The new regulation came from a new state body focused on regulating internet finance; it put a stop to new approvals of offline micro lending companies; companies already in operation may see heavier regulation which has caused drops in the share price of recent IPOs including ZhongAn, Ppdai and Qudian. Source
Former Securities Exchange Commission Chairman Arthur Levitt, Sarah Friar, chief financial officer at Square, and Scott Sanborn, CEO of Lending Club recently spoke on a panel about regulation for fintech companies and recent improprieties; Sanborn noted that sound corporate governance is not unique to fintech, referencing the Wells Fargo story; panelists discussed that regulation is always behind innovation and how regulators and fintech companies may strike a balance. Source
Yesterday, I attended the second annual Online Lending Policy Summit in Washington DC. It was headlined by the Acting head of the...
Today, the Consumer Finance Protection Bureau (CFPB) announced a no-action letter to Upstart, an online consumer lender. A no-action letter...
Chinese regulators are preparing new rules that target the businesses of the country's small-loan lenders; recent rules have capped P2P loans at Rmb200,000 ($28,925) for an individual and Rmb1 million ($144,626) for a company however small-loan lenders fall far below these thresholds and regulators fear the companies do not have adequate risk controls; 2016 data shows China has 8,673 small-loan companies with loans totaling Rmb927 billion ($134.1 billion) and this is in comparison to approximately Rmb673 billion ($97.3 billion) outstanding from P2P lenders; China's small-loan lenders are active in the market, offering a range of lending solutions and reporting small-loan asset securitizations of Rmb82 billion ($11.9 billion) in 2016; as the country continues its focus on tightening regulation for China's P2P lending industry, Li Junfeng, director of the financial inclusion department at the China Banking Regulatory Commission, says it will be specifically addressing new regulations that target the country's small lenders. Source
Randall Quarles, vice chairman for supervision at the Federal Reserve made recent comments about taking a fresh look at regulations; He stated, “History has shown us that, it’s not just a question of where has the risk that we knew moved, but what new risks are developing? I think that in the regulated area … we ought to be looking at what the implications of the growth of fintech ... I think we ought to be looking at cyber, obviously.” Source
Peter Renton, Founder of Lend Academy provides a summary of the second annual Online Lending Policy Summit which covered a wide variety of topics around regulation for fintech companies. Source
The Reserve Bank of India will begin regulating p2p lending firms; the government of India released a notification on Wednesday; the platforms will be treated as non-banking financial companies (NBFCs); article shares the suggested regulatory framework from a paper released in 2016. Source
Today, the Office of the Comptroller of the Currency (OCC) released their long-awaited supplement on the new Fintech Charter. They officially...
Crowdfund Insider provides a roundup of keynote speaker quotes from LendIt USA expressing sentiment from the event; a great deal of attention at LendIt USA 2017 was on the industry's rebound from challenges faced in 2016 including a disturbance of platform confidence following the release of Lending Club's CEO with economic uncertainty and increased defaults also factoring into the market landscape; Scott Sanborn began the conference with an opening keynote speech discussing the exponential market opportunity still ahead likening the market's growth to Amazon's initial market potential; Lending Club's appointment of Sanborn appears to be a critical success factor for the firm and the industry overall; generally market leaders were confident about the industry's current trajectory and government officials reported an increased presence as mainstream integration becomes even more prevalent. Source