There is significant pain points for commercial clients of banks as they typically need to resend documents many times; as banks become more tech driven they have begun to solve these issues and clients are seeing the benefits; JP Morgan Chase has created Data Once and even smaller banks like Peapack-Gladstone Bank in NJ have new features for their clients; banks of all sizes see how the changes can impact client relations. Source.
New regulations on asset management will increase capital that institutions have to hold in China; these regulations will significantly affect bank and nonbank relationships; banks have repackaged loans and transferred them to brokerages and other lenders which eventually make their way to investors; last year these transactions totaled $3.5 trillion in off-balance sheet lending according to the Wall Street Journal; one example of a lender that has been fined is China Guangfa Bank which turned loans going sour into high yield investments. Source
A new report out from Aite Group found that, at the vast majority of banks, lenders spent at least 30%...
Citi and PNC striking a deal with HighRadius is the latest example of banks forming partnerships to improve commercial payments; HighRadius has already done partnerships with Bank of America, Walmart, Johnson & Johnson, Procter & Gamble and Starbucks; HighRadius uses artificial intelligence to help automate some of the slower more paper driven processes in commercial payments. Source.
CommLoan is a Arizona based commercial real estate platform; its platform dubbed CUPID matches borrowers with hundreds of lenders; CommLoan has more than 440 lenders and 100,000 loan programs on its platform; borrowers use the platform for everything from multi-tenant housing to large industrial complexes. Source
The platform announced their latest securitization which is a $233.75 million deal; provisional ratings of AAA were given by both Moody’s and DBRS; this is CommonBond’s sixth transaction and they have now securitized a total of $1.22 billion in loans. Source
CommonBond closed their fifth and largest securitization which contained $248 million of refinanced student loans; the senior tranches were rated by Moody’s, S&P and DBRS and received ratings of Aa2, AA and AA (high) respectively; the deal was four times oversubscribed; according to David Klein, CommonBond CEO and co-founder, “Investor demand for CommonBond paper has never been greater. The strong market reception is a reflection of our pristine credit quality, continued ratings progression, and track record of consistent results. As a programmatic issuer, we look forward to continuing to bring consistently high performing bonds to the market, providing investors with world-class capital deployment options.” Source
CommonBond has laid off about 18 percent of their workforce as they restructure internally to prepare for what they believe...
The round was led by Fifth Third Capital Holdings LLC with First Republic Bank and Columbia Seligman Investments also participating; existing and individual investors Vikram Pandit and Tom Glocer also participated; total funding for the company is over $130 million; the company posted 250% revenue growth year over year in 2017 and has had only two defaults. Source
American Banker talks with David Klein, CEO of CommonBond about the fintech industry and his insight on the effects of a fintech charter; David Klein says company valuations across the industry are more realistic and the industry is maturing with more lending platform investments focused in later round fundraisings; explains the company's technology solution for employers adding student loan payment benefits; notes the company's default rate is zero; says the OCC fintech charter should give fintech companies better competitive market positioning and help to reduce costs. Source