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LendIt Fintech News: Daily Coverage of Fintech & Online Lending


New Upgrade Card Could be a Game Changer

A new kind of card launches today from Upgrade combining the best features of personal loans with the utility of a credit card

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When Renaud Laplanche started Upgrade in 2017 there were high expectations that the fintech pioneer would be breaking new ground with his second startup. After leading LendingClub from inception through IPO to the leading personal loan provider in the country everyone wondered what he had up his sleeve with Upgrade.

At his LendIt Fintech USA keynote in 2018 Renaud first teased us with his idea of the revolving personal line of credit. And he then confirmed earlier this year in his 2019 LendIt keynote that an Upgrade card was coming. Today is the day, the Upgrade Card has officially launched and it could be a game changer for the industry.

I caught up with Renaud earlier this week to discuss this new card and what it means for Upgrade and for the future of credit cards. He first pointed out that the concept of minimum monthly payment, that is a feature for most credit cards, is such a bad idea for consumers. It is detrimental to consumers’ financial health because it can take decades to pay off a credit card balance and result in a total payment often more than double the original amount.

He argues that this kind of credit card is fundamentally flawed and that a new approach is needed. He said:

I am genuinely more excited about this product than when I first launched online personal loans over a decade ago. We have refinanced tens of billions of dollars in credit card debt but still the overall outstanding balance keeps increasing. It feels good to get to the heart of the problem and create a more responsible card.

How Upgrade Card Works

You can think of Upgrade Card as a cross between a traditional credit card and an installment loan. Once they pass underwriting a customer is approved for a credit limit as you would expect. The difference is how the outstanding balance is paid back. Also, to be clear Upgrade is not calling this a credit card, it is simply Upgrade Card because they want to position it as a better alternative (an upgrade if you will) to a credit card.

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Planning for LendIt Fintech USA 2020 is Underway

The biggest show in lending and digital banking returns to New York City next year, launch pricing ends Friday

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Even though we are still nine months away the LendIt Fintech team is already hard at work producing our biggest event of the year. LendIt Fintech USA will be held in New York City on May 13-14 next year at the Javits Center. After two years in San Francisco we will be back in the finance capital of the world where we are expecting our biggest audience ever.

Registration for LendIt Fintech USA opened earlier this month and we have already had a flurry of activity with many people taking advantage of the special launch price of $1,695. That is a savings of $1,300 off the full price of a ticket. But to take advantage of this steep discount, you need to act soon. The launch pricing will end at midnight on Friday, so register now.

What will we be covering next year? Regular attendees will know that we have the broadest and deepest content in both lending and digital banking and we will continue that next year. Here is an initial look at the themes we will be building our agenda around:

New Themes
  • The Small Business Fintech Ecosystem
  • Revolution at the Point of Sale
  • New Approaches to Capital for Growth Businesses
  • Digital Banking Goes Mainstream
  • New Systems for Identity and Trust
  • Applying Fintech to Financial Wellness
Back by Popular Demand
  • Credit & Underwriting Innovation
  • The Latest in Consumer Lending
  • How Small Business Lending is Evolving
  • Digital Real Estate Offerings
  • The Evolution of Fintech Partnerships
  • How Regulation Can Keep Up With Fintech

We are just starting outreach to potential speakers so if you want to be part of our exclusive speaker roster please submit your idea here. We are pleased to have already secured our first three keynote speakers: the Chairman of the FDIC, Jelena McWilliams, Jo Ann Barefoot of Barefoot Innovations Group and Rishi Khosla of UK fintech unicorn OakNorth.

Lend Academy Readers Always Receive a 15% Discount

As always, as a Lend Academy reader you can save an additional 15% off the already discounted launch price. When you register just enter the code LENDACADEMYVIP at checkout.

We look forward to seeing everyone when the industry gathers for the 8th annual LendIt event next year in New York City.

Introducing LendIt’s New Latin American Event in Miami

FINNOSUMMIT Miami by LendIt Fintech will take place in Miami on December 3-4, launch pricing ends tomorrow

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FINNOSUMMIT Miami by LendIt Fintech

One of the hottest areas on the globe right now for fintech is Latin America. There is plenty of VC money flowing into this region and fintech is getting the lion’s share. And the debt investors are also beginning to focus on Latin America. Brazil’s leading digital bank, Nubank, became the most valuable private fintech company on the planet (outside of China) when it secured its latest funding round. And there are many other fantastic success stories throughout the region.

