- Today’s main news: SoFi has raised $500M. Morningstar accelerates acquisition of DBRS. PayPal hits $10B in small business loans milestone. Lendy goes into administration. Klarna launches installment loan app for all retailers. New York overtakes London as financial hub of the world.
- Today’s main analysis: LendingClub’s advance shareholder meeting presentation (A MUST-READ).
- Today’s thought-provoking articles: PayPal small biz lending compared to OnDeck, Funding Circle. Mortgage borrowers can save $2K+ shopping for loans online. Where we are in the credit cycle. Who’s lending to small businesses.
- SoFi quietly raises $500 million. What’s noteworthy about this raise is the source of the funding: Qatar Investment Authority.
- SoFi’s valuation remains unchanged.
- SoFi could have its name on a football stadium soon. Almost as interesting as SoFi’s fundraising news.
- Morningstar accelerates acquisition of DBRS. This is an interesting acquisition. Consolidation in the credit ratings business means fewer ways to analyze a potential investment. It will strengthen Morningstar’s reputation and analysis technology, but investors will lose in the long run since analysis information will come from fewer quarters.
- PayPal hits $10 billion in small business loan originations. In only five years, that’s not a bad accomplishment, but it likely will not take as long for the next $10 billion milestone. PayPal is becoming a competitor.
- PayPal vs. OnDeck vs. Kabbage, vs. et.al. From Lend Academy and deBanked.
- LendingClub’s pre-meeting presentation. Read up on LendingClub’s position before their annual shareholder meeting, scheduled for June 5, 2019.
- Mortgage borrowers can save over $2,000 by shopping for loans online. From LendingTree.
- Where are we in the credit cycle? From PeerIQ. More interesting is the Fed’s dot plot.
- Who’s lending to small businesses? Alternative lenders continue to take more percentage of small business lending. Banks have all but handed this sector over to Kabbage, OnDeck, and the rest.
- LendingTree earns 5-star rating.
- RedWeek, Affirm partner on travel financing.
- Alternative lending options for business credit.
- CoreLogic Teletrack launches platform for lenders, credit issuers.
- Intuit to buy Origami Logic to use data for marketing.
- Kabbage, Azlo partner on small business lending.
- BitX Funding partners with Pelagic Capital on equipment financing.
- How much Social Security Numbers are worth on the dark web.
- Costco has a home loan app.
- Investing with very little money.
- BFS Capital appoints new chief technology officer, chief product officer.
- Lendy enters administration.
- Does it spell the end of P2P lending?
- BondMason to exit P2P lending.
- Interview with Wagestream CEO Peter Briffett.
- Microfinance trends.
- Klarna launches installment payments app for all retailers.
- Klarna to open “all-immersive store” in London.
- Stabelo’s mortgage lending business model.
- New York overtakes London as world’s financial hub. This is based on a survey, not actual objective statistics or data. But it’s still interesting. There is a lot of anxiety surrounding Brexit. The Big Apple can now be known for something else.
- Cred to migrate tokens to Binance Mainnet.
- BlockFi launches Gemini Dollars accounts.
- Emerging fintech hubs.
- Nexo releases crypto lending update.
- Apolitical releases list of most influential people on gender equality.
