During the week I share the latest marketplace lending and fintech news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here.

Lenders without border walls from American Banker – New immigrants are one of the most underserved populations when it comes to credit. Several new fintech companies are working hard to change this. Good analysis from Penny Crosman.

Raising Money in the Crypto World Has Gotten a Lot Harder from The Wall Street Journal – Year over year the ICO market was down over 98% in the first quarter, a staggering decrease that prompted the first line in this WSJ article “The ICO market is dead”.

Peter Thiel and Li Ka-shing Have a Banking App for America’s Generation Z from Bloomberg – One of the European digital banks intending to launch in the US this year is N26. See the rapid growth they have experienced in this interesting piece in Bloomberg.

Industry hits back as FCA warns on IFISA risk from Peer2Peer Finance News – Yesterday in the UK the FCA issued a warning to investors on the Innovative Finance ISA and today the fintech industry hit back.

Revolut whistleblower had concerns over CEO conduct and compliance from the BBC – Also in the UK more bad news for Revolut. The BBC has learned a whistleblower had gone to the FCA in 2016 with concerns on compliance and the conduct of the CEO.

Class Action Lawsuit Filed Against Brendan Ross, Direct Lending Investments, and Others from deBanked – A class action lawsuit has been filed against Brendan Ross, Direct Lending Investments and others who may have been involved in the alleged fraud.

LendingClub’s Computers No Worse at Lending Than Humans, Study Finds from TheStreet – A new report out by the Philadelphia Fed compares the underwriting at LendingClub to that of the largest banks. [Read more…]

During the week I share the latest marketplace lending and fintech news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here.

Apple unveils new no-fee credit card: The Apple Card from CNBC – We knew it was coming but today they made it official. Apple is releasing a new credit card partnering with Goldman Sachs. This is a first for both companies and shows how serious Goldman is about consumer credit.

Direct Lending Fund Sued for Allegedly Inflating Returns from Bloomberg – The situation just keeps getting worse at Direct Lending Investments. The SEC has now filed suit against the company alleging inflated returns and $11 million of overcharges to investors.

As Amazon Leads Cashless Charge, States and Cities Push Back from Bloomberg – Moving to a cashless financial system has many advantages but one of the real challenges will be how to include the underserved.

Building A Better On-Ramp For Credit Repair from PYMNTS.com – One of the companies making a real different for people trying to rebuild their credit score is Self Lender. Good profile in PYMNTS.

Apple’s move into banking raises the bar for fintech, traditional credit cards from CNBC – Interesting look at the impact the new Apple credit card may have on fintech and banking.

Has Alternative Lending Seen Its VC Peak? from PYMNTS.com – While VC money continues to flow to fintech companies at record levels it is more difficult for online lending platforms to raise money. Good companies are still getting funded but VCs are far more selective than they were back in 2015.

Lyft wants to give free bank accounts and debit cards to drivers from The Verge – More big internet brands are entering financial services. Now, we learn that Lyft will begin offering bank accounts and debit cards to drivers. [Read more…]

During the week I share the latest marketplace lending and fintech news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here.

Investors should encourage a resurgence of local community banking from CNBC – In banking most investor dollars today are going into the digital challenger banks or neobanks. The author of this article argues some of it should be directed at new community banks.

Can Funding Circle crack the Canadian P2P market? from Peer2Peer Finance News – Small business lending leader Funding Circle is opening in Canada later this year. Here is a look at the challenges and opportunity for them north of the border.

SoftBank-backed unicorn OakNorth wants to be the Intel for banking from Yahoo Finance – One of the hottest UK fintech companies right now is OakNorth. Their CFO spoke today on plans to grow their loan book and expand their white label software.

Direct Lending Fund Founder Resigns Amid SEC Investigation from Bloomberg – The saga with Direct Lending Investments continues. Bloomberg is reporting today that Brendan Ross has resigned as CEO, there is an SEC investigation and a fund holding looks to have received an inflated valuation.

In AI era, CEOs must put people first from American Banker – In an American Banker op-ed the CEO of Synchrony puts forward a game plan on how to integrate AI into a financial services organization.

Fintech Point Raises $22 Million in Series B, Adds $100 Million in Platform Capital from Crowdfund Insider – Successful fintech funding rounds continues unabated. Today, we learn that Point Finance has closed a $22m Series B as well as $100m of platform capital.

Bitcoin Is in the Dumps, Spreading Gloom Over Crypto World from The Wall Street Journal – The heady days of late 2017 and early 2018 seem a long time ago for crypto investors. Bitcoin has now experienced the longest price slump in its 10-year history and trading volume is also way down. [Read more…]

During the week I share the latest marketplace lending and fintech news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here.

Do paycheck advance apps improve financial health? from American Banker – Paycheck advance apps have become a popular new tool for people living paycheck to paycheck but Penny Crosman wonders whether this is a good thing.

Helping Community Banks Turn On The Innovation Switch from PYMNTS.com – The Chief Innovation Officer of the ICBA talks about digitization for community banks and the constant need to be at the forefront of innovation.

