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…]

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.

Zopa reveals stock market ambitions as it aims to take on big banks from Independent.ie –  The CEO of Zopa says that his company will become a major force in UK finance, “I’d be very disappointed if we’re not a top 10 player in the next three to four years”.

The top stories of 2018 from American Banker – The top stories of 2018 from American Banker.

CMU: Common Securitization Rules Kick in on January 1st in the European Union from Crowdfund Insider – New securitization rules for the European Union went into effect this week.

U.S. Economy Fuels Boom in Consumer Debt from The Wall Street Journal – Total consumer debt (credit cards, auto, student and personal loans) is set to top $4 trillion in 2019 but Americans still seem to be in better financial health.

Can AI’s ‘black box’ problem be solved? from American Banker – The key to success implementation of AI in underwriting is to make it explainable. Good roundup of where we are today by Penny Crosman in American Banker. I think this is going to be a significant trend in 2019.

China’s Online Lending Crackdown May See 70% of Businesses Close from Bloomberg – The Chinese online lending sector continues to struggle and this year we could see a reduction of 70% in the number of platforms, leaving just 300 remaining.

What We Learned About RapidAdvance From RapidAdvance’s Planned Securitization from deBanked – In the small business lending space there is a new player entering the securitization market for the first time. deBanked has some of the details of the RapidAdvance securitization. [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.

Robinhood backs down after outcry over checking account from American Banker – It’s been an interesting few days for Robinhood. They announce a new “savings and checking account” with great fanfare. But they have been forced to backpedal now given the SIPC had not given them the go ahead. Makes fintech startups look amateurish.

US Yield Curve Inverts; Spreads Widening on New FinTech Deals from PeerIQ – In this week’s PeerIQ newsletter they look at the US yield curve, new fintech acquisitions and financings as well as the new securitizations from CommonBond and LendingClub.

Want a Better Credit Score? Soon, Your Cellphone Bill Could Help from The Wall Street Journal – Early next year Experian is going to incorporate cellphone and utility payments into consumers’ credit scores.

From innovation theatre to real innovation from Chris Skinner’s Blog – Interesting piece by Chris Skinner on the history of innovation in banking over the last couple of decades.

Investors Are Piling Into Loans That Banks Have Avoided Since the Crash from Bloomberg – Alternative lending to businesses is booming. According to Bloomberg “In the past 10 years, private funds that lend directly to companies have raised almost $500 billion”.

The Future Of FinTech According To Bain Capital Ventures’ Matt Harris from Forbes – One of the most experienced VCs in all of fintech is Matt Harris of Bain Capital Ventures. Interesting wide ranging interview with him in Forbes.

Lending Club: $1.15 Billion Market Cap, $800 Million In Cash from Seeking Alpha – Interesting piece on LendingClub and their stock price. The author makes the case that at current levels the stock looks to be undervalued. [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.

LendIt Fintech Europe: London is Open for Business from Crowdfund Insider – Highlights from last month’s LendIt Fintech Europe event from JD Alois of Crowdfund Insider.

Experts Predict the Five Big Fintech Trends of 2019 from Bloomberg – Interesting to see what some of the biggest names in fintech venture capital are predicting for 2019.

Peer-to-peer lender Zopa to seek more funding in 2019 as it opens its own bank from CNBC – Despite closing a £60m funding round last month the CEO of Zopa has said that his company will be raising more money in early 2019 as they build up the balance sheet ahead of their bank launch.

Facing consumers’ fears: How fintechs target money anxiety from American Banker – Managing money is hard and it freaks a lot of people out. It doesn’t have to be that way. There are fintech companies dedicating themselves to making this easier in a practical way.

PeerIQ’s Consumer Credit Digest! FDIC Embraces FinTech from PeerIQ – This week’s PeerIQ newsletter digs into the the head of the FDIC, Jelena McWilliams, recent op-ed in American Banker on her moves to encourage new banks and fintech innovation.

Digital banking platform Good Money gets $30M in funds from L.A. Biz – They call themselves “a digital banking platform with a conscience” and they have just raised a $30m Series A. Good Money is creating a new kind of bank.

Fintech startup Plaid raises $250M at a $2.65B valuation from TechCrunch – News this morning out on the latest fintech unicorn. Plaid has raised a whopping $250m in a Series C at a valuation of $2.65b.

Students pay price in banks’ marketing pacts with colleges: CFPB from American Banker – This is why consumers need fintech platforms. Banks have signed marketing agreements with colleges that allows them to charge higher fees to students. [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.

