lis

Latest

lis

·Jan. 6, 2017

Lending Club’s Average Interest Rates Since 2008

Lend Academy recently highlighted the trends in interest rates at Lending Club in their recent article; Lending Club has changed interest rates five times since late 2015; the recent trend of increasing rates can be seen in the below chart taken from Lending Club's statistics page which tracks average interest rates across loan grades since 2008; higher risk loans have seen the most impact from recent changes in interest rates. Source

lending-club-chart-january-6

Read Full Story

Fintech News Roundup

·Jan. 6, 2017

Ripio Seeking to Promote Financial Inclusion in South America

Ripio, previously known as BitPagos, has secured $1.9 million in funding for expansion in South America; the firm's Series A funding investors included Huiyin Blockchain Venture, Digital Currency Group, Boost VC and Draper VC; the company was founded in Buenos Aires, Argentina and will use the funding for expansion to Brazil and Mexico; currently the firm offers bitcoin and digital wallet services; it targets underserved banking consumers through its wallet app which also aggregates data for microloan approvals. Source

Read Full Story

News Roundup Online Lending

·Jan. 6, 2017

Video: Driving up Lifetime Value by Driving Down Customer Acquisition Cost

Customer acquisition cost is a central tenant to all lenders; in his keynote from LendIt USA 2016, Ken Lin of Credit Karma focused on trends in customer acquisition and ideas on how to improve innovation.

The three main themes he touched on were certainty, transparency and simplicity.

Certainty - 70% to 80% of loan applications are denied, this gives the consumer uncertainty when applying for a loan. Using underwriting to offer a unique loan to the customer can better help them to understand the right loan for them.

Transparency - There are over 6,500 lenders who offer tens of thousands of loan products, this can overload the customer and cloud their understanding. Giving borrowers more insight into their credit profile can help the consumer and force the lenders to differentiate themselves.

Simplicity - On average loan applications still consist of 25 to 50 questions, some can even go up to 100. By making the loan application simpler, consumers will spend less time applying for a loan and have more time to understand and explore the right loan for them.

A few trends and ideas he touched on were the move to mobile loan applications and new innovation in technology. 70% of Credit Karma traffic is driven through mobile and the younger generations use mobile almost 80% of the time. Making sure you give them the proper mobile experience is key.

Additionally, new innovations in technology are helping to drive down costs, including biometric technology such as a fingerprint to help identify who the borrower is and pre populating their information to cut down on loan times.

Check out the full video interview here:

Read Full Story

Fintech News Roundup

·Jan. 6, 2017

Wells Fargo Hires New SVP for Innovation Group

Wells Fargo has hired Peggy Mangot for a newly created position in its innovation group; Mangot will join the bank as senior vice president of the design and delivery leadership team; the innovation group at Wells Fargo was developed to focus on innovation in business models, processes and programs and user experience; Mangot previously worked as chief executive officer of a microinvesting startup platform and also brings experience from Visa and Google. Source

Read Full Story

Europe News Roundup Online Lending

·Jan. 5, 2017

UK Consumer Credit Reaches Highest Level Since March 2005

According to data from the Bank of England, unsecured consumer credit in the UK increased to 1.9 billion British pounds ($2.34 billion) in November and reported its highest level since March 2005; experts believe UK consumers have been increasing debt to take advantage of the market's low interest rates; P2P lenders have benefited from the increased demand for debt, reporting the highest growth rate in unsecured lending over the past five years, according to a November 2016 PwC survey; in the corporate market, businesses reported lower demand for credit with bank lending to non-financial businesses down 767 billion British pounds ($945 billion) in November. Source

Read Full Story

Fintech News Roundup

·Jan. 6, 2017

Follow Up Friday: Fukoku Mutual Life Insurance Company Integrates Artificial Intelligence System

Artificial intelligence innovation is an important focus for many companies in 2017. Fukoku Mutual Life Insurance Company has taken a lead in the insurance market with its announcement to replace 34 workers in its payment assessment department with an IBM Watson artificial intelligence solution. The firm says the Watson system will improve productivity and save approximately 140 million yen ($1.21 million) per year. This is one of the first times we've seen a public announcement of how employees have been replaced as a direct result of artificial intelligence. Source

Read Full Story

News Roundup Online Lending

·Jan. 6, 2017

Lend Academy Article: A Review of Even Financial’s Affiliate Consumer Acquisition Business

Even Financial is a successful online loan comparison service in the marketplace lending industry; firm uses advanced technology and real time data analytics to provide borrowers with a comparison tool for credit options; Lend Academy provides insight on Even Financial's lead generation business in their article; reports that organic leads are more timely in their loan payments and mobile advertising is reaching more borrowers at a lower cost; Brian Brauntuch, vice president of partnerships and operations at Even Financial provides the top five trends in lead generation for 2017 with time to fund being one of the most important factors for borrowers. Source

Read Full Story

Europe News Roundup Online Lending

·Jan. 6, 2017

Zopa Recaps 2016 with Total Lending of 680mn British Pounds

Zopa provides 2016 year end stats; in total they lent 680 million British pounds ($830 million); helped 20,000 people improve their home and 29,000 buy a car; the company also highlights several awards they won including Most Trusted Loan Provider by Moneywise for the seventh year in a row; the company struck many partnerships including offering phone finance with Unshackled, loans through personal finance app Pariti and a partnership with Airbnb; company also launched three new lending products for investors with varying risk and return profiles; in 2016 we also saw the first securitization of Zopa loans and learned of Zopa's plans to apply for a banking license. Source

Read Full Story

Fintech News Roundup Online Lending

·Jan. 5, 2017

Banking and Lending Represent Majority of Fintech Funding Deals in 2016

Data from Financial Technology Partners reports over 1,500 funding deals from over 1,700 investors in 2016; these deals accounted for $36 billion in fintech financing; data by fintech category can be seen in the chart below with banking and lending companies accounting for 29% of the year's total deals; payments, loyalty and ecommerce accounted for 22%; securities, capital markets and wealth management also reported substantial interest from investors with 19% of the deals funded. Source

fintech-funding

Read Full Story

Europe News Roundup Online Lending Real Estate

·Jan. 5, 2017

UK P2P Lender Wellesley in a Struggle for Capital

In December 2016 real estate P2P lender Wellesley began a fundraising campaign on Seedrs and also received a First Gazette notice for late accounts; a recent report from the Financial Times says the company is dependent on raising new capital in order to stay in business; its Seedrs campaign is targeting 1.5 million British pounds ($1.85 million) and has raised 195,000 British pounds ($240,280). Source

Read Full Story