Square has started to allow some of its Cash mobile app users to buy and sell the cryptocurrency through the app; a Square spokesperson said, “We’re exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash app customers,” as reported by Crowdfund Insider. Source.
American Banker shares their takeaways from their recent conference after hearing from a wide variety of thought leaders in fintech; takeaways include: mobile and mortgages go together, don’t count out banks, the need for simplicity is paramount, small businesses care about digital too and the fintech charter is meh. Source
Goldman CFO Marty Chavez said the bank surpassed $2bn in originations, a mark they were looking to reach by year’s end; the portfolio has an average APR of 12 percent, loans have an average length of four years and the typical amount if for $15,000 as reported by Business Insider; the company estimates they will reach $13bn in lending after three years in operation. Source.
A new report by the Federal Reserve Bank of New York shows that subprime auto loans from nonbank lenders have higher delinquency rates than banks; about 4.4 percent of subprime loans from banks are delinquent while 9.7 percent from nonbank lenders are delinquent; “This suggests that bank auto loans may have some additional layers of underwriting — credit score alone does not explain the gap and divergence in the delinquency rates,” the New York Fed report stated as reported by American Banker. Source.
Prosper recently published their third quarter results; the company grew originations 6% from the previous quarter to $821 million; reported a net loss of $26.9 million largely due to non-cash charges related to warrants as part of the consortium deal announced this year. Source
Citigroup led the $20 million round and the company is now worth $200 million; Citigroup plans to use the startup’s technology which uses natural language processing to improve customer interactions; the software converts audio conversations into text and then uses sentient analysis algorithms to detect questions, and whether it was a positive or negative interaction; it also works to determine bearish and bullish markets for traders. Source
The new API by Fidelity Investments called Fidelity Access will give third parties access to customer data; the idea behind the program is for customers to give apps focused on tax prep, budgeting or portfolio advice access to their Fidelity data; Fidelity believes this will cut down on cyber crime as access will be more secure instead of a user passing along their credentials; they are following a number of other financial institutions who have started similar programs recently. Source.
The Reality Shares Nasdaq Blockchain Economy Index looks to provide an ETF that tracks the growth and development of companies implementing blockchain solutions; they filed for the ETF with the SEC on November 2nd; “The collaboration between Nasdaq and Reality Shares represents a tangible way to track the growth of an industry that may revolutionize the way commerce is conducted, and yet is still in its infancy,” said Fredrik Voss, Vice President of Blockchain Innovation at Nasdaq. Source.
The CFPB asked for more details on which companies consumers use to obtain a free credit score; the agency is looking to help consumers better understand their credit scores and how to potentially improve them; they also want to understand how behavior changes after seeing a free credit score; comments are due by February 12, 2018. Source.
A recent report titled Three Myths About Peer-to-Peer Loans by the Federal Reserve of Cleveland makes some dubious claims about the marketplace lending sector; Lend Academy shares information from the report and questions the data provided. Source