- Today’s main news: Prosper broadens its capital stack. MarketInvoice nabs 135M GBP from two European banks. Klarna hit by fraudsters. Square intros instant deposits in the UK. Hong Kong-China commuters now have a dual-currency prepaid credit card.
- Today’s main analysis: PeerIQ’s lending earnings insights. How 6 digital banking startups are challenging the retail banks (A MUST-READ).
- Today’s thought-provoking articles: Do alt lenders penetrate areas underserved by traditional banks? Banks are adopting behavior-tracking security technology. Who wants to be a millionaire? Millennials drive wealth tech trends.
- Prosper broadens deep capital stack with ABS. AT: “Securitization has been a great way for the leading alt lending companies to stretch themselves and take the sector to new horizons. It’s good to keep innovating and developing the business model, especially as firms move beyond the startup phase into the growth phase and beyond.”
- Do alt lenders penetrate areas underserved by traditional banks? AT: “We certainly hope so. Isn’t that the point? This is a great read.”
- Amazon vs. Costco, PeerIQ’s lending earnings report. AT: Everyone likes to talk about Amazon moving into the lending space, but what about Costco and other retailers? But the real analysis here is the preview of PeerIQ’s lending earnings report, due to publish in a couple of days.”
- Banks are adopting behavior-tracking tech at a fast pace.
- Americans are misguided on emergency savings.
- Lendr partners with MidCap Financial Trust on $25M senior credit facility.
- First RealFund raises $600K of preferred equity for Brooklyn project.
- The unequal state of access to fintech services.
- Community bank AxiomGo launches digital account targeting the unbanked.
- On non-traditional financing.
- What student loan borrowers can expect from the Fed’s rate hike.
- How to buy a car with bad credit.
- AGORA partners with Ignite Consulting Partners.
- Civic Technologies partners with FIC Network.
- Arizona launches regulatory sandbox for fintech.
- MarketInvoice raises $135M GBP. AT: “Congratulations.”
- Square brings instant deposits to the UK.
- How to become a millionaire in 26 years.
- Innovations for tax allowances.
- Lloyds claims to be the largest digital bank in the UK.
- Provident reboots.
- Fintechs embrace open banking.
- An alternative property moneymaker.
- Data Nations wins Deloitte datathon contest.
- UnionPay, HKT launch dual-currency prepaid credit card.
- China to have dynamic approach to fintech innovation.
- Klarna responds to fraud reports.
- 6 digital banks challenge retail banking. AT: “The best read of the day – a MUST-READ.”
- Loanboox looks to France.
- Millennials drive wealth tech.
- Australia, UK collaborate on fintech.
- Can fintech boost microlending?
- Where chief investment officers come from.
- Alternative credit scoring partnerships.
- Cerberus Capital appoints senior advisor.
- PayU India execs invest in Nuo Bank.
- Mobile wallet customers use gift cards to get around KYC norms.
- SmartOwner pioneers real estate crowdfunding.
