A to Z

Online Lending

Finance News Roundup Online Lending Regulation

·Nov. 1, 2016

New FDIC Guidance Could Help Improve Marketplace Lending Credit Quality

Moody's has released a report commenting on the new FDIC guidelines for bank lending through third-party lenders; guidance from the FDIC is proposed and seeks to potentially improve controls on bank lending through marketplace loans; the new FDIC guidance will help to improve the overall quality of loans on marketplace lending platforms, according to Moody's; the new controls focus on greater analysis and oversight by banks of marketplace lenders' credit underwriting models to ensure that they align with the bank's lending terms. Source

Read Full Story

Europe News Roundup Online Lending

·Jan. 12, 2017

New Industry Association in Development for UK SMB Lenders

The Association of Alternative Business Finance is rumored to be the alternative lending sector's next representative association; the consortium has reportedly been developed by seven balance sheet lenders to represent the interests of their lending group; the association will seek to employ and enhance transparency, responsibility, fairness and security; its criteria for inclusion is primarily focused on business product lending. Source

Read Full Story

Asia/Pac News Roundup Online Lending Regulation

·Nov. 3, 2016

New Korean Regulation Limits P2P Investments for Most Individuals

Korea's Financial Services Commission just issued a guideline that limits most individual investors from committing more than 10 million won ($8,750) to P2P investments in a year; those individuals who have earnings over 100 million won ($87,500) can still commit up to 40 million won to P2P; Korean P2P platforms are complaining that investments in any equity project or loan portfolio tend to be skewed to a few individuals who invest more than 10 million won (60% of investors fall into this category on average across platforms there), therefore the new regulation will drive up funding costs; regulators say this over-concentration of funds from few investors is precisely the trend they hope to curtail. Source

Read Full Story

News Roundup Online Lending Regulation USA

·Dec. 7, 2016

New Law in New York Providing More Support for Transparency in Online Lending

A new law has passed in New York to provide support for online lending; the law includes direction for the development of an outreach campaign that will educate small businesses about marketplace lending; educational materials will come from the Department of Economic Development and the Department of Financial Services and will include simple language detailing potential costs and risks including the disclosure of percentage rates, fees, charges and early repayment options. Source

Read Full Story

News Roundup Online Lending USA

·Feb. 9, 2017

New Marketplace Lender Float Launches in the US

Float will offer credit lines for US consumers in California and Utah; based in Los Angeles the company also announced a $3 million funding round from finance and tech industry angel investors; the company plans to expand to all 50 states over the next six to 12 months. Source

Read Full Story

Asia/Pac News Roundup Online Lending

·Nov. 18, 2016

New Marketplace Lender, OxyLoans, Opens in India

SRS Fin Tech Labs has announced the launch of a new marketplace lending platform in India called OxyLoans; firm seeks to originate $1 billion in loans by 2024; loans will be available in India, GCC and the UK; rates on loans will range from 12% to 36% with loans up to Rs 4 lakh (approximately $5,890). Source

Read Full Story

Fintech News Roundup Online Lending USA

·Mar. 29, 2017

New Models of Raising Debt and Equity Funding: eREITs & More

Offering products to retail investors is something a lot of online platforms have struggled with as they look for diverse funding sources; the panel at LendIt USA 2017 entitled: New Models of Raising Debt and Equity Funding: eREITs & More with Kendall Davis of Fundrise, Jilliene Helman of RealtyMogul.com and moderator Mesh Lakhani of Mark 2 Capital discussed one of these retail options; panelists focused on how they source deals, inbound versus outbound sales teams, and how you must learn to be selective when looking at dealflow; the eREIT is a good portfolio addition for investors, it is long term and lacks volatility; panelists also discussed their thoughts on the new Trump administration and future innovative ideas for their platforms. Source

Read Full Story

Europe News Roundup Online Lending

·Apr. 19, 2017

New Platform Launches in Latvia for P2P Loans

Alfa Finance Group has launched a new P2P lender in Latvia called DoFinance; the platform is available in all EU and EEA countries and will focus on consumer loans; it has over 150,000 registered clients and has originated over EUR16 million ($17 million) in loans. Source

Read Full Story

Europe News Roundup Online Lending Real Estate

·Aug. 3, 2017

New Real Estate Platform Launches

Blend Network is a UK-based company, offering asset-backed property loans to retail, high net worth and institutional investors; officially launching loans on the site two weeks ago, the firm has raised GBP350,000 ($460,115) from a small network of investors; loans are expected to offer between eight and 15% with a minimum investment of GBP1,000 ($1,315); loans are introduced by F&P who acts as a sponsor in the P2P sector; the firm introduces borrowers to a wide variety of lenders and currently works with platforms such as ThinCats. Source

Read Full Story

Asia/Pac News Roundup Online Lending Regulation

·Feb. 21, 2017

New Report Says 90% of Chinese P2P Platforms at Risk

A report from the Beijing Bureau of Financial Work says 90% of P2P platforms will struggle to stay in business in 2017; if their predictions are correct that would reduce the total number of P2P companies from 4,856 to approximately 500; companies will begin to undergo a review by regulators and it is expected that a run on deposits is likely to occur; regulators will be checking for a number of variables including two new requirements: the appointment of a custodian bank and full disclosure of the use of deposits; other factors under review will include risk management, business scale, IT infrastructure, investment sources and shareholders' credibility; firms will either be granted a P2P lending license or be required to liquidate; in 2016 the industry accounted for 800 billion yuan and according to the Beijing Bureau of Financial Work it is likely that 2017 will end drastically different for the industry overall. Source

Read Full Story