- United States
- This crowdfunding firm just picked the carcass of RealtyShares (The Real Deal), Rated: AAA
- Meet the 2019 CNBC Disruptor 50 companies (CNBC), Rated: AAA
- New LendingClub Account Performance – Q1 2019 (Lend Academy), Rated: AAA
- Personal Loan Offers Report – April 2019 (LendingTree), Rated: AAA
- Is the Point-of-Sale Trend Putting Pressure on Plastic? (Markets Insider), Rated: AAA
- Credit Card Loan Performance (PeerIQ), Rated: AAA
- Declining Credit Enhancement in US MPL ABS is Unwarranted (Crowdfund Insider), Rated: A
- PeerStreet Reports Accelerating Growth as the Real Estate Platform Tops $ 2 Billion in Property Lending (Crowdfund Insider), Rated: A
- WealthStone Announces Real Estate Platform (Yahoo! Finance), Rated: A
- Fintech seeks to help customers avoid overdrafts — with assist from a big bank (American Banker), Rated: A
- Startup Launches To Combine All Of Your Credit And Debit Cards Into One Digital Card (Forbes), Rated: A
- Connecting the Unbanked to A Friendlier Ecosystem (Cryptopolitan), Rated: A
- How do We Empower a Growing Number of Small Enterprises? (Cryptopolitan), Rated: A
- Data privacy, AI, regulation: Small-business lending is changing fast (American Banker), Rated: A
- Goldman Sachs execs are opening up about their plans for Marcus (Business Insider), Rated: A
- Walmart Offers Even.com To Improve Employee Financial Health (Forbes), Rated: A
- Millennials Are Helping to Sound the Credit Card Alarm (Bloomberg), Rated: A
- Crypto Startup Launches Bitcoin Term Deposit Offering 9% Annual Interest (CryptoGlobe), Rated: A
- Human Rights Watch Comment on CFPB Proposal (HRW.org), Rated: A
- Fintech charter delayed following court ruling: Otting (American Banker), Rated: A
- Accomplished Human Resources Executive Joins Online Small Business Lender (OnDeck), Rated: B
- Roostify and Docutech Join Forces to Amplify the Consumer Experience (Roostify), Rated: B
- CrowdStreet Appoints Award-Winning FinTech Innovator Donna Wells to its Advisory Board (Yahoo! Finance), Rated: B
- Cadre Expands Executive Team, Appointing Sam Mischner as Chief Commercial Officer (Yahoo! Finance), Rated: B
- LendingPoint CEO Chosen as Entrepreneur of the Year Finalist Southeast by EY (BusinessWire), Rated: B
- United Kingdom
- LendInvest cuts rates and product fees (Mortgage Introducer), Rated: AAA
- CapitalRise secures new institutional funding line to write larger loans (AltFi), Rated: A
- OakNorth completes £30m loan-on-loan facility with Hilltop Credit Partners (Fintech Finance), Rated: A
- Crypto lending platform for business launches this month (Yahoo! Finance), Rated: A
- How to Build Your Own Startup with Micro-financing? (Cryptopolitan), Rated: A
- P2P investing not always ‘high-risk’ (FT Adviser), Rated: A
- OakNorth completes £2.5m loan to multi-site specialist school, Cressey College (fe news), Rated: B
- Finastra appoints Mark Miller as Chief Financial Officer (Virtual Strategy), Rated: A
- Tencent profit tops forecast as fintech and cloud revenues surge (Reuters), Rated: AAA
- European Union
- Business card management platform Pleo raises $ 56m (Fintech Futures), Rated: AAA
- More global banks commit to Finastra’s Fusion LenderComm (Realwire), Rated: A
- How to capture Gen Z spend (Drapers Online), Rated: A
- Prospa IPO books close; on track for June 11 listing (AFR), Rated: AAA
- Home loan discount frenzy drives bargains for borrowers (Mozo), Rated: A
- India’s largest mobile wallet company Paytm now offers a credit card (TechCrunch), Rated: AAA
- SIDBI’s pilot scheme for fintech NBFCs to boost digital lending (Business Line), Rated: A
- P2P lending in Vietnam (krASIA), Rated: AAA
- P2P Lending to Overcome Financial Exclusion (SME Magazine), Rated: A
- Innoven Capital pulls in USD 200 million from Temasek and UOB (krASIA), Rated: A
- Koho Secures $ 42M in Series B Funding (Finsmes), Rated: AAA
New York-based iintoo acquired RealtyShares’ assets, Inman reported. The move boosts the company’s portfolio size to $2.5 billion assets under management from $1 billion, according to the company.
