The report shares the highlights of securitization in the space which totaled $7.8 billion in 2017, up from $4.6 billion in 2016; SoFi was the leader in both volume and total number of ABS deals; report includes KBRA’s outlook for 2018, loan origination and ABS issuance by platform, performance and rating trends and more. 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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Current Expected Credit Loses Standard or CECL goes into effect in 2020, though banks are now starting to experiment with technology solutions to solve the problem it causes; the requirement forces banks to put potential loan losses on their books when they put an asset on their books; right now it can take a bank almost a week to go through a largely excel driven process; beginning to implement changes now can help banks stay ahead and begin using technology to solve other data driven problems; Bank Independent of Sheffield, Alabama has said since using technology from Sageworks they have cut down time from a week to a day. Source.
Alkami’s white label technology has helped to provide mobile banking apps for credit unions and banks; they just raised a $70mn series D round led by General Atlantic, with participation from MissionOG, S3 Ventures and Argonaut Private Equity; the company has a SaaS model where they charge banks on the number of users per month; they plan to use the new infusion of capital to grow their sales and invest in innovation. Source.
Marqeta has hired its first employee in London as it aims for a 2018 European launch; the firm provides payment card technology and works with other fintech firms such as Square and Kabbage; they have raised a total of $76 million, which includes a recent $25 million investment which was led by Visa; CEO Jason Gardner stated in a Business Insider interview, “The use-cases we see here in the US and Canada are very similar to the use-cases we see in Europe. Since our inception [we] have always seen ourselves as a global issuer-processor and Europe is obviously an enormous market.” Source
Petal uses information beyond credit scores like earnings, spending and savings to identify people who are a good fit for a credit card; users can then use the Petal card to build their credit history; the company raised $13 million led by Valar Ventures. Source
Investors across the US will now be able to invest in real estate loans originated by Groundfloor with as little as $10. Source
- Goji Secures Funding From Anthemis and AXA Strategic Ventures
- LendingClub Continues to Caution Investors Against Unsolicited Exchange Offer from IEG Holdings
- Enacomm and Advantel Partner to Equip Financial Institutions with AI Conversational Banking and Next-Generation IVR
- YieldStreet Raises $113 Million Financing Round to Disrupt Alternative Investing
- Crypto P2P lender ETHLend launches secondary blockchain partnership
- Ola, ICICI Bank partner
- US Banks Rely on Fintech Firms to Overcome Legacy Systems
- Ryan Feit, CEO of SeedInvest, Updates on 2017 Progress & Crowdcube Partnership
- Central banks are experimenting with blockchain technology — here's why
- Mike Novogratz is planning a crypto version of Goldman Sachs
- Ascentium Capital Exceeds $1 Billion in Funded Volume During Fiscal Year 2017
TransferWise is privately launching a borderless account and debit card; the move is beginning to draw comparisons to other fintech companies like Revolut; the account will be rolled out in a small launch then a full launch thereafter; the account will give you access to local bank details for the UK, US, Australia and Europe, as well as allowing you to hold and convert 28 currencies; the move is not seen as replacing the current account but is instead a partner account; the account would allow people working in different countries to convert to their local currency without the hassle of additional fees or having to join a local bank. Source.
Federal Reserve Board data shows that consumer debt reached all-time highs in November; the previous highs were in April 2008 when consumer debt totaled $1.021 trillion; according to the CFPB, “Most origination metrics we observe are near pre-recession levels. This is true across credit score tiers for both general purpose and private label cards. Approval rates have climbed for all credit score tiers since post-recession lows, even as application volumes have stabilized.” Source
UK based fintech firms helped push technology investment in the UK to all time highs in 2017; fintech firms accounted for almost half of the £3bn invested; leading fintech firms TransferWise, Funding Circle and Monzo helped push the investment number as they all raised significant rounds; Eileen Burbidge, Partner at Passion Capital, tells AltFi, “"It's a testament to our exceptional entrepreneurs that the UK tech sector continues to produce companies that are leading in the development of cutting edge technologies such as artificial intelligence and fintech.” Source.