DirectMoney completed the wholesale lending deal with 255 Finance where $50 million worth of originated loan assets will be purchased; the deal will also include an equity stake and options for 255 Finance, with the plan to increase loan buying in the future; DirectMoney Executive Chairman Mr. John Nantes said: "We are very excited to complete this agreement with a company with the capability of 255 Finance as we target the fintech opportunities in the $100 billion consumer finance market in Australia. After engaging with many potential wholesale funders and varying structures over recent months, this deal was always our preferred outcome, and we're delighted to announce it today." Source
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There is a worldwide problem in that not enough people have access to financial opportunity in underserved markets; at LendIt USA 2017 we hosted a panel that focused on impact investing and opportunities for the underserved in financial services; panelists discussed the size of the market, how technology has helped to close the gap and why they feel that investing with their hearts and wallets is the better way to go; the discussion talked through the difference between regular investing and impact investing, as well as what investors look for when an opportunity presents itself; technology has allowed for low to middle income families to have a better understanding of their daily financial health and to expect better services; the panel also touched on the risks involved in certain markets, how to assess potential investments in emerging markets and how the local regulatory bodies can play a role; looking at investments beyond the financial return has helped communities around the world and this looks to be a trend that is on the rise. Source
The Federal Reserve has released a report titled "Small Business Credit Survey Report on Startup Firms" with findings based on the 2016 Small Business Credit Survey which surveyed companies less than five years old with more than one and fewer than 500 employees; findings show that these companies face greater funding challenges than mature companies; report compares financing statistics of startups and mature companies; also reports on sources of funds noting that medium to high credit risk startups were more likely to apply for loans from online lenders and only 11% of low credit risk startups sought online loan financing. Source