- Today’s main news: Funding Circle US small biz loan portfolio surpasses $2B. JPMorgan Chase to compete with Affirm, Klarna on POS financing. Funding Circle expands into Canada. Funding Circle financial highlights. Revolut fights new allegations. Dianrong lays off 2,000.
- Today’s main analysis: U.S. credit card debt hits record $870B IN 2018. International P2P lending volumes for February 2019.
- Today’s thought-provoking articles: Renting vs. owning a home in 50 largest U.S. metro areas. How TrueAccord is making a business model out of debt collections. UK P2P lending tops 800M GBP. 2019 monster funding rounds.
- Funding Circle US small business loan portfolio passes $2 billion. Congratulations! This is a huge leap for the industry as it put Funding Circle in the same league with many banks.
- JPMorgan Chase enters POS financing. Point-of-sale financing is going to be the largest credit category some day. It may be sooner than we all think. Walmart has already signed on with Affirm. With JPMorgan Chase getting in on the game, there is going to be a race to see who dominates this market. There is potential for this segment of lending to make credit cards obsolete.
- Credit card debt hit record $870 billion in 2018. Are you ready to count the charge-offs? The next two years will likely see a surge in delinquent credit card debts.
- Renting vs. owning in the 50 largest metro areas. A great study from LendingTree.
- How TrueAccord is turning debt collections into a financial services business model. Interesting read and podcast.
- Discover to use artificial intelligence for personal loans.
- KBRA assigns preliminary ratings to Kabbage Asset Securitization LLC, Series 2019-1.
- Beehive raises $4 million.
- Loan officers doubt claims of loanDepot.
- Company.com integrates SMB funding maretplace.
- AI Foundry unveils artificial intelligence platform and mortgage automation solution.
- How selfies can snuff out false identities.
- Auto loan statistics.
- Chime valued at $1.5 billion.
- Podcast with Jason Gross of Petal. Lend Academy
- FINRA approves Circle’s acquisition of SeedInvest.
- Big Picture Loans accused of renting a tribe to get around payday lending laws.
- How to invest in real estate without buying property.
- Elevate appoints head of enterprise risk management.
- Vemanti Group to launch digital security offering for eLoan.
- Funding Circle to expand into Canada.
- Funding Circle’s financial highlights.
- P2P lending tops 800 million GBP in Q4.
- Revolut fights new allegations.
- Is the IFISA worth it?
- How to use IFISA in the property market.
- Wealth management and ethics.
- Provident Financial fights hostile takeover bid.
- 10 fintechs have raises monster rounds in 2019.
- International P2P lending volumes for February 2019.
- Omidyar Network spins out Flourish.
- Multi-crypto wallets with P2P lending features.
- China: Dianrong lays of 2,000 employees.
- Europe: How PSD2 will change lending.
- India: P2P lenders develop new ways to build trust.
- Vietnam: Deputy PM says P2P lending needs tightened supervision.
- Canada: Klarna partners with PayBright on POS financing.
- India: Scaling small businesses with alternative finance.
- Indonesia: E-money and P2P lending.
- Malaysia: FINTERRA envisions global Waqf bank.
