- Today’s main news: Online lenders tighten rules against default wave. UK P2P lenders join effort to overturn Brexit. Consumer credit sees the most financial complaints in UK.
- Today’s main analysis: Where is the most student debt?
- Today’s thought-provoking articles: How regulations will impact Ant Financial. The 7 most innovative fintech companies. Where is the fintech innovation right now? What fintech investors want in Africa. About Canada’s P2P lenders.
- Online lenders tighten the rules against default wave. The market waxes and wanes. When defaults go up, it’s time to tighten the standard. They can be loosened again when lenders have confidence in borrowers’ ability to pay.
- Where is the most student debt? Another LendingTree study. Washington D.C. is No. 1. Really?
- Wells Fargo to get into auto lending again.
- Principal Financial acquires RobustWealth.
- Instead of lending money to family, try this. A video worth looking at.
- OppLoans named one of the best workplaces in the country by Inc. Magazine.
- Lendbuzz gets $30 million.
- Fifth Third Bank eBus offers financial advice for free.
- PLI 23rd Annual Consumer Financial Services Institute.
- P2P lenders join effort to overturn Brexit. It will be interesting to see if they make any headway.
- Consumer credit gets the most financial complaints.
- Investing in property without buying a home.
- Will FCA squelch robo-advice?
- P2P lenders join speaking team at Future of Fintech.
- How will regulations impact Ant Financial?
- GXChain to use blockchain for commercialized data marketplace.
- Australia: Banks’ $220 million bill for bad financial advice to rise.
- Australia: 52% of home buyers open to buying partially renovated property.
- India: ICICI wants to build its own tech stack.
- Malaysia: Funding Societies partners with United Overseas Bank.
- Vietnam: Fintechs need bank support.
- Japan: Gumi founder launches crypto fund.
- Africa: What fintech investors are looking for.
- Kenya: Country wants to regulate fintech lenders.
- Canada: P2P lenders will help SMBs stay afloat.
- Canada: Fintech Select ends Q1 with net profit.
- United States
- Online lenders tighten rules as default wave rattles investors (American Banker) Rated: AAA
- LendingTree Study: Which Places Have the Most Student Debt? (PR Newswire) Rated: AAA
- Wells Fargo Plans to Expand Auto Lending Again (Lend EDU) Rated: A
- Principal Financial acquires digital advice startup RobustWealth (Investment News) Rated: A
- What to Do When You Lend Family Money But They Can’t Pay You Back (Entrepreneur) Rated: A
- OppLoans Named One of the Country’s Best Workplaces by Inc. Magazine (Markets Insider) Rated: A
- Autoloans Company Lendbuzz Secures $ 30 Million in Funding (CTech) Rated: A
- Fifth Third Bank eBus offers free financial advice (The Blade) Rated: B
- PLI 23rd Annual Consumer Financial Services Institute (JD Supra) Rated: B
- United Kingdom
- Tech Entrepreneurs Launch Campaign to Reverse Brexit Vote (Forbes) Rated: AAA
- Consumer credit made up the bulk of financial complaints last year (Peer2Peer Finance) Rated: AAA
- How to invest in property without buying a home (City A.M.) Rated: A
- Robo-rumble: Will FCA scrutiny stop digital services moving further towards advice? (Money Marketing) Rated: A
- FIVE SPEAKERS JOIN ‘FUTURE OF FINTECH’ EVENT LINE-UP (Business Cloud) Rated: B
- How Will Ant Financial, China’s Fintech Giant, Be Impacted By New Regulations? (Forbes) Rated: AAA
- GXChain (GXS) Review – A Blockchain-based Commercialized Data Marketplace (Chain Bits) Rated: A
- 7 most innovative Fintech companies right now (Forex News Now) Rated: AAA
- Where In the World Is Fintech Innovation? (Bank Innovations) Rated: AAA
- Banks’ $ 220m bill for dudding customers to rise ‘significantly’ (The Canberra Times) Rated: A
- What you should look for when buying a partially renovated house (Domain) Rated: A
- ICICI Bank also wants to be a fintech (The Ken) Rated: A
- Funding Societies partners with UOB Malaysia to accelerate small business growth (Deal Street Asia) Rated: AAA
- Fintech firms need support from banks: SBV (Vietnam News) Rated: A
- Japan’s Gumi Games Founder Launches $ 30M Crypto Fund (Blockchain News) Rated: A
- Fintech in Africa: what investors are looking for (Fin24) Rated: AAA
- Kenya calls for regulation of fintech lenders (IT Web) Rated: A
- Peer-to-peer lending will help small businesses stay afloat (The Globe and Mail) Rated: AAA
- Fintech Select Records a Net Profit of $ 986k for Q1 Ending March 31 2018 (GlobeNewswire) Rated: A
Online lenders tighten rules as default wave rattles investors (American Banker) Rated: AAA
It’s gotten a lot harder to borrow money from the raft of fintech firms looking to bring online lending into the mainstream.
