During the week I share the latest marketplace lending news on Twitter...
News Roundup
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During the week I share the latest marketplace lending news on Twitter...
During the week I share the latest marketplace lending news on Twitter as it...
During the week I share the latest marketplace lending and fintech news...
During the week I share the latest marketplace lending news on Twitter...
Marketplace lending platforms have offered investors a viable alternative for fixed income market returns however their disclosures and reporting standards are continuing to evolve; while these disclosures can vary by platform, Rupert Taylor from AltFi says lenders should consistently ensure that there is alignment between investors and originators, also noting that, "Lenders should seek platforms that can demonstrate that their overriding motivation is to originate loans at an interest rate that adequately compensates for the risk of default."; appropriately assessing a platform's returns is important for investors and Rupert Taylor advocates for increased demand from investors for platform performance transparency. Source
Nava Finance Ltd. has announced plans to launch a new marketplace lending platform in the UK in 2017; the platform will be called Nava and will focus on near-prime consumer credit loans with investment only from institutional investors; the founders believe their experience and credit underwriting models can provide competitively priced loans for borrowers and competitive market returns for investors. Source
TechCrunch analyzes rates at marketplace lending platforms, identifying a trend towards increased delinquencies and borrowing rates for lower credit quality borrowers; platforms have been increasing rates for lower credit quality consumers to potentially offset some of the higher risk of defaults; analysts have speculated that the changes occurring in the lower credit quality categories could be a sign of recession however other economic factors appear to be stable; TechCrunch identifies a significant change occurring in the labor market that could be influential for borrowers over the long term; the automation of jobs is affecting the labor market and the result could disrupt a number of historically stable industries while also changing the tech industry substantially. Source
JPMorgan asset-backed securities (ABS) analysts have highlighted marketplace lending securitizations, noting their growth and trending performance; cite marketplace lending ABS as one of the fastest growing securitization categories, increasing from $3.3 billion in 2013 to $9 billion in 2016; also say performance is better or similar to the broad market's ABS consumer loan securitizations overall with higher returns and lower default rates; additionally, the analysts report that credit characteristics on Avant's securitizations have improved. Source
Wilmington Trust provides insight on the marketplace lending industry in their featured blog post; the blog post includes an edited version of a panel discussion on the growing opportunity for institutional investment in the industry; discussion includes how the industry is defined, its borrowers and lenders, and its outlook. Sponsored Blog Post