British Business Bank will be increasing its investment through P2P lenders by adding another 40 million British pound ($49.71 million) investment at Funding Circle; the investment follows some skepticism from UK taxpayers about the Bank's investment management of government funds; following the release of the Financial Conduct Authority's interim update on crowdfunding, it was reported that the British Business Bank had 85 million British pounds ($105.64 million) invested in the P2P lending industry with 60 million British pounds ($74.57 million) invested at Funding Circle; in a statement on the new investment, Funding Circle says over 5 million British pounds ($6.21 million) in interest has been earned by Funding Circle on behalf of the UK taxpayer since March 2013. Source
Online Lending
Consumer lenders Lending Club and Prosper are reporting growth in originations; for the second quarter Lending Club loan originations reached $2.1473 billion, increasing 10% from the previous quarter and the second quarter of 2016; Prosper originated $774.7 million worth of loans in the second quarter of 2017, an increase from $586 million in Q1 and $445 million in the second quarter of 2016; both companies had high Q1 2016 originations which has kept first half 2017 totals down in comparison to 2016. Source
It has been reported that Kabbage is interested in acquiring OnDeck Capital. S&P Global recently published an analysis of a potential deal. This week Kabbage announced a new originations milestone of $3 billion since inception. We take a closer look at the originations and pro forma estimates of the two companies provided by S&P Global.
OnDeck's annual originations have increased from approximately $15.9 million in 2008 to $2.40 billion in 2016. Estimates from S&P Global show combined loan originations for the two firms of $3.82 billion for 2016. In addition to synergies from similar balance sheet and securitization funding sources, S&P Global also notes the increased value Kabbage could likely bring to OnDeck's line of credit product. Pro forma estimates put line of credit originations at approximately 50% for the combined entities. Kabbage has considerable expertise in small business line of credit lending and it's a product OnDeck launched in 2013 and has recently been focused on. Source
