LandlordInvest has launched the UK's first secured property P2P lending innovative finance individual savings account (IFISA); the firm offers 5% to 12% returns on its loans and investors can now invest tax free with the IFISA; platform investments include bridge loans and term loans for buy-to-rent landlords; most of the firm's loans are for amounts ranging from 30,000 British pounds ($37,895) to 750,000 British pounds ($947,363) with a payoff term of five years; process for offering the IFISA took less than two months with approval obtained by HM Revenue and Customs shortly after the firm's Financial Conduct Authority approval in December. Source
Data from Moody's and the Federal Reserve shows that marketplace lenders are significantly serving small businesses with revenue less than $1 million; demands are differing for marketplace loans from micro businesses versus established businesses with greater than $1 million; micro businesses are seeking longer-term loans while established businesses are utilizing marketplace lenders for lines of credit; source says trend toward marketplace lending and bank partnerships could help to lower rates for small businesses. Source
CAN Capital has deep roots in the credit industry, evolving from one of the industry's leading merchant cash advance services in the 90s; as AdvanceMe, its direct competition with AmeriMerchant was influential in the merchant cash advance industry with AmeriMerchant winning a patent case that invalidated AdvanceMe's patent on merchant cash advance technology, also opening the market to increased entrants in the merchant cash advance business; both companies have now simultaneously reached new junctures; CAN Capital suspended funding in November 2016 and AmeriMerchant, now Capify, has been partially acquired by Strategic Funding Source; Strategic Funding Source has acquired the US operations of Capify in one of 2017's first acquisitions; international businesses of Capify were not acquired and will continue to be led by Capify executives. Source
A new UK bank referral scheme began this week with a focus on nine of the region's largest banks; Lend Academy provides more details in their article; the referral scheme will require banks to refer small businesses to alternative lenders if they are denied credit; creates more opportunities for banks to partner with alternative lenders and also significantly expands credit access for businesses. Source
Consumer borrowing increased by $15.2 billion in February, according to a report from the Federal Reserve; credit card borrowing increased by $2.9 billion helping total credit card debt outstanding to increase to $1 trillion; auto loan and student loan borrowing also increased in February by $12.3 billion. Source
Credibly discusses the evolution of the fintech market and the firm's current market position in their featured blog post; central to their discussion is the integration of data science into all aspects of finance and the intersection of data science and bank partnerships; in what Credibly calls Generation 3.0 of fintech, online lenders are developing lending business models which also include software as a service (SaaS) products that are an extension of their proprietary technology; Credibly discusses the benefits of SaaS technology and the strengths banks present in partnering with fintech innovators; together the user experience is only expected to improve as more partnerships are formed throughout the industry. Sponsored Blog Post
Orchard provides insight on its Q4 2016 originations report which shows total originations of $2.1 billion; data for the Orchard report only includes originators on the platforms that have allowed their data to be shared publicly; from the report, Orchard shows an increase of 10% in originations from the previous quarter which is the first increase since Q4 2015; charge-offs appear to be trending slightly higher in 2014 and 2015 than in previous years which is likely a factor of the entrance of more subprime lenders and could also be the result of broadening credit models; the data also shows borrowing rates trending lower; a breakdown of interest rates by FICO and interest rates by loan size is also provided. Source
China Rapid Finance currently has 1.2 million borrowers on its platform and is seeking to triple its users; it recently received $70 million in funding which will help to support the growth; also wants to increase its users to 10 million over the next two to three years; the firm says it is well positioned to manage new regulations from the Chinese government and it is developing its platform to more broadly target the needs of the country's 500 million residents. Source
The UK's MarketInvoice has reported record originations of 130 million British pounds ($161 million) for the first quarter of 2017; originations increased by 160% from the comparable quarter giving the firm cumulative originations of 1.2 billion British pounds ($1.5 billion); origination growth for the firm has been helped by a new product called MarketInvoice Pro which provides businesses an open funding line for their invoice borrowing. Source
Real estate P2P lending platform Octopus Choice has received full authorization from the Financial Conduct Authority (FCA) in the UK; the FCA approval now allows it to begin the process for offering innovative finance individual savings accounts (IFISAs) for investors; the firm has been in business for nine months; it currently provides secured loans to residential property borrowers. Source