• Subscribe
  • Contact Us
  • About LendIt Fintech News
  • Home
  • Menu Item
  • Menu Item
  • Menu Item
  • Menu Item

Lend Academy

LendIt Fintech News: Daily Coverage of Fintech & Online Lending


  • Editorial
  • Daily News
  • Podcast
  • Investor Forum
  • Events

PeerIQ’s Q4 2018 Lending Earnings Insights Report

PeerIQ's latest Lending Earnings Insights Report points to a strong economy but bank and card issuer CEOs are cautious about being late in the credit cycle.

November 20, 2018 By Todd Anderson 1 Comment

Views: 239

PeerIQ released their Q4 2018 Lending Earnings Insights Report which points to a number of themes showing the economy is strong but CEOs are striking a cautious tone. Delinquencies and defaults continue to be low as consumers have seen their wages rise and taxes drop. Lenders are increasing reserves as they anticipate credit to renormalize in the near future, saying the economy right now was too good to be true.

The report covers earnings reports from big banks and fintech lenders. Stock performance was mixed with the flattening yield curve causing banks and card issuer stocks in particular to suffer. Companies covered include Enova, LendingClub, One Main Financial, OnDeck, GreenSky, Bank of America, Citibank, Goldman Sachs, JP Morgan Chase, Morgan Stanley, Wells Fargo, Capital One, Discover, Synchrony and American Express.

One of the growing trends has been the pull back by banks lending directly to consumers and small businesses. Banks are instead increasing funding lines to non bank lenders, credit facility volume has grown 6x since 2010. The growth in originations from non bank lenders has forced regulators to look at them more closely, while the FDIC is considering granting ILC charters to non banks.

Broadly across the credit spectrum fintech lenders have seen delinquencies and charge offs remain at near record lows. All the companies in this segment saw double digit revenue and origination growth YoY. Lenders have started to raised borrowing rates, though not at the same pace as the Fed Funds Rate. The flattening yield curve has raised the cost of borrowing on credit facilities, causing margins for lenders and investors to be compressed.

Big banks experienced another strong earnings quarter as all covered in the report saw double digit increase in earnings. Revenue drivers vary from bank type to bank type. Big banks covered within the report saw deposits rise due to a better digital banking experience, an integration between wealth and banking products and a retail branch expansion. As a group the banks are growing, albeit slower than in the past, through digital means and are focused on the long term potential of products they are currently building.

Credit card issuers all saw their earnings grow by more than 20 percent YoY. Most card issuers also saw growth in revenue and their loan books. Growth in total allowances for losses outpaced loan growth, pointing to the fact that most card issuers see a credit normalization coming. Card issuers have used the partnership model with stores like Walmart, JC Penney and Lowes to grow revenues.

Overall economic health, low delinquencies and low charge offs show that the credit space is doing quite well. Though the report points out that most of these companies do not expect this environment to last forever, they are in the midst of preparing for a change while they keep growth humming along.

Filed Under: Peer to Peer Lending Tagged With: American Express, Bank of America, Capital One, Citibank, Discover, Enova, Goldman Sachs, GreenSky, JP Morgan Chase, lendingclub, Morgan Stanley, OnDeck, One Main Financial, PeerIQ, Synchrony, Wells Fargo

Views: 239

Use Cases and Trends in Artificial Intelligence for Financial Services

A review of where financial services companies are beginning to implement artificial intelligence.

August 15, 2018 By Todd Anderson Leave a Comment

Views: 1,705

Artificial intelligence (AI) is everywhere these days as more companies look to automate repetitive tasks to save money and reallocate staff to more meaningful work. We wanted to explore some of the current use cases for AI based technologies in financial services and where the industry is heading in the coming years.

Cut through the hype and you will find financial firms have started to implement AI in a few different areas. Back office operations and data management has been the biggest beneficiary as companies can run algorithms across full data sets and cut out repetitive tasks.

[Read more…]

Filed Under: Peer to Peer Lending Tagged With: artificial intelligence, Automation Anywhere, Bank of America, Barclays, Capgemini, Capital One, IBM, Microsoft, Oracle, robotic process automation, SEB, Simudyne Technology, Swedbank, UiPath, Wells Fargo

Views: 1,705

New Technologies and New Customer Experiences Drive Banking Today

Key Takeaways from American Banker’s Digital Banking Conference

June 13, 2018 By Todd Anderson 1 Comment

Views: 203

The discussion at American Banker’s annual Digital Banking Conference in Austin last week revolved around new technologies like AI and blockchain and the future of customer experience. Banks of all sizes have implemented some level of technology in recent years, almost all have mobile apps and they have begun the process of digitizing their core functions.

There were also a lot of lessons from non-banks that were on display, Starbucks mobile payments adoption and p2p payments app Venmo were popular discussion points on the keynote stage. Starbucks has seen over 40% of the 55 million U.S. smartphone users make an in-store mobile payment through the Starbucks’s app at least once in the last 6 months. Venmo’s payment volume continues to rise, even with competition from Zelle, and it was interesting to hear where the idea came from. Venmo founder Iqram Magdon-Ismail explained that he and fellow co-founder Andrew Kortina thought of the idea because paying one another back was awkward. They devised an app where you can exchange money quickly without having the awkward conversation.

[Read more…]

Filed Under: Peer to Peer Lending Tagged With: Bank of America, Celent, D3 Banking, digital banking, Fiserv, Moven, Samsung, Starbucks, TCF Financial, U.S. Bancorp, Venmo

Views: 203

Leading Banks are Embracing Digital Strategies More Than Ever

We take a look at how the major US banks are adopting digital strategies into their business

October 25, 2017 By Todd Anderson 1 Comment

Views: 59

While banks might have initially been slow to act when it came to embracing digital strategies they are now able to offer a comparable product to their fintech competitors. Through building their own technology, partnering with or acquiring emerging fintech companies, banks have received the message that they need to fully embrace the digital age.

The digital strategy at banks is now considered a core part of their business and essential to future growth. We wanted to explore how some of the biggest banks have been integrating digital strategies and making strategic acquisitions to enhance the customer experience or replace falling revenue in other areas of their business.

[Read more…]

Filed Under: Peer to Peer Lending Tagged With: Bank of America, Citi, digital banking, Goldman Sachs, JPMorgan Chase, mobile banking, Wells Fargo

Views: 59

Investor Intelligence

Peter Renton's Returns

Investor Forum

Lending Club Review

Prosper Review

Investor Resources

Most Popular Editorials

The Pure Marketplace Lending Model is Dead, the Hybrid Takes its Place

The 2018 Lending Club and Prosper Tax Guide

My Returns at Lending Club and Prosper

Map of Available States for Lending Club and Prosper Investors

Banks and Marketplace Lending Platforms: Ideal Partners?

Subscribe to the Podcast

Subscribe to the Lend Academy Podcast on iTunes
Subscribe to the Lend Academy Podcast
List of Podcast Episodes

Archives

Follow @LendAcademy Follow @LendIt

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.

Recent Editorials

  • LendIt Fintech’s Lending Innovation Summit Europe is Next Week
  • LendingClub Launches Founders Savings Accounts
  • Top 10 Fintech News Stories for the Week Ending February 20, 2021
  • Podcast 286: Billy Libby of Upper90
  • Deep Dive into the MoneyLion and OppFi SPACs

Copyright © 2021 · Metro Pro Theme on Genesis Framework · WordPress · Log in