Besieged by a wave of defaults after several years of rapid growth, the biggest online lenders have been forced by bond investors to tighten underwriting standards. Social Finance, Prosper, LendingClub and Avant now demand higher average credit scores and offer shorter maturities to boost the quality of loans they repackage into asset-backed securities.
The shift in the $30 billion market comes after a swarm of borrower defaults in the past three years rattled ABS investors. It also marks a coming of age of sorts for the fintech startups that offered cut-rate loans to build a customer base. Now, with rates rising and a potential economic slowdown looming, the move toward higher-quality from the push for quantity has taken on added urgency.
According to Kroll, the weighted average of FICO credit scores of Prosper’s loans packaged in ABS increased to 717 in a March 2018 deal from 704 in a sale two years earlier.
LendingTree Study: Which Places Have the Most Student Debt? (PR Newswire) Rated: AAA
LendingTree today released its study on the places with the most student debt. To determine whether there are geographic variations in student debt, LendingTree analysts looked at a sample of anonymized users who logged into My LendingTree in the first quarter of 2018 and calculated how many had student loans, as well as the other reported statistics related to their balances.
Wells Fargo Plans to Expand Auto Lending Again (Lend EDU) Rated: A
Wells Fargo & Co. expects to increase its auto lending again. In mid-2017, Wells Fargo decided to reduce car financing and tighten its underwriting standards. In February 2018, the firm said it intended to finish consolidating its regional car loan centers by April, and that lending would expand within two quarters, reported Bloomberg.
For lenders in a $1.2 trillion U.S. auto loan market, they face a landscape with falling vehicle resale prices, making it difficult for them to soften losses from repossessing cars when borrowers default.
Principal Financial acquires digital advice startup RobustWealth (Investment News) Rated: A
Principal Financial Group is acquiring financial technology startup RobustWealth to improve its own technology offering and expand distribution capabilities among the banking, broker-dealer and registered investment adviser channels.
Principal also sees the RobustWealth’s platform — which includes digital advice, goal-based investment tools and client onboarding — as providing the foundation for a direct-to-consumer robo-adviser in the future.
What to Do When You Lend Family Money But They Can’t Pay You Back (Entrepreneur) Rated: A
Like many people, Entrepreneur Network partner Jeff Rose once has convinced himself it was a good idea to loan money to a family member. In reality, the situation can get messy when this close personal connection cannot return the investment. This does not mean Rose has given up on peer-to-peer lending, which is a helpful tool that can streamline the loan process.
OppLoans Named One of the Country’s Best Workplaces by Inc. Magazine (Markets Insider) Rated: A
Online lender and service provider OppLoans has been listed as one of the country’s 2018 Best Workplaces by Inc. Magazine. The award determination was based on employee survey results in areas like benefits, perks, executive leadership and opportunities for career development.
