AltFi reports on recent developments affecting the marketplace lending industry; discusses challenges at RateSetter and platform changes at Zopa and Funding Circle; also notes that UK regulators may be seeking increased transparency through new regulations; argues against criticism that platforms are struggling for borrowers and shows origination volume growth since 2005. Source
One of the key components for open banking is being able to access data from other providers around the clock;...
TransferWise is the first fintech to join the Bank of England’s Real Time Gross Settlement (RTGS) system; described as game changing for the company the deal will allow them to lower costs, be on equal footing as banks and offer instant transfers to GBP. Source.
In Europe, slowing venture capital investment in fintech has caused increased reliance from the industry on traditional banks; as Brexit concerns have affected the fintech industry, traditional banks have increased their investment with more corporate and strategic participation in venture capital deals in Europe for the third quarter of 2016; over the last five quarters significant large bank investors in fintech have included Citigroup Inc., Banco Santander SA and Goldman Sachs Group Inc.; as the European market evolves with a number of regional factors continuing to affect both fintech companies and banks it is likely that more banking partnerships and fintech acquisitions will occur. Source
Credit Card Fintech Petal Raises More Money in $140 Million Series D. | Crowdfund Insider: Global Fintech News, including Crowdfunding, Blockchain and more.
As Three Arrows Capital collapsed under market pressure, its much-lesser known trading desk, TPS Capital, remained active, sources say. But a complex ownership structure might frustrate creditors' efforts to collect.
Stori, a Mexican fintech bringing credit cards to the country's middles class, has raised $125 million in a Series C funding round, adding another $75 million in debt financing.
Funding Circle has announced changes to its borrowing rates for small business loans as of November 7; rates will be lower for higher credit quality borrowers and higher for the lower credit quality loans; says with the new rates, investors can expect an average annual return of 7%. Source
UK based digital bank OakNorth reported an annual profit of $149mn, becoming the first digital bank to do so; in their second year of full operations the bank has seen their loan book triple in size and deposits double in size; Rishi Khosla, OakNorth chief executive, told the Financial Times, “we build them for profit and on strong foundations so as you grow you’re scaling a real business rather than what happens to a lot of fintech where you just keep building for top-line or number of customers, but don’t necessarily have the strongest business model.” Source.
The investment will be deployed over three years and allow the bank to compete with other digital banks and fintechs; it marks an increase of 40% from Lloyd’s previous three-year expansion plan; Lloyds also hopes the investment will help cut costs. Source