The New York City-based company raised their Series A funding from WisdomTree Investments, Inc., who sees this opportunity as a strategic investment; the deal will set up WisdomTree's asset allocation models to be made available through AdvisorEngine's open architecture platform and WisdomTree will actively introduce the new platform to its distribution network; AdvisorEngine intends to use the funds for the continued development and expansion of its wealth management platform. Source
The UK's Metro Bank has enhanced its digital banking platform and launched new services; the new services include advanced technologies across nearly all aspects of the online user experience; the enhancements follow increased competition by digital-only banks including Starling, Atom, Tandem, Loot and Monzo; Metro Bank opened in 2010 and is also an investor in consumer loans through marketplace lender, Zopa. Source
A new study conducted by the Center for Financial Services Innovation (CFSI) and Core Innovation Capital found that the underserved banking customer paid $141 billion in fees while at the same time accounting for $1.6 trillion in economic activity; the underserved or underbanked are defined as the 67 million who do not use a bank account but use prepaid cards and other alternative finance options to handle their money; according to CFSI president and CEO Jennifer Tescher, the biggest driver behind the fees are auto insurance and subprime installment lending. Source
One of the most innovative banks in Europe is now partnering with Airbnb to allow residential mortgage customers to rent their properties; Metro Bank will allow customers to rent their homes for up to 90 days without any written approval; Paul Riseborough, chief commercial officer at Metro Bank explained, "Our focus is on making our customers' lives as straightforward and convenient as possible and we therefore hope today's news will give our customers the reassurance they need to jump in and take advantage of everything the dynamic sharing economy has to offer." Source
State Street and the Alternative Investment Management Association have released a report on decreased liquidity in the investment market; approximately half of respondents see less market liquidity as a long-term factor and three-fifths of respondents are considering less trading liquidity in their investment strategies; report cites new market entrants, electronic platforms and peer-to-peer lending as reasons for increased illiquidity in the market overall; report says investors are focusing on three areas to adapt to the shift in market liquidity including rationalizing risk, optimizing for liquidity, and implementing new rules and tools. Source
Trust Stamp, who focuses their business on identity authentication that leverages artificial intelligence and blockchain technologies, just raised a new round of funding from Second Century Ventures; the amount of the funding has yet to be disclosed; Trust Stamp uses artificial intelligence software to comb through public records and social media data to provide ID verification to real estate professionals who meet new clients; the new funding will help them to continue building out their technology and integrate blockchain into their processes. Source
ProfitStars, a division of Jack Henry & Associates, Inc., has launched Commercial Lending Center Suite; the new suite offers a comprehensive collection of lending services and solutions designed to streamline the entire loan process from application to complete lifecycle loan management; Russ Bernthal, president of ProfitStars stated, "Commercial Lending Center Suite gives financial institutions the flexibility to customize lending processes to meet the needs of a wider variety of commercial borrowers and compete like never before – empowering lenders with unique solutions and services that address critical lending challenges safely and soundly." Source
In October, CFPB Director Richard Cordray warned banks not to limit access to financial data by third parties working on behalf of the customer; now the bureau he leads is opening an inquiry into a data sharing dispute between banks and fintech companies; the inquiry is focused on consumer choice, security and control; the CFPB believes this will help banks and fintech companies better understand what the customer needs, how to accurately give the customer choice and security, and who ultimately owns the customer's data. Source
Maples Fund Services has announced it will extend its fund administration services to include marketplace lending; seeks to capitalize on the growing number of funds emerging in the space; firm has made significant investment in technology to provide a leading market service which will include reconciliation, loan-level record keeping, third-party valuations, and risk and performance reports. Source
In its Q3 2016 State of Blockchain report, CoinDesk provides insights on blockchain; says blockchain investment is decreasing however significant development efforts continue to occur primarily from major banks and stock exchanges; report also says interest in blockchain from central banks is likely to continue. Source