- United States
- Funding Circle US Small Business Loan Portfolio Surpasses Most Banks with $ 2 Billion Lent Through Platform (PR Newswire), Rated: AAA
- JPMorgan Chase Enters A Hot Fintech Space: Point-Of-Sale (POS) Financing (Forbes), Rated: AAA
- Shopping at Discount Stores Could Help Get You a Loan (WSJ), Rated: A
- U.S. Credit Card Debt Closed 2018 at a Record $ 870 Billion (Bloomberg), Rated: AAA
- LendingTree Compares Renting and Owning a Home in the 50 Largest Metropolitan Areas in the U.S. (LendingTree), Rated: AAA
- ‘Stop pitting misery against misery’: How TrueAccord is turning debt collections into a financial service (Tearsheet), Rated: AAA
- KBRA Assigns Preliminary Ratings to Kabbage Asset Securitization LLC, Series 2019-1 (BusinessWire), Rated: A
- Peer to Peer Lending Platform Beehive Raises $ 4 Million (Crowdfund Insider), Rated: A
- Loan officers cast serious doubt on latest loanDepot, Chase mortgage promises (HousingWire), Rated: A
- Company.com Integrates SMB Funding Marketplace (PYMNTS) Rated: A
- AI Foundry Unveils Next-Generation Artificial Intelligence Platform and Mortgage Automation Solution (PR Newswire), Rated: A
- Could A Selfie Put An End To False Identities? (Forbes), Rated: A
- Auto Loan Statistics (LendingTree), Rated: A
- Online bank Chime now valued at $ 1.5 billion after new funding round (CNBC), Rated: A
- Jason Gross of Petal (Lend Academy), Rated: A
- FINRA Approves Circle’s Acquisition of SeedInvest, Continues Mission of Tokenization (Crowdfund Insider), Rated: A
- Virginians say online lender uses tribal immunity to get around state laws (Pilot Online), Rated: A
- How to Invest in Real Estate without Buying Property (Realty Biz News), Rated: B
- Elevate Appoints Kathleen Vanderkolk as Head of Enterprise Risk Management (BusinessWire), Rated: B
- Vemanti Group Engages With Securitize And DSLG To Launch Digital Security Offering For eLoan, JSC (GlobeNewswire), Rated: B
- United Kingdom
- Funding Circle Announces Expansion to Canada (PR Newswire), Rated: AAA
- Funding Circle Holdings plc (Funding Circle), Rated: AAA
- UK Peer to Peer Lending: Loans top £800 Million in Q4 as Industry Matures (Crowdfund Insider), Rated: AAA
- Revolut is fighting back after yet more allegations were made against the $ 1.7 billion fintech unicorn after a week from hell (Business Insider), Rated: AAA
- Is the Innovative Finance Isa worth it? We look at the pros and cons (City A.M.), Rated: A
- How savers can use an Innovative Finance Isa to reap the rewards from the property market (City A.M.), Rated: A
- Wealth management firm urges greater awareness in investments (Wealth Adviser), Rated: B
- Provident fights back in bitter £1.3bn bid battle as it accuses former boss of destroying shareholder value and failing to grasp modern technology (This is Money), Rated: B
- Dianrong has laid off as many as 2,000 employees amid a regulatory crackdown (Business Insider), Rated: AAA
- European Union
- How PSD2 Will Change Lending (PYMNTS), Rated: AAA
- 10 Fintechs Have Already Raised Monster Rounds in 2019 (Lend Academy), Rated: AAA
- International P2P Lending Volumes February 2019 (P2P-Banking), Rated: AAA
- Omidyar Network spins out its fintech investment arm as Flourish, with up to $ 300 million (TechCrunch), Rated: A
- List of Multi-Crypto Wallets To Consider For Your Portfolio (Cryptomorrow), Rated: A
- P2P lenders develop new ways to build trust (India Times), Rated: AAA
- Scaling small businesses with alternative finance (India Times), Rated: A
- Tightened supervision needed for P2P lending services: Deputy PM (Nhan Dan), Rated: AAA
- E-Money, P2P Lending The Hotspots (Fitch Solutions), Rated: A
- FINTERRA Calls for All Thought Leaders and Regulators to Envision A Global Waqf Bank (Salaam Gateway), Rated: B
- Klarna And PayBright Partner To Give More Shoppers The Ability To Pay Over Time (PR Newswire), Rated: A
Funding Circle US Small Business Loan Portfolio Surpasses Most Banks with $ 2 Billion Lent Through Platform (PR Newswire), Rated: AAA
Funding Circle, the global small business loans platform, today announced that investors have lent more than $2 billion through its platform to small businesses in the United States. With this milestone, Funding Circle now has more US small business loans outstanding than almost 98% of FDIC-insured banks1.
Funding Circle now has more than $1 billion of small business loans in its portfolio, which means that if it were a bank it would be among the 50 largest small business commercial & industrial loan portfolios in the United States, according to the latest FDIC data available1. However, unlike a bank, Funding Circle provides a single financial product. Its fully amortizing business loans, powered by sophisticated technology and proprietary credit models, enable business owners to access financing with speed and efficiency, allowing them to devote more time to delivering their product or service to the market and ultimately create more jobs and vitalize their communities.
JPMorgan Chase Enters A Hot Fintech Space: Point-Of-Sale (POS) Financing (Forbes), Rated: AAA
JPMorgan Chase announced that it is moving into the point-of-sale (POS) financing market.
POS financing certainly isn’t new. In 2016, merchants in nine different retail categories saw more than 160 million POS loan applications—only 53% of which were approved, however.