Current and former investors in RealtyShares will be able to access iintoo’s crowdfunding platform, the report said. The deal — terms of which were not disclosed — is a joint venture between iintoo and Texas-based real estate firm RREAF Holdings, LLC, which will manage the investment porftolio.
Founders: Rob Frohwein (CEO), Kathryn Petralia (President), Marc Gorlin
Funding: $489 million
Valuation: $1.2 billion (PitchBook)
Key technologies: Artificial intelligence, cloud computing, machine learning
Industry: Credit, financial services, lending
So far, 600,000 members, $30 billion in loans
Founders: Max Levchin (CEO), Nathan Gettings, Jeff Kaditz
Headquarters: San Francisco
Funding: $800+ million
Valuation: $3 billion (PitchBook)
Key technologies: Machine learning, software-defined security
Industry: e-commerce, financial services, fintech
In April 2018, LendingClub provided us with $5,000 to open a brand new account. Since then we have been chronicling the status of the account on a quarterly basis. Below are links to the full series of blog posts in chronological order:
Excellent credit (760+ score): Offered APRs to consumers with a credit score of 760+ averaged 9.23% in April.
- The average best APR offered to all borrowers with credit scores of 760 or above was 9.23%, an increase of 13 basis points from the prior month and an increase of 188 basis points from the same period one year ago.
- At $20,810, the average loan amounts offered with the best APRs to all borrowers with a score of 760 was up 0.33% ($69) from last month, and down 9.44% ($1,964) from the same period one year ago.
- The top 10% of offers, presented to borrowers with the best profiles within this group, had offered APRs of 5.15% on average, and loan amounts of $19,489. A borrower with this APR and loan amount would save $1,565 by consolidating debt with a 10% APR over a three-year term.
The latest entrant to the credit market, point-of-sale loans, may be shaking up how consumers finance large purchases. According to the TransUnion (NYSE: TRU) Q1 2019 Industry Insights Report, this phenomenon, combined with the popularity of credit card reward programs, may be particularly taxing for the private label card category.
Year-over-Year Origination Growth
|Card Type||Q4 2018||Q4 2017||Q4 2016||Q4 2015||Q4 2014||Q4 2013|
Q1 2019 Credit Card Trends
Credit Card Lending Metric
|Q1 2019||Q1 2018||Q1 2017||Q1 2016|
|Number of Credit Cards||432.8 million||416.5 million||405.8 million||386.4 million|
|Borrower-Level Delinquency Rate (90+ DPD)||1.89%||1.78%||1.69%||1.50%|
|Average Debt Per Borrower||$5,554||$5,472||$5,332||$5,193|
|Prior Quarter Originations*||16.5 million||16.0 million||16.0 million||16.7 million|
|Average New Account Credit Lines*||$5,296||$5,283||$5,262||$5,091|
*Note: Originations are viewed one quarter in arrears to account for reporting lag.
Growth in Personal Loans Led by Super Prime Consumers
Personal loan balances continued to climb in Q1 2019, growing 19.2% year over year to a new high of $143 billion. Over the past four years total balances have nearly doubled, growing from $72 billion in Q1 2015. Growth is occurring across all risk tiers with originations increasing 9.7% to 5.0 million in Q4 2018. Super prime borrowers had the largest growth on the origination front with an increase of 22.5% year-over-year, compared to 19.5% over the same period last year.
Q1 2019 Unsecured Personal Loan Trends
Personal Loan Metric
|Q1 2019||Q1 2018||Q1 2017||Q1 2016|
|Total Balances||$143 billion||$120 billion||$102 billion||$93 billion|
|Number of Unsecured Personal Loans||21.4 million||19.2 million||16.9 million||15.4 million|
|Number of Consumers with Unsecured Personal Loans||19.3 million||17.6 million||15.7 million||14.7 million|
|Borrower-Level Delinquency Rate (60+ DPD)||3.47%||3.51%||3.72%||3.59%|
|Average Debt Per Borrower||$8,618||$7,986||$7,603||$7,544|
|Prior Quarter Originations*||5.0 million||4.6 million||3.7 million||4.1 million|
|Average Balance of New Unsecured Personal Loans*||$5,432||$5,044||$5,132||$5,077|
*Note: Originations are viewed one quarter in arrears to account for reporting lag.