Many of you have reached out to us at LendIt Fintech asking us to bring our unique event experience to the Latin American market. For these reasons, last week we launched of our first ever Latin American event. We are partnering with Finnovista, the leading fintech event company for Latin America, to bring you FINNOSUMMIT Miami by LendIt Fintech. This English language event will take place in Miami on December 3-4 at the JW Marriott Marquis.

We have already secured keynote speakers from some of the leading companies in the region such as Creditas, Clip, Softbank, Guiabolso and we are just getting started. We will be covering the digital banking ecosystem, lending innovation, payments and the cutting edge of fintech. If you are interested in speaking please fill out a speaker application.

Launch Pricing to FINNOSUMMIT Miami by LendIt Fintech Ends Friday

The special launch price of $795 for this new event is in effect until August 16 (that is tomorrow as I publish this). As always, as a Lend Academy reader you can receive an additional 15% discount by using the code LENDACADEMYVIP at checkout. The discount code is always good for 15% off but you will receive the best pricing if you purchase before midnight on August 16. You can register now on the LendIt website.

LendIt Fintech Releases New White Paper on Small Business Banking

New 22-page white paper explores the next frontier of fintech innovation: small business banking

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Much has been written about the innovations in consumer banking and how fintech has changed the retail banking landscape dramatically in the past decade. This rapid pace of change is about to hit small business (SMB) banking. So, here at LendIt Fintech we decided to produce a new white paper completely focused on SMB fintech innovation.

In the white paper we focus on a number of themes including:

  • Accelerating innovation in the small-to-medium-sized- business banking market
  • SMB expectations for enhanced services
  • Bank and fintech strategies to serve this market
  • Mobile banking designed for SMBs
  • A vision for the future of SMB banking

Our research team conducted numerous interviews with senior executives at a variety of banks and fintech platforms. They also analyzed product launches and partnerships from scores of global financial institutions including JPMorgan Chase and Wells Fargo.

The small business banking landscape is set to change as new tools become available and SMB owners adjust their expectations based on the consumer friendly products they see in retail banking. No longer satisfied with the banking services rooted in the 20th century SMB owners are driving change. But they don’t want everything automated they want a combination of high tech and high touch.

You can download the 22-page white paper here.

Broad Mix of Thought Leaders to Present at LendIt Fintech USA 2018

We are quickly approaching LendIt Fintech 2018 which will take place on April 9-11 in San Francisco

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Many regular Lend Academy readers are aware that our sister company, LendIt is hosting its next event in a few weeks. LendIt has been hosting events since 2013 which bring the fintech community together. Today, LendIt, now branded as LendIt Fintech is the leading event in financial services innovation. In April, we will host the largest ever fintech event in San Francisco.

From the very beginning we’ve thought of ourselves as a little bit different in the event business. By hosting events in New York and San Francisco we are closer to the innovative companies that make up the industry. And now, more than ever, we are seeing interest from incumbents in financial services who come to see how they can work with fintechs whether it be through partnerships, or through mergers and acquisitions. It is a fascinating time to be part of financial services and LendIt is in a unique position as the place where companies across the ecosystem connect.

Part of the job for the team who also write on Lend Academy is crafting the agenda. We have some exciting new names that we wanted to share for those who plan to attend our upcoming event. As we were thinking about broader topics we targeted the three areas that we feel are most important in fintech today: Lending, Digital Banking and Blockchain.

