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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!
- 07/26/2019 Apple and Goldman Sachs Credit Card Targeting August Launch Date (Bloomberg)
Apple and Goldman Sachs have announced a collaboration for the Apple Card. The card is scheduled to be launched in the first half of August as announced by Apple in March. iPhone users will be able to access the card through the Wallet app that shall have an in-built Apple Card support, this shall be accessible with the latest iOS 12.4 update. Apple has designed the card and shall be responsible for the software interface for iPhones, whereas, Goldman Sachs is responsible for the underlying infrastructure, managing payment disputes, handling transaction data and collating information for monthly statements.
US-based mobile banking platform, MoneyLion has secured $100 million in Series C round, led by Edison Partners and Greenspring Associates among other investors that included MetaBank and FinTech Collective. Capital One also made a strategic investment in the company in the same round. The company had previously raised $60 million in venture capital and debt in Q2 2018. MoneyLion is moving closer to the “unicorn” status with its current fund raising round. The company provides both financial advice and access to loans along with other services.
- 07/22/2019 Assetz Capital boosts lending by £300m over 12 months (AltFi)
Assetz Capital, a Manchester-based FinTech company, has originated £820 million in debt to British businesses since its inception, out of which the company has lent close to 60% of loans in last twelve months compared to past 5 years consolidated. The firm connects the lenders with small business borrowers and has also originated 124 commercial mortgages valued at £63m, over the last year. It has around 34,000 investors and has supported the construction of 4,000 houses since 2013. The firm has launched a private fund based in Luxembourg to increase lending opportunities which will be focused on short-term UK loans extended to small businesses; with 90% of the fund deals being based out of London.
- 07/18/2019 Consumer lender Oportun lays groundwork for IPO (American Banker)
The installment loans provider to US sub prime consumers, Oportun Financial Corp is preparing for an initial public offering (IPO). The Company is based in San Carlos, California and filed a registration statement on 17th 2019 with the Securities Exchange Commission that stated the intentions of the company to list its common stock on NASDAQ with a ticker symbol “OPRT”. The number of shares to be offered and the price range for the offerings are in the process of being finalized. The proposed offering shall see Barclays, J.P. Morgan, and Jefferies as the lead book-running managers.
- 07/16/2019 Lendable lands £200m Goldman Sachs funding line (AltFi)
Lendable has added New York’s Goldman Sachs Private Capital to its list of institutional investors and received a funding of £200 million. The company lends to consumers online using machine learning technology. The company is launching a Luxembourg fund in the coming summer, which is the second largest fund investment market after the US. In the previous month, the company received a funding of £500 million from existing and new investors that included Waterfall Asset Management (existing), and NatWest Markets and Varadero European Special Opportunities (new investors).
- 07/16/2019 Lendbuzz FinTech Raises $150M In Debt And Equity Financing (PYMNTS)
Lendbuzz raised $150 million in debt and equity financing, which was led by 83North and had participation from existing investors. The debt funding had BHI, ConnectOne Bank, IDB Bank, Viola Credit in lead. The Company saw its loan origination grow by 320% last year, and spread its dealership networks across the US to target key markets of California and Florida. The current round followed the $30 million debt funding round that was completed last year.
- 07/15/2019 Digital Platforms Are Eating Banking (Forbes)
In the new digital era, fintech platforms are upending the traditional brick and mortar branch banking. Among various varieties of digital platforms that are taking over banking are megabank API tools, marketplace platforms (like Kabbage, LendKey), analytics platforms (emerging in two forms — use case specific and generic), business banking platforms, and core integration platforms (like Avoka, Constellation, Sandbox Banking among others). Existing banks are taking notice and are either partnering with these platforms or are building digital product suites for their customer base.
- 07/09/2019 Fintech Tips: Five things we learnt about peer-to-peer lending from AltFi’s first State of the Market Report (AltFi)
The investors in the UK’s largest and diverse P2P lending portfolio are witnessing a consistent fall in returns after fees and losses in last three years. The returns have declined to 4.1% (at the end of 2018) due to increase in loss rates in the period. This steady decline is healthy loans is in contrast to the available alternatives, considering the 2% consumer price inflation, and the P2P returns that are over the risk-free rate on three-year UK government bonds, that is 0.7%. Statistically, the P2P market is funding over £9bn loans across Europe, where almost 67% (two-thirds) is sourced through UK platforms.
- 07/08/2019 FinTech VC Funding Analysis – Lending, InsurTech and BankingTech Topped the Charts in June 2019 (Medici)
June 2019 saw Fintech startups, globally, raise $2.9 billion (up by 10.1% from 2.67 billion in May 2019) VC/PE investments across 170 deals (up 40.4% from 121 in May 2019). This was led by “lending” with $591 million funding across 30 deals, followed by “InsurTech” with $474.8 million funding across 25 funding deals, “BankingTech” with $448.6 million across 12 funding deals, and finally “Neobanks/Digital Banks” with funding of $228.8 million across 7 deals.
- 07/04/2019 Top 4 P2P lending apps of 2019 and their business models to study for your FinTech app development (Coruscate)
The article focuses on the growth of online lending ecosystem and the top players who have redefined the sector. It focuses on Prosper, Lending Club, Peerform and UpStart. It delves into the individual offerings of each company along with loan origination numbers achieved. It gives a birds eye view with respect to ticket size of the loan offered by the platforms, the expected rate of interest and what to consider before you look to invest with the platform.
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