Chinese regulators have mandated that P2P lenders work with custody banks for depository services; Ping An Bank has announced a third party depository service and provides details in a document titled, "Measures for Third Party Depository of P2P Online Lending Platforms"; the document provides access criteria for lenders and the bank appears to be setting the industry standard for P2P custody services. Source
News Roundup
This page contains an archive of the Global Newsletter summaries and the weekly fintech news roundups.
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AmEx has recently begun offering personal loans however its loans are only available to existing credit card customers; the firm says its new product is focused on its premium, high-credit quality card customers; overall, the firm appears to be taking a cautious customized approach to the lending product while also using the new initiative to help improve market share and struggling business growth. Source
At LendIt USA, Antony Jenkins from 10x Future Technologies discussed the challenges for incumbent banks in implementing transformative technology; Jenkins says transformation for incumbent banks is very difficult primarily because of the cultural change; Jenkins' 10x Future Technologies is developing software and API technology for banking products including current accounts, credit cards, mortgages and loans. Source
During the week I share the latest marketplace lending news on Twitter...
According to ThreatMetrix, digital fraud has been costing insurance companies approximately $250 billion annually in recent years; data from ThreatMetrix also reports that fraudsters have compromised over five billion personal identities, 1 in 10 insurance accounts are fraudulent and 3% to 5% of all claims in the US are fraudulent which adds approximately $400 to the cost of a family's insurance per year; with these statistics, development in advanced fraud solutions is also becoming important for insurtech; machine learning and artificial intelligence (AI) are the main drivers behind many of the industry's fraud detection solutions and the AI capabilities are expected to gain even more traction as additional solutions evolve. Source
HNA Group has a diverse portfolio of investments in a wide range of industries spanning from hotels to electronics and airlines; the Chinese-based company has now reported significant investment in the financial services industry with recent deals focused on the SkyBridge hedge fund platform, New Zealand lender UDC Finance and a 3% stake in Deutsche Bank; the investments from HNA follow encouragement by Beijing in global investments; they also reflect China's growing middle class and the expected demand for broadened investment options among Chinese consumers. Source
Citigroup has reported the appointment of Yolande Piazza to head of the company's fintech unit after naming Piazza interim head in August; Piazza will permanently replace previous leader Heather Cox who left for a role at USAA; Piazza has extensive experience with Citigroup working at the company for approximately 30 years and previously serving as the fintech unit's chief operating officer; initiatives for the Citigroup fintech unit are primarily focused on mobile. Source
The company's speech recognition technology has reported a 5.5% error rate in speech recognition, breaking the previous speech recognition error rate of 5.9% set by Microsoft in October 2016; the current error rate for speech recognition falls just above the newly reported human error rate of 5.1%; the speech recognition error rate continues to be a focus area as speech recognition technology becomes more broadly utilized in consumer electronics and the internet of things. Source
Commercial credit data sharing scheme (CCDS) is a market solution providing data sharing for alternative lenders in the UK; the CCDS was launched on April 1, 2016 and is now nearing full integration which means the majority of mandated banks have implemented systems to share their data with UK credit agencies; CCDS will provide current account banking data to credit agencies for approximately 98% of small businesses in the UK which is expected to help improve credit underwriting and broaden credit availability. Source
Revolut will now offer its customers investment at property platform Bricklane; investors can invest in Bricklane tax efficient individual savings accounts for a minimum of 100 British pounds ($122); Bricklane investors receive rental income and capital appreciation from the properties they invest in. Source