US consumer credit grew by $10.3 Bn in March, at a 3.1% annualized rate, the slowest in nine months. Revolving credit outstanding decreased by $2.18 Bn indicating that consumers ended the quarter more cautious about borrowing. US GDP growth has been propelled by rising consumer spending and a slowdown could put a dampener on growth.
30 and 90-day delinquency rates from credit card master trust data
Fitch is out with a report on marketplace lending (MPL) asset-backed securities (ABS) stating declining credit enhancement is unwarranted.
Fitch states that credit enhancement (CE) levels of ‘Asf’ category rated US MPL ABS have meaningfully declined since 2017, while asset quality remained relatively steady. As a result, bondholders of more recently issued transactions have less loss protection for the same amount of asset risk.
This past March, PeerStreet, a real estate crowdfunding platform, announced that it had topped $2 billion in transactions and over $1 billion in Assets Under Management. Three months early in January, that transaction number stood at $1.7 billion. If that pace holds, PeerStreet should be nearing $3 billion in transactions by the end of the year thus firmly establishing itself as a leading property lending platform. While some sectors of real estate crowdfunding have struggled, PeerStreet does not appear to be one of them.
WealthStone LLC announces the formation of its new real estate platform.
Typical investments require between $10 million to $100 million in total capitalization per project, including prudent leverage. These assets are expected to provide a total annualized return of 10% to 12%, including an annual cash dividend of 5% to 8% to the equity invested in its projects.
WealthStone aims to allocate approximately $300 million of equity capital for an estimated $700 million of total investments in a variety of real estate ventures during its current deployment phase.
The savings app provider Digit on Tuesday unveiled an instant withdrawals feature that will let users move money from their Digit account to their bank account instantly. This can help them meet emergencies and avoid incurring overdraft fees and resorting to payday loans.
The bank has made more than $5 billion in consumer loans since making the first loan in October 2016. It has also attracted more than $46 billion in deposits.
Talwar’s comments may foreshadow the next phase of Marcus’ growth, which will center on three pillars:
1. Free financial-management software offered by Clarity Money, which was bought by Goldman last year and is likely to be rebranded at some point.
2. Direct-to-consumer products such as loan and deposit products, potentially in addition to wealth-management and insurance products.
3. Strategic partnerships.
Although Even.com can let Walmart employees access their wages ahead of payday, that is its least important features, according to its CEO, Jon Schlossberg. For $8 a month — like many employees Walmart pays a share of the fee — it aims to improve financial wellness. It shows users with a glance at a smart phone how much they have left to spend safely and helps them save for specific goals.
First, the charge-off rate among card issuers in the first quarter increased to the highest level in almost seven years. The figure is effectively a gauge of “bad debt” — it reflects the percentage of loans companies have concluded will never be repaid. As Bloomberg News’s Jenny Surane noted last month, executives like Capital One Financial Corp. CEO Richard Fairbank chalked that up to the length of this economic expansion causing some negative credit events during the financial crisis to disappear from credit bureau reports, essentially making risky borrowers look stronger.
A Delaware-based cryptocurrency startup called BitLeague has recently launched a Bitcoin term deposit product designed to bring mainstream-like services to the crypto economy and attract new users.
The move was announced at Consensus 2019 and, according to a press release, the term deposit will offer 9% annual interest, with a lock-in period of 3 to 36 months.
According to research by the Pew Charitable Trusts, approximately 12 million Americans take out payday loans and 2.5 million take out vehicle-title loans each year. The short-term nature of these loans and their repayment structure drive about 80 percent of borrowers to re-borrow frequently and repeatedly pay fees to refinance their accumulated debt. The 2017 rule establishes logical baselines for consumer protection, including by requiring lenders to verify that borrowers have the ability to repay the loan and its associated fees prior to issuing a loan.
