Chinese online consumer lender, LexinFintech, filed a $500mn IPO to list on the Nasdaq; LexinFintech provides installment loans for consumers to buy products; regulators have been looking closer at consumer lending in China with recent companies listing on US exchanges; the listing is being underwritten by Goldman Sachs, BofA Merrill Lynch, Deutsche Bank Securities and China Renaissance. Source.
News Roundup
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China online consumer finance platform LexinFintech announced it will invest more than $150mn in partnerships over the next three years; the company’s CEO said the investment will focus on co-branded credit cards with financial institutions, expanding services to include more use cases and working on technology cooperation. Source.
Liberty Mutual has announced new personalized offerings within its usage-based insurance strategy; HighwayHero is a driving app launched to track driving and offer driving score discounts; it will be expanding its pay as you drive, ByMile, program to additional states; its usage-based insurance app, RightTrack, is also being expanded to additional states. Source
There has been considerable buzz around Facebook’s Libra project and what it...
The New York Times reports that 7 of Libra’s partners are quite...
Lidya has raised $1.25 million to expand its financing services for small and medium enterprises in Africa; the funding round was led by Accion Venture Lab and will help the company enhance its credit scoring for small businesses and improve access to small business funding; it is targeting $4.9 million in loans for its first year of business. Source
Lighter Capital provides funding for growing businesses with a revenue-based financing model;...
Linked Finance, an Irish P2P SME lender, has received new funding from Eiffel Investment Group; under the deal Eiffel Investment Group has agreed to provide up to 20% of funding for new loans on Linked Finance's platform; Eiffel has been around the space since 2011 and manages 200 million euros ($213.43 million) for institutional investors across other platforms including Lendix and Funding Circle; Linked Finance has originated 700 loans since launching in 2013 and plans to lend 350 million euros ($373.50 million) by 2020. Source
State Street and the Alternative Investment Management Association have released a report on decreased liquidity in the investment market; approximately half of respondents see less market liquidity as a long-term factor and three-fifths of respondents are considering less trading liquidity in their investment strategies; report cites new market entrants, electronic platforms and peer-to-peer lending as reasons for increased illiquidity in the market overall; report says investors are focusing on three areas to adapt to the shift in market liquidity including rationalizing risk, optimizing for liquidity, and implementing new rules and tools. Source
A blog post from MonJa provides details on the "Liquidity Outlook: Establishing a Secondary Loan Market" panel discussion which took place on December 1 at the 2nd Annual Investors' Conference on Marketplace Lending; Orchard Platform has made building a comprehensive secondary market for marketplace loans a firm priority and has the lead on an industry wide trading platform; interactive data technology and advanced market pricing technology are some of the barriers; until broader secondary market trading becomes available, innovative industry funds and securitization portfolios are the leading secondary market options available for investors. Source