The Securities and Exchange Commission's 2016 Annual Report on Nationally Recognized Statistical Rating Organizations (NRSROs) notes increased rating activity for marketplace lending; says smaller NRSROs have increased market share by rating marketplace lending securitizations; rating agencies issuing ratings for marketplace lending transactions included KBRA, Fitch, S&P, Moody's and DBRS; of the 28 rated marketplace lending transactions in 2016, DBRS rated 28.6%, KBRA rated 25.0%, Moody's rated 25.0%, Fitch rated 7.1% and S&P rated 3.6%. Source
News Roundup
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The UK marketplace lending industry is likely to see several factors causing change in 2017; the Financial Conduct Authority has reported several concerns which may increase regulatory pressure; demand for loans and capital investment are also slowing; larger platforms will have a greater advantage while the smaller platforms may see greater challenges; competition and partnerships among traditional financial service providers and fintech companies will also continue to be significant for the market overall. Source
Blockchain has been becoming increasingly utilized across a range of industries; speculators believe 2017 could be blockchain's biggest year ever with a number of factors supporting the technology; bitcoin's price has been increasing, reaching a three-year high in January; market participants have been strengthening led by the Hyperledger Project; investment has also been increasing, specifically investment in patented blockchain technology. Source
Decreased venture capital funding and fintech challenges in 2016 slowed the market for initial public offerings (IPOs); experts believe the IPO market could be revived in 2017 with four companies at the top of the list to watch for a potential public offering; companies include Transferwise, SoFi, Ant Financial and Credit Karma; all four companies have significant venture capital support and are likely leaders for the fintech IPO market in 2017. Source
A venture capitalist blogpost from avc.com provides some interesting predictions for 2017; expects the US stock market to continue its bullish trend higher into the first half of 2017 with support from corporate and personal tax cuts from President Trump; thinks tech initial public offerings (IPOs) will increase in 2017; Google and Facebook will see some challenges as monopolies; software as a service companies will consolidate; artificial intelligence (AI) will continue emerging with corporate AI strategies a top priority for businesses; venture capitalists will invest in genomics and biometrics; crypto programming will be important for cybersecurity. Source
The insurance industry is adopting innovative technologies for profitable and sustainable growth; 2017 could be a transformational year for the insurance industry; key trends in insurance technology for 2017 include: artificial intelligence, predictive analytics with machine learning, cloud-based infrastructure, customer experience, and data solutions centered around internet of things technology and big data. Source
2018 has not been kind to the digital currency as it is down 50 percent against the dollar and the first quarter is the second worst on record; regulation, a clampdown in Asia hurting volume and the big price run up in late 2017 have all hurt Bitcoin; the prevailing thought about making fast cash has gone away as the price has dropped; the price today stand just below $7,000, down from a high of $20,000. Source.
Infinity Lending Systems offers a range of platform software services for online lenders; in their featured blog post J Washburn provides three tips for improving network security; suggests using clever passwords, regulating external devices and avoiding phishing attempts. Sponsored Blog Post
Lob is a direct mail marketing company for lenders; in their featured blog post they provide three examples of how companies can benefit from using their services for direct mail marketing; benefits include improved acquisition from personalized attribution marketing, broader capabilities to market to customers based on milestones and events, and an efficient program for tracking compliance notices. Sponsored Blog Post
European banking profits are at risk from digitization according to a McKinsey report; the report, "A Brave New World for Global Banking", says European banks have $35 billion, or 31%, of profit at risk from digitization; fee-based products for traditional banks versus online banks is the main factor for profit; McKinsey says banks must enhance their business models, provide competitive digital tools and data analytic platforms; also suggests that banks partner with financial companies across the industry to reduce and share innovation costs; the McKinsey report also says banks will need to streamline their information technology structures and be more proactive in their regulatory strategies. Source