- Today’s main news: Prosper reports Q2 results. Figure to raise $1B. Funding Circle shares rise. RateSetter to stress test provision fund. LendInvest raises 200M GBP. Two more Chinese P2P firms shut down. N26 eyes IPO.
- Today’s main analysis: Gen Z’s credit market activity.
- Today’s thought-provoking articles: Radius Bank’s rebranding to banking as a service. European fintechs escape banking troubles. German yield curve, GreenSky’s sale. Is alternative data the great lending equalizer?
- Prosper’s Q2 results. Total net revenue increased to $42.9 million while core revenue decreased to $50.7 million.
- Figure to raise $1 billion. Can Mike Cagney’s second act be as strong as his first? Some people are banking on it.
- Gen Z comes of age as credit market activity shows growth. Where millennial buyers shunned credit for the most part, Gen Z seems to be embracing it.
- Radius Bank transitions into banking as a service. A very interesting read.
- Klarna challenges PayPal. Not exactly new news, but worth a read.
- Lendio facilitates $50 million in small business loans.
- LendingPoint hits #17 on Inc. 500 list of fastest growing private companies.
- OppLoans on the Inc. 500 list for fourth straight year.
- Finicity to power digital solutions for employer student loan contributions.
- Fannie Mae, Freddie Mac consider FICO alternatives.
- Review of Zoca Loans.
- HSBC launches digital lending platform for personal loans.
- Napa Valley gets a P2P lending service.
- Regulators should expand small investor opportunities.
- Former Coinbase CTO joins DeFi.
- Tricolor launches auto insurance for low income credit-invisible consumers.
- Artivest makes new executive appointment.
- Former Lending Club worker hired by Healthline Media as VP of communications.
- Funding Circle shares rise.
- RateSetter to stress test provision fund.
- LendInvest raises 200 million GBP.
- Klarna research uncovers SME retail barriers to innovation.
- More on SME retailers.
- Tandem Bank leverages open banking for mortgages.
- 5 things Starling’s 2019 annual report teaches us.
- Barclays releases 100,000 GBP for unsecured SME lending.
- Nexa Finance launches.
- Personal Finance Society publishes P2P guide.
- Atom Bank, iwoca, others receive BCR grant.
- Former Wonga employee discusses who much he’d have if he got paid.
- Zendai shuts down two P2P units.
- Laocaibao folds.
- Local authorities send cease and desist letter to Fincera.
- Fincera to sell Kaiyuan Finance Center.
- Senmiao Technology reports unaudited Q1 results for FY 2020.
- N26 has eye on IPO. This doesn’t really surprise us, and it likely will be in the U.S.
- Google executive joins N26.
- European fintechs escape bank troubles.
- FlexMobility, Klarna raise funds.
- EstateGuru looking to attract 5 billion euro of European real estate financing market.
- Finleap to launch new business unit.
- Germany’s yield curve, Greensky’s sale. A MUST-READ.
- Is alternative data the great lending equalizer? A great read.
- Celsius Network to increase crypto loan accessibility.
- Ontology blockchain partners with DeFi.
- India: Faircent raises more money.
- Latin America: Fintech debt investors follow equity.
- Australia: CBA’s FY19 results.
- Indonesia: Musketeer completes P2P platform registration.
- India: Keep retail indulgence in check.
- Philippines: OF Bank to relaunch as digital-only.
- Brazil: VEF invests in FinanZero.