Filene Research Institute estimated the annual size of the POS financing market at $391 billion—approximately 3.5% of annual consumer spending—with healthcare, electronics, and home goods as the leading categories.
In Cornerstone Advisors’ 2019 What’s Going On in Bankingstudy, just 3% of banks and 12% of credit unions said that point-of-sale loans would be a high priority in 2019.
Shopping at Discount Stores Could Help Get You a Loan (WSJ), Rated: A
Discount-store shoppers may soon get an unexpected benefit: better odds when applying for personal loans from Discover Financial Services.
Discover, best known for its credit cards, plans to use artificial intelligence to assess hundreds of unusual characteristics about personal-loan applicants in an attempt to get its rising losses under control.
U.S. Credit Card Debt Closed 2018 at a Record $ 870 Billion (Bloomberg), Rated: AAA
U.S. credit card debt hit $870 billion — the largest amount ever — as of December 2018, according to the data from the Federal Reserve. Credit card balances rose by $26 billion from the prior quarter.
Nearly 480 million credit cards are now in circulation — up by more than 100 million since hitting bottom after the recession a decade ago.
At the end of last year, credit cards were the fourth-largest portion of consumer debt in the U.S. after mortgage, student loan and auto debt. But the quarterly increase in credit card debt was faster than the other categories. Overall debt reached a record $13.5 trillion.
LendingTree Compares Renting and Owning a Home in the 50 Largest Metropolitan Areas in the U.S. (LendingTree), Rated: AAA
Louisville, Milwaukee and Oklahoma City are the metros where median rents are cheapest when compared to median mortgages. In these areas, median rent costs are an average of $310 cheaper than median mortgage costs.
Miami and Orlando, Fla.; and Virginia are the metros where rent payments are the most expensive when compared to mortgage payments. Median mortgage payments are an average of $215 cheaper than median rent payments in these metros.
Four of the top 10 metros where monthly rents are higher than monthly mortgage payments are in Florida. According to a recent housing study from Harvard University, low wages and too few rental units are key factors that have caused Florida’s rental affordability crisis to become the worst in the nation.
‘Stop pitting misery against misery’: How TrueAccord is turning debt collections into a financial service (Tearsheet), Rated: AAA
Ohad Samet has spent his career working on lending analytics — first, at a firm called FraudSciences, which got bought by eBay. He ran analytics at Analyzd, which was acquired by Klarna. As the chief risk officer at the pay later lender, he became aware of how antiquated the debt collections industry was. Call centers, dialing for dollars, it just hadn’t kept pace with the front end of the business.
So, in 2013, he left and with two co-founders started TrueAccord, which is essentially a nearly-automated marketing and sales campaign for debt collection. Based on consumer data and data from the lender, it can determine who to call, what time to call, what communications channel — phone, text, email, chat — and what message to use. It purports to be a much better experience for consumers.
KBRA Assigns Preliminary Ratings to Kabbage Asset Securitization LLC, Series 2019-1 (BusinessWire), Rated: A
Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five classes of notes (the “Notes”) issued by Kabbage Asset Securitization LLC, Series 2019-1 (“Kabbage 2019-1”).
This transaction is Kabbage, Inc.’s (“Kabbage” or the “Company”) third securitization and it is expected that the proceeds of the sale of the Notes will be used to refinance the Company’s existing $610 million outstanding Kabbage Asset Securitization LLC Series 2017-1 Notes and provide extra funding capacity for Kabbage.
|Notes||Preliminary Rating||Initial Principal Balance|
|Class A||AA (sf)||$421,221,000|
|Class B||A (sf)||$59,715,000|
|Class C||BBB (sf)||$69,348,000|
|Class D||BB (sf)||$35,316,000|
|Class E||B (sf)||$24,400,000|
Peer to Peer Lending Platform Beehive Raises $ 4 Million (Crowdfund Insider), Rated: A
Beehive, a peer to peer lending platform servicing SMEs in the MENA region, has closed on $4 million Series B funding round, according to a release from the platform. This most recent funding brings the Fintech’s total raised to $15.5 million since platform launch.
Loan officers cast serious doubt on latest loanDepot, Chase mortgage promises (HousingWire), Rated: A
In recent LendingLife news, loanDepot announced its new digital mortgage, which it says can identify significant time and cost-savings for borrowers in seven minutes.