- United States
- Online lender SoFi has quietly raised $ 500 million in funding, led by Qatar (TechCrunch), Rated: AAA
- SoFi Raises $ 500M, Valuation Remains $ 4.3B (PYMNTS), Rated: A
- SoFi Is Close to a Deal Putting Its Name on L.A. Football Stadium (Bloomberg), Rated: A
- Morningstar to Accelerate Credit Ratings Business with DBRS Acquisition (Morningstar), Rated: AAA
- PayPal’s Latest Milestone: $ 10 Billion In Small Business Loans (Forbes), Rated: AAA
- PayPal Crosses $ 10 Billion In Small Business Loans (Lend Academy), Rated: AAA
- LendingClub Posts Presentation in Advance of Shareholder Meeting (Crowdfund Insider), Rated: AAA
- Borrowers can save over $ 2,000 by shopping for lenders who offer low mortgage fees (LendingTree), Rated: AAA
- Home Loan Provider Earns Top 5-Star Rating from TopConsumerReviews.com (PRWeb), Rated: A
- Where Are We in the Credit Cycle? (PeerIQ), Rated: AAA
- Prevent attrition and win new relationships with loan options (Bankless Times), Rated: AAA
- RedWeek Teams Up with Affirm to Help Travelers Vacation Now and Pay Later (Yahoo! Finance), Rated: A
- 3 Alternative Lending Options to Help Build Your Business Credit (Nav.com), Rated: A
- CoreLogic Teletrack launches a new platform for lenders and credit issuers (Automotive News), Rated: A
- What Intuit knows about you (AXIOS), Rated: A
- Kabbage And Azlo Collaborate To Make Small Business Lending Easier (eSellerCafe), Rated: A
- BitX Funding Strikes Equipment Finance Alliance (PYMNTS), Rated: A
- On the Dark Web, your social security number is only worth $1 (CB Insights Email), Rated: A
- 5 Home Loan Apps To Test-Drive (Spokes-Recorder), Rated: B
- Top 5 ways to start Investing With Little Money!! (EconoTimes), Rated: B
- BFS Capital Appoints Fred Kauber as Chief Technology Officer and Chief Product Officer (Yahoo! Finance), Rated: B
- United Kingdom
- Peer-to-peer lending provider Lendy enters administration (Credit Strategy), Rated: AAA
- Does Lendy Collapse Hint the Failure of P2P Loans Industry? (LearnBonds), Rated: A
- BondMason Reportedly Is Shutting Down P2P Business (Crowdfund Insider), Rated: A
- Combating The Payday Loan With On-Demand Wages (PYMNTS), Rated: A
- Microfinance Trends and Size of the Market (Cryptopolitan), Rated: A
- European Union
- Klarna Launches a Direct-to-Consumer App With Installment Payments Built in (Digital Transactions), Rated: AAA
- 10 more big retail tech plays in 2019 (Retail Innovation Hub), Rated: A
- Becoming a mortgage lender (IPE), Rated: A
- London toppled by New York as world’s financial hub (Tech HQ), Rated: AAA
- Crypto Lending Platform Cred to Migrate Tokens to Binance Mainnet in New Partnership (CoinTelegraph), Rated: A
- Crypto Lending Startup BlockFi Launches Gemini Dollar Accounts (CoinTelegraph), Rated: A
- Top 5 emerging fintech hubs (World Finance), Rated: A
- Nexo Releases Crypto Lending Update Clarifying Misconceptions and Future Outlook (Bitcoin Exchange Guide), Rated: B
- These are the world’s 100 most influential people in gender policy this year (CNBC), Rated: B
- Australia/New Zealand
- Advice beyond mortgages: “the opportunity is huge” (NZ Adviser Online), Rated: AAA
- TaniGroup Secures US$ 10 Million in Series A Funding to Re-Imagine Agriculture in Indonesia (Global Banking and Finance), Rated: AAA
- Peer-To-Peer Lending In Indonesia: A Regulatory Update (Mondaq), Rated: A
- Qatar Investment Authority invests more than $ 500M in SoFi (Mobile Payments Today), Rated: AAA
- East Africa
- Kenya Is Also Setting The Standard For Mobile Lending (Forbes), Rated: AAA
- This Alternative Lending Company Offers Investors a Huge Margin of Safety (The Motley Fool), Rated: AAA
Online lender SoFi has quietly raised $ 500 million in funding, led by Qatar (TechCrunch), Rated: AAA
Online lending startup Social Finance, better known as SoFi, took another tack this morning, quietly announcing in a press release that it has closed half a billion dollars in a single funding round led by Qatar Investment Authority, a Doha, Qatar-based private equity and sovereign wealth fund.
SoFi Raises $ 500M, Valuation Remains $ 4.3B (PYMNTS), Rated: A
The company said it will use the capital to invest in growth and add some muscle to its $2.3 billion balance sheet. The company’s valuation will stay about the same as with the last funding round two years ago, which was led by Silver Lake.
