PPDAI plans for an IPO this month and co-founder Shaofeng Gu owns more than 25% of the business; Ning Tang of Yirendai, a US listed public company, owns 36% of the company; This year three Chinese fintech companies have gone public, raising $2.45 billion; Bloomberg provides data on the rise of the wealthiest billionaires in China. 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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CoinDesk has created a list of the top 5 analysts and top 5 traders; CoinDesk considered Twitter followers, published analysis, charts produced, industry experience, incumbent financial industry experience and votes from the Blockchain Q3 Sentiment survey. Source
Big banks like J.P. Morgan Chase and Wells Fargo have developed new mobile only banking apps in an effort to attract younger customers; “It’s about helping people start in banking and doing it in the way that fits their lifestyle,” said Steve Ellis, executive vice president and head of the Wells Fargo Innovation Group, to Business Insider; the banks are looking to get users at a younger age then keep them over the lifetime with additional product offerings; focusing on the consumer experience and new technology will help the banks to claw back some of the market that fintech companies have taken. Source.
Intuit has launched a new lending product called QuickBooks Capital; clients of the accounting software provider will be able to access up to $35,000 in credit with terms between three and six months. Rania Succar, head of QuickBooks Capital stated, “As the largest small business accounting platform with approximately 2.4 million customers, the QuickBooks platform provides the most complete set of small business data available in the market.” Source
In October SoFi launched an offering targeted at medical school graduates; American Banker shares how the move is just the latest example of how lenders use data to tap into new borrower niches; the average debt load of medical school graduates is $190,000 and during residency salaries are around $60,000; since their income is low traditional lenders often won’t refinance these loans; with the new product residents can consolidate their debt and make a $100 monthly payment until they finish training. Source
Yesterday LendingClub released their Q3 earnings; they originated $2.44 billion in loans, up 14% from the previous quarter; revenue was on the lower end of projections, but the company had a lower GAAP loss than expected; Lend Academy shares other highlights from the earnings call. Source
Sizable fintech companies should face the same regulator scrutiny as banks according to China’s Central Bank; this follows what the PBOC said in August, that internet finance companies should be included in the Macro Prudential Assessment framework which was designed for banks; having banks and fintech companies operate under the same rules could streamline regulation. Source.
The cryptocurrency space is a space we believe in,” CBOE’s chief operating officer told analysts in a call on Tuesday according to the FT; they also noted that the CBOE is in talks with the CFTC to offer futures on bitcoin; this move follows what the CME said last week that it planned to add bitcoin as well. Source.
While regulators have shut down exchanges the market is still showing signs of life as investors are trading bitcoin and buying into ICOs; investors are using the price over the counter market to buy and sell cryptocurrencies; investors are also using messaging apps like WeChat and Telegram to get deals done; bitcoin miners are where the authorities have found greater success as there has been a big hit to miners since the crackdown occurred. Source.