Penny Crosman takes a deep dive into the big news story of...
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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Online lending has been maturing the last few years with more companies reaching scale and some beginning to be profitable; banks have diversified their partnerships with online lenders and in some cases have launched their own online brands; one of the big shifts in the last few years is that banks and fintech companies are not seeing each other as enemies anymore, they can and do exist together through a number of different means. Source.
Real estate fintech Point has closed a $22 million Series B led...
In 2018 fintechs proved to be relevant disruptors and their equity value...
Morgan Edwards, chief financial officer at CommonBond gives an overview of the company and the student lending opportunity in this video from LendIt USA 2016. CommonBond provides student loan refinancing but one thing that makes them unique is their "1-for-1" model where they fund an education of a student in Africa for each student loan refinancing. As of April, the company had $625 million in capital committed with zero defaults and zero 30+ day delinquencies.
Morgan believes we are in a growth cycle and capital is here to stay although we may experience some ebb and flows through the cycle. He stated, "Capital flows where there is understanding and there is a return," and highlights several aspects that make this a favorable environment for student lending and marketplace lending broadly.
You can view the full video below:
Former FDIC Chair Sheila Bair writes in the FT that in light of the recent hack to Equifax should regulators be providing more entry points to customer data; she goes on to explain past bank hacks are typically done using a third party who has gained access to a customer’s data; other key points include can these service providers cover potential losses and are regulators forcing service providers into the most secure process. Source.
Orchard has released a comprehensive report analyzing platform data attributes across the marketplace lending industry; the white paper is titled, "Making Loan Data Actionable"; provides insight on varying data management strategies across the industry and explores an accounting standard for alternative marketplace loans; Orchard has taken the lead on marketplace lending data standardization due to its association with the majority of the industry's lending network. Source
This week's PeerIQ update focused on news from the FOMC, a $50mn Prosper fundraise led by FinEx and highlights from ABS East; they also provide a recent update on securitization deals, trends in personal loan originations and a bank partnership between JP Morgan Chase and Bill.com. Source.
Prosper has announced a funding deal which has been in development since August; the firm has received an investment commitment for $5 billion over the next two years from a consortium of investors including affiliates of New Residential Investment Corp., Jefferies Group LLC, Third Point LLC and an entity of which Soros Fund Management LLC is the principal investment manager; the consortium is also being offered an equity stake which could account for as much as 35% ownership in the company and is expected to help promote a long term business relationship; the committed investment will represent a substantial increase for the firm which is likely to report approximately $2.2 billion in loan originations for 2016. Source
ING Bank has come to a 5 year agreement with R3 that...