OppLoans enjoys a rating of 4.9 out of 5 stars on Glassdoor as well as a 98 percent retention rate and 99 percent approval rating for CEO Jared Kaplan. Last December, Glassdoor rated the Chicago-based startup as the sixth-best place to work nationally for small-to medium-sized businesses. The firm was named #219 on the 2017 Inc. 500 list of fastest-growing companies and the third-fastest growing technology company in Chicago by Built in Chicago.
Autoloans Company Lendbuzz Secures $ 30 Million in Funding (CTech) Rated: A
Boston-headquartered car financing service Lendbuzz Funding LLC has raised $30 million in financing, the company announced Tuesday. The round was led by BHI, the U.S. division of Israel-based Bank Hapoalim, by Viola credit, the growth and venture lending arm of Israel-based Viola Group, and by U.S.-based ConnectOne Bank.
The company, which currently offers its services in most U.S. states, says it reviews loan requests within 24 hours and transfers money immediately upon approval. Since its establishment, the company raised $43 million in both debt and equity funding.
Fifth Third Bank eBus offers free financial advice (The Blade) Rated: B
For the next week, a large bus operated by Fifth Third Bank will travel throughout Toledo, offering residents free money management advice and job-searching services.
The bus, called the Fifth Third Bank Financial Empowerment Mobile, or eBus, was located at the Lucas Metropolitan Housing Authority on Wednesday, and though it’s operated by Fifth Third, its services can be used by any residents no matter which bank they use, said Loretta Humphrey-Cruz, community development relationship manager.
PLI 23rd Annual Consumer Financial Services Institute (JD Supra) Rated: B
The third location of PLI’s 23rd Annual Consumer Financial Services Institute will take place in PLI’s San Francisco Conference facility and via concurrent live Webcast on June 25-26, 2018. This will be the first time in many years that the Institute will take place in San Francisco. Since the first location of this event in NYC on March 26-27 was well-attended, and the second location in Chicago on May 7-8 was sold-out, anyone interested in attending the program in San Francisco is encouraged to act quickly to register.
Tech Entrepreneurs Launch Campaign to Reverse Brexit Vote (Forbes) Rated: AAA
Could Britain’s leading technology entrepreneurs derail Brexit? More than 80 innovators and investors from across the UK’s tech sector have launched a new group, Tech for UK, which will campaign for a meaningful vote on the final terms of the Brexit agreement that the British Government is currently negotiating with the European Union. Such a vote should give Britons the option to vote for the UK to remain in the EU, Tech for UK argues.
The group boasts a string of high-profile business leaders from the tech sector, including Martha Lane-Fox, best-known as the co-founder of Lastminute.com, Giles Andrews, one of the founders of peer-to-peer lending pioneer Zopa, and George Bevis, the CEO of Tide Bank. It also features leading venture capital and private equity investors, such as Simon Murdoch, the managing partner of Episode 1 Ventures.
Consumer credit made up the bulk of financial complaints last year (Peer2Peer Finance) Rated: AAA
The FOS annual report for 2017/2018 found consumer credit products, which includes some peer-to-peer lending as well as payment protection insurance, accounted for the most complaints at 36,349 last year, up 40 per cent.
The Ombudsman upheld 47 per cent of complaints, up from 45 per cent a year before.
There was also an eight per cent increase in complaints about unsecured loans to 6,909, while credit card complaints were up 15 per cent to 11,073.
How to invest in property without buying a home (City A.M.) Rated: A
Over the past few years, property-oriented investment companies have been coming in thick and fast, bolstered partly by the launch of the Innovative Finance Isa (IFISA).
The minimum investment can be as little as £10, which isn’t a patch on the huge deposits needed to buy a house (the average deposit in London is more than £90,000).
Robo-rumble: Will FCA scrutiny stop digital services moving further towards advice? (Money Marketing) Rated: A
The FCA reviewed seven firms offering online discretionary investment management services and three firms giving automated advice.
It found service and fee-related disclosures at most online discretionary investment management firms in its sample were unclear.
Some firms did not make clear whether their service was advised, non-advised, discretionary or non-discretionary. Others also compared their fee levels with their peers in a “potentially misleading way”. For example, they compared a non-advised, non-discretionary service with a discretionary service solely on a cost basis without explaining the difference in the nature of the service.