China’s Lufax hits huge $39.4bn vaulation thanks to Primavera Capital-led Series C from AltAssets – While Chinese fintech has been struggling of late there are some bright spots. After postponing their IPO Lufax has just closed their Series C that values them at a whopping $39.4 billion.

Attention shifts back to Prospa IPO as the fintech hits $1 billion in loans from Business Insider – Australian online small business lender Prospa has just crossed A$1 billion in total loans issued and may be considering an IPO.

Why are fintechs getting a regulatory pass? from American Banker – We knew this was going to come back to bite us. The regulatory problems at Robinhood late last year has caused this editorial to paint all of fintech as happy to bypass regulatory oversight. But he does make a valid point on data security.

Green Dot targets social media influencers in banking-as-service push from American Banker – Interesting move from Green Dot. They are building a “Bank OS” where anyone down to tiny retailers can offer their own branded financial products and they are going to use social media influencers to get the word out.

If you’re self-employed or a ‘gig’ worker, getting a mortgage just got easier from The Washington Post – It’s about time. Fannie Mae and Freddie Mac have deployed “remarkable new technology” that automates the underwriting process for self-employed workers. [Read more…]

During the week I share the latest marketplace lending and fintech news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here.

Levchin: Why The Affirm-Walmart Partnership Is More Than POS Credit from PYMNTS.com – The Affirm/Walmart deal announced last week is one of the most important partnerships we have seen in fintech. Karen Webster talks with CEO Max Levchin to get the story behind the deal.

Police launch fraud investigation into Revolut from Financial Times – Times are not getting any better for Revolut. We now learn that UK authorities have launched a fraud investigation into the company.

AI Helps Auto-Loan Company Handle Industry’s Trickiest Turn from The Wall Street Journal – The AI space continues to heat up for financial services firms and one of the leading players is ZestFinance. Great piece in the WSJ about how they are working with some big names in finance helping them assess creditworthiness in new ways.

US mobile bank Chime raises $200 million, valuing its business at $1.5 billion from TechCrunch – The mobile banking space is arguably the hottest niche in all of fintech today. Chime has just raised $200 million at a $1.5 billion valuation to become the latest fintech unicorn.

Square Capital head: We are leveraging data to extend credit to small businesses that lack access to traditional loans from CNBC – The head of Square Capital, Jackie Reses, was on Mad Money on CNBC yesterday talking small business lending and expanding capital access with the help of their proprietary dataset.

PayPal smashes £1 billion barrier for UK small business lending from Finextra – In the UK PayPal is quietly becoming a force in small business lending, having just crossed £1b in total loans issued.

Acquisition Costs Compared for GreenSky, Square, PayPal, OnDeck, Lending Club, and Prosper from deBanked – Interesting comparison of sales and marketing expenses at some of the top fintech lenders. [Read more…]

During the week I share the latest marketplace lending and fintech news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here.

Millennial online lender SoFi to offer zero-fee ETFs, an unexpected rival for index fund giants Vanguard, iShares from CNBC – Interesting move from SoFi announced yesterday. They will begin offering ETFs, two of which will have zero fees, a first for the investment industry.

Best Fintechs to Work For from American Banker – Lots of familiar names on the American Banker best fintech company to work for list. Congrats to all the companies that were recognized.

YieldStreet raises $62M to democratise alternative investments in shipping, real estate and more from TechCrunch – Another big funding round announced today. YieldStreet has closed on a $62m Series B led by Edison Partners.

HSBC: Fintech deal will provide access to midsize businesses in U.S. from American Banker – An interesting fintech/bank partnership announced today with Neptune Financial partnering with HSBC to help the bank attack middle market lending.

Affirm’s latest partnership brings its alternative financing to Walmart’s US stores and website from TechCrunch – One of the most important fintech partnerships ever was announced yesterday. Affirm inked a deal with Walmart to provide point of sale financing for their customers both in store and online.

SoFi to launch cryptocurrency trading in partnership with Coinbase from CNBC – It seems that more than once a week these days there is a big announcement coming from SoFi. The latest is this, the fintech leader will begin offering crypto trading in the second quarter.

Roofstock will now allow investors to buy just a piece of a single-family rental home from HousingWire – Here is a great innovation from Roofstock. Real estate investors will now be able to buy fractional ownership in fully managed rental properties for as little as $5,000. [Read more…]

During the week I share the latest marketplace lending and fintech news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here.

HSBC and Goldman Sachs back UK start-up that lets banks offer rivals’ products on their apps from CNBC – We start the week with news of yet another funding round. UK fintech startup Bud has raised $20 million from some of the biggest names in banking.

Over 60, and Crushed by Student Loan Debt from The Wall Street Journal – Student loan debt is hitting an unlikely group especially hard, those over 60 years old. Many have taken out loans to pay for their children’s tuition.

Strong Job Growth; Where Are We in the Credit Cycle? from PeerIQ – This week’s PeerIQ newsletter provides perspective from executives of many of the nation’s leading banks on where we are at in the credit cycle.

International P2P Lending Volumes January 2019 from P2P-Banking – The European loan origination volumes for January are out with Mintos and Zopa taking the top two spots again.