- United States
- Prosper brings deeper capital stack with latest ABS (Global Capital), Rated: AAA
- Do Fintech Lenders Penetrate Areas That Are Underserved by Traditional Banks? (Federal Reserve Bank of Philadelphia), Rated: AAA
- Amazon vs Costco, PeerIQ’s Lending Earnings Insights (PeerIQ), Rated: AAA
- Behavior-tracking security tech gaining traction at banks (American Banker), Rated: AAA
- Americans Are Misguided on Emergency Savings, and It’s Going to Cost Them (Madison), Rated: A
- Lendr Partners with MidCap Financial Trust to Close $ 25 Million Senior Credit Facility (PR Newswire), Rated: A
- First RealFund Raises $ 600,000 of Preferred Equity for Brooklyn Apartment Building (Business Wire), Rated: A
- THIS CHART SHOWS THE UNEQUAL STATE OF ACCESS TO FINTECH SERVICES IN AMERICA (Pacific Standard), Rated: A
- Community bank launches digital account targeting the unbanked (American Banker), Rated: A
- Something I Wish I’d Had 20 Years Ago When I Started: Nontraditional Financing (Entrepreneur), Rated: A
- What Student Loan Borrowers Can Expect from the Fed’s Rate Hike (Lend EDU), Rated: A
- How to Buy a Car with Bad Credit in 2018 (Auto Credit Express), Rated: B
- AGORA Announces Partnership With Ignite Consulting Partners (Markets Insider), Rated: B
- FIC Network Partners with Civic Technologies (Medium), Rated: B
- Arizona Becomes First U.S. State To Launch Regulatory Sandbox For Fintech (Forbes), Rated: B
- United Kingdom
- MarketInvoice secures £135m for businesses from two European banks (Bdaily News), Rated: AAA
- Square brings Instant Deposits to the UK (Finextra), Rated: AAA
- Who wants to be a millionaire? Invest in Zopa’s IFISA for 26 years (Peer2Peer Finance), Rated: AAA
- Innovations to utilise your tax allowance (City a.m.), Rated: A
- Lloyds is ‘the largest digital bank in the UK,’ CEO says, and it wants to work with fintech startups (Business Insider), Rated: A
- From Subprime Star to Losses, U.K.’s Provident Tries to Reboot (Bloomberg), Rated: A
- Fintech firms embracing Open Banking (London School Of Business & Finance), Rated: A
- An alternative moneymaker from property (Money Week), Rated: A
- Financial services for good: ‘Data Nations’ team wins 24-hour Deloitte datathon (Future Scot), Rated: B
- Dual-currency prepaid credit card for Hong Kong-China commuters (Fintech Innovations), Rated: AAA
- Report: China to Have Dynamic Approach to Fintech Innovation (Crowdfund Insider), Rated: A
- European Union
- Buy-now-pay-later firm Klarna rings changes following fraud reports (Which?), Rated: AAA
- The Challenger Bank Playbook: How 6 Digital Banking Startups Are Taking On Retail Banking (CBInsights), Rated: AAA
- Fintech lending platform Loanboox eyes French expansion (Swiss Info), Rated: A
- Millennials Are Driving One Of The Biggest Trends In Wealth Tech (CBInsights), Rated: AAA
- Australia and UK set up FinTech Bridge to deepen collaboration between governments, regulators, and industry bodies (OpenGovAsia), Rated: A
- How Can Fintech Boost the Micro-loan Scene? (Finextra), Rated: A
- WHERE DO CHIEF INVESTMENT OFFICERS COME FROM? (AllAboutAlpha), Rated: A
- Alternative credit scoring partnerships help fintech companies lend better (Business Standard), Rated: A
- Cerberus Capital taps Nicastro as senior adviser (The PE Hub), Rated: B
- Why seller experience is the new battleground in today’s competitive gig economy (Australian Anthill), Rated: A
- Top PayU India execs invest in blockchain startup Nuo Bank (VCCircle), Rated: AAA
- With KYC norms kicking in, mobile wallet customers using gift cards to get around it (Money Control), Rated: A
- SmartOwner: FinTech firm pioneering real-estate crowdfunding in India (Realty Fact), Rated: A
- Long Blockchain Corp. Announces Minority Investment in TSLC with a Strategic Ownership Position in CASHe (Nasdaq), Rated: A
- Latin America
- Watchdog Eyes Brazil’s Credit Card Industry On Nubank Complaint (PYMNTS), Rated: AAA
Prosper brings deeper capital stack with latest ABS (Global Capital), Rated: AAA
This year, Prosper broadened its capital stack for the first time, including a ‘D’ class of bonds on its $647.5m offering, which was priced on Wednesday. Credit Suisse and Jefferies led the deal, with the $387.8m ‘A’ notes pricing at 70bp over euro dollar spot forwards. The $112m ‘B’ notes were priced at 125bp over EDSF, while the $79.45m ‘C’ notes were priced at 220bp over interpolated swaps. The $68.25m ‘D’ notes were priced at 300bp over IS.
