Jiedaibao, launched by JD Capital, would give people looking to engage in debt recovery all kinds of personal data belonging to overdue debtors, including phone numbers, addresses and even ID card numbers; releasing this kind of information would allow for any freelance debt collector to harass borrowers into paying their overdue amounts; this type of practice in China is not all that unusual as past debt collection efforts have discussed the release of nude photos if payments are missed; the agreement would give the "debt collector" 40% of the debt paid. Source
A new report by NextGen Crowdfunding documents increasing use of Reg. A+ as the regulatory umbrella for real estate crowdfunding and other financial offerings; Reg. A+ was finalized in June 2015 as a means for non-accredited investors to access private offerings; companies can raise up to $50 million per year under Reg. A+; across all sectors, 131 companies to date have filed under Reg. A+, with 38% of these filings being by real estate and financial services platforms and many others being IT startups; roughly half of the filers are using "Tier 1" rules for Reg. A+, meaning they will continue to register in individual states as well as at the federal level, and half are filing "Tier 2", seeking national fundraising scope while avoiding the added prudence of vetting against state rules. Source
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In a move that seems quite surprising, Citibank Australia has stopped taking notes and coins at their branches; data shows that less than 4% of their customers used cash at the branches and so to keep up with digital headwinds the bank has decided to go cashless; there has been a trend in Sweden and Iceland of cashless banks, but there has not been any worldwide trend in that direction; the bank will still keep ATMs going and teller services will also remain intact. Source
Legion Capital, a venture capital and advisory firm, has launched a subsidiary called Stage 1 Funding, LLC; the new firm will look to address the demand for small business finance; Joseph B. Hilton of the Hilton Hotel Family will serve as President and they will focus on accounts receivable finance, equipment finance and venture debt or equity. Source
The deal will allow Mosaic to free up room on their own balance sheet and finance more loans; the company operates as a hybrid lender and completed a $139 million securitization in February; the move shows the willingness for a big bank to buy and own solar loans. Source
The financial markets were slightly surprised by the presidential outcome with Dow futures down approximately 250 points on Wednesday morning; uncertainty over some big changes specifically in financial services from Donald Trump will be a factor for markets and the industry going forward; in financial services Trump looks to deregulate the industry easing many of the controls implemented by Dodd-Frank; another factor for fintech will be Trump's position on net neutrality which could limit open source internet development; overall, speculators see increased volatility and uncertainty for the near-term. Source