The lender claims its digital mortgage, mello smartloan, can now close a loan in just eight days. And, loanDepot is not alone in launching a new lending product promising big results. Chase Home Lending now claims it can close on a borrower’s mortgage in as little as three weeks.
Company.com Integrates SMB Funding Marketplace (PYMNTS) Rated: A
Small business financial services platform Company.com is integrating a solution into its offering through which small firms can access external financing.
Company.com said in a press release this week that it is rolling out its Business Funding Marketplace, which will integrate into its STAC Platform, to help small and medium-size businesses (SMBs) with their unique financing needs and match them with an appropriate financing offering.
AI Foundry Unveils Next-Generation Artificial Intelligence Platform and Mortgage Automation Solution (PR Newswire), Rated: A
AI Foundry, an artificial intelligence (AI) platform company, today announced the launch of its next-generation Cognitive Business Automation Platform along with a new Agile Mortgages solution. This patent-pending technology incorporates the latest in AI, machine learning and machine vision to deliver a higher level of problem solving and decision making for enterprises. The new Agile Mortgages solution, which is built on top of the platform, automates manual, labor-intensive mortgage processes, enabling lenders to dramatically accelerate the lending lifecycle.
Could A Selfie Put An End To False Identities? (Forbes), Rated: A
Earlier this year, 500 accounts were removed from Facebook and Instagram for inauthentic behaviour and suspected links to Russia. Instagram has also announced it’s killing off fake followers, bots and automated apps, in a bid to outsmart fake influencers. There are many reasons for fake identities to be created over social media: motives can go from influencing political views and policies through fake news, hacking for monetary reasons or to damage reputations. Fake identities could also be used to set up new fake bank accounts for money launching purposes or to conduct cyberbullying and engage in stalking. This list goes on.
Auto Loan Statistics (LendingTree), Rated: A
- Americans originated a record 2.5 million auto loans in July 2018, the most recent month for which data is available.
- Americans owed more than $1.14 trillion in auto loans as of September 2018, 23% more than 2013.
- Outstanding auto loan balances are rising about 3.1% a year in dollar amounts.
- Auto loans accounted for about 8% of outstanding consumer debt in 2018, including mortgages, about 2 percentage points higher than a decade earlier.
- Gen Xers carry the highest auto loan balances with a median of $18,741 and are the most likely of other age groups to have a car loan.
- The average new car loan originated by a finance company is $29,921.27, an increase of more than $5,000 from 10 years earlier.
- Average monthly payments are rising, too:
- $530 for new vehicles, up 5% year over year
- $381 for used vehicles, up 4%
- $430 for a new vehicle lease, up 4%
For many Americans, car loans are their largest debt burden, a weight which threatens to become overwhelming as they stretch loan terms to buy increasingly expensive vehicles — new and used. To get the full picture of auto loan debt in the U.S., we looked at auto loan originations, prices and term lengths. Here are the numbers.
Digital bank Chime has tripled its valuation, officially passing the $1 billion-mark this week.
The San Francisco-based company announced a $200 million Series D financing round that brings its new valuation to $1.5 billion. Investors were led by DST Global, which also participated in earlier fundraising rounds, and new investors Coatue, General Atlantic, Iconiq Capital and Dragoneer Investment Group, Chime said Tuesday.
Jason Gross of Petal (Lend Academy), Rated: A
In this podcast you will learn:
- The personal experience that led to the founding of Petal.
- Their core product and how it is different to what else is out there.
- A profile of their typical customer.
- How they are approaching underwriting.
- The typical APRs and credit limits they offer on their card.
- How they are protecting their company against fraud.
- How Petal is getting the word out about their credit card.
- The large waiting list they had when they launched last year.
- The early signals they are seeing with credit performance.
- How they are generating income.
- The primary funding sources they use in providing the credit lines.
- What they mean on their website when they say “a credit card with a conscience”.
- Their biggest challenge as they grow their company today.
- The goals the Petal team has for 2019.
FINRA Approves Circle’s Acquisition of SeedInvest, Continues Mission of Tokenization (Crowdfund Insider), Rated: A
FINRA has given their stamp of approval to the acquisition of SeedInvest by Circle. The crypto focused company announced the purchase of SeedInvest in October of 2018. The acquisition of a regulated securities crowdfunding platform by the blockchain based Circle represented a seminal turning point in the crypto industry.
