London-based FOL Wealth has launched a new robo advisor service for its wealth management clients; the solution offers clients automated service at an annual fee of 0.90% with a minimum investment of 1,000 British pounds ($1,216); it is intended to serve as a hybrid solution complementing the human advice of the firm's wealth advisors. Source
A to Z
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.
To join our newsletter community please subscribe here.
PeerIQ released its fourth quarter "Marketplace Lending Securitization Tracker" this week; marketplace lending accounted for $2.4 billion of the securitization market in the fourth quarter; data from the fourth quarter report shows securitization investments as an increasingly important source of capital for marketplace lending platforms; in 2016 70% of loans were invested in through securitizations. Source
It has been reported that Kabbage is interested in acquiring OnDeck Capital. S&P Global recently published an analysis of a potential deal. This week Kabbage announced a new originations milestone of $3 billion since inception. We take a closer look at the originations and pro forma estimates of the two companies provided by S&P Global.
OnDeck's annual originations have increased from approximately $15.9 million in 2008 to $2.40 billion in 2016. Estimates from S&P Global show combined loan originations for the two firms of $3.82 billion for 2016. In addition to synergies from similar balance sheet and securitization funding sources, S&P Global also notes the increased value Kabbage could likely bring to OnDeck's line of credit product. Pro forma estimates put line of credit originations at approximately 50% for the combined entities. Kabbage has considerable expertise in small business line of credit lending and it's a product OnDeck launched in 2013 and has recently been focused on. Source
Third party data sharing is becoming more prevalent in financial services as fintech providers increasingly provide more personal financial management solutions. In Europe the Revised Payment Services Directive (PSD2) is also revolutionizing data sharing for the fintech market.
American Banker provides insight on the pros and cons of data sharing also including insight from Wells Fargo and JPMorgan, who have developed leading data sharing partnerships and solutions. While the majority of the challenges to data sharing are refuted by technology experts there are a number of considerations that have limited the data sharing process.
Some of banks' leading concerns for data sharing include connectivity risks, system overloads and differing regulatory standards. Data can be affected when transferred to a third party, it can be difficult to determine data being extracted and system updates can affect data flow. Banks have also reported system overloads from data extractions at peak hours. Additionally, banks report that differing regulatory controls and standards can cause security risks when working with third party data aggregators. Source