FIVE SPEAKERS JOIN ‘FUTURE OF FINTECH’ EVENT LINE-UP (Business Cloud) Rated: B
Five speakers from the world of FinTech have been confirmed for BusinessCloud’s The Future of FinTech event in London on 12 July.
Nicola Horlick, a former investment banker turned high-profile player in the peer-to-peer (P2P) lending market, is the headline speaker for the breakfast event.
How Will Ant Financial, China’s Fintech Giant, Be Impacted By New Regulations? (Forbes) Rated: AAA
Regulations are expected to be implemented on money market funds. Ant Financial’s main money market fund, Yu’e Bao, has been rated as much weaker than its closest U.S. competitor by Fitch, due to lower credit quality and liquidity. Additional rules are necessary, but can potentially slow down the growth of China’s money market funds. In anticipation of these measures, Ant Financial has reduced the amount of money that investors can withdraw each day from their money market fund. Now, investors may transfer up to 10,000 RMB daily to their bank accounts.
There are also reports that the central government will introduce regulations on financial holding companies like Ant Financial. Such companies are considered too big to fail, as collapse would pose a systemic risk to the financial system. Companies that operate in two or more financial industries may soon be required to obtain licenses from the central bank and meet capital requirements. Large firms will also be restricted in ownership structure and inter-group transactions.
GXChain (GXS) Review – A Blockchain-based Commercialized Data Marketplace (Chain Bits) Rated: A
With the proliferation of data on the internet, there are many pain points for individuals. Since you do not own your data, someone can sell you information and personal data without sharing profits. In addition, data is often scattered among multiple platforms, making it difficult to manage. Finally, data is difficult, if not impossible, for individuals seeks to monetize and earn from it. They don’t know how the blockchain could be applied in this scenario to better their lives.
GXChain solves these pain points by obtaining user consent before collecting and storing user data on a blockchain.
GXChain wants to be the data trading network that protects user privacy and offers copyright protection and usability at the same time. It has real-world applications in insurance, online lending, consumer loans and banks.
7 most innovative Fintech companies right now (Forex News Now) Rated: AAA
Stripe-is one of the most valuable Fintech startups. It was worth over $9 billion in 2016.
Ant Financial-has a market capitalization of $60 billion, which makes it the most valuable Fintech company in the world.
Atom Bank-has raised over $290 million in financing.
Robinhood-Valued at $5.6 billion, offers its customers a mobile wallet that allows trading shares and exchange-traded funds without paying commissions.
Lufax-is an online peer-to-peer lending platform. It matches borrowers with investors for a fee of 4% and is valued at over $18.5 million.
SoFi-is valued at over $4.4 billion.
Coinbase-has over 13 million users and makes more than $1 billion in revenue a year.
Where In the World Is Fintech Innovation? (Bank Innovations) Rated: AAA
China is also at the forefront of innovation. The government is actively cultivating fintech there.
Fintech companies like Qudian, LuFax, and ZhongAn (owned by Ant Financial), China’s first online-only insurer, are now emerging. Investment bank CLSA ranks ZhongAn as the sixth most valuable e-finance company in the world. The Chinese government has also designated development zones, such as Zhongguancun and Shenzhen, for innovation industries.
Banks’ $ 220m bill for dudding customers to rise ‘significantly’ (The Canberra Times) Rated: A
Banks are set to refund “significantly” more than the $220 million already set aside for financial advice clients who were charged for services that were never provided, as institutions search their files for customers who were ripped off.
What you should look for when buying a partially renovated house (Domain) Rated: A
A recent survey by online lender State Custodians found 52 per cent of people would be open to a renovation project for their next purchase but only 19 per cent of people would be keen on tackling a full fixer-upper.
On the other hand, a quarter of respondents would prefer taking on a partially renovated home as a project, with Millennials in particular more open to the idea of buying a half-renovated house.