- United States
- Prosper Reports Second Quarter 2019 Financial Results (Business Wire), Rated: AAA
- SoFi Co-Founder’s New Startup Aims to Raise Funds at $ 1 Billion (Bloomberg), Rated: AAA
- As Gen Z Comes of Age, Credit Market Activity Shows Significant Growth (TransUnion), Rated: AAA
- Swedish Fintech Unicorn to Challenge Paypal with U.S. Expansion (150sec), Rated: A
- Lendio Franchising Facilitates $ 50 Million to Small Businesses (Crowdfund Insider), Rated: A
- Atlanta-Based LendingPoint #17 on Inc. 500 List of Fastest Growing Private Companies in the USA (The Daily Times), Rated: A
- Fintech Firm OppLoans Named to Inc. 500 for Fourth Consecutive Year (Globe Newswire), Rated: A
- FINICITY TO POWER DIGITAL SOLUTIONS FOR EMPLOYER STUDENT LOAN CONTRIBUTIONS (Finicity), Rated: A
- Fannie, Freddie to Consider Alternatives to FICO Scores (WSJ), Rated: A
- Zoca Loans Review: Installment Loans for Bad Credit Borrowers (Moneycheck), Rated: A
- HSBC launched a digital lending platform for online personal loans (Business Insider), Rated: A
- Virtual Bank Aims to be Primary Account Engine Behind Fintech Brands (The Financial Brand), Rated: AAA
- New financial lending program available through UpValley Family Centers (Napa Valley Register), Rated: A
- It’s Time For Regulators To Expand Opportunities For Smaller Investors (Forbes), Rated: A
- Former Coinbase CTO Balaji Srinivasan Joins DeFi Blockchain Project Findora (Yahoo! Finance), Rated: B
- Tricolor Launches New, Affordable Auto Insurance for Low Income, Credit Invisible Consumers (Globe Newswire), Rated: B
- Artivest Achieves Critical Platform Momentum, Announces Executive Leadership Appointment (Yahoo! Finance), Rated: B
- Netflix alum Steve Swasey to lead communications at Healthline Media (MMM-Online), Rated: B
- United Kingdom
- Funding Circle Shares Rise on Positive Report (Crowdfund Insider), Rated: AAA
- RateSetter to introduce stress testing to provision fund (P2P Finance News), Rated: AAA
- LendInvest Secures £200 Million Investment from the National Australia Bank to Expand Reach in Buy-to-Let Market (The Fintech Times), Rated: AAA
- SME online fashion retailers face barriers to innovation, Klarna (Retail Tech Innovation Hub), Rated: A
- SME online retailers look to overcome barriers to realise innovation ambitions (Retail Times), Rated: A
- Tandem Bank leverages Open Banking to offer competitive mortgages (Finextra), Rated: A
- 5 things we learnt from Starling’s 2019 Annual Report (AltFi), Rated: A
- Ex-RateSetter business finance head launches new P2P platform (P2P Finance News), Rated: A
- Personal Finance Society publishes P2P guide following uptick in queries (P2P Finance News), Rated: A
- Atom Bank, iwoca, Modulr Finance, & Currencycloud, All Benefit from BCR Grant (Crowdfund Insider), Rated: A
- I Never Got Paid From Winning Wonga Fantasy League in 2010 (TechRound), Rated: A
- Shanghai-based Zendai closes two P2P units worth US$ 1.4 billion as Beijing intensifies crackdown (SCMP), Rated: AAA
- Another Peer-to-Peer Lending Platform Stumbles (Caixin Global), Rated: A
- Peer to Peer Lender Fincera Targeted by Local Chinese Government in Demand to Cease Lending Operations (Crowdfund Insider), Rated: A
- Fincera Announces Intention to Sell Kaiyuan Finance Center (Benzinga), Rated: A
- Senmiao Technology Announces Unaudited Financial Results for First Quarter of Fiscal Year 2020 (Yahoo! Finance), Rated: A
- European Union
- German mobile bank N26 eyes eventual IPO, CEO tells newspaper (Reuters), Rated: AAA
- Google exec joins N26 as chief banking officer (Finextra), Rated: B
- European Fintechs Escape Troubles Afflicting Established Banks (Bloomberg), Rated: AAA
- FlixMobility and Klarna raise a lot of money (Tech.eu), Rated: A
- EstateGuru Seeks to Carve Out €5 Billion of European Real Estate Financing Market (Crowdfund Insider), Rated: A
- Barclays releases £100,000 for unsecured SME lending through app and online banking (Finextra), Rated: A
- German Fintech Finleap Announces New Business Unit “Finleap Connect” (Crowdfund Insider), Rated: B
- Global Yields Crash, GSKY for sale, LC earnings (PeerIQ), Rated: AAA
