The company is estimating a full year loss and its CEO has resigned; it is also being investigated by the FCA and cutting its dividend; the surprise estimates and regulatory investigation are key factors influencing the stock market losses; the company serves 2.4 million customers through a door to door lending process with a focus on the underbanked. Source
News Roundup
This page contains an archive of the Global Newsletter summaries and the weekly fintech news roundups.
Every day the Fintech Nexus news team scours the globe for the most important stories of the day to include in our daily newsletter.
Then every Saturday we bring you our weekly news roundup of the top 10 fintech stories of the week with commentary from Peter Renton.
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This week’s PeerIQ Weekly Industry Update covers the Fed raising rates by 25 bps, Affirm’s big fundraising and securitization news; PNC announced their new lending pro cuts through their mobile wallet and anticipate it will outperform branch loans; Equifax completed their first Securitization, a $200mn deal backed by lender fee revenues; PeerIQ does a deep analysis on the Sharpe Ratio which helps to gauge risk-adjusted returns. Source.
The small business lending approval rate from banks nationwide was 23.5% in October, while support from institutional lenders helped marketplace lending platforms to increase their small business approval rate to 63.1% nationwide, according to data from the Biz2Credit Small Business Lending Index; the economy also has been steadily improving with GDP and jobs increasing; however uncertainty over the election has affected the broad market which has seen nine of the past 10 days reporting losses in the stock market and another recently delayed rate increase from the Federal Reserve; following the election, consumers and businesses will be closely watching the affects on the economy and interest rates specifically as the country's new president influences credit markets, marketplace lending and fintech overall. Source
The good news this week is that we had no more bank failures in this country. While a buyer was found for Signature Bank (most of it anyway) the fate of First Republic still hangs in the balance.
Plaid’s recent acquisition of competitor Quovo is helping to set the stage...
The new agreement with PICC P&C would provide Yirendai with a performance bond for certain loans originated through their marketplace; PICC P&C agreed to reimburse investors should any losses occur because of due diligence issues; Yihan Fang, CEO of Yirendai, said, "We are pleased to begin working with PICC P&C on performance bond. We believe a strong alliance between our two industry-leading companies will enable us to provide higher quality products and services to our customers to better serve the large demand for personal finance." Source
UK based Revolut has had a bad few weeks with reports showing...
SoFi has announced details of its latest fundraising round which now adds $500 million in new equity capital for the firm; the financing was led by Silver Lake and included SoftBank and GPI Capital; the fundraising will support the continued expansion for the firm; it now offers student loan refinancing, personal loans, mortgage loans, life insurance, wealth management and banking; it also plans to expand its services to Australia and Canada. Source
AutoGravity has added Westlake Financial Services to its network of financing companies; AutoGravity launched its app in 46 states in January; the platform allows consumers to shop for a car online, apply for financing and receive up to four auto financing offers. Source
During the week I share the latest p2p lending news on Twitter as it...