After a successful pilot last summer Venmo has started to roll out instant bank transfers; the service will require a Visa or Mastercard debit card and allow for transfers to be done within 30 minutes for $0.25 fee; the free version of bank transfers will remain; PayPal, who owns Venmo, hopes the instant transfers will help with revenues. 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.
To join our newsletter community please subscribe here.
Google's artificial intelligence unit, DeepMind, is using blockchain technology to build an auditing system for analyzing and storing healthcare data; the system will mainly focus on tracking all of a person's hospital health data and centrally storing it for access and ownership by individuals; DeepMind will also make its system available through open source software allowing for the technology to be utilized for broader solutions including auditing identities, financial records and private corporate data. Source
Flagship Renaissance fund dabbles with bitcoin Trade Republic Raises €62M in Series...
Article shares a story of a $200 jean purchase that was made with the help of point of sale finance firm Affirm; Affirm works with over 1,000 retailers to provide installment loans; merchants benefit since consumers end up spending more, but some critics say it promotes poor consumer behavior; article shares the history of consumer credit and the changes in point of sale financing. Source
After the CFPB proposed slashing credit card late fees to just $8 a month in February, the reaction has been swift and predictable — rage.
The securitization market for marketplace loans has been increasing in recent years, in reviewing the State of the Securitization panel from LendIt USA 2016 we hear about the deals getting done, new risk retention requirements and what issues crop up when selling to investors.
Panelists covered the increase in rated securitizations from Moody's, Fitch and Kroll, noting the overall market is still small compared to auto or credit cards however it continues growing.
The new risk retention requirements will force sponsors to hold a residual of equity interests when in the past some were able to sell off 100%, though it would depend on the sponsor and the deal.
Common issues when selling deals
- Investors want to know how loans are underwritten, serviced and what does loan performance look like
- Length of performance history is a common theme, investors want to know how the asset performs as compared to credit card deals or auto securitizations
- Selling the deal in comparison to a similar asset helps to mitigate questions and analyze loss scenarios
- Investors want to see platforms retain risk
- True lender, Madden v. Midland, they want to avoid a deal that ends up being dragged through court, like many subprime mortgage securitizations
- Servicing needs to have capacity to make calls and get payments in, whether the servicing is in house or outsourced
To hear more about risk retention, please signup for our LendIt Forum scheduled for today at 2:00 PM EST. You can register here.
Check out the full video interview here:
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The highest court in China publishes information on their website of those who have failed to repay loans; debtors are unable to fly domestically, use the high speed train system or enroll their children in private schools; individuals also have a number of other restrictions; the ban works by linking a person’s ID number; the list launched in 2013. Source