- Alternative Data: The Great Equalizer To Lending Inequalities? (Forbes), Rated: AAA
- Celsius Network Announces Increased Accessibility To Crypto-Backed Loans with Updated Terms for Borrowers (Business Wire), Rated: A
- ONTOLOGY BLOCKCHAIN HIGH FIVES WITH DEFI (ICO Examiner), Rated: B
- CBA FY19 results a mixed bag, digital metrics positive and Klarna will be a hit (Verdict), Rated: AAA
- Faircent raises fresh funding from investors led by Das Capital & Gunosy Capital (India Times), Rated: AAA
- Keep retail indulgence in check (livemint), Rated: A
- Hexindai-backed Musketeer Completes Registration for Its P2P Platform in Indonesia (Yahoo! Finance), Rated: AAA
- Philippines to Relaunch OF Bank to Create Digital-only Bank (Regulation Asia), Rated: A
- Latin America
- Fintech Debt Investors Follow Equity Dollars Into Latin America (Forbes), Rated: AAA
- Financial report for the second quarter and six months period 2019 (Yahoo! Finance), Rated: B
Prosper Reports Second Quarter 2019 Financial Results (Business Wire), Rated: AAA
Prosper, a peer-to-peer lending platform connecting borrowers and investors, today reported financial results for the second quarter of 2019. Personal loan originations increased 27% compared to the first quarter of 2019, and the company has now generated positive adjusted EBITDA in eight out of the last nine quarters.
- Total Net Revenue, which includes the non-cash impact related to warrants to purchase preferred stock, increased to $42.9 million in Q2 2019 compared to $31.7 million in Q2 2018.
- Core Revenue(1), which excludes the non-cash impact related to warrants to purchase preferred stock, decreased to $50.7 million in Q2 2019 compared to $52.3 million in Q2 2018.
- Net Loss decreased to ($0.6) million in Q2 2019 compared to a Net Loss of ($12.6) million in Q2 2018.
- Adjusted EBITDA(1) decreased to $5.3 million in Q2 2019 compared to $8.8 million in Q2 2018.
Key Operating and Financial Metrics (Unaudited) (in thousands)
SoFi Co-Founder’s New Startup Aims to Raise Funds at $ 1 Billion (Bloomberg), Rated: AAA
Mike Cagney, the former embattled chief executive officer of Social Finance Inc., is raising more than $100 million for his new startup Figure Technologies Inc. at a $1 billion valuation just less than two years after its founding, according to people familiar with the matter.
San Francisco-based Figure uses blockchain technology to provide home equity loans online in just a few days, with approval happening in minutes. The company made its first loan in 2018, and is on pace to provide more than $80 million in loans this month alone, according to one of these people, who asked not to be named because the details are private.
As Gen Z Comes of Age, Credit Market Activity Shows Significant Growth (TransUnion), Rated: AAA
Gen Z, those individuals born in 1995 or after, increasingly took part in the consumer credit market during the first half of 2019. The newly released Q2 2019 Industry Insights Report from TransUnion (NYSE: TRU) found that growth is coming from the entire Gen Z demographic who are 18 years or older – not just those who became credit eligible for the first time.
Approximately 14 million Gen Z consumers (44% of this group) were carrying a balance as of Q2 2019, up from 11 million in Q2 2018, according to the report. The number of Gen Z consumers who were credit eligible (18 years or older) increased by 4.5 million in the last year, rising to 31.5 million in Q2 2019. Over the next three years, it is anticipated that another 13 million Gen Z consumers will become credit eligible.
Gen Z Consumers Carrying a Balance Rising at High Rates
|Credit Product||Q2 2019||Q2 2018||YOY Growth %|
Credit cards are the most popular product among Gen Z consumers, with 55% carrying a balance—though they still only constitute 5% of the U.S. population carrying card debt. Mortgages had the largest year-over-year growth rate spike with Gen Z consumers (112%), but from a low base. Mortgages are still the credit product Gen Z consumers are least likely to have, with only 0.5% of mortgages held by members of this generation.