Lending

Lending has been the bread and butter of LendIt events from inception. As online lending has grown up, so too has LendIt. In the early days there were just a handful of early companies who were thinking very differently about how lending should be done. There is now a healthy ecosystem that has been built around the lending industry. At LendIt Fintech USA 2018 we’ll cover all verticals of lending. Many people are familiar with LendingClub CEO Scott Sanborn who will kick off the event. While we will cover every aspect of lending, here are a few other notable speakers:

  • Jay Farner, CEO, Quicken Loans
  • Max Levchin, Co-Founder & CEO, Affirm
  • Anthony Noto, CEO, SoFi
  • Renaud Laplanche, CEO, Upgrade

Digital Banking

Every bank needs to have a digital strategy these days. Consumers have more options than ever and companies need to check all of boxes no matter what size bank they are. We’ll hear a wide range of perspectives from startups to established banks looking to serve a younger customer base. This track will also cover mobile technology, banking infrastructure, data science, partnerships, wealth management and how banks can compete in the ever changing marketplace. Below are just a few names that we’ll hear from on digital banking:

  • Yolande Piazza, CEO, Citi FinTech
  • Suresh Ramamurthi, Chairman & CTO, CBW Bank
  • Luvleen Sidhu President, Co-Founder & Chief Strategy Officer, BankMobile
  • Jeremy K. Balkin, Head of Innovation, HSBC Bank USA
  • Nicolas Kopp, U.S. CEO, N26 Inc.

Blockchain for Financial Services

For 2018 we looked at one of the biggest new trends in financial services, blockchain and decided to create an event within our event. We are debuting our new blockchain event Blockfin by LendIt. Blockfin is co-located within the LendIt Fintech event meaning attendees have access to both events. We teamed up and are co-hosting the event with CryptoOracle. BlockFin brings together the top innovators and experts from the entire blockchain ecosystem including technology platforms, crypto companies, investors and banks for 2 1/2 action-packed days of learning, networking and business development. The event will include: 1:1 investor meetings, a demo stage for crypto funds & ICOs and 40+ hours of cutting edge blockchain and cryptocurrency content. Some names we are excited to hear from include:

  • Tim Draper Founder & Managing Director DFJ
  • Richard Craib, CEO, Numerai
  • Tom Ding, Co-founder & CEO, String Labs/Dfinity
  • Vincent Wang, Chief Innovation Officer, China Wanxiang Group
  • Kathleen Breitman, Co-Founder, Tezos
  • Catherine Wood, CEO/CIO, ARK INVEST

This is just a taste of what you can expect out of LendIt Fintech USA 2018. You can learn more by visiting our speakers page or looking at sessions confirmed on our agenda. If you plan to attend the event, be sure to act soon as the price increases by $400 on Friday night. As a Lend Academy reader you can use our special discount code “LENDACADEMYVIP” for an additional 15% off.

We hope to see you in San Francisco in April.

Nominations for the 2nd Annual LendItFintech Industry Awards are Live!

Next year the LendItFintech Industry Awards Dinner will recognize leaders in fintech.

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Since its inception, LendItFintech, a sister company to Lend Academy, has been more than just a conference producer. We pride ourselves on our written content both here at Lend Academy as well as the conference content at our events across the globe. We engage with the industry on a deep level to create the best events possible.

Last year when we were determining which new projects we should pursue we decided to dedicate resources to put on the inaugural LendItFintech Industry Awards Dinner. The entire LendItFintech team put on a fantastic event. It was great to recognize the companies leading in all areas of fintech and the executives that run those companies. You can view last year’s winners here. The atmosphere of the event is best captured in our recap video below.

The team is already hard at work putting our 2018 event together. Yesterday, we announced that nominations for the LendItFintech Industry Awards Dinner are now open. The dinner will be held on April 10, 2018 at One Market in San Francisco and the event will celebrate 500+ Fintech influencers and innovations and their outstanding achievements in 21 categories. We encourage fintech companies from around the world to apply for the categories that are the best fit.

  • Fintech Innovator of the Year
  • Executive of the Year
  • Fintech Woman of the Year
  • International Innovator of the Year
  • Top Consumer Lending Platform
  • Top Business Lending Platform
  • Top Real Estate Lending Platform
  • Emerging Lending Platform of the Year
  • Top Fintech Equity Investor
  • Most Innovative Bank
  • Most Promising Partnership
  • Most Innovative Mobile Technology
  • Top Professional Services Company of the Year
  • Top Investment Bank in Fintech
  • Best Journalist Coverage
  • Blockchain Innovator of the Year
  • The Most Innovative Token Economy
  • Excellence in Financial Inclusion
  • Top Emerging Technology Company
  • Top Enterprise Company
  • Most Successful Cross-Border Partnership

We have already confirmed thought leaders from the industry who will be judging the various awards categories. Beyond recognizing the success of the companies chosen as winners, the event serves as a unique networking opportunity. We hope to see you there next year!