The vast majority, around 73 percent, of survey respondents reported household incomes under US$40,000, with an average of two children each, and nearly half had taken out a payday, auto title, or both types of short-term loans. People reported taking out loans most often to cover unexpected expenses, but also for their everyday expenses and groceries. More than half of those who took out a loan said they had trouble repaying their loans and associated fees.
In a recent sit-down with American Banker, Otting said he no longer expects to have a fintech firm formally apply for the new special purpose bank charter in the second quarter of the year, after a federal judge ruled May 2 that the New York State Department of Financial Services could continue with its case to invalidate the charter.
OnDeck today announced the appointment of Deb Stroff as the company’s Chief People Officer. Ms. Stroff will be responsible for leading all aspects of people strategy, including overseeing organizational design, total rewards, talent management, recruiting, leadership development and learning, as well as driving the talent agenda forward as OnDeck continues to grow in scale and complexity.
Roostify announced the finalization of its integration with Docutech, a provider of document eSign, eClose and print fulfillment technology.
By joining forces with Docutech, Roostify consumers can now view, complete, and eSign documents, all within the Roostify platform.
CrowdStreet, Inc., a technology provider with an online marketplace for direct equity investment in commercial real estate (CRE), today announced the appointment of financial technology entrepreneur Donna Wells to its Advisory Board. The news comes on the heels of the company passing the $500 million threshold in total online investments with a record number of new individual investors.
Cadre announced today that Sam Mischner has joined the company in the role of Chief Commercial Officer. Mischner brings expertise in strategic sales and operational excellence to Cadre, where he will oversee marketing, sales, and operations.
LendingPoint is excited to announce that CEO and founder Tom Burnside was selected as a finalist for EY’s Entrepreneur of the Year Southeast. The program recognizes entrepreneurs in more than 145 cities around the world who demonstrate excellence and extraordinary success in areas such as innovation, financial performance, and personal commitment to their businesses and communities.
LendInvest has dropped its product fees and lowered interest rates for both of its 5-year fixed rate buy-to-let remortgage products for a limited time.
The products will be available on standard property cases up to 75% loan-to-value and up to £250,000 in loan size.
The products are offered at an interest rate of 3.60%, with the ICR calculated at the pay rate, or at an interest rate of 3.49% with the ICR calculated at 5%. Both products will have zero product fee.
Specialist property lending platform CapitalRise has secured a £30m institutional funding line from a major financial institutional investor, as it looks to expand its loan book.
The new £30 million facility was received from a UK bank, whose name is undisclosed.
OakNorth – the bank for entrepreneurs, by entrepreneurs – has completed its first finance deal with Hilltop Credit Partners, a specialist funding partner for small and mid-sized residential property developers and housebuilders.
The £30m loan-on-loan facility will be used to support the recently launched real estate development lending platform, led by Paul Oberschneider, who has more than 25 years of experience in property development and asset management. Backed by Round Hill Capital, a global real estate investment firm with a focus on macro-driven residential real estate investment strategies, Hilltop Credit Partners aims to help developers who know their local markets but need access to tailored financing solutions in order to fund their projects.
London-based financial services firm Mode has announced its first product – a crypto-backed lending platform for businesses – will launch later this month.
The company is aiming to become the UK’s first fully-regulated digital-asset bank as it works on building an ecosystem of products and services designed to bridge the gap between digital and traditional finance.
The service is aimed at companies which hold Bitcoin and Ethereum – whether through direct purchase, investment, or as payment from clients.
A report on This is MONEY shows that more than 50% of UK startups with less than 50 employees were rejected for bank loans. More so, 37% of SMEs are likely to give up their search for loans after their first approach is rejected.
Imagine an asset class where investor returns have been overwhelmingly positive every year since its inception and incredibly stable, hovering around the mid-single digits, without the rollercoaster of the stock market.
OakNorth completes £2.5m loan to multi-site specialist school, Cressey College, to support the groups growth strategy.
Finastra has announced the appointment of Mark Miller as Chief Financial Officer (CFO) effective May 13, 2019.
Mark is a seasoned finance executive, with nearly 25 years of global technology, finance and operational experience. He has worked at several industry-leading companies including, most recently, Marketo, where he was CFO and travel technology firm Sabre Corporation, where he spent 18 years in a number of leadership and executive roles including CFO.