The Percentage of Gen Z Consumers Carrying a Credit Balance is Growing (Data as of Q2 2019)
|Credit Product||Gen Z
(carrying a balance)
(carrying a balance)
Q2 2019 Credit Card Trends
|Credit Card Lending Metric||Q2 2019||Q2 2018||Q2 2017||Q2 2016|
|Number of Credit Cards||437.1 million||420.0 million||409.8 million||391.0 million|
|Borrower-Level Delinquency Rate (90+ DPD)||1.71%||1.53%||1.46%||1.29%|
|Average Debt Per Borrower||$5,645||$5,543||$5,422||$5,247|
|Prior Quarter Originations*||15.3 million||14.5 million||15.0 million||15.3 million|
|Average New Account Credit Lines*||$5,773||$5,649||$5,817||$5,466|
See TransUnions infographic here.
Swedish Fintech Unicorn to Challenge Paypal with U.S. Expansion (150sec), Rated: A
If Klarna is a threat to the online payments pioneer Paypal, it’s very much the challenger, with the latter enjoying 30 times greater revenue. Notwithstanding this, Klarna is making impressive gains, increasing transaction volume by 36% in 2018.
According to a recent press release, Klarna is now serving the needs of 60 million consumers and 130,000 merchants. It has achieved transaction rates in the region of 1 million transactions per day and believes it can generate an annual revenue of $1 billion in the foreseeable future.
Lendio Franchising Facilitates $ 50 Million to Small Businesses (Crowdfund Insider), Rated: A
Lendio Franchising, Lendio’s marketplace lending franchise program, announced on Tuesday it has facilitated $50 million in loans to over 1,800 small businesses around the U.S. According to Lendio, the loans through the franchise provide a boost to small businesses in industries ranging from healthcare to trucking, with an estimated economic impact of $165,505,834 across local economies.
Atlanta-Based LendingPoint #17 on Inc. 500 List of Fastest Growing Private Companies in the USA (The Daily Times), Rated: A
Inc. Magazine today ranked commerce platform LendingPoint No. 17 on its 37th annual Inc. 5000, the most prestigious ranking of the nation’s fastest-growing private companies. LendingPoint joins companies such as Microsoft, Dell, Pandora, Timberland, LinkedIn, Yelp, Zillow, and many other well-known names who gained their first national exposure as honorees on the Inc. 5000. LendingPoint has hit successive funding records year-over-year and is on pace to reach $100 million per month in loan originations by the end of 2019.
Fintech Firm OppLoans Named to Inc. 500 for Fourth Consecutive Year (Globe Newswire), Rated: A
OppLoans has been named to Inc. magazine’s prestigious 2019 Inc. 500 list for the fourth year in a row. Only four companies on this year’s list, including OppLoans, have placed on the Inc. 500 at least four or more times. With a three-year annual revenue growth of 1,435%, OppLoans placed #321 on the annual ranking of the fastest-growing companies in the U.S., 19 spots higher than the firm placed in 2018. OppLoans has achieved rankings of #340 (2018), #219 (2017) and #445 (2016).
FINICITY TO POWER DIGITAL SOLUTIONS FOR EMPLOYER STUDENT LOAN CONTRIBUTIONS (Finicity), Rated: A
Finicity, a provider of real-time financial data access and insights, announced today the rollout of its Student Loan Account Verification product, which will simplify employer benefit repayment programs, where employers are looking to contribute to or help repay employee’s student loans.
Fannie, Freddie to Consider Alternatives to FICO Scores (WSJ), Rated: A
One firm’s dominance over the credit scores used to vet many U.S. mortgages is getting a shake-up.
Fannie Mae and Freddie Mac, two mortgage-finance firms that back nearly half of U.S. mortgages, will have to consider credit-score alternatives to Fair Isaac Corp.’s FICO score when determining a mortgage applicant’s creditworthiness, under a new rule issued on Tuesday by the mortgage-finance giants’ federal overseer.
Zoca Loans Review: Installment Loans for Bad Credit Borrowers (Moneycheck), Rated: A
By going through a simple online application process, you have the chance to obtain between $300 and $1,000 – all of which can be funded the very same day.
HSBC launched a digital lending platform for online personal loans (Business Insider), Rated: A
HSBC USA partnered with Amount, a tech provider for financial institutions, to launch a digital lending platform that streamlines online personal loan applications. Consumers can evaluate loan options, submit applications online, and receive a credit decision within minutes.