In contrast to last year, Prosper also strenghtened the collateral mix on its 2018 offering. According to a presale from Kroll Bond Rating Agency, loans from Prosper’s higher quality credit tiers made up 54% of the deal, compared to 38% on its November 2017 transaction. The proportion of lower quality credit tiers also fell to 46% in this deal, compared to 62% on its last deal.
Do Fintech Lenders Penetrate Areas That Are Underserved by Traditional Banks? (Federal Reserve Bank of Philadelphia), Rated: AAA
Fintech has been playing an increasing role in shaping financial and banking landscapes. In this paper, we use account-level data from LendingClub and Y-14M data reported by U.S. banks with assets over $50 billion to examine whether the fintech lending platform could expand credit access to consumers. We find that LendingClub’s consumer lending activities have penetrated areas that may be underserved by traditional banks, such as in highly concentrated markets and in areas that have fewer bank branches per capita. We also find that the portion of LendingClub loans increases in areas where the local economy is not performing well.
TransUnion (2017) reported that, as of 2017:Q3, the personal unsecured loan market had reached nearly $112 billion.
Credit cards account for the lion’s share of unsecuredconsumer debt ($731 billion in 2017:Q3).3 Interestingly, there is evidence that credit card lending is related to geographic location. Carbo-Valverde and Perez-Saiz (2016) find that the probability of obtaining a credit card or line of credit from a bank increases 60 percent when the bank has a branch within 10 km of the household.
Read the full Report here.
Amazon vs Costco, PeerIQ’s Lending Earnings Insights (PeerIQ), Rated: AAA
Continuing our theme of technology lenders like Amazon branching into providing financial services, the obvious question is who might be next. Main street retailers like Walmart, Target and Costco could be likely candidates.
PeerIQ’s Lending Earnings Insights
Where are we in the credit cycle? Earnings calls indicate CEOs/CFOs are constructive on the health of the US consumer and see a tax reform as improving consumers’ disposable income.
Credit re-normalization continues across all major lending groups. Credit performance this quarter is mixed. We observe improvements, and record low delinquencies from ONDK, OMF, and FinTechs in particular. LendingClub expects 31 bps lower charge-offs going forward due to tighter credit standards. At Discover – a bellwether for personal loan performance – the net charge off rate jumped 92 bps YOY to 3.62% – the largest increase in several years.
Card issuers are increasing loan loss reserves at a higher rate than loan growth, indicating expectations of higher losses going forward. American Express increased loan loss provisions 33% although loan growth was only 14%.
Behavior-tracking security tech gaining traction at banks (American Banker), Rated: AAA
Banks have started to implement behavioral biometrics more and more as it is seamless for customers and helps to better detect fraud; behavioral biometrics firms like BioCatch has provided banks with the type of security they like, customers cannot see if but it also is harder for criminals to spoof; BioCatch reviews more than 5 billion transactions per month and has about 60 million users in their system; another reason banks love this type of security is the privacy regulations are not as strict, the data is not personally identifiable and is based on type of actions.
Americans Are Misguided on Emergency Savings, and It’s Going to Cost Them (Madison), Rated: A
That’s because 38% of college-educated adults think an emergency fund of $5,000 or less is sufficient. That’s the latest from online lender Laurel Road, which also found that women — particularly younger ones — are generally more conservative when it comes to building their safety nets. Specifically, millennial women think people should have an average of $9,727 in an emergency fund, compared to millennial men who think an average of $8,040 works just fine.
The majority of working U.S. adults are nowhere close to having three months’ worth of living expenses in the bank. A good 57% have less than $1,000 in savings, according to data released by GOBankingRates last year, while 39% have no savings at all. If you’re part of either statistic, it means your finances aren’t in great shape — and that you need to make changes immediately.
Lendr Partners with MidCap Financial Trust to Close $ 25 Million Senior Credit Facility (PR Newswire), Rated: A
Lendr, a provider of flexible working capital to small- and medium-sized businesses, specializing in business finance and factoring solutions, announced today the closing of a $25 millionsenior credit facility. MidCap Financial Trust served as the Administrative Agent for the transaction. The deal agreement provides Lendr with increased financing power and the expansion of the facility to $50 million.
