Plum uses artificial intelligence to suggest and automate savings for its customers; the RateSetter Plum partnership will add a new savings option for Plum customers; through the platform customers can now choose to automate investment to a RateSetter account with an average return of approximately 4.7%. Source
RateSetter has sold non-performing debt to debt purchaser 1st Credit; source says the sale was for 2.1 million British pounds ($2.6 million) of non-performing loans originated between 2010 and 2015; the sale goes beyond the company's standard plans for default collection and coverage which include support from one of the industry's most well-known provision funds; the RateSetter Provision Fund promises to cover defaults for borrowers and is valued at approximately 22 million British pounds ($27.2 million); with expected losses of approximately 19 million British pounds ($23.5 million) it currently has a coverage ratio of 118%. Source
RateSetter has announced new terms for its lenders which will go into effect on March 1; the new terms provide increased transparency for lending activities; they also give greater flexibility to the Provision Fund through a new stabilization period; changes made to the lender terms since October 2015 can be found here. Source
RateSetter is ending its wholesale loan program after discussions with the Financial Conduct Authority; the Financial Conduct Authority has requested P2P lenders not undertake wholesale lending which provides loan capital to other businesses and financial institutions specifically for the purpose of lending; in 2016, RateSetter reported 114,347,646 British pounds ($142,591,515) in wholesale lending. Source
The Royal Bank of Scotland is closing 158 branches in the UK in an effort to reduce costs; it has continued to struggle since the financial crisis reporting nine consecutive years of losses; the firm has been increasingly integrating automation to cut costs and says it will make a decision on its robo advisory service for mortgage lending by the third quarter; the robo advisory service offers customers advice and insight that helps them decide on a mortgage loan product, also giving them an option to connect with a human advisor at any time during the process. Source
Marketplace lender, PeerStreet, has raised $15 million in a funding round led by venture capital firm Andreessen Horowitz; PeerStreet offers secured real estate loans through its lending platform; the minimum investment is $1,000; investors on the platform include high net worth individuals, family offices and institutions; Andreessen Horowitz's Rampell noted the competitive advantages of PeerStreet compared to competitors included their fast growth and distribution model; he stated, "Most companies that are lending to consumers spend all the money in customer acquisition and it is very hard to get a profit." Source
Online real estate investing marketplace RealtyMogul has announced it will now allow self-directed IRA investment through its MogulREIT I; provides the benefit of passive investment income through a retirement account; MogulREIT I will also now allow for automated dividend reinvestment which can help add to compounding returns for IRA accounts; the product has also announced the inclusion of two new property investments located in San Antonio, Texas and West Chester, Pennsylvania. Source
RealtyMogul has announced it will open its MogulREIT I Fund for self-directed IRA investing; the announcement will give non-accredited investors access to higher performing alternative credit investments for a minimum of $1,000; the Fund has also announced a new dividend reinvestment option and two new property investments. Source
Experian discusses some of the marketplace lending industry's new expectations following a challenging year in 2016 that resulted in decreased confidence in the alternative investments; suggests that the investment and banking communities will increase their focus on platform profitability which has been overlooked given significant growth rates in top-line revenue; notes industry self-regulation from multiple viewpoints including six new industry associations created in the past year; emphasizes the importance of a disciplined approach for data and risk management; reports overall that change within the industry could be good for a number of reasons. Sponsored Blog Post