often see inflated housing prices and shrunken inventory given increasing foreign investment.
Small construction companies lukewarm on tech investment (ConstructionDive), Rated: A
- A recent customer survey from small business funding siteKabbage revealed that fewer than 35% of small construction companies planned to make investments at some level this year in technologies that could help their businesses and further bring them into the digital age.
- More than 65% of contractors who responded to the study did not have a plan to invest in tools like big data solutions or mobile technologies, and the same percentage was either neutral, against or not likely to spend more than 20% on social media advertising.
- Kabbage also found that even with well-publicized cyber attacks and other computer-related crimes, not even 40% of small construction firms planned to invest in cybersecurity.
ACA International Responds to Misleading ACLU Report on Debt Collection Industry (ACA International), Rated: B
Last week, the American Civil Liberties Union (ACLU) released a misguided and heavily misleading report accusing private debt collectors of using the criminal justice system to “punish” and “terrorize” consumers. This is absolutely false and undermines the commitment and integrity of the professional debt collection industry.
Legitimate debt collectors work with consumers to help recover outstanding debt on behalf of businesses, nonprofit organizations and governmental entities.
Tiny Kansas bank bets big on fintech (American Banker), Rated: B
Nbkc bank in Overland Park, Kan., is comfortable sitting at the same table as many of the banking industry’s biggest innovators.
The $632 million-asset bank, a unit of Ameri-National Corp., recently participated in a $16 million investment in Greenlight Financial Technology, which offers debit cards for kids that parents can control from their phones. Other investors included the Amazon Alexa Fund, SunTrust Bank and Ally Financial.
RateSetter to open IFISA to new investors on Thursday (P2P Finance News), Rated: AAA
RATESETTER is opening up its Innovative Finance ISA (IFISA) to new investors on Thursday, meaning that two out of the ‘big three’ lenders will be offering the tax wrapper outside of their existing customer base.
Industry onlookers argue that the IFISA will only begin to move into the mainstream once the largest P2P platforms offer the product to new investors.
VC firm behind Zopa raises £500,000 for fintech fund in just 24 hours (P2P Finance News), Rated: AAA
A FINTECH venture capital firm that has a stake in Zopa has surpassed a £500,000 fundraising target for a new investment company in the first 24 hours.
Augmentum Capital, which has a 7.4 per cent holding in peer-to-peer lender Zopa worth £18.5m, is looking to raise £100m through an initial public offering (IPO) alongside a crowdfunding listing on Seedrs.
What’s Up at Collateral? (P2P-Banking), Rated: AAA
A question concerned investors have been speculating on for over 36 hours now, since the website of UK p2p lending platform Collateral went down around 7pm two days ago and is showing a maintenance message. Investors criticize that there was no pre-announcement of this maintenance and worse that Collateral seemed to have ceased all communications to investors and did not react to any phone or email messages.
With no communications from the platform whatsoever investors wondered what to do. Some investors reported the incident to ActionFraud squad of the police while another contacted the FCA to voice his concern and seek advice.
1) How should a p2p lending platform communicate in a crisis?
In my view not communicating at all is the worst choice.
2) What can concerned investors actually do to react, if the platform is seemingly unreachable/unresponding over a longer period of time?
Collateral investors in limbo after lender shuts down site (P2P Finance News), Rated: A
Meanwhile, it emerged that the three limited companies listed on the Financial Services Register that have traded under the name of Collateral have not had regulatory permission to operate as a consumer credit business for at least 11 months and have all now been dissolved.
Cash4Assets, which traded under the name Collateral, had cancelled its interim permissions with the Financial Conduct Authority (FCA). A permission end date is given of 23 March 2015.
Regal Pawnbroker, which also listed Collateral as one of its trading names, saw its interim permissions lapse on 31 March 2016.
And Goldmann and Sons saw its interim authorisation lapse on 31 March 2016.
Assetz Capital introduces manual lending Isa (Bridging&Commercial), Rated: A
The P2P lender recently announced it had registered 2,000 investors for its Innovative Finance Isa(IFIsa) since it launched in December last year.
So far, Isa users have invested £14m, with one third coming from transfers from other Isa providers.
Funding for finance start-ups hits all-time high in threat to big banks (The Telegraph), Rated: A
Major fundraisings in the UK last year included digital insurance distributor BGL Group getting $900m, while payments venture TransferWise got $280m. Elsewhere Monzo raised £93m in two separate rounds, while Revolut got $66m.
Britain’s two biggest lenders, Lloyds and RBS, announced £5.5bn worth of investment programmes between them last week, with online banking a primary focus of their spending plans.
Banks scramble to be open as clients shrug (Royal News 24), Rated: A
Open banking, as this particular revolution is known, was introduced on the second weekend of January, forcing Britain’s biggest banks to provide third parties with access to the accounts of any customers who authorise it.
A Citigroup analysis published last week finds three reasons why disintermediation of the established order is likely to be delayed. One is slow consumer adoption. A second is the fragmentation of the market for new “open banking” services in early stages of the regime. The final one is the ability of established payment providers to adapt to the new rules.
