All of the leading online lenders are struggling as the economic crisis...
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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Crowdfund Insider provides a roundup of news occurring in China's alternative finance market; the China Banking Regulatory Commission has released more details on its guidance for online lending partnerships with custody banks; also noteworthy is the potential initial public offering in the US by China Rapid Finance. Source
A survey by FT Confidential Research shows the online lending industry in China continues to consolidate from new regulations; the days of significant growth and platform expansion have ended as the government looks to weed out the smaller players; since 2016 the government has capped borrowing limits, shut down secondary markets and forced platforms to file with local regulators. Source.
CNBC talks with Eyal Lifshitz of Bluevine who says fallouts from public companies have affected valuation discussions noting that investors are more skeptical now after struggles from Lending Club and OnDeck; Lifshitz expects companies will drop out of the market and Schwark Satyavolu, general partner at Trinity Ventures, says the industry is likely to see more acquisitions and consolidation. Source
Summit will be held in Washington D.C.; the Online Lending Policy Institute (OLPI) is one of the leading industry groups to promote regulatory discussions in Washington; the event will be held on September 25 at the Renaissance Hotel; industry participants will share insights, propose standards and have a dialogue with regulators and policymakers; the OLPI was founded by Cross River, the Boston University Center for Finance, Law & Policy (CFLP) and RocketLoans. Source
Synthetic fraud is when fraudsters use a collection of information to create a fake identity for fraudulent loan applications; data verification regulations are also making synthetic fraud more challenging to detect; Auriemma Consulting Group provides three strategic suggestions for online lenders: 1) strengthen front end detection and prevention 2) use data analytics to learn from synthetic accounts and 3) enrich reporting and information sharing. Source
First proposed in June and recently signed by Governor Cuomo the 7 person task force will be focused on reviewing online lending activities in NY; the task force will be chosen by the governor, president of the senate and speaker of the assembly; they will report their findings on small business and consumer lending back to the governor. Source.
Firm offers online mortgage loan comparisons and facilitates mortgage loan services through its platform; firm has been in business for nine months with mortgage loans of 50 million British pounds ($62.17 million); the new funding was provided by Ribbit Capital and Mosaic Ventures; firm says it will use the funds to expand its products and engineering team. Source
43 percent of borrowers applied for a mortgage digitally, up from 28 percent last year but satisfaction scores were down according to J.D. Power; Craig Martin, director of the mortgage practice at J.D. Power, said in a press release, "A critical element of satisfaction is setting expectations, and this tends to be a weakness of technology.”; Customers also rated non bank lenders higher than their banking counterparts as borrowers look to new lenders who provide a more seamless experience. Source.
According to the Wall Street Journal, PayPal and bitcoin have been used for funding Islamic terrorist attacks in Indonesia; the virtual payments were reported to be more difficult to track; the Indonesian Financial Transactions Report and Analysis Center says terrorism financing cases have increased in the country from 12 in 2015 to 25 in 2016. Source