HSBC will initially lend up to $30,000 with terms ranging from two to five years and it says funds will be available as quickly as the next day. The bank will charge fixed monthly payments starting 50 days after customers receive the loan. Amount’s platform — which has cumulatively originated $6 billion in loans to 800,000 customers — has been customized to HSBC’s preferences, including its proprietary risk models.
It’s Time For Regulators To Expand Opportunities For Smaller Investors (Forbes), Rated: A
In the past decade we’ve seen a new financial movement take shape: a focus on giving more investors a seat at the table. More and more people and organizations are realizing that investors of all income levels and backgrounds could (and should) have the opportunity to access more asset classes. In this technology-enabled age of access, data and transparency in investing, there is an opportunity to update our laws to ensure that smaller investors are not excluded from the opportunity to create wealth — opportunities that have emerged under the financial ethos of fintech: crowdfunding, peer-to-peer, financial literacy and inclusion.
Former Coinbase CTO Balaji Srinivasan Joins DeFi Blockchain Project Findora (Yahoo! Finance), Rated: B
Balaji Srinivasan, the former CTO of Coinbase, has just joined decentralized finance blockchain project Findora.
Tricolor Launches New, Affordable Auto Insurance for Low Income, Credit Invisible Consumers (Globe Newswire), Rated: B
Tricolor, the used vehicle retailer focusing on the sale and financing of vehicles to the Hispanic consumer, today unveiled a groundbreaking new affordable auto insurance option for low-income and credit invisible customers through its affiliate company Tricolor Insurance. After testing the product earlier this year, Tricolor will begin rolling out the new insurance offering throughout all of its markets in Texas and California.
Funding Circle Shares Rise on Positive Report (Crowdfund Insider), Rated: AAA
Last week, online lender Funding Circle (LSE:FCH) released its 6-month report and the shares have responded positively to the numbers. Six-month Revenue was reported at £81.4 million versus H1 2018 at £63.0 million – up 29%. Loans under management rose 37% to £3.54 billion and originations jumped 14% to £1.19 billion.
RateSetter to introduce stress testing to provision fund (P2P Finance News), Rated: AAA
RATESETTER is planning to introduce stress testing to its provision fund over the next financial year.
The ‘big three’ peer-to-peer lender’s provision fund is a buffer that protects investors against losses should any of its loans default. Borrowers pay cash into the provision fund in accordance with RateSetter’s assessment of their creditworthiness.
LendInvest Secures £200 Million Investment from the National Australia Bank to Expand Reach in Buy-to-Let Market (The Fintech Times), Rated: AAA
LendInvest has now raised over £1.8 billion of debt and equity from investors, making LendInvest one of the largest non-bank mortgage lenders in the country.
This new funding expands LendInvest’s capacity to lend in the UK Buy-to-Let market. LendInvest launched its first Buy-to-Let mortgage product in late 2017 after agreeing a substantial funding line with Citigroup. LendInvest has already lent more than £370 million in Buy-to-Let loans and is taking market share in the bank dominated market. In June this year, LendInvest also become the UK’s first Fintech business to securitise its own portfolio of assets worth £259 million, which received a AAA rating from Moody’s and Fitch.
SME online fashion retailers face barriers to innovation, Klarna (Retail Tech Innovation Hub), Rated: A
Small online fashion retailers in the UK are open to embracing innovative technologies, but various challenges are preventing widespread adoption, according to research by Klarna.
In terms of challenges, 53% said the cost of introducing flexible payment options was the biggest barrier to adoption.
SME online retailers look to overcome barriers to realise innovation ambitions (Retail Times), Rated: A
The research — conducted across 100 UK SME decision makers at online retailers in 2019 — shows the UK’s SMEs understand the need to embrace flexibility and innovation. Over the next 12 months they plan to prioritise investing in flexible payment options (49%) and e-commerce capabilities (48%) to meet consumer demand for a frictionless shopping experience.