Virginians say online lender uses tribal immunity to get around state laws (Pilot Online), Rated: A
Virginians are taking a lead attacking what they say is a legal loophole that has left thousands of people stuck with debt they can’t escape.
The case involves loans at interest rates approaching 650 percent from an online lender, Big Picture Loans, associated with a small Indian tribe on Michigan’s Upper Peninsula.
Lula Williams of Richmond, the lead plaintiff in one case, still owes $1,100 on the $1,600 she borrowed from Big Picture Loans — debt that she’s already paid $1,930 to retire. One of her loan documents reports the annual percentage rate for her debt at 649.8 percent, calling for her to pay $6,200 on an $800 debt. Her first three installments on that loan, each for $400, would have yielded Big Picture a 50 percent profit on the loan after just three months, court records suggest.
How to Invest in Real Estate without Buying Property (Realty Biz News), Rated: B
Lastly if you love jumping on the latest trends, then jumping on one of these companies services that how recently cropped up will help you get involved in real estate investing. You are able to invest in commercial and residential real estate investments and receive cash flow distributions in return, and just like the other options on this list, someone else is doing the heavy lifting whilst you reap the rewards.
Whilst there is no one standout company that we can confidently recommend, since they all havent been around long enough for us to make a property judgement, Fundrise returned an average of 11.4% on the invested dollars in 2017 and a further 9.11% in 2019.
The best part is you don’t even need to be an accredited investor to open an account, meaning if you’re new to the market, then this is your chance to get in on something thats shiny and new and that could potentially give you a place to invest your cash and reap the rewards of owning physical property.
Elevate Appoints Kathleen Vanderkolk as Head of Enterprise Risk Management (BusinessWire), Rated: B
Elevate Credit, Inc. (NYSE: ELVT) (“Elevate” or the “Company”), a tech-enabled provider of innovative and responsible online credit solutions for non-prime consumers, today announced that it has promoted Kathleen Vanderkolk to Chief Risk Officer.
Vemanti Group Engages With Securitize And DSLG To Launch Digital Security Offering For eLoan, JSC (GlobeNewswire), Rated: B
Vemanti Group, Inc. (OTC PINK:VMNT), a technology-driven holding company, today announced that it has engaged with Securitize, Inc. (“Securitize”) and Digital Securities Law Group (“DSLG”) to launch a Digital Security Offering (“DSO”) to fund and propel the business objectives for eLoan, JSC (“eLoan”), its portfolio company. The Company recently announced that it has completed its investment in eLoan, a fintech company based in Vietnam.
The offering will be conducted by the Company on behalf of Fvndit, Inc. (“Fvndit” – formerly Directus Holdings, Inc.), eLoan’s US-based parent company, as the issuer. The issuance will be managed by Securitize’s platform and DS Protocol. Details of the offering will be announced at a later date.
Funding Circle Announces Expansion to Canada (PR Newswire), Rated: AAA
Funding Circle, the leading small business loans platform in the UK, US, Germany and the Netherlands, today announced its plans to enter the Canadian market and expand access to fast, affordable and transparent financing for Canadian small businesses.
Funding Circle will establish operations in Canada in the second half of 2019 with an office located in Toronto. The business will be led by Tom Eilon, who previously led the commercial strategy for Funding Circle in the United Kingdom.
Funding Circle Holdings plc (Funding Circle), Rated: AAA
- Strong Group performance delivering IPO guidance whilst continuing our strategy of investing for growth
- Revenue of £141.9 million (2017: £94.5 million). Year-on-year growth of 55%1 (excluding property2) exceeding c.50% guidance stated at IPO
- Segment adjusted EBITDA3 of £7.0 million (2017 loss: £3.9 million) with margin of 5% (2017: negative 4%)
- Adjusted EBITDA4 loss of £28.5 million (2017 loss: £25.1 million) with margin improving to negative 20% (2017: negative 27%)
- Basic loss per share of 18.2 pence (2017 loss: 14.0 pence)
- Loss before tax £50.7 million (2017 loss: £36.3 million)
- Free cash outflow5 of £42.0 million (2017 outflow: £35.3 million)
- Cash of £333.0 million, £244.1 million higher than at the end of 2017 (£88.9 million), including IPO proceeds of £300.0 million, before expenses of £15.0 million
UK Peer to Peer Lending: Loans top £800 Million in Q4 as Industry Matures (Crowdfund Insider), Rated: AAA
The UK Peer-to-Peer Finance Association(P2PFA) has published fourth quarter numbers for member platforms. According to their data, cumulative lending now tops £9.5 billion with over £800 million originated during the period.
