Arthur Levitt, former Chairman of the Securities and Exchange Commission, says the recent scandal at SoFi has cost them approval of their special bank charter; he tells the FT, “So for a company as aggressive as SoFi, I think the chances of that happening were slim. Now they become almost impossible.” Source
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A lot of the significant investment in ICOs has come from people who have made millions in bitcoin and need to diversify; Business Insider sat down with Lightspeed Venture Partners investor Jeremy Liew and Blockchain founder/CEO Peter Smith to discuss the ICO market and why so much money has flooded into these startups; the discussion also touched on the recent Chinese crackdown on ICOs which has driven the price of Bitcoin down and the need to diversify looks to be more important than ever. Source
deBanked has taken the Inc 5000 list and provided a table of the top alternative small business companies by revenue; the top 5 include Square, OnDeck, Kabbage, Swift Capital and National Funding. Source
Target Global, based in Berlin has closed a new fund; the fund will focus on Seed and Series A rounds and expects to fund 20 companies primarily in Germany and Israel; Shmuel Chafets, General Partner at Target Global stated, “Target Global’s Early Stage Fund will serve as a bridge connecting Tel Aviv and Berlin. Germany in general and Berlin more specifically have been able to produce great companies, but if Berlin truly hopes to become a global tech hub it must open itself up to real innovations and groundbreaking technologies. On the other hand, If Israel wants to continue to be the “start up nation” , it has to create sustainable, long-term companies and efficient business processes. We already see some early signs of collaboration taking place, but we believe we can help expand it to other industries.” Source
Eugene Danilkis, CEO & Co-Founder of Mambu shares his perspective on how banks can continue to compete with fintech companies. Source
The no-action letter shows that the CFPB is open to alternative data being used to expand access to credit data; Upstart will report lending and compliance information to the CFPB to mitigate risk to consumers and aid in the Bureau’s understanding of the real-world impact of alternative data on lending decision making; the no-action letter relates to enforcement of the Equal Credit Opportunity Act and Regulation B; Upstart shares in their application how powerful using data points outside of just credit reports is in reducing borrowing rates. Source
Today, the Consumer Finance Protection Bureau (CFPB) announced a no-action letter to Upstart, an online consumer lender. A no-action letter...
deBanked reports that Bond Street has stopped making new loans; seven months ago Bond Street announced a $300 million loan purchase agreement with Jefferies; the WSJ outlines that engineers, product developers, and risk and marketing specialists will join Goldman’s consumer bank; Square is allegedly also in talks with some Bond Street employees. Source
Through the partnership, the firm hopes to provide more personalization to their over 270,000 users; both portfolios were vetted by Betterment to ensure quality and affordability standards; Dan Egan, director of behavioral finance investments at Betterment stated, “We wanted to get these strategies out to our clients as quickly as possible, rather than build them out ourselves.” Source