First RealFund Raises $ 600,000 of Preferred Equity for Brooklyn Apartment Building (Business Wire), Rated: A
The Sponsor, Duke Properties, owns a portfolio totaling more than 400 rental units with a geographic focus centered around New York City. “We target value-add properties in emerging neighborhoods and we apply innovative and effective renovation strategies based on our 15+ years of experience,” observed Albert Dweck, CEO of Duke Properties. “Our goal is to increase the value of our buildings while contributing to each neighborhood.”
THIS CHART SHOWS THE UNEQUAL STATE OF ACCESS TO FINTECH SERVICES IN AMERICA (Pacific Standard), Rated: A
According to a 2015 survey by the Federal Deposit Insurance Corporation, approximately 7 percent of American households are unbanked (meaning they have no checking or savings account), and an additional 19.9 percent are “underbanked.” The percentages are higher—approximately 50 percent—among both low-income and minority households.
While approximately 22 percent of adults in high-poverty African-American communities have used online banking services in the past year, a significantly higher percentage (39 percent) of adults in wealthier black communities have used the technology.
Community bank launches digital account targeting the unbanked (American Banker), Rated: A
AxiomGo is a paperless checking account for customers who want an alternative to prepaid cards and traditional checking, the bank said.
The $560 million-asset Axiom partnered with the fintech firm Malauzai to design and deploy a mobile app that “meets the unique needs of a traditionally underbanked community, providing users a dynamic, bilingual, mobile banking experience,” it said Thursday.
The app, which had a soft launch in December, has a Spanish-language option and enables users to open and fund an account and set up direct deposit via a mobile device. Other features include the ability to pay bills by snapping a photo; check deposit; fund transfer and peer-to-peer payments; and access to built-in budgeting and personal finance management tools.
Something I Wish I’d Had 20 Years Ago When I Started: Nontraditional Financing (Entrepreneur), Rated: A
Whether they were unable to secure credit because of bad (or nonexistent) credit history, sluggish cash flow or a lack of collateral, these growth-oriented businesses often find they’re not considered a good fit for traditional loans or lines of credit. There are, however, unexpected outlets available to them. I wish they’d been available to me when I started out 20 years ago.
What Student Loan Borrowers Can Expect from the Fed’s Rate Hike (Lend EDU), Rated: A
The short answer: Some student loan borrowers will pay more interest.
Most student loan borrowers depend on federal student loans, which have had a fixed interest rate since 2006. Although 1.4 million people yearly also depend on private student loans, which can have either a fixed rate or a variable rate that’s connected to either the LIBOR, prime or T-bill rates.
When the Fed increases these variable rates, borrowers with variable-rate loans will likely pay more interest. However, it will depend on the benchmark, according to CNBC.
How to Buy a Car with Bad Credit in 2018 (Auto Credit Express), Rated: B
Tips for Buying a Car with Bad Credit in 2018
With the right plan in place, you can prepare for success when financing a vehicle with poor credit. These tips can start you off on the right foot:
- Check Your Credit
- Set Your Budget
- Have a Down Payment – Subprime lenders often require that you have a down payment, but it’s in your best interest to have one anyway.
AGORA Announces Partnership With Ignite Consulting Partners (Markets Insider), Rated: B
Agora Data, Inc. (“AGORA”), a Texas-based provider of technology solutions for the financial services industry, announces its partnership with industry leader Ignite Consulting Partners (“Ignite”) to provide increased transparency and security to the consumer finance marketplace through the development of a “Certified Seller Program.”
FIC Network Partners with Civic Technologies (Medium), Rated: B
Factury Inc., the company behind FIC Network, today announced a strategic partnership with Civic Technologies Inc. The partnership brings trusted, secure identity services to the token sales participants identification and enables FIC Network to streamline the identification and KYC process, enhancing the token sales privacy and security.