Tencent Holdings Ltd posted record quarterly profit on Wednesday, smashing market expectations, as the social media and gaming giant booked a rise in the value of its investments while fintech and cloud revenues helped make up for declines in games.
In the three months ended March, Tencent saw 17% growth in net profit to 27 billion yuan ($3.93 billion), beating the 19.4 billion yuan average of 13 analyst estimates compiled by Refinitiv.
Boosting profit was a 46% rise in “net other gains”, such as from investments, to 11.1 billion yuan. Revenue, however, came in just shy of analyst estimates at 85.5 billion yuan, with growth at an all-time low of 16%.
Fintech Pleo, the business spending platform based around smart company cards, has raised $56 million in a Series B financing round led by Stripes, a New York-based growth fund.
Pleo will use the funding round to more than triple its headcount, from 120 to 400 employees by the end of 2020 and to accelerate product development as it aims to service the entire purchase process for SMEs across the whole of Europe. This includes adding credit, invoices, mobile payments, a vendor marketplace, VAT reclaim and more.
Finastra has signed three global banks on its Fusion LenderComm platform as part of a coordinated campaign, including BNP Paribas, Natixis and Societe Generale. With NatWest, which joined recently, the ramp up signals a move towards a new era of efficiency in this complex space.
In a survey, 58% told Klarna that they would pay more than $5 (£3.90) for one-hour delivery – if brands cannot compete, then consumers will take their custom elsewhere.
Leading the way in terms of sustainability, 72% said they would pay more for sustainably sourced products, 55% would abandon a purchase if it was not sustainable, and 83% said it is important that brands prove be “pro-equality”.
Klarna found that most of this generation still frequent the high street, and do so more than any other age group.
Investment banks Macquarie and UBS are set to underwrite Prospa’s $610 million sharemarket float after running a bookbuild to sell the shares.
The brokers closed the bookbuild at 2pm on Wednesday and funds were told the lead managers had secured enough support to raise the $110 million required for Propsa’s initial public offering.
Popular online lender Tic:Toc has launched a $1,000 cashback offer for all new customers, while competitor loans.com.au has dropped its variable rate below 3.50% to match Tic:Toc’s ultra low rates. Homestar has a competitive low rate plus fee waiver offer on the market, while Virgin Money is enticing new customers with Velocity rewards points.
The firm, operated by One97 Communications, today unveiled Paytm First Credit Card with lofty benefits as it races to bulk up its financial offerings. The cards, issued by Citi Bank, will be the first in the country to offer unlimited, one percent cashback on purchases, Paytm claimed in a statement. The company is hoping to rope in about 25 million credit card customers in the coming months.
The penetration of credit cards remains very low in India with under 50 million peoplepossessing one.
To give a fillip to digital lending, Small Industries Development Bank of India (SIDBI) has put together a pilot scheme to extend financial assistance of up to ₹10 crore to new-age fintech non-banking finance companies (NBFCs) engaged in financing small businesses and other income-generating activities.
In Vietnam, where the economy is booming, approximately 79% of the population is unbanked. Without a banking account, it is almost impossible for people to access financial services such as insurance and loans. The phenomenon is called “financial exclusion.”
The country has an internet penetration rate of 67%, higher than the region’s average of 58%, and nearly three-quarters of the adult population owns a smartphone.
Vietnam is fertile ground for massive fintech adoption, particularly in peer-to-peer (P2P lending).
The global P2P market is estimated to be worth US$490 billion in 2020. By then, Vietnam’s own P2P market is expected to be US$7.8 billion, almost doubling from US$4.4 billion in 2017 according to estimates by APAC-focused consulting firm Solidiance. Currently, there are over 40 P2P lenders operating within Vietnam; several of which are prominent due to their size and reach.
Singapore-headquartered venture debt firm Innoven Capital received an additional USD 200 million in funding from its shareholders – Temasek Holdings and United Overseas Bank (UOB). The firm said it’s doing this in anticipation of the massive potential that Asia’s venture debt space offers.
Koho, a Toronto, Canada-based fintech company that provides Canadians with a mobile current account and Visa card, closed a $42m Series B funding round.
Business card management platform Pleo raises $56m