5 Minutes Read
MonJa’s Digital Banking and Lending Monthly Roundup – Why Subscribe?
Digital banking and lending is evolving rapidly. Recent fintech-banking partnerships and innovation in technology with the introduction of AI, ML and blockchain herald a new era in lending. Fintech’s are changing the competitive ecosystem, empowering lenders to process loans faster and smarter. In a world full of noise, understanding how the technologies and developments may impact your financial institution’s credit decisions and credit portfolio is of critical importance. With MonJa’s Digital Banking and Lending Monthly Roundup, it’s easy to stay up to date on what’s happening in the space. Get the latest updates, analysis and commentary on digital banking and lending segment!
1) 08/07/2019 SoftBank Vision Fund Leads Fintech C2FO’s $200 Million Round (Bloomberg)
C2FO, a supply chain finance platform recently closed a $200 million round with SoftBank Vision as the lead investor. It has eyes on India, China and Japan for further expansion. Softbank $100 billion fund has invested in UK’s Greensill, a supply-chain financer, OakNorth Bank (UK based digital bank) and Wirecard AG, a German payments company. SoftBank seems extremely bullish about fintech sector in general and lending platforms in particular.
2) 08/12/2019 HSBC Bank USA launches digital lending platform (Finextra)
HSBC USA launched its digital lending platform by striking a strategic partnership with Amount, a leading technology provider. The platform is imbibed with Amount’s technology and digital capabilities. The HSBC’s new platform has originated approximately $6 billion of loans for 800,000 customers. The platform has been customized according to HSBC’s customer base and internal systems. Initially, the platform aims to lend up to $30,000 with tenure ranging from 2-5 years.
3) 08/13/2019 A deeper look into the payroll advance industry (Tearsheet)
Along with 10 other states, New York is now focusing on scrutinizing the lending laws of payroll advance industry. This verification process is expected to look at the business practices of various payroll advance companies including PayActiv, Earnin, Even etc. The payroll advance companies allow clients to have access to early wages and have been sometimes blamed for pushing borrowers into vicious debt circles.
4) 08/14/2019 LendingTree Personal Loan Offers Report – July 2019 (Lending Tree)
APR: America’s largest online lending marketplace offered 9.75% APR to all customers whose credit score is above 760 whereas the borrowers with a credit score from 680-719 had an average APR of 18.19%.
Basis points: This shows an increase of 12 basis points from last month and 230 basis points from last year for borrowers having a credit score above 760 in comparison to an increase of 5 basis points last month and 13% from last year.
Top offers: The top 10% of offers for borrowers with credit score 760+ had an APR of 5.44% on average and loan amount of $17,481 saving $1,316 by consolidating debt with 10% APR over 3 years. The top 10% offers for borrows with credit score 680-719 had an average APR of 7.17% on loan amount of 21,456 and will save $2879 by consolidating debt of 15% APR with a tenure of 3 years.
5) 08/16/2019 Funding Circle surpasses $10bn lent to businesses globally—thanks to the falling pound (Altfi)
Funding Circle, a UK based peer-to-peer marketplace, recently reported its cumulative total lending to have crossed more than $10 billion. United States accounts for 10% and the UK accounts for 30% of the total loan originations.
“We are incredibly proud that Funding Circle has become small business’ first choice for loans,” said Bernardo Martinez, Funding Circle’s US Managing Director.
6) 08/19/2019 Better.com Raises $160M Series C At $600M+ Valuation to Speed up Mortgage Lending (Crunchbase)
The New York based digital mortgage startup closed $160 million in Series C of funding, pushing the valuation to over $600 million.Better.com was launched in 2016 and since then it is disrupting the entire mortgage industry with its best-in-class technology and a commission-free business model. The Company from its inception has funded more than $4 billion in loans and is expecting to lend over $4 billion in 2019 to nearly 20,000 customers. The platform’s existing revenue rate is $120 million, four times more than the $30 million in 2018. The platform also claimed that they are moving ahead of industry averages, where it can close a mortgage 50% faster than the average industry peer.
7) 08/19/2019 Younger businesses most likely to pick alternative lenders (Altfi)
According to a survey, younger businesses headed by younger professionals are gravitating towards alternative sources of finance. Statistics revealed that both the factors (i.e. age of business and age of entrepreneur) are equally important for the firm to go for alternative lending. Almost 65% of companies headed by professionals under 35 choose alternative sources. The survey threw out another amazing statistic. 71% of companies over 35 years old will approach their bank first as compared to just 32% of the firms less than 10 years old. It was also noticed that the IT, telecom and marketing companies are popular sectors who prefer alternative sources for funding.
8) 08/21/2019 PayPal-backed money lender Tala raises $110M to enter India (Techcrunch)
Tala, a California based lending platform, has raised $110 million funding in Series D and is valued over $750 million. It will be leveraging the funds to enter the fast-growing Indian markets. The company launched a 12-month pilot program last year to study the demographics and behavior of Indian customers, and has also setup a technology hub in Bangalore. Till date, the platform has lent over $1 billion to more than 4 million customers. Tala, along with having its expansion plans in India, also aims to target South Asia and Latin America.
9) 08/23/2019 American Express’ Pay It Plan It finds success with Millennials (Tearsheet)
With growing appreciation for convenience of flexible payments, credit cards are optimizing to meet consumer expectations. American Express’s creative program “Pay It Plan It” that was launched in 2017, has been growing strongly. The program has now a 50% millennial participation. The program gave 21 million eligible US cardholders the flexibility to manage their big and small purchases. Also, customers can run 10 active plans at a time subject to 10 purchases of $100 or more into the plan. From the initial positive engagement statistics, the company is expecting to see a tripling in growth, and plans to focus on devising various strategies to communicate it to cardholders including a new advertising campaign with Tina Fey, the famous American actress.
10) 08/26/2019 Real estate startup ZeroDown secures $100 million to buy San Francisco homes for its customers (Housingwire)
Zerodown, a real estate startup has seen a 400% jump in demand since its launch in June 2018. The Company recently raised $100 million in debt financing from Credit Suisse, which it plans to employ to fuel the next stage of the Company’s growth. Also, in going forward, Zerodown intends to create a whole new pathway to homeownership in Bay area with its new and innovative lease-to-own model where customers are required to just pay a flat program fee of $10,000 to the company and no down payment. The lease payments will earn them purchase credits that can be used as a down payment after two years of occupancy.
11) 08/26/2019 LendingPoint Completes $250M Credit Facility with Guggenheim Securities (FINSMES)
LendingPoint, the fintech balance sheet lender, secured a $250 million credit facility arranged by Guggenheim Securities. The credit facility can be extended to $500 million, enabling customers to fetch loans ranging from $500 up to $26,500. LendingPoint with technology and data-driven model envisions offering a stable, predictable performance to its investors in addition to transforming the traditional credit analytics scenario.
MonJa Commercial Lending Technology For Financial Institutions
Request Free Demo Today!