SoFi Is Close to a Deal Putting Its Name on L.A. Football Stadium (Bloomberg), Rated: A
Social Finance Inc., a financial technology startup, is close to signing a deal that would put its name on a new NFL stadium under construction in Inglewood, California, according to two people familiar with the matter.
The deal for the stadium, which would be home to the Los Angeles Rams and Chargers, hasn’t been signed so figures could change. But currently the agreement would have SoFi pay $20 million a year for 20 years, these people added.
Morningstar to Accelerate Credit Ratings Business with DBRS Acquisition (Morningstar), Rated: AAA
Morningstar, Inc. today announced it has entered into a definitive agreement to acquire DBRS, the world’s fourth-largest credit ratings agency, for a purchase price of $669 million. The combination of DBRS with Morningstar Credit Ratings’ U.S. business will expand global asset class coverage and provide an enhanced platform for providing investors with leading fixed-income analysis and research.
PayPal’s Latest Milestone: $ 10 Billion In Small Business Loans (Forbes), Rated: AAA
The small business lending market is booming and it’s not the traditional banks that are benefiting. Fintechs are leading the way. Case in point: PayPal. It hit a milestone, announcing it has provided more than $10 billion in loans to more than 225,000 small businesses around the globe.
The $10 billion mark comes a little more than five years after PayPal made its first loan. Today it has issued more than 650,000 loans through financing programs in the U.S., UK, Australia, Germany, and Mexico.
PayPal Crosses $ 10 Billion In Small Business Loans (Lend Academy), Rated: AAA
Now they are hitting some impressive quarterly milestones, originating $1 billion per quarter, so their next $10 billion is surely to happen even quicker.
deBanked recently highlighted the leading small business originators which showed that PayPal is solidly the leader when it comes to originations in the US. OnDeck which is second to PayPal reported originations of $636 million in Q1 2019. According to data provided by Funding Circle on their website, which includes their lending globally, they have originated $9.5 billion in loans.
LendingClub Posts Presentation in Advance of Shareholder Meeting (Crowdfund Insider), Rated: AAA
Borrowers can save over $ 2,000 by shopping for lenders who offer low mortgage fees (LendingTree), Rated: AAA
- Mortgage fees in the first quarter had a median of $2,059 for purchase loans and $1,807 for refinancing.
- The more offers a borrower receives, the greater the potential for savings. For people receiving five offers, the median spread between the highest and lowest fees offered was $2,045.
- 7% of new purchase borrowers and 8% of refinance borrowers were offered $0 in fees.
- 15% of new purchase borrowers and 19% of refinance borrowers paid less than $500 in fees.
- 28% of purchase borrowers paid less than $1,000 in mortgage fees, with 35% of refinance borrowers also paying less than $1,000 in fees.
- At the high end, 13% of purchase borrowers were hit with fees over $5,000, 3% over $10,000 and 0.21% over $20,000.
- For refinance loans, 12% were offered upfront fees over $5,000, 1% over $10,000 and 0.02% over $20,000.
Home Loan Provider Earns Top 5-Star Rating from TopConsumerReviews.com (PRWeb), Rated: A
TopConsumerReviews.com recently gave their highest rating to LendingTree, an industry leader among providers of Home Loans, for another consecutive year.
Where Are We in the Credit Cycle? (PeerIQ), Rated: AAA
First, a quick summary of headlines. The Fed agreed to keep interest rates on hold for longer according to the minutes of the April meeting. The decision is expected to help inflation pick up towards the Fed’s 2% target. The Fed’s latest ‘dot plot’, shown below, indicates Fed governors on the margin expect lower rates in the 2019 to 2021 timeframe suggesting lower growth expectations.
“…what we see is right now the fundamentals of the economy in the U.S. on a global basis and the fundamentals of consumers and unemployment being low as you mentioned, means that credit is in good shape and we just don’t see that changing a lot.”
