Online lenders FIP, LLC and Future Income Payments, LLC are being sued by the State of Minnesota; the two lenders target seniors and veterans with pension advance loan products and charge exorbitant interest rates of approximately 200%; the interest rates significantly exceed Minnesota's usury cap of 8%; the court filings argue that the lenders are unregistered and unlicensed to offer loans in Minnesota. Source
StreetShares provides loans for veteran-owned small businesses; following the California bizWin™ and VetBizWin™ initiatives, StreetShares has partnered with the Northern California Financial Development Corporation (Nor-Cal FDC) which will expand its business lending solutions with contract financing; Nor-Cal FDC is a licensed Financial Development Corporation and supports small business capital solutions for more than 3.6 million small businesses throughout California including a focus on companies in the San Francisco Bay Area and Silicon Valley. Source
Stripe, the most valuable fintech startup, has raised another $150 million and is now valued at $9.2 billion; the new round is being co-led by CapitalG, an investing arm of Alphabet Inc., and General Catalyst Partners; Sequoia Capital is also reported to be participating; Stripe is used by businesses to accept and track digital payments. Source
Sunlight Financial has gained a $130 million investment from Route 66 Ventures for expansion of its residential solar systems lending business; the firm plans to develop new financing products, expand its Charlotte business center and partner with more solar installers; the firm is currently a trusted provider for a network of solar installation companies and offers its credit products through an easy to use online platform. Source
An opinion editorial in American Banker makes the case for eliminating the Consumer Financial Protection Bureau; says the agency provides for unnecessary expansion of federal regulatory power; suggests a return to segregated oversight; provides a list of overreaching executive powers in addition to its recent unconstitutional ruling. Source
States have voiced their opposition against the OCC's fintech charter proposal and could be a factor limiting the charter from proceeding; with the charter, fintechs can be granted special purpose national bank status which includes national governance with exemption from state laws; many states have actively integrated regulations and processes for alternative lenders, including state usury laws and regulations for payday lenders; opposing states say the charter would complicate existing state level laws and initiatives. Source
StreetShares has announced a $10.3 million fundraising; the US marketplace lender specializes in funding business loans to companies managed by veterans; the platform has a range of product offerings with loans issued for $2,000 to $100,000. Source
Sequoia Capital, a well-known venture capital investor in technology, has announced executive changes that will empower a new generation of leaders for the firm; in an announcement this week Jim Goetz has named Roelof Botha as his replacement; Roelof Botha will take over Goetz's responsibilities as a Sequoia steward; Alfred Lin will also be replacing Goetz in his role managing Sequoia's United States venture business; Mr. Goetz also provided a letter to investors this week providing more insight on the changes. Source
SuperMoney has developed new auto loan technology to provide consumers with auto lending offers; it signed on 20 auto lenders for the product's launch and is able to provide interested borrowers with options for secured and unsecured loans, refinancings, and private-party auto loans; the firm is seeking to simplify the search process for finding an auto loan and compares its technology to current services for buying an airline ticket. Source
SupportPay is an app that provides a unique solution for managing child support payments; in 2016 the firm was one of only a few female led fintech venture capital fundraises; Sherri Atwood raised $4.1 million for development of SupportPay which offers a digital solution for receiving child support and tracking child care expenses; the increased transparency the child support app provides has helped the firm gain interest from state agencies and legal firms managing divorce cases involving child support. Source