Global Debt Registry (GDR) will partner with TransUnion for data to enhance GDR's eValidation services; the data partnership will help to improve eValidation's verification for investors and issuing creditors also providing more in-depth analytics on borrowers; GDR President Charlie Moore says, "Their data allows our investors to gain more confidence in the underlying assets through verification, validation and enhanced credit risk tools." Source
UK firm Populous is seeking to provide a new innovative approach to invoice financing using blockchain technology; the firm plans to utilize smart contracts for invoice financing operations which will lower costs and also provide safer and more secured investments with competitive yields; the platform has been in development for 24 months and plans to launch in May 2017. Source
P2Binvestor has raised $7.7 million in a Series A1 funding led by Rockies Venture Club, an angel investor network in Colorado, and Future Venture Capital Co., a Japanese venture capital firm; according to CEO and Co-Founder Krista Morgan, funds will be used to grow operations, sales and marketing departments; improvements to the platform will also be made; Morgan stated, "We're seeing more interest in our model as venture funding hits a two-year low and more entrepreneurs are looking for ways to grow their business while preserving their equity using good-quality, flexible debt." Source
Congressman Patrick McHenry and Congressman Jeb Hensarling have both released comments supporting President Donald Trump's executive order on Dodd-Frank; the executive order on Dodd-Frank signed on Friday outlines core principles for regulating the United States financial system and asks the Treasury secretary and regulators to come up with a plan for replacing Dodd-Frank; Congressman Jeb Hensarling has proposed the Financial Choice Act to overhaul Dodd-Frank; if new policies are enacted it would ease lending requirements for banks making credit more available for consumers and small businesses from mainstream financial institutions. Source
Indonesia's Financial Services Authority has issued regulations for alternative lenders; the regulations are slightly less strict than expected; they require fintech companies to have capital of 1 billion rupiah ($74,239) when registering their business and capital of 2.5 billion rupiah ($187,210) when applying for a business license; the regulations do not set any limits on interest rates. Source
Venture capital investment in marketplace lending is slowing as firms are struggling to become profitable; in 2015 venture capitalists invested $5.2 billion in 132 marketplace lending deals; in 2016 that total is down to $2.2 billion and 65 deals, according to a report from PitchBook Data; Moody's has also reported on a lack of profitability in the sector; with a key focus on achieving profitability it seems there are a few themes that will be important to watch in the industry including investor channels, unified methodology, capital usage, partnerships to increase demand and more reliance on institutional cash. Source
The Financial Conduct Authority (FCA) is proposing that they include P2P platforms in the review of the high cost credit industry; the city watchdog said in a release that there is currently a gap in the regulations for P2P; according to the watchdog this means creditworthiness requirements will be enacted when there is a "significant increase in the amount of credit or the credit limit under a P2P agreement"; the FCA explained further changes could come after this initial review period ends on October 31; John Coley, financial services risk director at PwC, explained to Peer2Peer Finance News, "The FCA has published proposals that potentially have a significant impact on firms operating in the consumer credit sector, these include proposed changes for assessing creditworthiness, feedback on its rules limiting so-called payday-loans, and insights into its continuing work into the motor vehicle finance sector." Source
Australian marketplace lender, SocietyOne, has been growing rapidly in 2016; the firm has now originated $200 million (USD $147 million) in loans since its inception in August of 2012 after reporting a record month of originations in November with lending volume of $15.3 million (USD $11.25 million); in 2016, the firm has originated $126 million (USD $92.66 million), which accounts for the majority of its originations; the firm has hired a new chief marketing officer and has plans for continued growth with a focus on obtaining 2% to 3% of the consumer finance market by 2021. Source
StreetShares is an online small business lender that focuses on veteran-owned small businesses; company has hired a new chief product officer, Heather Tuason; Tuason previously was the senior vice president of small business at Capital One; Tuason stated: "I am proud to be part of an organization so focused on serving its members and in awe at the military drive and passion demonstrated by the StreetShares team each and every day. Veterans have sacrificed so much, and I'm honored to help them build businesses that drive our economy. It's time for veterans and the military community to have fully mobile, fully digital, next-generation financial products." Source
Online marketplaces specializing in lead generation services play an important role in marketing lending products; ThinkWallet, a lead gen platform, provides insight on how lead gen companies are serving online lenders in the current market environment; some of their benefits include lower marketing costs, a wider pool of prospects and better quality leads; a formalized compliance process used by third party lead generation providers is also becoming a greater benefit to lenders as regulatory oversight increases specifically from the FTC and CFPB. Sponsored Blog Post