TransUnion has introduced a fraud solution for businesses; the firm will market IDVision, a comprehensive solution that uses advanced analytics technology to interpret and analyze transactions for fraud detection; the solution can identify and alert businesses of fraud at the time of transaction and also monitor portfolios for fraudulent activity. Source
Shift.com, a peer-to-peer used car online marketplace, has partnered with Hertz to sell the rental car business' cars on its platform; the partnership is changing the firm's business model and providing a bridge for future growth; the platform seeks to offer 20% of its used car inventory from Hertz and will also focus new market launches around new Hertz inventory; the partnership will help to reduce costs of used car acquisition which has resulted in a reduction of 25 employees from the firm's workforce; licensing details are also a factor which have caused the firm to temporarily pause its business in Washington, D.C.; the firm's website currently markets its services in Los Angeles, Orange County, Sacramento, San Diego, San Francisco and Washington, D.C. Source
A New York Times article featuring Ryan Feit of SeedInvest identifies some of the high risks involved with equity crowdfund investing; Feit provides some insight on his platform's due diligence process for listing equity crowdfunding campaigns; noted in the chart below, SeedInvest has posted two of the market's top ten investments; according to NextGen, Wefunder has been the source for the equity crowdfunding market's most successful campaigns. Source
Lend Academy provides a list of the top eight podcasts providing insight on the fintech market; these podcasts can provide a wealth of information on new companies, industry announcements and regulations; Lend Academy lists Breaking Banks as its top fintech podcast; the Breaking Banks podcast is hosted by industry expert Brett King every Thursday at 3:00 PM EST. Source
On Wednesday, the governor of the Bank of England, Mark Carney, said that fintech could signal an end to the traditional bank model; this could also increase herding risks, adding "As those risks emerge, authorities can be expected to pursue a more intense focus on the regulatory perimeter, more dynamic settings of prudential requirements, a broader commitment to resolution regimes, and a more disciplined management of operational and cyber risks."; Mark Carney is also chairman of the Financial Stability Board which will report to the G20 in July on risks and rewards in fintech. Source
AutoGravity's mobile app services can now be accessed by consumers in 46 states; the firm first launched its mobile app in December 2016 for borrowers in California; the mobile app will now allow consumers in 46 states to obtain four financing offers for a new or used car. Source
A report from marketplace lender Funding Options says UK SMEs owe $3.25 billion in value added taxes (VAT); a leading factor affecting tax payments is late B2B payments creating an even greater opportunity for alternative financing in the region; Funding Options is promoting alternative solutions to help SMEs better manage their business taxes. Source
At a panel at The Economist Finance Disrupted conference held in London, three out of four venture capitalists mentioned insurance as an area of most interest to them according to Business Insider; Timo Dreger, managing director at Apeiron Investment Group stated: "Right now we are looking at insurtech. It's for sure the hottest thing in 2016 and for sure the hottest thing this year too. The answer is pretty easy why. In the whole insurance industry, there's a lack of innovation and the user experience is pretty horrible."; while there has been a lot of innovation in the US, there are several notable insurtech startups across Europe; in the US, Oscar, an online health insurance company has raised $700 million. Source
Wealthsimple is a Canadian firm backed by Montreal-based Power Financial and they are looking to launch their robo advisory solution to US clients soon; in accordance with US securities law, Wealthsimple received approval to operate as an investment advisor by the SEC in October 2016; there is no account minimums for their product and the first $10,000 invested will be fee free, anything above $10,000 will be subject to a management fee of 0.5%. Source
The UK's oldest and biggest online lender will be cutting rates by 0.2% across all accounts for the third time in the last five months; Chief Product Officer Andrew Lawson told investors via email that since competitors have been cutting rates they also needed to continue their rate cuts and they could also see this trend continuing; left with a choice of cutting rates or lending to a risky borrower, Zopa opted to cut rates and keep their lending practices static. Source