Tandem Bank leverages Open Banking to offer competitive mortgages (Finextra), Rated: A
Mobile bank Tandem is developing the UK’s first crowd-designed mortgage for those hoping to get on the property ladder, allowing priced-out consumers to share their personal mortgage must-haves with the digital challenger.
5 things we learnt from Starling’s 2019 Annual Report (AltFi), Rated: A
1. Ireland is taking ages
Last November, when Starling actually filed its return, the bank reported a lending balance of £8.9m, or an average lending balance per active customer of £429.
That compares to Monzo which posted a total of £19.2m of lending by February 2019, along with an expected credit loss of £3.1m.
3. Marketplace revenue is tough to come by
For 2018 Starling reported just £35,000 of revenue from Marketplace commissions, versus the £1.47m it took from the interchange paid by retailers for customer card transactions.
4. We’ll have to wait until 2020 for Banking as a Service revenue
5. Starling is working on a financial AI
Ex-RateSetter business finance head launches new P2P platform (P2P Finance News), Rated: A
RATESETTER alumni Brian Cartwright has launched new alternative property lender Nexa Finance, with a focus on the East Midlands.
Cartwright (pictured), managing director at Nexa, previously worked as head of business finance at ‘big three’ peer-to-peer lender RateSetter.
His new venture, which bills itself as a regionally-focused business lender, aims to connect East Midlands-based small- and medium-sized enterprise (SME) property developers and house builders with funders.
Personal Finance Society publishes P2P guide following uptick in queries (P2P Finance News), Rated: A
MEMBERS of the Personal Finance Society (PFS) have been showing an increased interest in peer-to-peer lending, leading the PFS to produce its own ‘good practice’ guide to P2P.
The financial planning trade body has partnered with Octopus Investments to create the guide, which tells advisers that recommending P2P products could help them to increase their own assets under management, adding that “for suitable clients, it could prove a useful vehicle for excess cash holdings which may currently fall outside of the adviser’s view.”
Atom Bank, iwoca, Modulr Finance, & Currencycloud, All Benefit from BCR Grant (Crowdfund Insider), Rated: A
The BCR has awarded £10 million each to the following platforms:
- Atom Bank PLC – a digital challenger bank
- iwoca Ltd – an online lender for SMEs
- Modulr Finance Limited – a digital payment platform
- The Currencycloud Group Ltd – a cross border payment platform for businesses
I Never Got Paid From Winning Wonga Fantasy League in 2010 (TechRound), Rated: A
I worked for Wonga.com in 2010, back when you couldn’t even go to the bathroom without hearing their jingle on the radio. Like most offices today, everyone put in £10 to play in the office fantasy league and with Van Persie and Rooney in their prime, this was my year.
After doing some calculations, my £160 owed to me in 2010 would now be worth £2,752. (based on £24 per month for 9 years)
Without the price cap, you have 4 of those years at £30 per month. Making the total figure £3,040.
But again, I am being kind. This does not include default charges of £25 per month for every missed payment.
Shanghai-based Zendai closes two P2P units worth US$ 1.4 billion as Beijing intensifies crackdown (SCMP), Rated: AAA
Zendai Group, a closely held private investment company in Shanghai, abruptly shut down two peer-to-peer lending units valued at 10 billion yuan (US$1.4 billion), as Chinese financial regulators ratchet up measures to clean an industry fraught with frauds and defaults.
Another Peer-to-Peer Lending Platform Stumbles (Caixin Global), Rated: A
Laocaibao, a peer-to-peer (P2P) lending platform ultimately owned by private conglomerate Zendai Group, is the latest casualty of the troubles that have engulfed the scandal-hit industry over the past three years.
Laocaibao has stopped providing loans and Zendai’s investment and consulting arm, which directed clients to the platform, has fired employees, according to statements from the companies and investigations by Caixin.
Peer to Peer Lender Fincera Targeted by Local Chinese Government in Demand to Cease Lending Operations (Crowdfund Insider), Rated: A
According to a note from Fincera, the Hebei provincial government, where Fincera is based, has requested that Fincera “cease P2P business operations.”
Fincera Announces Intention to Sell Kaiyuan Finance Center (Benzinga), Rated: A
To protect the interests of all its stakeholders-investors, borrowers, brokers, and employees, Fincera has announced its intent to sell the Kaiyuan Finance Center, which has an estimated valued of over RMB4.0 billion.