Prosper Closes on a $50 Million Funding Round at a $550 Million Valuation

The Series G funding round came from a Hong Kong investment fund

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Back in the heady days of early 2015 the marketplace lending industry was running at full throttle. Every company was growing fast and raising money at fantastic valuations as there seemed to be a bottomless pit of funding available for everyone.

It was against that backdrop that Prosper raised $165 million in April 2015 in a funding round that valued the company at a whopping $1.865 billion. As we now know the industry came crashing down to earth in 2016, the money dried up and valuations went down. Good companies have still been able to raise money but often at lower valuations than in 2015.

Earlier this week Prosper closed on a Series G transaction where they raised $50 million from an investment fund co-managed by FinEx Asia and LPG Capital based in Hong Kong. While Prosper would not confirm their new valuation sources said the post money valuation was $550 million. This represents a 70.5% drop in value from their high in 2015. So the rumors from last month are true.

At first glance one might think this is a bit of a disaster for the company to have dropped in value so much. But let’s look at Prosper’s closest competitor, Lending Club, for comparison. On April 2, 2015 Lending Club was trading at $19.26 a share. Yesterday the shares closed at $6.10 which is a 68% decline in valuation. This is pretty much in line with the decrease in valuation at Prosper.

Here is what CEO David Kimball said of this funding round:

This investment is a strong signal of confidence in our business fundamentals and the momentum we are seeing right now. Over the past year, we’ve shown that we can build a sustainable business that continues to redefine the online lending experience for our borrowers and investors. We believe this partnership will open up additional opportunities for our business as we continue to grow.

A spokesperson for Prosper told me that the money will not be used for operations but rather for new projects. Prosper is now cash flow positive with liquid assets of around $42 million as of Q2 2017. There was no dire need to get this funding round done but it will be helpful for them as they look to grow in a sustainable way.

My Take

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LendIt Europe Agenda Released, Discounted Pricing Ends Soon

Tomorrow is the last chance to receive the summer pricing discount for LendIt Europe 2017

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LendIt holds the largest lending and fintech conferences across the globe and is also a sister company to Lend Academy. Each year we hold three events in the largest fintech markets: US, China and Europe. Our European event is just around the corner, taking place on October 9-10 at the InterContinental London at The O2. We’re excited to be holding our fourth European conference and the team has been hard at work to make this our best event yet.

Similar to our US event, we’ve broadened the scope of topics covered. Some of the new topics we’ll be digging into include AI, biometrics, blockchain and financial inclusion. We’ve also dedicated an entire track to digital banking, a segment which is getting significant traction across Europe. We’ll also be covering our core topics including innovations in lending, credit & underwriting and investor insights.

The full agenda is on the LendIt website, but here are a few topics I am most excited about:

  • How to Navigate Open Banking (Imran Gulamhuseinwala, Ernst & Young)
  • Digitization of Finance How Customer Expectations are Changing (Anne Boden, Starling Bank, Rhydian Lewis, Ratesetter Giovanni Daprà, Moneyfarm)
  • Implementing AI in Financial Services: Case Study (Francesco Brenna, IBM, Roberto Mancone, Deutsche Bank)
  • How Big Banks Are Approaching the New Connected World (Gilad Amir, Lloyds Banking Group, Benoit Legrand, ING, Raman Bhatia, HSBC, Gustavo Vinacua, BBVA)
  • Renaud Laplanche of Upgrade talking about Online Lending 2.0 and the state of the US fintech market.

Discount Pricing to LendIt Europe 2017 Ends Tomorrow

Summer pricing of £1,295 ends at midnight on September 8th. After that, ticket prices will rise to £1,495. As always Lend Academy readers can receive an additional 15% discount by using the code LENDACADEMYVIP at checkout.

You can register now on the LendIt website.

Below is a video with some highlights from our event last year that was at the same location. We hope to see you at LendIt Europe 2017 in October.