Brian Moynihan, CEO of Bank of America
Kroll also released a report on the Evolution of the Consumer Loan Marketplace Sector to lay out how the sector has matured over time. The report comes on the heels of a Fitch report that said that declining credit enhancements in MPL deals is unwarranted.
Prevent attrition and win new relationships with loan options (Bankless Times), Rated: AAA
Small business clients are increasingly looking to alternative lenders for financing. There are numerous draws for SMB clients: a fast and easy application process, quick funding, and a higher chance of being approved for a loan.
According to the Federal Reserve’s Small Business Credit Survey, the main reason clients applied for funding from an online lender was the speed of decision / funding (63 percent) followed by a better chance of being funded (61 percent).
The number of small business owners who turn to alternative lenders for funding has increased steadily since 2016.
RedWeek Teams Up with Affirm to Help Travelers Vacation Now and Pay Later (Yahoo! Finance), Rated: A
RedWeek.com, the largest online community for timeshare rentals and resales, announced a new partnership with Affirm that will give travelers the flexibility to pay for their vacation rentals in simple, monthly installments.
Travelers can check eligibility for a loan online before booking their next trip and, after entering five simple pieces of information, receive a real-time decision without impacting their credit scores.
3 Alternative Lending Options to Help Build Your Business Credit (Nav.com), Rated: A
1. Online Business Loans
Once upon a time, if you wanted to borrow money for your business you had to make a trip down to your local bank branch or credit union to see if you could qualify for funding. However, a new generation of business lenders has since emerged to offer business owners an alternative way to secure capital.
2. Invoice Financing
Is your business structured in a way so that it gets paid after delivering services or goods to customers? If so, invoice financing is an alternative lending option that might work for you.
Microloans are issued through non-profit organizations aptly named microlenders. Although the maximum loan size is generally $50,000, the average microloan issued to a small business or startup is a much smaller $6,000.
CoreLogic Teletrack launches a new platform for lenders and credit issuers (Automotive News), Rated: A
CoreLogic today launched the new CoreLogic Teletrack platform, offering lenders and credit issuers superior access and greater insight into alternative credit data through one of the industry’s largest alternative credit databases. The new platform and solution combine upgraded services, data, products and an analytics engine to help users discover new market segments, make smarter risk decisions and grow their business throughout the credit lifecycle.
What Intuit knows about you (AXIOS), Rated: A
Intuit said Tuesday it had agreed to buy analytics company Origami Logic, effectively doubling down on the use of customer data to enhance its marketing.
The company can cross-sell its own products as well as products and services from third parties — like a Capital One Platinum Credit Card or a loan from Lending Club — based on what it knows about you.
Kabbage And Azlo Collaborate To Make Small Business Lending Easier (eSellerCafe), Rated: A
US online banking platform Azlo and online small business lender announced the launch of Mission Street Capital, a new program that provides small businesses banking with Azlo access to loans through Kabbage up to $250,000.
BitX Funding Strikes Equipment Finance Alliance (PYMNTS), Rated: A
Small business lending marketplace BitX Funding has struck an alliance with transportation equipment finance company Pelagic Capital, the companies said in a press release Tuesday (May 28).
On the Dark Web, your social security number is only worth (CB Insights Email), Rated: A
5 Home Loan Apps To Test-Drive (Spokes-Recorder), Rated: B
Not many know this discount bulk retail giant also provides a loan marketplace to shop for the best mortgage rate. While open to all, Costco members can access discounts on lending services. Loan options include home equity, fixed and adjustable rate, FHA, VA, USDA, and jumbo. Note, this lender’s services are strictly digital so you will not be able to meet up with someone face-to-face.
Top 5 ways to start Investing With Little Money!! (EconoTimes), Rated: B
Though P2P lendings are not low investment choices; with Fast invest, it is possible. You can start investing here with just 1 pound to accelerate cash flow. The website allows investors to deposit amounts and based on that suggests loans. After you choose the loan pack as an investor, the site assigns borrowers. Once the borrower takes the loan from you, the site starts increasing your invested amount with the applied interest rate of up to 14% till the payback period. It also comes with buyback guarantee if the borrower fails to return your loan in the payback period.
