Patrick McHenry is one of the most proactive advocates for fintech in Congress; at LendIt USA 2017 he provided his insight from Congress on fintech and also spoke with Lend Academy in their podcast; his views are framing many of Washington D.C.'s legislative debates and his legislation, the Financial Services Innovation Act of 2016 (HR 6118), could be a significant factor helping to support future fintech innovation in the US. Source
News Roundup
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Funding Circle announced they passed the milestone last year; CEO and Founder Samir Desai stated, “We were pleased with the result for the group. Overall we improved our loss margin. The UK business became cashflow positive in Q4 of 2016 and continues to generate positive cashflow in the first half of the year.” he added, "As we've said many a time, we believe that our business should be a public company as well because that fits with our values of transparency and being open, and allows us to take our service to more and more people as well."
Other highlights include:
- Operating expenses rose by 43% to £103.1 million;
- Losses dipped by 3% to £35.7 million thanks partly to a foreign exchange boost;
- £1 billion lent last year;
- Loans outstanding rose by 61% to £1.37 billion;
The company recently held a conference call with investors to discuss options with a company called Jazco reportedly offering to take over the remaining deals on the site; the company was reportedly issued a subpoena by the SEC at some point regarding operational questions; in early 2016 a law firm attempted to restructure the firm but the company continued to face challenges; eventually the CEO William Skelley left the company at which point a consultant stepped in; no deals have been originated since late 2016. Source
Wells Fargo shared that they set aside $4 billion in loan-loss provisions...
According to a report in Bloomberg online small business lender Kabbage is getting set to acquire Orchard. The companies have not yet confirmed and the cost of a potential deal is also not known. Source.
PitchBook provides its insight on the fintech market in 2017; cites securitization as a positive factor for the online lending market with marketplace lending securitizations at $5.4 billion through the third quarter of 2016, an increase of 86% from 2015; also notes robust data providers including Orchard, DV01, MonJa and PeerIQ as another positive factor for the marketplace lending industry's growth. Source
Writing in Forbes Alan McIntyre of Accenture talks about some troubling signs...
- Testimonial Tree Partners With J4 Mortgage Solutions to Offer Online Review Software to Mortgage Lenders and Title Companies
- Reffind bets on blockchain for turnaround story
- Credit Karma Teams with American Express to Offer Advance Tax Refund
- Student Loan Startup Frank Secures $10 Million During Series A Funding Round
- 2018 In Crypto - 11 Predictions (ZeroHedge)
- CIBC Innovation Banking unit launched to help grow startups
- Finova Financial’s New Fundraising Process Leverages Cryptocurrency to Serve Non-Accredited Investors
- Why I Joined MetaProp As An EIR (Nav Athwal)
Those of us who have been around the online lending space for...
Congress wants to extend PPP, lenders ready to move on Groundfloor Says...