New Report on Fintech from the World Economic Forum

A detailed report from the World Economic Forum questions the role that fintech firms will have in the future of financial services

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Back in April I attended a couple of roundtable discussions in New York organized by the World Economic Forum. Many leaders from the fintech industry were there as well as some leaders from traditional finance and consultancies. We had very productive discussions on the future of fintech and afterwards they said that out of these sessions would come a detailed white paper.

Today, the World Economic Forum released a report titled, Beyond Fintech: A Pragmatic Assessment Of Disruptive Potential In Financial Services, that was the result of those and many other discussions they had with leaders from around the world. The report aims to answer the question about whether fintech companies will really change the financial landscape. It builds on the last report in 2015 called The Future of Financial Services, sharing the impact of fintech firms and various outlooks for the future.

Here is a very short summary of the report released today:

Our findings suggest that fintechs have materially changed the basis of competition in financial services, but have not yet materially changed the competitive landscape. They play a critical role in defining the pace and direction of innovation across the sector but have struggled to overcome the scale advantages of large financial institutions.

Below are some of the key findings from the report:

  • Fintech start-ups have so far fallen short of their ambitions to upend the competitive landscape in finance, driving innovation but struggling to capture market share in mature markets.
  • What fintechs have done is define the direction and speed of innovation across most areas of financial services; they have also set new and higher bars for user experience.
  • Large technology firms like Amazon and Google may represent the largest competitive threat to financial institutions, as their AI and cloud computing services become more central to the sector, and customer data rises in importance.
  • Models of financial services innovation around the world are diverging, benefitting local firms and making it harder to co-ordinate a regulatory response.

It is a detailed report, some 196 pages, covering most of the major verticals in financial services: payments, insurance, digital banking, lending, investment management, equity crowdfunding and market infrastructure (including blockchain). If you want to get a sense for where financial services is heading this report is a must read.

Registration for LendIt Europe 2017 is Now Open

LendIt Europe returns to London for the fourth time on October 9-10 at the InterContinental London—The O2.

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I was in London last week where we officially launched LendIt Europe 2017. We are returning to the InterContinental at the O2 for the second year in a row where we expect over 1,000 attendees this year.

Our 2017 event will be a little different to last year. Similar to what we have done at our USA event we are expanding to include other aspects of fintech beyond online lending. While we will still be covering lending in some depth we also want to highlight the innovations happening in other areas of financial services. Europe continues to be a hotbed of innovation and we will be covering a number of new categories: artificial intelligence, machine learning, biometrics, blockchain and we will also dig deep on digital banking. Supporting the startup community is in LendIt’s DNA and we are excited to have PitchIt @ LendIt return for the second year at our Europe conference. Below is an agenda framework to give you some idea of what we have planned:

Early confirmed keynote speakers include Jaidev Janardana, the CEO of Zopa, Francesco Brenna, an Executive Partner at IBM Global Business Services and Shane Williams, the co-head of UBS Smartwealth. Our current confirmed speakers are here and if you are interested in becoming a speaker at LendIt Europe 2017 you can submit an application here.

Lend Academy Readers Receive a 15% Discount

The launch price of £795 is in effect until June 2nd, but as a Lend Academy reader you can receive an additional 15% discount by using the code LENDACADEMYVIP at checkout. The discount code is always good for 15% off but you will receive the best pricing if you purchase before midnight on June 2nd. You can register now on the LendIt website.

Our fourth London event I expect will be our biggest and best ever. I am looking forward to hearing from a range of industry leaders in not just the UK but from across Europe. It will be interesting to see the impact that Brexit has on the event and with open banking arriving in Q1 next year that is going to provide some major impetus for change that we will be covering as well.

Below is a video with some highlights from our event last year that was at the same location. I hope to see you at LendIt Europe 2017 in October.

ABOUT LENDIT FINTECH NEWS

LendIt Fintech News, Powered by Lend Academy, has been bringing you all the news and information about fintech and online lending since 2010 when it was founded by Peter Renton. We not only have the industry’s most active news site, but also the largest investor forum and the first and most popular podcast.

We are a team of fintech enthusiasts who have been covering the industry for many years. With a deep knowledge of online lending, digital banking, blockchain, artificial intelligence and more our team covers the daily news and writes in-depth editorials.

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