Arizona Becomes First U.S. State To Launch Regulatory Sandbox For Fintech (Forbes), Rated: B
Arizona has become the first state in the U.S. to adopt a “regulatory sandbox” to shepherd the development of new emerging industries like fintech, blockchain and cryptocurrencies within its borders.
The law will grant regulatory relief for innovators in these sectors who desire to bring new products to market within the state.
MarketInvoice secures £135m for businesses from two European banks (Bdaily News), Rated: AAA
Business finance firm MarketInvoice has today (March 26) announced new agreements with two European banks, boosting its platform by £135m.
The London-based firm struck a deal with Portuguese bank Banco BNI Europa (BNI) to add £90m to its platform and another, with German bank Varengold Bank AG, worth £45m.
Banco BNI Europa initially invested £28.3m in 2016, following it up with £45m in May 2017 and a further £90m this month.
Square brings Instant Deposits to the UK (Finextra), Rated: AAA
Square Co-Founder and CEO Jack Dorsey announced the launch of a new Instant Deposit service for UK businesses at an event at London’s British Library last night.
Who wants to be a millionaire? Invest in Zopa’s IFISA for 26 years (Peer2Peer Finance), Rated: AAA
IT WOULD take 26 years to become a Zopa Innovative Finance ISA (IFISA) millionaire, the peer-to-peer lender has calculated.
Individuals would need to invest the full ISA allowance – which is £20,000 this tax year – into Zopa’s ISA Plus at today’s target return of 4.6 per cent to hit the million pound mark in 26 years.
This would result in an IFISA total of £1,009,509, with interest earned in that year of £44,395, Zopa said in a blog post on its website on Friday.
Innovations to utilise your tax allowance (City a.m.), Rated: A
These peer-to-peer investments broad- ly fall into three sectors: Consumer, SME and Property Lending.
There are two ways to invest in an IFISA. Customers can either invest manually or defer to the platform’s auto- invest function and let this do the hard work. Notably the ‘big three’ lenders – RateSetter, Funding Circle and Zopa – purely offer auto-invest options.
Another peer-to-peer consumer lender with an IFISA on the market is Lending Works. Launched in February 2017 it offers an annual return of six per cent for five-year loans or 4.5 per cent for three-year loans. This is an auto-invest product with a minimum investment of £10.
Proplend are also offering peer-to-peer investment within an IFISA, secured against first charges on commercial property. Investors can expect returns of between five per cent and 12 per cent.
Lloyds is ‘the largest digital bank in the UK,’ CEO says, and it wants to work with fintech startups (Business Insider), Rated: A
The CEO of Lloyds Bank told a conference in London on Thursday that his company is the biggest digital bank in the UK, eclipsing the wave of digital startups that have sprung up in the last few years.
António Horta Osório told the UK Treasury’s International Finance conference that Lloyds is “the largest digital bank in the UK, with a 22% share of new business.”
From Subprime Star to Losses, U.K.’s Provident Tries to Reboot (Bloomberg), Rated: A
If the FCA does reform the home credit market, its past moves could indicate what’s in store for Provident’s door-to-door lending. The FCA’s caps on payday lenders lowered the average cost of a typical payday loan to 60 pounds from 100 pounds and slashed default rates by a third. Leading player Wonga Group Ltd. saw its sales plunge 64 percent in 2015.
Fintech firms embracing Open Banking (London School Of Business & Finance), Rated: A
A report from professional services and Big Four firm EY has shown that fintech businesses in the UK are embracing Open Banking, with 59% seeing the initiative as an opportunity to reconsider their collaborations.
The study, which surveyed more than 30 UK fintech businesses, found that more than 80% of businesses are getting ready for Open Banking, whilst 29% said that they are fully prepared for the initiative.
The study showed that businesses have started to prepare for the scheme by increasing the amount of staff they have working on Open Banking-related propositions, with 30% of businesses with 50 to 250 employees saying that they had teams of ten working on the changes.
An alternative moneymaker from property (Money Week), Rated: A
Investors looking for a higher yield from property should consider this bond from LendInvest.
