PeerIQ provides insight on Cross River Bank and its $28 million investment from venture capitalists; the deal highlights Cross River Bank’s partnerships with marketplace lenders and provides a leading example for how banks can seek to gain from online lenders while also mitigating true lender risk; Cross River Bank likely to set a precedent for banking investment in MPL loans; success with marketplace lending partnerships has helped it to achieve a return on equity of 26.5% versus 9.8% for FDIC-insured institutions. Source
'If you have the right business ball on the right day and in the right situation, there is capital going to certain companies'
According to a report by Bloomberg, four bonds comprised of online consumer lending loans have reached or are approaching trigger levels; the four bonds include three securitizations by Avant and one by CircleBack Lending; according to one source, two of Avant's securities breached triggers this month for the first time; the four offerings total over $500 million in size. Source
SmartBiz has been ranked the number one provider for non-Express, SBA 7(a) loans under $350,000 and fifth among providers for traditional SBA 7(a) and Express 7(a) loans under $350,000; SmartBiz is the first SBA marketplace and bank-enabling technology platform; it facilitates small business lending from banks; in the government's 2016 fiscal year, SmartBiz generated $200 million in funded SBA 7(a) loans. Source
Sharestates is raising capital for a Series A funding round on SeedInvest; planning for potential investment of $3 million in preferred equity; Sharestates provides real estate investment opportunities and access to capital on its platform; has total loan originations of $178 million. Source
In the space of a week, Petal and newly-formed spin-off, Prism Data have made two significant announcements, super charging open banking.
Payday lender, Advance America, and its representative association, the Community Financial Services Association of America (CFSA), have filed a motion with the court to halt regulatory pressure on banks to end relationships with payday lenders; the motion follows the decision by U.S. Bancorp and four other banks to end their relationship with Advance America citing regulatory pressure as a factor; regulators say they have done nothing to pressure banks to end relationships with payday lenders; the court motion is part of an ongoing litigation process involved with a court case filed by Advance America and the CFSA in 2014. Source
TransUnion added lending decision firms to its Strategic Alliance Distribution Partner Program, like the fintech Provenir and GDS Link.
In a move that seems quite surprising, Citibank Australia has stopped taking notes and coins at their branches; data shows that less than 4% of their customers used cash at the branches and so to keep up with digital headwinds the bank has decided to go cashless; there has been a trend in Sweden and Iceland of cashless banks, but there has not been any worldwide trend in that direction; the bank will still keep ATMs going and teller services will also remain intact. Source
A wide range of loan options for small business funding are available; Lend Academy provides an overview of the market's credit products for small businesses in their article; loans from the Small Business Administration and large lenders have traditionally been the main focus for many borrowers however online marketplace lenders and innovative credit products such as invoice financing have greatly evolved the options for credit funding in the market. Source