Real estate crowdfunding sites provide you the opportunity to invest in third-party properties. Fundrise is the best crowdfunding platform to go for that lets you start investing with only $500. With a year’s saving, you can start investing in this crowdfunding site and gain 8.7 to 12.4% annual returns based on your deposited amount.
BFS Capital Appoints Fred Kauber as Chief Technology Officer and Chief Product Officer (Yahoo! Finance), Rated: B
BFS Capital today announced the appointment of Fred Kauber as Chief Technology Officer and Chief Product Officer. As a member of the management team reporting to CEO Mark Ruddock, Kauber will be responsible for leading a customer-focused product and technology organization whose mission is to help BFS re-imagine financial services for small businesses.
Peer-to-peer lending provider Lendy enters administration (Credit Strategy), Rated: AAA
Damian Webb, Phillip Sykes and Mark Wilson of RSM Restructuring Advisory have been appointed as joint administrators of three companies within the Lendy Group: Lendy Limited, Saving Stream Security Holdings Limited and Lendy Provision Reserve Limited.
Does Lendy Collapse Hint the Failure of P2P Loans Industry? (LearnBonds), Rated: A
Before administration, over £90 million of loans defaulted out of £160 million of outstanding loans. The collapse of Lendy means investors had lost millions of pounds.
BondMason Reportedly Is Shutting Down P2P Business (Crowdfund Insider), Rated: A
BondMason, an online savings and investments platform that sources investments from across the peer-to-peer (P2P) market for its clients, has reportedly announced it is officially shutting down its P2P lending business.
Combating The Payday Loan With On-Demand Wages (PYMNTS), Rated: A
Peter Briffett, CEO of U.K. FinTech Wagestream, told PYMNTS in a recent interview that the cash flow constraints of having to wait for a single day to receive wages every month can be dangerous to the financial wellness of professionals. A single, expensive incident can force these professionals into debt via bank overdrafts or credit cards — or worse, Briffett said, into the payday loan cycle.
The company recently announced a $51 million funding round for its solution — led by Balderton Capital and Northzone, which provided equity, and Shawbrook, which provided debt.
Microfinance Trends and Size of the Market (Cryptopolitan), Rated: A
And that is where microfinance is moving – to an era where individuals and businesses can get financial services from other individuals and business entities. Technology is providing tools for matching borrowers and lenders. And even more important – the tools for creating contracts that execute accordingly.
Klarna Launches a Direct-to-Consumer App With Installment Payments Built in (Digital Transactions), Rated: AAA
Announced Tuesday, the Klarna app presents the retailer’s site with a footer containing a Pay with Klarna button. When selecting that option, the shopper can pay for purchases in four equal installments with no interest or fees. The app is open to any merchant, not just those already affiliated with Klarna, the company says. These could include retailers without an alternative-payment option or that use a competitor’s program.
10 more big retail tech plays in 2019 (Retail Innovation Hub), Rated: A
PayTech venture Klarna is launching its first UK “all-immersive store” in London’s Covent Garden, with a private VIP party on 4th June.
Becoming a mortgage lender (IPE), Rated: A
Stabelo’s model is to pool capital from institutional investors in exchange for fixed-income securities and uses the money raised to lend mortgages directly to homebuyers. The firm offers mortgages in conjunction with Avanza Bank, which is the biggest online lender in Sweden, and owns just under 20% of Stabelo.
London toppled by New York as world’s financial hub (Tech HQ), Rated: AAA
A survey by consultancy and advisory firm Duff & Phelps, involving 180 executives in asset management, private equity, hedge funds, banking and brokerage, found that confidence in the UK capital has plummetted in the last year.
Just 36 percent ranked London as the foremost global financial hub— a year-on-year drop of 17 percent. With New York rising 10 percent, ranked by more than half (52 percent) as the world’s new financial powerhouse, the two cities have “switched places”.
Crypto Lending Platform Cred to Migrate Tokens to Binance Mainnet in New Partnership (CoinTelegraph), Rated: A
As part of the agreement, Cred will migrate some of its ERC-20 LBA tokens to Binance’s mainnet, Binance Chain, and become the official lending and borrowing platform for the decentralized financial ecosystem.
