PayPal will offer loans to larger businesses that process payments with its platform and have access to new firms as a result of the acquisition; Swift Financial was founded in 2006 and extends credit with loans and advances; term loans of up to $500,000 will now be available to businesses; Darrel Esch, vice president and commercial officer of global credit at PayPal, stated, "This is an area where customers have been asking for more."; terms of the deal were not disclosed. Source
The chart below shows the stock performance for Lending Club versus OnDeck since May 16, 2016, which is the day Lending Club's stock bottomed out after their CEO resigned; Lending Club is up 64% and OnDeck is up 8%; both companies have taken a hit this week after earnings, largely due to profit taking.
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
Hexindai sees credit market opportunity in China worth 10 trillion RMB ($1.46 trillion); provides insight on the market in their featured blog post; with high net worth clients primarily served by traditional channels the firm is targeting the country's underserved population; says new and evolving technologies will be a factor helping emerging service platforms like P2P online lending gain market share. Sponsored Blog Post
European online lender Spotcap has received A$20 million (USD$15.15 million) from New Zealand Bank, Heartland; Spotcap has also launched its platform in New Zealand and will be accelerating growth in Australia, helping to expand its business in the Asia Pacific region; Spotcap's lending targets small and medium enterprises with credit lines and loans of up to $250,000. Source
Daimler Financial Services plans to invest 'double-digit' millions of euros in AutoGravity's vehicle financing platform; the investment will support Daimler's digital services financing portfolio; in January AutoGravity's app was launched in 46 states and it has now reported over 150,000 app downloads; it currently provides consumers with four auto financing offers. Source
Landbay will add Positive Lending to its distribution network; Landbay has a comprehensive suite of services for its intermediaries and is also supporting them in advance of the UK's September PRA portfolio landlord changes; Landbay is a UK specialist buy to let mortgage lender authorized by the FCA and involved with the P2PFA as one of its members. Source
ThinCats has received endorsements from the National Association of Commercial Finance Brokers (NACFB) and Defaqto for its business operations in the P2P lending industry in the UK; the NACFB has recognized ThinCats for its best practices within commercial finance brokerage activities and ThinCats has joined the NACFB as a patron; ThinCats has also been recognized by Defaqto with a 5-star rating for product quality and comprehensiveness. Source
VeriComply provides automated loan verification services for the marketplace lending secondary market; the firm has hired former Lending Club executive Roger Dickerson as its new president; Dickerson brings experience in investor operations and marketplace loan securitizations; he will be leading VeriComply's efforts to support marketplace loan sales and securitizations through its automated loan verification services. Source
Canadian online lender LendingArch is building out its financing capabilities with the launch of a new solution for medical expenses; the company seeks to provide financing solutions for debt consolidation, home improvement and other areas of personal growth; the medical expenses product will broaden the firm's scope and help support consumers in managing out of pocket medical expenses; customers can access the loan solution individually or at a clinic location; the platform's loans allow for immediate payment to clinics and offer financing terms ranging from 12 months to three years. Source