Fincera is the largest Hebei-based company operating in the peer-to-peer lending industry, comprising over 90% of the province’s market with approximately RMB9.0 billion in unpaid principal balance.
Fincera Inc. (“Fincera” or the “Company”) (OTCQB:YUANF), a provider of internet-based financing and ecommerce services for small and medium-sized businesses (“SMBs”) and individuals in China, today announced that businesses operating within the P2P (peer-to-peer) lending industry in Hebei province, including the Company, have received requests by the Hebei provincial government to cease P2P business operations. The Company vehemently disagrees with the request and is taking steps to protect its many stakeholders, including initiating the process of moving its business registration to Beijing where local regulators are supportive of the P2P industry.
German mobile bank N26 eyes eventual IPO, CEO tells newspaper (Reuters), Rated: AAA
Berlin-based digital bank N26 is planning an eventual stock exchange listing, its chief executive has told a German newspaper.
Google exec joins N26 as chief banking officer (Finextra), Rated: B
N26 today announced the appointment of Thomas Grosse as Chief Banking Officer. The newly introduced role is yet another step towards realizing N26’s ambition to become the first truly global and fully digital retail bank. As Chief Banking Officer, Thomas will oversee the set-up of regulated N26 banks and bank partnerships within the N26 Group, thus ensuring the highest standards in product, processes and customer experience across all markets.
Thomas will begin his new role at N26 this October, reporting directly to N26’s co-founder and CFO, Maximilian Tayenthal.
European Fintechs Escape Troubles Afflicting Established Banks (Bloomberg), Rated: AAA
Its latest fundraising gave Klarna, which facilitates online installment payments, a $5.5 billion valuation. European fintech companies raised $3.3 billion in venture capital in the first half of 2019, up from $1.9 billion in the same period last year, according to data compiled by CB Insights. In contrast, an index of European Union banks has dropped 39% the past 18 months.
FlixMobility and Klarna raise a lot of money (Tech.eu), Rated: A
Tech.eu Podcast hosted by Natalie Novick and Andrii Degeler is a show in which we discuss some of the most interesting stories from the European technology scene and interview leading entrepreneurs and investors from across the region.
EstateGuru Seeks to Carve Out €5 Billion of European Real Estate Financing Market (Crowdfund Insider), Rated: A
EstateGuru, a crowdfunding platform based in Estonia, is out with a release predicting it will claim €3-5 billion of the European real estate financing by 2025
EstateGuru adds that approximately 70% of SMEs lack access to credit and this is a major constraint to their growth. The company claims that 12% of all loans are set to be financed by alternative providers, including crowdfunding platforms, by 2025 as it appears to be interested in expanding into other financing verticals.
Barclays releases £100,000 for unsecured SME lending through app and online banking (Finextra), Rated: A
New research released by Barclays has revealed that over half of the UK’s small and medium enterprises (SMEs) have woken up at night with a new business idea (57 per cent), while the most popular time for an idea to be dreamt up is between 2-3 am (28 per cent).
In a High Street banking first, Barclays has launched £100,000 unsecured lending for SMEs on its award winning app and online banking platform, with thousands of SMEs set to benefit from access to faster finance.
German Fintech Finleap Announces New Business Unit “Finleap Connect” (Crowdfund Insider), Rated: B
FinLeap, the fintech start-up platform behind Germany’s SolarisBank, announced on Wednesday the launch of its new business unit, FinLeap Connect. According to FinLeap, the fintech platforms finreach solutions and infinitec solutions will become part of this business unit.
Global Yields Crash, GSKY for sale, LC earnings (PeerIQ), Rated: AAA
Today, more than $15 Tn in sovereign debt trades at a negative yield. In Germany, for instance, bond investors have moved from charging 75 bps last year to a willingness to pay for the privilege of providing < 0% money for 10 years.
GreenSky shares sank ~37% after a strong earnings report was paired with news that the marketplace was exploring a potential sale or merger.
