Student loan marketplace lender, Earnest, has completed its fourth securitization; Goldman Sachs and Barclays were the lead arrangers; portfolio valued at $174.44 million; the October securitization is the fourth for the year with previous securitization deals in February, May and July. Source
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A new association has been formed in the marketplace lending industry with a focus on fraud prevention; the Online Lending Network was launched this week at Money 20/20 and will work with ID Analytics on loan tracking and fraud risk solutions; Lend Academy provides more details in their article; focus is on technology from ID Analytics that helps to prevent loan stacking and predict a borrower's intentions. Source
The Innovative Lending Platform Association (ILPA) has released SMART Box for small business lending disclosure and transparency; Lend Academy provides more details and insight from Kathryn Petralia of Kabbage in their article; the SMART Box is intended to provide standardized pricing, cost of capital and verbiage that borrowers can use for credit analysis and comparison. Source
Canadian Imperial Bank of Commerce (CIBC) will use Borrowell's technology to offer loans to their existing clients with one click of a button; the loans can be up to $35,000, involve a streamlined online application and will be funded within 24 hours; they will only be offered to a select group of CIBC clients to start; David Williamson, Group Head of Retail and Business Banking, CIBC, says, "Our partnership with Borrowell is based on our shared view that the process for borrowing money for personal banking clients could be improved in the digital age, while retaining all of the prudent risk management criteria you would expect from a major bank." Source
Prosper is lowering rates for higher credit quality borrowers and increasing rates in the lower credit quality segments; borrowers with loan ratings AA through C will see a rate decrease of as much as 79 basis points while borrower ratings D through HR could see an increase of as much as 74 basis points; in total, across all ratings, rates will be lower by approximately 39 basis points; Prosper says the rate changes are a result of the credit market environment, interest rate expectations and competition for consumer loans. Source
A research report on insurtech from Gartner says the majority of the world’s 25 largest insurance companies will invest in insurtech by 2018; 64% of these companies have already made significant investments in emerging insurtech companies and innovation; among the highest priorities for investment are digitization, digital customer management, mobile and analytics. Source
Mastercard is the latest company to be added to OnStar Go, a cognitive mobility platform where drivers can browse stores and restaurants and purchase directly on their dashboard; get gas and pay for it without getting out of the car; after its launch in July, Masterpass is currently available in 33 markets, with plans to expand into 36 by the end of this year; the new dashboard will be deployed across two GM vehicles in the US by 2017; "The global momentum we're achieving with banks, merchants and consumers is proof-positive of our efforts to create simple and secure digital payment experiences anywhere consumers want to shop," said James Anderson, Executive Vice President of Digital Payment Products at Mastercard. Source
Banks have been given a deadline of early 2018 to comply with new regulations that will allow for open banking; many industry experts believe this deadline is too tight; to comply, banks would need to completely overhaul their current security infrastructure and banks are not known to rapidly change anything; the UK's big four - Lloyds Banking Group, HSBC, Barclays and Royal Bank of Scotland - control 77% of personal current accounts and 85% of business accounts; these new regulations will allow consumers to control access to their data and give them comparison tools to shop for the best mortgage, credit card or loan. Source
BBVA Compass and the Opportunity Finance Network are teaming up to identify and increase training for 25 leaders in community lending through an Opportunity Fellows Program; BBVA Compass is a leading banking franchise with 668 branches mainly in the US sunbelt; Opportunity Finance Network is an association of community development financial institutions (CDFIs); the chosen Fellows will receive six days of training through early 2017 on themes including financial innovation and financial inclusion; applications open mid-November 2016; cost is not specified but appears to be complimentary or highly-subsidized for the leaders given the opportunity to participate. Source
Republic Bank & Trust Co. launched a digital-only bank branded as MemoryBank, this would stand alone from Republic and would aim to offer simplified products; this digital bank is courting those in Generation X, as opposed to the millennial generation; according to Andrew Varga, Chief Innovation and Strategy Officer of Republic Bank & Trust Co., the new digital bank will allow for the regional bank to have a national footprint. Source