Citi Global Consumer Bank's fintech unit has released a new mobile app for the iPhone; app has banking, wealth management and money movement capabilities; it is among the first mobile banking apps to integrate banking, investing and money movement; app features include simplified money transfers and mobile trading capabilities. Source
The partnership will seek to promote growth of fintech startups in Latin America through investment and business development from QED Investors; Scotiabank has a strong presence in Latin America with interest in the region's digital innovation; it will look to QED Investors for customer development and support it in strategic investments. Source
The Securities and Exchange Commission (SEC) has requested that Lending Club provide increased disclosure on its loan portfolio and sources of funds also suggesting they improve non-GAAP reporting which is potentially misleading for investors; Lending Club has agreed to provide more disclosure and evolved its SEC filings accordingly however it has defended its non-GAAP accounting procedures, reporting it did not see the measures as misleading; recent requests for added disclosure as a publicly traded company are included in the SEC's last correspondence on November 4; the items remain open and the SEC's most recent correspondence is in addition to its review of the company following the replacement of its CEO in May. Source
Marketplace lending investments offer limited options for investors seeking to save or invest for their children; Lend Academy provides details in their article; currently UTMA accounts are the only investment vehicle; created from the Uniform Gifts to Minors Act, these accounts can be opened for children under a specified age with irrevocable contributions; the assigned minor owns the assets in the account however they cannot gain complete control of the account until a specified age. Source
A report on China's consumer credit finds that consumers are increasing their use of debt with 94% of consumers using credit or a loan in the past year; consumers are borrowing more from internet-based sources with consumers increasing their borrowing from P2P loan providers while also borrowing more for car loans and mortgages; consumers in their 20s appear to be the leading borrowers as a trend towards living in the moment is motivating their spending habits; the report expects the rise in debt to continue, projecting household loans to increase at a rate of 14% for the next five years. Source
Fitch Ratings has upgraded its outlook for Canadian banks from negative to stable; cites solid risk management, increasing profits and better than expected capital positioning as factors for the upgrade; says recent regulatory changes, slow GDP growth, high household debt and decreasing home prices are still concerns for 2017. Source
Fintech startup, Abaka, raised 520,000 British pounds in seed funding from Anthemis Exponential Ventures and MMI Holdings' Exponential Ventures; the company intends to use the capital to hire new people and launch in the UK; the company uses artificial intelligence to help employees improve financial wellness through a savings platform so they can manage their pension plans on their phones. Source
Community banks are beginning to view potential partnerships with fintech firms as a natural way to compete with some of the larger national banks; while there's not the internal resources available to even consider overhauling their own technology, they view these partnerships as lower cost ways to enhance customer experience or build out their customer base; for their part, fintech firms have been happy to consider any type of bank partnership as a way to help legitimize what they are doing; long term these banks view partnerships as more of a complimentary piece of their business, not a threat to their survival. Source
The Federal Reserve released its Consumer Credit report for October on Wednesday; the report showed an increase of $16 billion in total consumer credit; revolving credit increased by $2.3 billion and non-revolving credit increased by $13.7 billion; the increase resulted in a seasonally adjusted annual rate of growth of 5.2%; at 5.2% the rate is the slowest since June; consumer spending was also down in October with a 0.3% increase signaling caution from consumers in spending and borrowing. Source
Professional services firm, Deloitte, has made its first investment in a blockchain company; Deloitte has invested an undisclosed amount in blockchain startup SETL; SETL and Deloitte recently partnered on the successful use of blockchain technology with Metro Bank payment cards; in regards to the investment and partnership with SETL, Deloitte's CEO Peter Randall said, "Together, we have the opportunity to offer a unique blockchain service to a range of financial services companies." Source