Nearly every recent issue over the last few years has been at a rate of between 4% and 6%, which is well above the rate on offer from the government (via gilts) and investment-grade corporate bonds.
The platform is focused on short term, bridging and development loans rather than buy-to-let loans. In total, its initial £50m fundraising has been invested in 89 different loans (implying an average of around £560,000 per loan), with an average loan-to-value (LTV) ratio of about 57% – so the average loan looks to be backing a project worth around £1m.
Of those 89 loans, nearly all are first charge, and at least 19 (of the 87 first-charge loans) have a LTV ratio of under 50%. That means that if there were a sharp property recession, a good proportion of the book should have plenty of equity in case of default. By contrast, 17 of the loans have a LTV of 70% or more, which might seem a slightly more worrying state of affairs in a downturn – you’d only have an equity buffer of around 25% to 30% at most. It’s also worth noting that 63% of the loans are in the Greater London area, which is arguably more vulnerable in a downturn.
Financial services for good: ‘Data Nations’ team wins 24-hour Deloitte datathon (Future Scot), Rated: B
The overall winner of the second annual Datathon, hosted by business advisory firm Deloitte, was ‘Data Nations’, a team of data experts who developed FinTastic; a digital tool to help people make better financial decisions at key moments in their life.
Dual-currency prepaid credit card for Hong Kong-China commuters (Fintech Innovations), Rated: AAA
HKT and UnionPay International have launched a new Tap & Go UnionPay Prepaid Card for payments across mainland China.
The new card allows customers to instantaneously convert Hong Kong dollars into yuan using their Tap & Go mobile wallets when they are traveling in mainland China.
Customers can settle payments using their cards in mainland China as well as 168 countries and regions worldwide and for online transactions.
Report: China to Have Dynamic Approach to Fintech Innovation (Crowdfund Insider), Rated: A
A recent report in ECNS indicates China wants to have a “dynamic approach” regarding Fintech or internet finance. The report was referencing a press conference following the 13th National People’s Congress that was held earlier this month that involved the Zhou Xiaochuan, Governor of the People’s Bank of China.
In many respects, China is the largest Fintech market in the world. It has the largest online lending (peer to peer lending) market by far and benefits from a population that is widely connected to the internet by mobile devices. A combination of demand from both consumers and businesses has fueled innovations in finance.
Buy-now-pay-later firm Klarna rings changes following fraud reports (Which?), Rated: AAA
Which? received reports that in some cases thieves had entered other people’s names and addresses then intercepted the package. A few weeks later, the victims received a letter from Klarna chasing up the payment, warning the debt will impact their credit rating.
A spokesperson for Klarna said that it takes fraud seriously, and when this issue arose it immediately looked at ways to combat it. Klarna said that anyone affected by fraud should contact the company to dispute the order, and that this will in not affect a customer’s credit rating.
The Challenger Bank Playbook: How 6 Digital Banking Startups Are Taking On Retail Banking (CBInsights), Rated: AAA
Europe has seen the first cohort of challenger banks (Atom Bank, Tandem Bank, Monzo, Starling Bank, Revolut, and N26) break out, collectively attracting $1B in funding and over 2.5M customers since 2014.
How challenger banks have leveraged regulation
Traditional approach: Atom Bank, Tandem Bank, and Starling Bank prioritized having a bank charter prior to launch and built a suite of services that required a charter, believing it would create a moat around the platform. Atom Bank, for example, launched a savings account and SMB lending after regulatory approval. They also plan to launch current accounts but that roll out has so far been delayed.
Semi-traditional bank: Monzo and Germany-based N26 wanted to get customers onto the platform. To do so, Monzo launched a prepaid card instead of a full account product.
Monzo was going through a period of rapid growth, adding a reported 60K users a month when the company was granted a charter. In December 2017, they stopped adding new customers and announced plans to focus on transitioning the 500K existing customers off of prepaid cards and onto Monzo’s own current accounts.
As of February 2018, the company has a waitlist for new current account registrations, which means it’s missing out on roughly 180K potential new customers (at the peak growth rate of 60K per month) as it focuses on transitioning its existing customers off of the prepaid cards.