The P2PFA states that platforms facilitated loans worth nearly £3 billion during 2018.
In Q4, P2PFA platforms originnated £527 million to businesses and £282 million to almost a quarter-of-a-million consumers. Cumulative lending among P2PFA platforms has now exceeded £5.5 billion for business lending and £4 billion for consumer lending.
Revolut is fighting back after yet more allegations were made against the $ 1.7 billion fintech unicorn after a week from hell (Business Insider), Rated: AAA
The Financial Times on Tuesday alleged that the UK National Fraud Intelligence Bureau (NFIB) is examining a complaint from a customer, adding to Revolut’s issues after a difficult week for the fintech.
However, the allegations were denied by Revolut and the Financial Times article was subsequently taken down.
The FT, citing emails, reported on an incident in which £70,000 was incorrectly paid into a Revolut customer’s account.
Is the Innovative Finance Isa worth it? We look at the pros and cons (City A.M.), Rated: A
At barely three years old, the Innovative Finance Isa still has some proving to do. And for some savers, it’s a product that is deemed too risky. But how risky is it really?
Of course, the IFISA is merely a tax-free wrapper, so the risk actually depends on the underlying investments held within.
And while investments can vary wildly, most IFISAs are invested in the peer-to-peer (P2P) lending market, where lenders are grouped together to invest capital through an online platform which distributes funds to borrowers.
How savers can use an Innovative Finance Isa to reap the rewards from the property market (City A.M.), Rated: A
Investors can open one IFISA per tax year, and have an annual subscription allowance of £20,000, with substantial tax-free returns.
There are also several different opportunities available when it comes to property IFISAs, including buy-to-let and development.
Wealth management firm urges greater awareness in investments (Wealth Adviser), Rated: B
Last year, the National Trust was criticised for investing in a fund with holdings in fossil fuel companies, while the Church of England was shown to have ploughed funds into Wonga, despite having publicly criticised the payday lender.
Provident fights back in bitter £1.3bn bid battle as it accuses former boss of destroying shareholder value and failing to grasp modern technology (This is Money), Rated: B
A war of words has erupted between the doorstep lender Provident Financial and its former boss John van Kuffeler as he mounts a £1.3billion hostile takeover bid.
The Provvy has accused van Kuffeler of destroying shareholder value and failing to grasp modern technology.
Dianrong has laid off as many as 2,000 employees amid a regulatory crackdown (Business Insider), Rated: AAA
China-based peer-to-peer (P2P) lender Dianrong has laid off as many as 2,000 employees and will shut down 60 of its 90 brick-and-mortar outlets, which helped verify the identities and qualifications of users, according to Bloomberg, citing people familiar with the matter.
Additionally, the company has been accused of falling behind on wages and severance pay, per a Chinese media outlet cited by TechNode . The company reportedly started shrinking its business around 10 months ago, despite securinga $70 million funding round in January to expand its services, including SMB lending.
How PSD2 Will Change Lending (PYMNTS), Rated: AAA
Merchants and customers are now transacting under PSD2 and GDPR in the European Union (EU) — regulations that allow a greater window into how customer data is being used. While these regulations are aimed at increasing consumer trust by allowing them more transparency, many consumers in the region are still adjusting.
French regulatory body, the Commission nationale de l’informatique et des libertés (CNIL), has fined Googlethe equivalent of $56 million for noncompliance with GDPR within the region, alleging that the information services company was using EU customer data for advertising purposes without obtaining clear consent from those customers.
For third-party providers, such as P2P lending and investment provider Zopa, PSD2’s data transparency rules provide an opportunity to “level the playing field” when it comes to gaining that consumer trust.
10 Fintechs Have Already Raised Monster Rounds in 2019 (Lend Academy), Rated: AAA
We came into 2019 after a strong year of fintech investments with about $40 billion invested globally according to CB Insights.
- $105 million round led by NBCUniversal and venture arm of its parent company Comcast. NBCUniversal is now their largest shareholder.
- $70 million Series C from American Express Ventures and the Healthcare of Ontario Pension Plan (HOOPP). The company originated $1.3B in mortgages in 2018.
- The $65 million Series B round was led by RPM Ventures as CEO Mike Cagney continues to show his fundraising prowess. Their valuation is said to be $365 million today about double the valuation from last year. Read our coverage here.
