Intuit has launched a new lending product called QuickBooks Capital; clients of the accounting software provider will be able to access up to $35,000 in credit with terms between three and six months. Rania Succar, head of QuickBooks Capital stated, “As the largest small business accounting platform with approximately 2.4 million customers, the QuickBooks platform provides the most complete set of small business data available in the market.” Source
Big banks like J.P. Morgan Chase and Wells Fargo have developed new mobile only banking apps in an effort to attract younger customers; “It’s about helping people start in banking and doing it in the way that fits their lifestyle,” said Steve Ellis, executive vice president and head of the Wells Fargo Innovation Group, to Business Insider; the banks are looking to get users at a younger age then keep them over the lifetime with additional product offerings; focusing on the consumer experience and new technology will help the banks to claw back some of the market that fintech companies have taken. Source.
CoinDesk has created a list of the top 5 analysts and top 5 traders; CoinDesk considered Twitter followers, published analysis, charts produced, industry experience, incumbent financial industry experience and votes from the Blockchain Q3 Sentiment survey. Source
PPDAI plans for an IPO this month and co-founder Shaofeng Gu owns more than 25% of the business; Ning Tang of Yirendai, a US listed public company, owns 36% of the company; This year three Chinese fintech companies have gone public, raising $2.45 billion; Bloomberg provides data on the rise of the wealthiest billionaires in China. Source
Hong Kong based mobile lender WeLab raised $220mn in a series B financing; investors in the round include Alibaba Hong Kong Entrepreneurs Fund, CreditSuisse, the World Bank’s International Finance Corporation (IFC) and others; they plan to use the funds for improving credit technology and look to expand globally. Source.
Randall Quarles, vice chairman for supervision at the Federal Reserve made recent comments about taking a fresh look at regulations; He stated, “History has shown us that, it’s not just a question of where has the risk that we knew moved, but what new risks are developing? I think that in the regulated area … we ought to be looking at what the implications of the growth of fintech ... I think we ought to be looking at cyber, obviously.” Source
While giving a speech the acting head of the OCC stated that banks need more competition not less; he also commented on companies like Amazon or Apple becoming banks, Noreika states; “Laws that prevent companies with resources and means from becoming competitor banks only serve to protect existing big banks from would-be rivals”; as Crowdfund Insider reports the benefits of having big tech companies become banks could help to lower cost, increase access and help to serve those who might be left behind by traditional banks. Source.
Shares in the online lender have sunk almost 20 percent on news that they will lower their full year earnings forecast; the company also announced that they are limiting lending to lower grade borrowers as they continue to tighten their credit standards; while scandal has hurt the company, they have been tightening their credit standards for close to two years as they continue to adjust models. Source.
There has been a number of news items in recent weeks about how difficult it is for banks and fintech companies to work together; banks tend to be more intrusive and fintechs come with a significant culture shift; one thing has become clear and that is the benefits outweigh the hassle; banks and fintech companies benefit greatly from partnering and customers clearly when they do. Source.