DocuSign will now be a federal technology provider as it was certified by the Federal and Authorization Management Program (FedRAMP); the company is the first and only e-signature company authorized for use; the FCC will be the first to use DocuSign for procurement and human resources; DocuSign has previously worked with local government agencies. Source
Coming up with a 20% down payment on a home can be quite a challenge, San Francisco based Unison is looking to offer help to these prospective buyers; a Unison deal typically involves the homebuyer putting down 10%, Unison putting down 10% and the remaining 80% would be borrowed; Unison charges a 2.5% fee and shares in 35% of future appreciation or depreciation; this allows for the homebuyers to keep payments lower and save on private mortgage insurance (PMI), which is required if the loan to value exceeds 80%; "We are partnering with the homeowners by investing alongside them in the house," Unison Co-CEO Jim Riccitelli told the San Francisco Chronicle; the Unison offering looks to replace local bay area assistance programs offered to lower income household and first time buyers. Source
Orchard reports on the diversity of business lending, breaking lending down by industry and state using data from Orchard; reports that they have the most data on retail trade followed by health care and social assistance, and construction; shares the concentration of lending of several industries by state. Source
Gellman is the firm's first chief marketing officer; he joins the firm from Esurance and also has experience at Wells Fargo; Credible is a personal finance marketplace that provides offers for student loans and personal loans; in July it also announced a credit card marketplace; Gellman will help the platform expand its business and continue to focus on supporting its customers. Source
In an opinion piece on American Banker, General Counsel of US Century Bank argues that community banks could gain a lot from using blockchain technology; unlike big banks they don't have resources to test ideas and spend millions of dollars; pooling their resources or joining a consortium would be the best way forward to begin to test usages of the technology; engaging with the big four bank vendors is another idea; FIS, Fiserv, Jack Henry and D+H provide the core banking software at most banks and ensuring a dialogue with them is crucial; increased efficiency can help community banks stay competitive in an environment that is becoming more crowded by the day. Source
The Volcker Rule was enacted in the aftermath of the 2008 financial crisis to prohibit banks from some of their riskiest activities; the rule is having a damaging effect when it comes to smaller banks who wish to work with fintech companies; according to the rule, banks cannot engage in proprietary trading and it limits banks from making investments in hedge and equity funds; smaller banks like community banks and credit unions don't have the resources of big banks to build out new technology so they look to partner with fintech firms; the limitations force these banks to invest in individual companies rather than funds who could potentially invest in a portfolio of companies; policy makers are looking toward Volcker Rule adjustments and the OCC recently signaled changes could be coming soon; while regulation has helped to curb abusive practices in financial services it would help to tailor legislation in a more specific fashion. Source
Most significant banks have a mobile app with features that allow individuals to conduct close to their entire banking life on their phones; keeping up with the operating systems from Apple and Google is a challenge for the banks; banks are not as nimble as fintech startups and so there is a lot more detailed of a process to go through when making technology updates; banks have learned that 80% of users update operating systems within the first month of a new release, which puts pressure on the banks to act quickly; talking to American Banker about staying current, Alice Milligan, the chief customer and digital experience officer of Citi's global cards business, said, "This requires us to stay at the cutting edge of device and operating system developments in the industry."; prioritizing what features are most important is key, not everything can get done quickly and this forces banks to make difficult choices; as more people use technology in their financial lives, banks and fintech companies will need to make sure they try to stay ahead of the curve. Source
Prosper's originations were $775 million in the second quarter of 2017, up from $586 million in the first quarter; adjusted EBITDA was $6.7 million in the second quarter and the company was cash flow positive; Prosper had their first profitable quarter in Q3 of 2014 before growing significantly and subsequently falling back into the red; whole loan sales represented 94% of total volume in Q2; Prosper has originated a total of $9.7 billion in loans; Prosper also announced closing a $500 million securitization; PMIT 2017-2 was rated by Kroll Bond Rating Agency, Inc. and Fitch Ratings with the Class A pool receiving an A rating. Source
RealtyMogul offers accredited and non-accredited investors debt and equity real estate investments through its crowdfunding platform; the firm has now raised over $290 million online from over 135,000 investors; Crowdfund Insider talks with Co-Founder Jilliene Helman who recently won LendIt's Fintech Woman of the Year award. Source
Science Blockchain is the first incubator ICO to go to market; Argon Group will be advising the ICO; Science Blockchain began in 2011 and they have co-founded and invested in over 70 companies; they aim to take their expertise to help select blockchain entrepreneurs; token holders will get access to new tokens from incubated portfolio companies; investors will also benefit in any upside from owning Science Tokens. Source