Fast-lane approach: Revolut challenged the conventional go-to market strategy by applying for an easier-to-acquire e-money license and targeting currency exchange rather than current accounts. Revolut initially focused on frequent travelers, a niche they believed was underserved. It built a digital currency exchange app, which allowed people to exchange money more frequently across countries without establishing multiple bank accounts.
Mobile adoption has driven uptake
Fintech lending platform Loanboox eyes French expansion (Swiss Info), Rated: A
Award-winning Swiss fintech firm Loanboox is planning further expansion into Europe having obtained a foothold in Germany. The digital portal for matching institutions with investors plans a move into France and is also looking at other European markets.
Since its inception, Loanboox has now played a part in connecting around 1,000 clients and facilitating requests of some CHF9 billion ($9.5 billion) in public sector loan deals.
Millennials Are Driving One Of The Biggest Trends In Wealth Tech (CBInsights), Rated: AAA
Millennial investors stand to inherit $30T of potential assets from baby boomers. To attract and retain this next-generation of investors, advisors need to offer sustainability, clean energy, and social impact investing strategies.
There are massive demographic shifts underway in wealth management. Millennials are now the largest generation in the workforce and 2x more likely than the average investor to make a sustainable investment.
Social issues like climate change and gun-control are top of mind for the next-generation, and 75% of millennial investors believe their investments can influence change, according to one survey conducted by Morgan Stanley.
Further, impact investing is a growing part of the wealth management market. In 2016, it’s estimated that sustainable investment assets grew to $22.89T globally, up 25% from 2014 according to the Global Sustainable Investment Alliance (GSIA).
Australia and UK set up FinTech Bridge to deepen collaboration between governments, regulators, and industry bodies (OpenGovAsia), Rated: A
The Australian Treasurer, the Hon Scott Morrison MP, and UK Chancellor of the Exchequer, the Rt Hon Philip Hammond MP, signed an agreement in London on 22 March, 2018 to establish a FinTech bridge.
The UK-Australia FinTech Bridge will deepen collaboration between governments, regulators, and industry bodies in the two countries. It will also support improved access for Australian FinTech firms to the UK market.
The FinTech Bridge includes collaboration between Australian and UK governments to identify emerging FinTech trends and policy issues, enabling better policy positions.
How Can Fintech Boost the Micro-loan Scene? (Finextra), Rated: A
While the citizens of Norway, Finland, and Denmark all have at least one bank account, there are developing countries like the Central African Republic, Niger, and Madagascar, where the percentage of the unbanked population rises well above 85%. The poverty rates in such places are quite high, and is part of a vicious circle, since the inability to get a loan or to make deposits keeps people living day to day. The only available financial resource is social borrowing from friends and family. Yet, rapid technological advancements could turn this situation around.
Micro-financial institutions (MFIs) have developed a particular product, the microcredit, as a way to grant individuals the necessary money to expand a small business or to cover some surging costs, like healthcare.
Yet, the current model for these products is far from efficient, with high operational fees which translate to interest rates around 35-40%. It has even been said that micro-loans promote poverty.
WHERE DO CHIEF INVESTMENT OFFICERS COME FROM? (AllAboutAlpha), Rated: A
PwC forecasts a near doubling in global AUM over nine years, from $84.9 trillion in 2016 to $145.4 trillion in 2025, and predicts the US share of this global wealth pie to swell from $46.9 trillion to approximately $71.2 trillion over the same period. As wealth grows, so does the demand for professional money managers.
But where will families and institutions find these investment heads?
All public pension systems, most endowments, and many foundations, health systems, associations, charities and corporate pension plans publish their fund returns and we use that information to rank and identify the top performing funds, chief investment officers, and senior asset managers.
Alternative credit scoring partnerships help fintech companies lend better (Business Standard), Rated: A
Financial technology companies have partnered with credit scoring companies to enable faster and more efficient lending. Online lending marketplaces Rubique and Bankbazaar said their partnerships with credit information companies Experian and CIBIL, respectively, to offer free credit reports to customers, made their lending more efficient.