Klarna year-end report January – December 2017 (Cision), Rated: AAA
July – December 2017
● Compared to last year, total sales volume grew by 43%
● Total operating revenues increased 32% to SEK 2,474m (1,868)
● Operating income for the period was SEK 203m (35)
● Net income for the period amounted to SEK 117m (17)
January – December 2017
● Year over year growth in total sales volumes was 42%
● Total operating revenues increased 27% to SEK 4,526m (3,561)
● Operating income amounted to SEK 524m (168)
● Net income for the year amounted to SEK 346m (113)
● 26,000 new merchants, Group total now 89,000
● 19 million new consumers used Klarna this year
Highlights from the year
● Bank license was obtained in June
● BillPay GmbH was acquired in September
● Additional tier 1 capital was raised in May and a senior unsecured bond was issued in September
German fintech lender auxmoney hit profitability in 2017 (AltFi), Rated: AAA
Its origination volumes rose by 75 per cent during the course of the year, with over 40,000 loans and €316 million funded. Auxmoney has now disbursed more than 100,000 loans in its history, with a cumulative funding total of around €700m.
BNI Europa eyeing up further P2P lending deals (P2P Finance News), Rated: A
BANCO BNI Europa is eyeing up further deals in the alternative finance space to diversify its portfolio and widen its product offering for clients.
The Portuguese online bank has announced several funding deals over the past year, including peer-to-peer lenders Funding Circle in Germany and Raize in Portugal, and UK P2P invoice finance platform MarketInvoice.
JSC VIA SMS Group interim twelve month report for year 2017 (GlobeNewswire), Rated: B
The Group has closed the reporting period with a net turnover of EUR 20 141 087 that shows 21,5% increase in comparison with the same period in 2016. The largest net turnover was reached in Spain where the net turnover has increased by 63%; the second largest turnover was reached in Sweden – by 55%, the third – in Poland where net turnover increased by 17% in comparison with data reported to December 31, 2016. Company’s EBITDA in 2017 has reached EUR 2 779 456 and has ensured the net profit of EUR 835 542.
Cerberus Capital Management to Acquire Bluestone Group’s Australasian Operations (PR Newswire), Rated: B
Cerberus Capital Management, L.P. today announced that one of its affiliates has entered into an agreement with Bluestone Group, the international financial services business based in the U.K., to acquire its Australasian mortgage lending and portfolio servicing operations (“Bluestone Holdings Australia”).
Credy raises US$ 1.4 million in seed round (Tech in Asia), Rated: AAA
The online lender secured the funding from Y Combinator, Khosla Ventures, and Vy Capital, in addition to several Silicon Valley-based angel investors. It will use the capital to expand its loan book, build partnerships with institutional lenders, enhance its underwriting technology, and hire new team members.
ASIA SEES MASSIVE DROP IN FINTECH INVESTMENT AS CHINA LOSES MOMENTUM (CFO Innovation), Rated: AAA
Total fintech funding in Asia was US$3.85 billion in 2017—a massive drop-off from the more than US$10 billion invested in 2016 while the amount in Q4 2017 declined to US$748 million across 38 deals after a solid US$1 billion+ in Q3, said KPMG.
Decreased fintech investment in China accounted for much of the decrease in investment in Asia, KPMG explained. According to the firm, China saw just US$45.8 million in investment in Q4’17, while total investment in 2017 was US$1.33 billion.
The top five fintech deals in the region in Q4 are as follows:
- WeLab (lending firm in Hong Kong): US$220 million, Series B
- GoSwiff (payments/transactions firm in Singapore): US$100 million, M&A
- BiWang Group (Institutional/B2B firm in Shenzhen, China): US$100 million, M&A
- PolicyBazaar (Insurtech firm in Gurugram, India): US$77 million, Series E
- Onlyou (Institutional/B2B firm in Shenzhen, China): US$45 million, late-stage VC
Katipult Named Among Industry Giants as Finalist for “Most Promising Partnership” Award (Cision), Rated: A
Katipult Technology Corp. (TSXV:FUND) is honoured to announce that it has been nominated, alongside Polymath Inc., for the Most Promising Partnership Award at the second annual Lendit Fintech Industry awards in April. The Katipult-Polymath partnership will be competing against some of the world’s finance and fintech giants including partnerships involving Goldman Sachs, Macquarie Group, Swedbank, and Lending Club.
National Bank CEO praises federal cybersecurity plan (Financial Post), Rated: A
The chief executive of National Bank of Canada said Wednesday that the federal government’s latest budget included “a big step forward” on cybersecurity.
The federal budget tabled on Tuesday proposed various cybersecurity-related commitments, including $155.2 million over five years so that the Communications Security Establishment could create a new “Canadian Centre for Cyber Security.”
Crypto KABN launches Blockchain-Enabled Biometric ID Validation (Yahoo! Finance), Rated: B
Crypto KABN Holdings Inc. (‘Crypto KABN’ or the ‘Company’) an innovator in financial services, technologies and products for the blockchain industry, is pleased to announce that it is launching a revolutionary Blockchain-enabled biometric validation platform, called ID KABN, as the first component of its suite of financial and technology services, at the FFCON18: Velocity Conference in Toronto on March 5, 2018.