The asset-backed securities market in China saw huge growth in 2017; nonbank lenders led issuance which totaled $220 billion last year, a 90% increase from 2016; now issuance of consumer loans is slowing down due to increased involvement from Chinese financial regulators; a part of the slowdown was due to Ant Financial Services Group which temporarily stopped selling bonds by consumer loans in December. 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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Codispoti is a JPMorgan executive who helped create the Chase Sapphire Reserve card; in this Business Insider Q&A she talks about her perspective on millennials, a new bank branch Chase is launching and the learnings from her time creating the Chase Sapphire Reserve. Source
Budgeting app Moven is planning to buy a small bank so they can become a more direct competitor in the banking space; the company’s new partner, SBI Holdings, is investing in Moven to create two entities MovenBank and Moven Enterprise; “We’ll do a digital direct challenger bank without having to run branches,” Moven CEO Brett King said to TearSheet. “That was really the thing we were waiting to see if we could solve because we’re just not interested in doing branch banking.”; the company will look continue allowing banks to leverage their technology with Moven Enterprise then use MovenBank to be a true digital bank alternative. Source.
- Toyota Financial Services launches AI credit evaluation with Aire
- Behalf Secures $150 Million in Debt Capital
- TrueLayer and Zopa join forces for PSD2
- China: WeiyangX Fintech Review
- Wirecard’s Deirdre Ives: ‘Our customers are driving innovation’
- Citi Ventures’ Vanessa Colella: ‘No one runs innovation, it’s all about unleashing it’
- JPMorgan Publishes The "Bitcoin Bible"
During the week I share the latest marketplace lending and fintech news...
Ant Financial is planning to raise up to $5 billion which could value the company at more than $100 billion; this could potentially lead to an IPO as the company establishes a recent valuation; they last raised a round in 2016 at a valuation of around $60 billion. Source
President Trump’s pick to head the FDIC, Jelena McWilliams, has spoken favorably about ILC charters in the past; ILC charters exist in a handful of states, most notably Utah who has seen a spike in inquires about applications; charters can allow fintech companies to bypass state by state licensing; ILC charters are an controversial way for fintech companies to act like banks and with the national charter proposed by the OCC in limbo more companies might look to take this route. Source.
Immigrants face challenges when it comes to accessing credit when they come to the US; while in their home country they may have established a solid credit history, they now have to start from scratch; several fintech companies tackling this problem include Nova Credit, CreditStacks and Petal. Source
Income sharing agreements aren’t new and there were some early fintechs who have attempted this type of model; however there are new companies looking at income sharing agreements to help those with student loans tackle their debt. Source
A record number of Americans experienced identity fraud in 2017, that represents an 8 percent increase from 2016; according to a study by Javelin 16.7 million people were hit by identity fraud; the rate of increase for identity fraud has slowed from 2016 but Americans that were notified about a breach also went up 30 percent; fraud prevention has become one of the main topics in fintech and banking as companies look to leverage new technologies like AI and blockchain for solutions. Source.