Crypto Lending Startup BlockFi Launches Gemini Dollar Accounts (CoinTelegraph), Rated: A
Per the announcement, GUSD deposits will see a yearly yield of 6.2%, paid in the stablecoinin question. BlockFi notes that it also offers GUSD as a U.S. dollar funding option and as collateral from institutional cryptocurrency borrowers.
Top 5 emerging fintech hubs (World Finance), Rated: A
Brazil has more fintech start-ups than any other Latin American country, and most of them are consolidated in the country’s financial centre, São Paulo.
One country poised to see an explosion of opportunities after Brexit is Lithuania. In February of this year, the country saw around 100 British financial companies apply for a licence in the country.
Estonia has one of the highest rates of start-ups per capita in Europe. According to Startup Genome, 29 percent of all jobs created by these start-ups are within the country’s fintech industry.
Home to the European Central Bank and more than 200 banks – most of which are foreign – Frankfurt plays an important role in the EU’s financial system.
Bengaluru (previously Bangalore) is anticipated to become one of the next big tech hubs. One of Asia’s fastest growing start-up ecosystems, the city is home to 438 fintech start-ups and has been dubbed the ‘Silicon Valley of India’.
Nexo Releases Crypto Lending Update Clarifying Misconceptions and Future Outlook (Bitcoin Exchange Guide), Rated: B
Nexo claims their key business model “is unchanged” but that the company is:
“actively exploring new avenues to maximize token utility and investor value.” The company also claims their ultimate goal is to become “a multi-billion dollar financial institution.”
Apolitical, a peer-to-peer lending platform for governments, unveiled its list of the world’s 100 most influential individuals on gender equality on Wednesday. It recognized politicians, activists and academics, among others, who were shaping gender policy in 2019.
Advice beyond mortgages: “the opportunity is huge” (NZ Adviser Online), Rated: AAA
According to Adrienne Church, General Manager at small business lender Prospa, venturing into an unfamiliar type of lending may be worrying – but it is also necessary as the lending market expands, and the property market remains as unpredictable as it inevitably always is.
TaniGroup Secures US$ 10 Million in Series A Funding to Re-Imagine Agriculture in Indonesia (Global Banking and Finance), Rated: AAA
Agritech startup TaniGroup, which operates agriculture e-commerce TaniHub and peer-to-peer lending provider TaniFund, today announced it raised a US$10 million Series A round of financing led by Openspace Ventures with participation from Intudo Ventures, Golden Gate Ventures, and The DFS Lab.
Peer-To-Peer Lending In Indonesia: A Regulatory Update (Mondaq), Rated: A
In February of this year, the Indonesian Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) issued an updated checklist for peer-to-peer lending (“P2P lending”) platform providers (“Checklist”) registering with the OJK or applying to the body for a business license or change of ownership. The new Checklist introduces several changes to the previous checklist issued in October 2018. We highlight the key material changes and new requirements introduced by the Checklist.
Qatar Investment Authority invests more than $ 500M in SoFi (Mobile Payments Today), Rated: AAA
Qatar Investment Authority has led an investment of more than $500 million in SoFi, a mobile-first personal finance firm. The investment values the company at $4.3 billion on a pre-money basis, according to a release from the fund.
Kenya Is Also Setting The Standard For Mobile Lending (Forbes), Rated: AAA
We all know that Kenya revolutionized mobile payments for the developing world and brands like M-Pesa continue to lead the market, but what about mobile lending? According to Creditinfo Kenya, 93 percent of all mobile loans originate from regulated financial institutions, and there are around five million borrowers and each has an average of 5.89 loans.
This Alternative Lending Company Offers Investors a Huge Margin of Safety (The Motley Fool), Rated: AAA
Home Capital is a specialty finance company that primarily deals in mortgages. The company typically deals with borrowers who don’t meet normal bank requirements. It offers traditional mortgages and consumer lending as well as securitizing insured mortgages and offering home equity lines of credit.