PeerIQ has released its monthly marketplace lending update for October; focus of the report is on the 2017 forecast for marketplace lending securitizations; PeerIQ forecasts 47% year-over-year growth ($11.3 billion) in new ABS issuance with 52% growth in new originations for its base case estimate; sees high demand continuing for securitized products however institutional investors will likely be more interested in shorter duration loans to manage interest rate risk as US rates are expected to rise; PeerIQ reports continued support from rating agencies with high ratings; expects leading securitization issuers in 2017 to be SoFi, Avant and Marlette. Source
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Wangdaizhijia has released two market reports providing insight and projections on P2P lending and crowdfunding in China; report finds 2,235 P2P platforms with total loans of $385 billion, including $181 billion in loans originated in January through August of 2016; predicting originations of $300 billion for online lending in 2016; nonlending crowdfunding market is smaller with 380 platforms as of August and crowdfunded investments of $1.57 billion for January to August of 2016. Source
Louis Beryl, CEO of marketplace lender, Earnest, speaks with Jim Cramer about the firm's credit evaluation process; Cramer discusses Earnest's lending specialization which focuses on student loan refinancing but also includes personal loans; Beryl primarily talks about Earnest's edge in credit underwriting which considers a borrower's full financial profile including additional details on assets and bank accounts; this is facilitated by direct connection to online banking accounts; Beryl says Earnest has passed the $1 billion lending mark with $300 million saved for clients using the company's online lending technology. Source
Alibaba's fintech arm, Ant Financial, is looking to increase their Asian market share before taking on more expansion plans worldwide; while at an event in Thailand to launch a partnership with payment firm Ascend, senior company officials explained the current focus is on 370 million people in Asia without bank accounts; in addition to the Thailand partnership, the company partnered with India's PayTM last year and has secured licenses to operate in Hong Kong; according to Senior Vice President, Douglas Feagin, there were no set plans or venue for a potential initial public offering, though there were benefits to going public. Source
A second regulatory reform focused on crowdfunding has gone into effect in France; the reform will broaden the offerings available for crowdfunded investing and lending; on crowdfund platforms, companies can now raise 2.5 million euros in equity funding through simple shares, plain vanilla bonds, preferred shares, participatory notes and convertible bonds; on crowdlending platforms, borrower limits were increased for qualified lenders to 2,000 euros individual lending per project; the reform also introduces new minibon debt securities. Source
Yirendai has announced it will release its Q3 unaudited earnings on November 15, 2016, after the US markets close; analyst Peter Engelwood is reporting that in the last quarter, institutional investors have increased their percentage holding of Yirendai's equity by 1.53%, to a total of 6.20%; the stock has risen from approximately $20 to $29 in the past month. Source
Last week we learned that SoFi had successfully received licenses to sell insurance, adding to their current product offerings of...
SoFi has begun to acquire state life insurance licenses and is working with Protective Life Insurance Co. on a life insurance partnership; known for student loan refinancing, life insurance would add to the company's expanding product offerings which now include mortgage loans, personal loans and wealth management. Source
With improved labor market data and a better than expected third quarter GDP report on Friday, the Federal Reserve is expected to outline plans for a December rate hike at its November Federal Open Market Committee Meeting (FOMC) this week; economists are expecting verbiage similar to that used last October before the Fed's last rate increase, indicating the economy was on target to meet the FOMC's objectives. Source
The Marketplace Lending Association was launched in April of 2016 and is one of the industry's leading advocacy groups; in September it hired Nat Hoopes to lead the Association and represent the industry in Washington, D.C.; Lend Academy interviews Nat Hoopes in their most recent podcast, providing details on his background in the industry, the evolvement of the MLA and his insight on the current regulatory developments affecting marketplace lending. Source