Credit Karma’s Kenneth Lin on building a billion dollar brand from Tearsheet – One of the most valuable private fintech companies in the US is Credit Karma. Good profile of them by Zack Miller including comments from CEO Ken Lin on their early days.

Ping An-backed Lufax raises $1.3 billion at lower valuation: sources from Reuters – The headline is misleading, this is NOT a down round for Chinese fintech Lufax. They raised $1.3b and were hoping for a $40b valuation but it came in at $38b. Still more than double the $18.5b valuation of their last funding round in 2016.

A “fintech sandbox” might sound like a harmless idea. It’s not from The Financial Times – I have been a big proponent of the sandbox approach so it is good to hear the other side of the argument.

International P2P Lending Volumes November 2018 from P2P-Banking – The November European p2p lending loan volumes are out with Latvian platform Mintos leading the way.

Banks will be hit with ‘massive disruption’ from fintech in the next five years, Klarna CEO says from CNBC – The CEO of Klarna is interviewed on CNBC saying that banks will face massive disruption in the next five years as their margins will be eroded by fintech platforms.

In just 2 Days, Digital Bank Monzo Closes on £20 Million Crowdfunding Round from Crowdfund Insider – This is pretty impressive. Monzo has raised £20m in just two days on Crowdcube. It speaks to not just the popularity of the UK digital bank but also to the popularity and acceptance of equity crowdfunding in the UK.

Stanford grads raise $20 million for a company that aims to make life cheaper and easier for immigrants from CNBC – Good profile of Nova Credit and the important need they are addressing. When you move to the USA from another country your credit history should move with you. [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.

Digital Lender Evolution from Autonomous – We start off the post-holiday week with new research out from Autonomous on the digital lending evolution including global loan volumes.

Alternative finance industry report – business booming from Payments Cards & Mobile – The 5th annual report from The Cambridge Centre for Alternative Finance (CCAF) on the UK alternative finance market is out. Good run down of the highlights from Payments Cards & Mobile.

Weren’t algorithms supposed to make digital mortgages colorblind? from American Banker – New study out by University of California Berkeley shows automated underwriting has the same biases as human underwriting when it comes to mortgage applications.

Revolut, the UK’s $1.7 billion star fintech, has big dreams as it takes on the American market from Business Insider – If you don’t know UK fintech leader Revolut well yet that is about to change. They are launching in the US in early 2019 and will become a significant player here very quickly I expect. Good piece about them in Business Insider.

Are banks’ collection departments finally ready for a tech overhaul? from American Banker – There is some really interesting work being done on the collections front with companies like TrueAccord taking a new approach. But are banks ready asks Penny Crosman.

China Planning Major Purge of $176 Billion Loan Market from Bloomberg – The news keeps getting worse for the once high flying p2p lending sector in China. The government is looking to wind down most small and medium sized platforms. [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.

Losses Pile Up at Fintech Firm SoFi as Rates Rise from The Wall Street Journal – The Wall Street Journal is reporting today that SoFi lost money in Q3 to the tune of $12m as they “optimized for investing over profitability this quarter”.

Banks Pushback Hard on CECL; FinTech Earnings Recap from PeerIQ – The latest PeerIQ newsletter discusses trends in CECL and gives a good overview on earnings of five public fintech companies.

Blockchain slashes approval time on syndicated loans, BBVA says from American Banker – The syndicated loan space could become a major use case for #blockchain technology as shown by this recent deal from BBVA.

Online lending: US fintechs gain from behaving more like banks from Financial Times – Interesting piece about the evolution of online lending with a focus on OnDeck and comments from CEO Noah Breslow who says “I still think we are a fintech but a ‘tech’ is a stretch”.

Starling Bank hits the high street with Post Office partnership from AltFi – Here is a new kind of partnership. In the UK digital challenger bank StarlingBank has partnered with the post office to enable customers to deposit and withdraw cash.

Revolut Unveils New Tech to Reduce Fraud for its 3M+ Customers from Crowdfund Insider – Leading UK neobank Revolut is leveraging the power of machine learning as it fights card fraud and money laundering.

AI must be scrutinized by regulators, top Fed official warns from American Banker – As banks and non-banks use artificial intelligence more Federal Reserve board governor, Lael Brainard, has warned about its “potential risks to bank safety and soundness, consumer protection or the financial system”. [Read more…]