ICICI Bank also wants to be a fintech (The Ken) Rated: A
In mid-2017, B Madhivanan, the chief technology and digital officer of ICICI Bank, met Rohan Angrish, the chief technology officer of online lender Capital Float. Madhivanan had questions about online lenders’ small-ticket loans. Fintechs like Capital Float lend to underserved segments like kirana stores that banks don’t normally touch.
Funding Societies partners with UOB Malaysia to accelerate small business growth (Deal Street Asia) Rated: AAA
United Overseas Bank (Malaysia) Bhd has partnered with regional peer-to-peer financing platform Modalku Ventures Sdn Bhd (Funding Societies) to connect startups and small businesses with alternative financing solutions.
Through the partnership, startups and UOB Malaysia’s small business customers will be able to raise up to RM500,000 directly from individual and institutional investors using Funding Societies’ platform without the need to pledge collateral.
Fintech firms need support from banks: SBV (Vietnam News) Rated: A
The fintech (financial technology) sector is facing difficulties of capital mobilisation shortage, inadequate legal framework and banks’ hesitance in co-operation, said Lê Minh Hưng, Governor of State Bank of Việt Nam (SBV).
Hưng told the Việt Nam fintech forum 2018 held in Hà Nội on Wednesday that fintech and banks could contribute to expand financial universalisation, and promoting hunger eradication and poverty reduction while enhancing social equality and sustainable economic development.
Japan’s Gumi Games Founder Launches $ 30M Crypto Fund (Blockchain News) Rated: A
Japanese mobile games publisher gumi today launches a fund to invest in promising global cryptocurrency companies. With USD 30 million in initial investment secured, the venture capital fund is moving to open up the Japanese crypto startup market to international investors, honing in on a target that has, up to now, been a struggle to access and understand.
While the Japanese yen accounts for over 56 percent of Bitcoin volume, gumi believes that there is lack of understanding of Japan’s crypto market and the project’s leaders are keen to fill a void in the country that was also the first to legalize bitcoin.
He has helped to raise over USD 250 million to date for companies such as Bee Token, the Decentralized AirBnB and crypto lending platform Celsius Network.
Fintech in Africa: what investors are looking for (Fin24) Rated: AAA
According to EcoBank, more than 57% of all mobile money accounts globally can be found in sub-Saharan Africa, with the African fintech market set to grow from $200m currently to $3bn by 2020.
A recent study by McKinsey found room for growth in meeting unmet banking needs in Africa. These include borrowing, saving, and investing across the continent. South Africa alone is set to see an increase in banking revenues of $4bn over the next five years.
Kenya calls for regulation of fintech lenders (IT Web) Rated: A
A boom in lending by fintech firms in Kenya has led to an increase in predatory lending practices, the country’s central bank governor said yesterday, calling for the sector to be regulated.
Kenya built a reputation as a pioneer of financial inclusion through its early adoption of a mobile money system that enables people to transfer cash and make payments on cellphones without a bank account.
Peer-to-peer lending will help small businesses stay afloat (The Globe and Mail) Rated: AAA
One set of borrowers at greater risk are Canada’s 1.14 million small businesses, defined as companies that employ up to 99 workers. Statistics Canada reports that small businesses represented 98 per cent of all businesses, employed 70 per cent of workers, and generated 30 per cent of each province’s GDP on average. This category includes startups and high-growth firms, which represent Canada’s best hope for job creation and economic growth.
Fortunately, small businesses now have an alternative source for loans called peer-to-peer (P2P) lending. These online platforms match borrowers and investors directly and can provide loans cheaper and faster than traditional sources. How can that be? The answer is technology.
Fintech Select Records a Net Profit of $ 986k for Q1 Ending March 31 2018 (GlobeNewswire) Rated: A
Fintech Select Ltd. is pleased to announce that its financial statements for the Q1 ending March 31 2018 have resulted in a net profit of $986k. Q1 2018 Financial Statements and Management Discussion & Analysis (“MD&A”) have been filed on SEDAR.