Funding Circle and Zopa both discussed the rationale for becoming a bank at the AltFi Europe Summit; Funding Circle's Samir Desai talked about three ways online lenders are collaborating with banks and said, "We at Funding Circle have no plans to launch a bank."; comparatively, Zopa is taking the opposite approach and Jaidev Janardana discussed the firm's bank expansion, noting that the firm will be focusing on savings deposit accounts and will be using deposits to fund loans. Source
President Donald Trump has issued an executive order requiring the Treasury secretary and regulators to come up with a plan to overhaul Dodd-Frank and its over 400 regulations; the banking industry's tighter regulations have been a factor helping the success of marketplace lenders since the financial crisis and deregulation in the sector could create new challenges and increased competition for marketplace lenders; as the government begins to take deregulatory actions for traditional banks it also seems that marketplace lending has reached a phase likely to see increased regulations and involvement from regulators; these two forces along with other market factors could change the competitive landscape for the marketplace lending industry. Source
StepChange partnered with Barclays to urge the government to proceed at pace with regulating Buy Now Pay Later (BNPL).
dv01 and Experian have announced a data partnership that will increase transparency for institutional investors; the collaboration will bring new data to dv01's platform allowing for broader risk analysis of marketplace loans and bonds; dv01's clients include leading hedge funds, banks and asset managers; the data enhancement will specifically provide for better analysis of origination trends, loan performance and borrower attributes. Source
Forbes interviews Perry Rahbar, CEO of DV01 on his previous experience at Bear Stearns during the mortgage crisis and how that brought him to start his new firm; DV01 provides insight and transparency to portfolios of marketplace lending loans; DV01 has also been asked to participate in Lending Club's securitizations; according to Rahbar, "DV01 helps people get a transparent view of what's going on, what's causing problems and what's performing well. Historically, you couldn't do this in an easy fashion." Source
dv01, a company which specializes in reporting and analytics in the marketplace lending industry, has announced an integration with Intex Solutions; Intex is a provider of structured fixed income cash flow models; Intex and dv01 clients will now be able to run cash flows by importing pools of loans from dv01 into Intex's application; according to dv01 CEO Perry Rahbar, "Intex is the leader for cashflows in the structured credit markets, and the completion of this integration brings immediate value to our clients by simplifying and expediting their workflows." Source
Marketplace lending analytics platform dv01 has announced the launch of a new securitization portal called Securitization Explorer; the new product will provide data, analytics and visualization tools for marketplace lending securitizations; in comments regarding the announcement, Perry Rahbar, founder and CEO of dv01, said, "With Securitization Explorer, we are extending the reach of our already robust tools to meet the specific needs of investors in these deals." Source
dv01 provides insight on marketplace lending originations with data from Lending Club, SoFi, Marlette and Prosper; shows 2Q17 originations increasing 21% from 1Q17 and up 52% from 2Q16 with average loan coupons increasing to 14.31%; average FICO has increased from 703 to 711 as firms tighten their credit underwriting. Source
Student loan marketplace lender, Earnest, has completed its fourth securitization; Goldman Sachs and Barclays were the lead arrangers; portfolio valued at $174.44 million; the October securitization is the fourth for the year with previous securitization deals in February, May and July. Source
Online lender Earnest is working with Barclays to find a potential buyer; seeking buyout at approximately $200 million; firm has raised over $300 million since 2013 and grown to 200 employees. Source