Prosper is in talks with Chinese conglomerate Linca to sell an approximately 10% stake in the company; according to the source, Linca would invest $50 million in Prosper at a valuation of about $550 million, reducing Prosper's value from approximately $2 billion reported in 2015; plans for its recent $5 billion investment in loans on the platform from a consortium of investors continues and this new deal is reportedly expected to help provide capital for future investments. Source
The OCC has filed a motion to dismiss in a court case filed by the CSBS suggesting that the agency is not authorized to issue the fintech charter it has been drafting to support the growth of fintech companies in the US; the primary argument of the CSBS centers around the issuance of a national charter to fintech companies offering only unbundled banking services with no deposit taking business; in its motion to dismiss the OCC says the CSBS' allegations are speculative given that the OCC has not yet begun taking any applications for a national charter. Source
In a statement defending allegations against its issuance of new bank charters, the FDIC reaffirmed its authority to review and approve applications for US businesses seeking deposit insurance from the FDIC; the criticism comes from the OCC as it continues to develop plans for its national fintech charter; in a podcast interview Friday with a Commodity Futures Trading Commission official, Keith Noreika criticized the FDIC's process for chartering banks, suggesting that the open process was too long and cost too much for requesting companies eventually leading to many withdrawn applications; Noreika also said the OCC has proposed a bill that would take away the FDIC's role in approving newly chartered entities for deposit insurance. Source
OnDeck Capital beat earnings estimates and missed revenue estimates for the second quarter; revenue was $86.85 million, increasing 25% from the comparable quarter; earnings per share were $0.02, increasing from -$0.20 in the second quarter of 2016; loan originations decreased from $589.7 million in the second quarter of 2016 to $464.4 million in the second quarter of 2017; company reported success in acceleration to profitability; expanded online lending partnership with JPMorgan for up to four years; deBanked provides their perspective on the earnings release. Source
Join LendIt for a webinar about blockchain technology and how it can streamline operations for wealth managers and insurance back office operations; register here for the August 14 webinar at 2:00 PM EST; presenters include Jayant Khadilkar, global head of analytics and technology at Tiger Risk, and Ryan Rugg, business development at R3. Source
LendingRobot shares returns for the second quarter; aggregated return for the LendingRobot series was 2.7% year to date; there are currently four risk-based funds in the series ranging from short term conservative to long term aggressive; loans included in the funds are from Lending Club, Prosper, Funding Circle and Lending Home; the series funds are available to accredited investors for investment. Source
Event follows Ethereal Summit hosted by ConsenSys earlier this year; will include panels, live music, discussions and workshops about blockchain; the event will focus on making blockchain technology easier to understand and is being marketed as a culture focused event rather than a technical one; Cointelegraph provides a list of featured speakers. Source
Goldman Sachs has been offering more products to a wider range of consumers; this started with the acquisition of the online deposit platform of GE Capital; the firm is competing aggressively on their deposit rates to grow this base; in 2016 they launched Marcus, their online lending platform, and now have a new lending product called GS Select; product offers loans backed by investment portfolios for individuals that have a Fidelity financial adviser. Source
SoFi reported record earnings and loan volume in the second quarter with revenue of $134 million, adjusted EBITDA of $61.6 million and loan volume of $3.1 billion; in earnings comments, SoFi's CEO, Mike Cagney, was more optimistic about a public offering, mentioning it as a part of a long term plan involved with the search for a new CFO; Cagney also discussed options for offering banking products and said he was optimistic about the approval of the company's application for an industrial loan charter. Source
Join LendIt for a webinar about blockchain technology and how it can streamline operations for wealth managers and insurance back office operations; register here for the August 14 webinar at 2:00 PM EST; presenters include Jayant Khadilkar, global head of analytics and technology at Tiger Risk, and Ryan Rugg, business development at R3. Source