The Future Of Lending: Fintech 50 2019 from Forbes – The annual Forbes Fintech 50 list came out today and here are the lending platforms that made the list.

‘A lot of people are going to get hurt’: Petrou on fintech risk from American Banker – While we do need to pay attention to the risks presented in this study the author paints a particularly glum picture of the impact of fintech on financial services.

States must step forward as CFPB retreats on predatory lending from The Hill – Interesting op-ed in The Hill by the CEO of Insikt on the important role that states can play now the CFPB is likely scrapping the ability to repay requirement for payday loans. [Read more…]

During the week I share the latest marketplace lending and fintech news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here.

Is the OCC’s fintech charter really ‘perfect’ for mortgage lenders? from American Banker – One of the big questions in fintech right now is who will be first to apply for the OCC fintech charter.

Tencent-backed WeBank eyes Australian expansion from BankingTech – The Chinese are coming…to Australia. Tencent backed WeBank is looking to expand to Australia to start a digital bank there.

Mixed Credit Card Issuers’ Earnings; PeerIQ’s MPL Loan Performance Monitor from PeerIQ – This week PeerIQ looks at earnings and credit performance from four of the largest credit card issuers.

How online platforms shook small-business lending in America from Financial Times – Interesting piece in the Financial Times on the rise of small business online lending platforms in the US.

Bank regulators are getting serious about innovation from American Banker – In American Banker Jo Ann Barefoot makes the case that we really are seeing an embrace of regulatory innovation by bank regulators in Washington.

GreenSky launches new loan product for elective health care from American Banker – Interesting new development from GreenSky. They are now offering a revolving credit line of up to $25,000 for their healthcare clients.

Cross River and Railsbank Announce Partnership to Enable Global Market Access for Fintech Companies by Providing Seamless, Cross-Border Banking and Payment Solutions from Business Wire – Also announced this week was an interesting new international banking partnership between Cross River and Railsbank. [Read more…]

During the week I share the latest marketplace lending and fintech news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here.

Barclays-backed online lender MarketInvoice gets $72 million in funding from CNBC – In the UK MarketInvoice has closed on a £26 million equity round led by Barclays and Santander and also a £30 million debt facility from Viola Credit.

Banking Providers Struggling With Response to Government Shutdown from The Financial Brand – Interesting piece in the The Financial Brand on the government shutdown. If banks don’t have a digital platform along with a digital mindset it becomes very difficult to react quickly to a new circumstance.

Pawnshops and payday lenders surge on US government shutdown from Financial Times – More ramifications of the shutdown: a boost for pawnshops and payday lenders.

An Amazon Checking Account Could Displace $100 Billion In Bank Deposits (But It Won’t) from Forbes – While it could well be possible for Amazon to gain $100 billion in deposits if they offer their own checking account Ron Shevlin does not think it is going to happen. More likely Amazon will become a distribution channel for banks.

Are fintechs better off taking the ILC route to banking? from American Banker – We know that Square has gone the ILC route, should others follow their lead and eschew the risks of the OCC fintech charter? Interesting perspective in American Banker.

Former Fannie Mae Chief Joins Blend, a Mortgage Startup from The Wall Street Journal – Former head of Fannie Mae, Timothy Mayopoulos, is joining mortgage-software startup Blend saying “Fintech seems to be the place where the action is”.

Stripe Links Small Businesses To Funding Circle Finance from PYMNTS.com – A new partnership has formed to help boost small business access to capital. Funding Circle is partnering with Stripe so their users can integrate sales data with Funding Circle for faster decisions on loan applications. [Read more…]

During the week I share the latest marketplace lending and fintech news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here.

Fintech firms want to shake up banking, and that worries the Fed from Reuters – There is no consensus at the Federal Reserve on how to deal with fintech. Some at the Fed recommend a more cautious approach while others want to embrace fintech.

The new FinTech bank from Chris Skinner’s Blog – The main difference between traditional banks and new fintech banks is the level of integration of the finance and technology operations. In traditional banks these groups remain siloed.

Alibaba taps Kabbage to loan up to $150K to SMBs after it quietly acquired OpenSky to ramp in North America from TechCrunch – The world’s largest e-commerce company, Alibaba, has teamed up with Kabbage to offer point of sale loans to its U.S. customers. Quite the coup for Rob Frohwein and his team.

CFPB to scrap key underwriting portion of payday rule from American Banker – Good news for the payday lending industry but bad news for consumers as the CFPB plans to scrap a key provision in a new rule that required lenders to take into account a borrower’s ability to repay.

Why Strategic Funding Rebranded as Kapitus from deBanked – Small business lender Strategic Funding has rebranded to Kapitus. deBanked provides the back story on this change.

Five financial health startups now under the wing of JPM, CFSI from American Banker – The Financial Solutions Lab, a joint initiative of JP Morgan Chase and CFSI has selected the five fintech startups for their 2019 cohort.

Fed not an impediment to fintechs’ charter ambitions: OCC’s Otting from American Banker – More clarity on the OCC fintech charter after comments from Comptroller Otting this week. Potential applicants see no need to process payments directly with the Fed. He also made comments on CRA reform and the “states issue” with the charter. [Read more…]