International P2P Lending Volumes February 2019 (P2P-Banking), Rated: AAA
The total volume for the reported marketplaces in the table adds up to 531 million Euro.
This month I added Bondster (use Bondster Promotion Code 5506 to get 1% cashback).
Omidyar Network spins out its fintech investment arm as Flourish, with up to $ 300 million (TechCrunch), Rated: A
After twelve years spent investing in impact-oriented financial services startups around the globe, the Omidyar Network, which serves as the family investment office for eBay founder Pierre Omidyar, is spinning off its financial inclusion investment arm as Flourish Ventures.
Equipped with up to $300 million in capital for operations and investments, the new Flourish will continue to invest around the Network’s core mission of backing companies with a dual focus on making a social impact and achieving quality financial returns.
List of Multi-Crypto Wallets To Consider For Your Portfolio (Cryptomorrow), Rated: A
Everus is a multi crypto wallet that allows for payment of bills and for mobile top-ups in multiple crypto and management of multiple crypto. The wallet, which is part of an ecosystem featuring bill payment, marketplace, peer-to-peer lending and micro-finance; allows customers to send, receive, store and withdraw multiple cryptocurrencies (more than 50 currently).
Peer-to-peer lending will allow people to offer and accept microloans affordably, which will be more targeted to the un-banked.
Other features to be added soon include crypto lending where users can lend crypto and earn profits, exchange integration to allow users to exchange crypto from the wallet, fiat gateway to let users purchase crypto with fiat, digital identity and KYC where users can register their digital identity and use it everywhere else without needing to create another one, news portal to furnish users with happenings in the crypto space, and App Square for browsing dApps.
It links to other parts of the company’s product ecosystem including decentralized exchange to allow users to buy and sell crypto, a licensed crypto bank, Prepaid co-brand bank cards, a decentralized peer-to-peer lending for borrowers as well as merchants, individuals, corporate, financial and non-financial institutions as well as crypto-fiat payments for merchants and 100% legal fiat-crypto-fiat transactions regardless of region and legislation.
P2P lenders develop new ways to build trust (India Times), Rated: AAA
Monexo ensures less risk for lenders by keeping a lender’s contribution to a loan to only Rs 1,000. So if a Monexo customer lends Rs 1 lakh on the platform, it gets split across 100 loans.
Faircent also has a similar strategy. It does not allow lenders to lend more than 20% of a single borrower’s requirement. So for an average loan of Rs 1 lakh, there will be on average 43 lenders funding that. They also advice lenders not to lend beyond Rs 5,000-7,000 for one loan.
Scaling small businesses with alternative finance (India Times), Rated: A
Lack of access to finance is the most widely cited constraint by SMEs for growth and scaling up business. Generally commercial banks perceive SMEs fall in the category of high default risk due to limited collaterals, smaller in asset size and limited historical track record.
Tightened supervision needed for P2P lending services: Deputy PM (Nhan Dan), Rated: AAA
Deputy Prime Minister Vuong Dinh Hue has asked competent ministries and sector to enhance inspections, supervision and settlement of violations related to peer-to-peer (P2P) lending model which has been springing up in Vietnam in recent two years.
E-Money, P2P Lending The Hotspots (Fitch Solutions), Rated: A
- The e-money and payments segment continues to show strong growth, and consolidation within the sector is positive to improve services and ease competitive pressures.
- P2P lending is emerging as a bright spot, and regulation remains lax enough for lenders to thrive.
- Cryptocurrencies show little potential for growth as the regulator remains apprehensive towards crypto-based assets.
FINTERRA Calls for All Thought Leaders and Regulators to Envision A Global Waqf Bank (Salaam Gateway), Rated: B
Malaysia has the potential to become the first nation in the world to set up a global “Waqf” bank using blockchain technology, expounded Hamid Rashid, the Founder of FINTERRA.
The platform is a blockchain-based solution to crowdfund Waqf charity, Islamic investments, and peer-to-peer lending.
Klarna And PayBright Partner To Give More Shoppers The Ability To Pay Over Time (PR Newswire), Rated: A
Today, Klarna, a global payment provider, announces a partnership with Canadian instant financing provider, PayBright. Klarna and PayBright are joining forces to give Klarna’s 100,000 global retailers the ability to turn on a consumer finance solution for their Canadian shoppers quickly and easily.