Alternative Data: The Great Equalizer To Lending Inequalities? (Forbes), Rated: AAA
Alternative data has come into the spotlight in financial services, and it presages a significant shift in credit availability for unbanked and underbanked consumers. There are about 50 million credit-invisible consumers in the United States who lack sufficient traditional credit data. Alternative data is the future of financial inclusion, enabling lenders to extend credit to consumers who have been credit-invisible using next-generation data sources to power both traditional and alternative credit models.
Utility bill payment history has been shown to provide a 60% lift in credit approvals for near-prime consumers by the Center for Financial Services Innovation. And 70% of Americans say they would share more personal data if it would lead to fairer credit decisions.
Celsius Network Announces Increased Accessibility To Crypto-Backed Loans with Updated Terms for Borrowers (Business Wire), Rated: A
Celsius Network (https://celsius.network/), the industry-leading cryptocurrency platform, announces updated terms for borrowers aiming to provide millions of users with increased accessibility to low-interest crypto-backed loans. In addition, Celsius has reduced its minimum requirement for loan requests to $1,500. Recently Celsius announced it will expand its lending operations throughout Europe.
The latest updates to Celsius Networks lending service include:
- Lowered minimum requirement for loan requests from $3,000 to $1,500
- Up to 30% discount for CEL token holders paying loan interest in CEL with yearly rates as low as 3.47%
- Borrowers can request a loan in USD or supported stablecoins
- Loans are issued the same day
- Members can apply through the Celsius mobile app or on the Celsius Network website
ONTOLOGY BLOCKCHAIN HIGH FIVES WITH DEFI (ICO Examiner), Rated: B
Ontology (ONT), a project offering linking and bridging solutions for multiple blockchains, has announced five new partnerships with companies operating in various geographical locations within the decentralised finance (DeFi) arena.
The latest handful of businesses to be attracted to Ontology’s framework of compatibility are Hong Kong registered Babel Finance, USA-focused crypto loan specialists SALT Lending, cryptocurrency services provider LendChain, Hong Kong-based Fountain Financial, and Chinese trading platform HOX.
CBA FY19 results a mixed bag, digital metrics positive and Klarna will be a hit (Verdict), Rated: AAA
CBA FY19 underlying net profit for the year to end June falls by 5% to A$8.49bn ($5.75bn). The bank’s overall results do not quite match analyst forecasts. But there is a strong argument that in all the circumstances the results represent a resilient full fiscal.
Release of the CBA FY19 earnings also serve to highlight the bank’s success in upping its digital strategy.
Operating income is 2% lower on margin pressure.
Net interest income is down by 1.2% on lower retail mortgages margins and higher funding costs.
Business lending increases by 4% while retail mortgage growth is also strong delivering 4% volume growth for the year.
Faircent raises fresh funding from investors led by Das Capital & Gunosy Capital (India Times), Rated: AAA
Faircent.com, a P2P lending company, has recently raised capital in a funding round. The latest funding, led by Singapore-based Das Capital and Gunosy Capital, also saw participation by existing investors Starharbor Asia Pte Ltd, and M&S Partners Pte Ltd (Sin Growth Partner Pte Ltd).
Keep retail indulgence in check (livemint), Rated: A
Overspending is a big problem for many. “They buy things they don’t need with money they don’t have to impress people they don’t like. Not passing a judgement here, but money does buy some kind of happiness for many,” said Rachit Chawla, chief executive officer, Finway, a registered non-banking financial company (NBFC).
Payday loans, digital lending platforms, and P2P lending have evolved, so has the penetration of credit card, personal loans, and the like. At a behavioural level, de-linking debt with shame has also made it easy for people to borrow.
Fintech Debt Investors Follow Equity Dollars Into Latin America (Forbes), Rated: AAA
Venture capital investments in LatAm startups quadrupled to a record $2 billion in 2018 from $500 million in 2016, according to an annual review by the Association for Private Capital Investment in Latin America (LAVCA). Fintech firms captured nearly 25% of those investments.
Venture capital heavyweights including Softbank, Andreessen Horowitz and Sequoia Capital have boosted their equity investments in the region over the past six to 12 months, according to multiple industry sources. Strong equity backing, in turn, is attracting debt capital.