Yirendai launched a new open technology platform at LendIt USA called Yirendai Enabling Platform; the platform will provide solutions for data acquisition, anti-fraud technology and customer acquisition; it is primarily targeted for Chinese marketplace lenders; its capabilities are expected to help marketplace lending companies improve customer experience, increase efficiency, lower costs and mitigate fraud. Source
Chinese regulators have mandated that P2P lenders work with custody banks for depository services; Ping An Bank has announced a third party depository service and provides details in a document titled, "Measures for Third Party Depository of P2P Online Lending Platforms"; the document provides access criteria for lenders and the bank appears to be setting the industry standard for P2P custody services. Source
AmEx has recently begun offering personal loans however its loans are only available to existing credit card customers; the firm says its new product is focused on its premium, high-credit quality card customers; overall, the firm appears to be taking a cautious customized approach to the lending product while also using the new initiative to help improve market share and struggling business growth. Source
Commercial credit data sharing scheme (CCDS) is a market solution providing data sharing for alternative lenders in the UK; the CCDS was launched on April 1, 2016 and is now nearing full integration which means the majority of mandated banks have implemented systems to share their data with UK credit agencies; CCDS will provide current account banking data to credit agencies for approximately 98% of small businesses in the UK which is expected to help improve credit underwriting and broaden credit availability. Source
Fintech innovation is not only being fueled by faster, lower cost alternatives but also by the potential to reach a broader market demographic; while financial inclusion is a current market focus, many lenders have positioned their underwriting for the extreme opposite; American Banker's Penny Crosman analyzes both market extremes; notes the prevalence of current underwriting systems that integrate college degrees attained as a factor for credit approval resulting in a greater number of loans to elitist borrowers; identifies potential reform that could infuse financial inclusion mandates for all fintech companies beginning with provisions in the OCC's fintech charter that require financial inclusion considerations and following with further direction from the CFPB who is currently studying the use of alternative credit data for more inclusive borrowing; if financial inclusion mandates do become requirements it could provide even more momentum for the growing number of inclusive credit providers but also significantly upend a majority of the market's underwriting schemes which are based on algorithmic analysis with variables targeting socioeconomically elite borrowers. Source
The market has reported the first securitization of Lending Club prime loans, the Arcadia Receivables Credit Trust (ARCT 2017-1); the portfolio has been priced by Jefferies and is backed by $220 million of Lending Club prime loans as collateral; the loans come from Cirrix Capital's marketplace lending fund which is overseen by Arcadia; the securitization has two tranches which have both received a rating from Kroll Bond Rating Agency; tranche A includes the majority of the loans with $176.9 million in collateral and a BBB rating; tranche B includes $36.75 million in loans with a BB- rating; PeerIQ provides further analysis on the portfolio and how it compares to other similar securitization deals. Source
Social Finance Inc. has filed as a sponsor for a securitization portfolio of private student loans; SoFi Lending Corporation, will act as the securitizer for the SoFi Professional Loan Program LLC 2017-B (SOFI 2017-B) portfolio. Source
Marlette Funding has filed for a new securitization portfolio, Marlette Funding Trust 2017-1; the portfolio details were filed by Marlette Funding Depositor Trust; associated parties include Deutsche Bank Securities, Citigroup Global Markets and Goldman Sachs; the portfolio will contain unsecured consumer loans originated by Marlette. Source
RateSetter has added additional detail to its annual performance statistics to provide greater transparency; the additional details provide data on loan originations by lending type with a breakdown of consumer and commercial loans; for commercial lending the firm will now also disclose loans to property developers, small and medium size enterprises, and wholesale lenders; the changes were prompted by a request from the Financial Conduct Authority for greater disclosure on wholesale lending across the industry; the update from RateSetter also included a report on a defaulted loan that RateSetter has taken onto its balance sheet to protect investors. Source
Chapman and Cutler provide insight on regulation in marketplace lending in their annual survey publication titled, "The Regulation of Marketplace Lending: A Summary of the Principal Issues"; covers a wide range of marketplace lending regulatory aspects for consideration; includes court case rulings and government involvement; also provides details on the status of marketplace loans as securities, applicable securities laws and more. Source