The entire process is digitized to reduce the cost of operations and to bring speed and scale in the lending process”, said Rajiv Raj, Co-founder and director, CreditVidya.“CreditVidya is able to provide alternate data using technology we have not developed so far. We can use this data to further refine our existing credit scoring model,” said RBL Bank’s Toor.
Cerberus Capital taps Nicastro as senior adviser (The PE Hub), Rated: B
Cerberus Capital Management, L.P. and its affiliates (“Cerberus”), a global leader in alternative investing, announced today that Roberto Nicastro has become a Senior Advisor to the firm. In this role, Mr. Nicastro will consult with Cerberus as it continues its focus on investment opportunities and strategic partnerships in the European financial services sector.
Why seller experience is the new battleground in today’s competitive gig economy (Australian Anthill), Rated: A
The battle between taxis and ride-sharing services might be old news already, but today, peer-to-peer lending platforms and other emerging tech-driven financial products are continuing to ruffle the feathers of our stalwart financial institutions.
According to studies, the gig economy could contribute around $2.7 trillion to global GDP by 2025.
Top PayU India execs invest in blockchain startup Nuo Bank (VCCircle), Rated: AAA
Mumbai-based blockchain startup Nuo Bank has raised $250,000 (Rs 1.6 crore) from payment gateway firm PayU India’s chief executive officer Amrish Rau and managing director Jitendra Gupta, a top executive has told VCCircle.
Savings are stored on the blockchain and instead of interest on savings, customers gets a virtual share in the revenue of the bank. Nuo Bank will offer around 20% of its 1 billion tokens – Nuo Coins – to customers.
These contracts will stipulate that up to 25% of the bank’s revenue should be reserved for these tokens.
With KYC norms kicking in, mobile wallet customers using gift cards to get around it (Money Control), Rated: A
Even as mobile wallets companies are struggling to ensure that the customers comply with KYC norms in order to load money to their wallets, customers are able to circumvent the process with the use of digital gift cards.
For instance, customers can add money to their Amazon Pay wallet by purchasing gift cards of Amazon. The gift card offers a code that once added to the wallet loads the money.
Users of prepaid payment instruments (PPI) such as mobile wallets were asked to complete the KYC requirements by February 28 by the Reserve Bank of India (RBI). The regulation bars customers from loading money into their wallets if they haven’t complied with the KYC norms. It also restricts them from carrying out remittance-based transactions. They will also not be allowed to transfer the cash in the wallet to their bank accounts.
SmartOwner: FinTech firm pioneering real-estate crowdfunding in India (Realty Fact), Rated: A
SmartOwner, India’s first and largest online marketplace for real estate investors, aims to make the process of investing in real estate a seamless and streamlined process. It was founded by Silicon Valley entrepreneurs having a considerable amount of experience in the technology and real-estate sectors. In fact, SmartOwner wants to make property investing as simple as investing in Mutual Funds and the Stock Market.
Long Blockchain Corp. Announces Minority Investment in TSLC with a Strategic Ownership Position in CASHe (Nasdaq), Rated: A
Long Blockchain Corp. (Nasdaq: LBCC) (the “Company” or “Long Blockchain”) today announced that it has closed on a strategic investment in TSLC Pte Ltd. (“TSLC”). TSLC is the parent company of CASHe, a provider of digital money and short-term financial products to young millennials across India.
Watchdog Eyes Brazil’s Credit Card Industry On Nubank Complaint (PYMNTS), Rated: AAA
In Brazil, the antitrust watchdog, Cade, is looking into the credit card industry, with an eye on possible anticompetitive practices.
The investigation comes, Reuters reports, after a complaint by Nubank, a Goldman Sachs-funded FinTech. The company offers credit cards and checking accounts to 3 million people in Brazil. Nubank also has approval in place to become a bank. Earlier this month, the company raised $150 million in a financing round that was led by DST Global Investment Partners. Last year, the company was granted a credit line of 455 million reais, or about $137.71 million.