The UK marketplace lending industry is likely to see several factors causing change in 2017; the Financial Conduct Authority has reported several concerns which may increase regulatory pressure; demand for loans and capital investment are also slowing; larger platforms will have a greater advantage while the smaller platforms may see greater challenges; competition and partnerships among traditional financial service providers and fintech companies will also continue to be significant for the market overall. Source
President Donald Trump is expected to ease regulatory burdens across the financial services industry; some marketplace lenders believe this could help to cause less friction; “We want to deliver a frictionless experience but there’s all this friction—hopefully this administration will be helpful,” said Marlette Funding CEO and Founder Jeffrey Meiler on a panel at LendIt USA 2017; the current market environment includes expectations for rising rates and less regulation which seems to be helping the outlook for a growing marketplace lending industry with opportunities across a range of categories including mortgage lending and business lending. Source
RateSetter is ending its wholesale loan program after discussions with the Financial Conduct Authority; the Financial Conduct Authority has requested P2P lenders not undertake wholesale lending which provides loan capital to other businesses and financial institutions specifically for the purpose of lending; in 2016, RateSetter reported 114,347,646 British pounds ($142,591,515) in wholesale lending. Source
ISA statistics were released on Thursday by HMRC; last year two thousand Innovative Finance ISA accounts were subscribed with retail investors collectively investing GBP17 million (USD $22 million); this compares to GBP22.325 billion ($28.94 billion) into stocks and shares and GBP39.191 billion ($50.81 billion) into cash ISAs; about one third of money invested into IFISAs on P2P platforms last year was from transfers; while the accounts opened and amount invested were low it still shows appetite for such products. Source
Elevate's Center for the New Middle Class has released a study showing subprime consumers are limited in their ability to utilize credit balances or borrow from their social networks; the Center's study reports 70% of nonprime Americans couldn't cover an urgent expense of $500 or more with their savings and 64% wouldn't be able to borrow from friends and family; the Center's study amplifies the need for solutions targeting nonprime borrowers; Elevate's Center for the New Middle Class is currently undergoing research efforts to support nonprime credit access and personal financial management efficiencies. Source
Daimler Financial Services plans to invest 'double-digit' millions of euros in AutoGravity's vehicle financing platform; the investment will support Daimler's digital services financing portfolio; in January AutoGravity's app was launched in 46 states and it has now reported over 150,000 app downloads; it currently provides consumers with four auto financing offers. Source
The lawsuit according to Crowdfund Insider names former CEO Renaud Laplanche along with current and former board members as well as former CFO Carrie Dolan; according to the complaint: "Throughout the period December 11, 2014 and continuing through May 9, 2016 (the "Relevant Period"), the individual defendants breached their fiduciary duties to LendingClub by failing to institute adequate internal controls regarding financial disclosures, related party transactions, and data integrity and security, all while causing LendingClub to represent in the Registration Statement and a series of subsequent filings that such controls were sufficient."; two shareholders filed the suit. Source
CAN Capital has deep roots in the credit industry, evolving from one of the industry's leading merchant cash advance services in the 90s; as AdvanceMe, its direct competition with AmeriMerchant was influential in the merchant cash advance industry with AmeriMerchant winning a patent case that invalidated AdvanceMe's patent on merchant cash advance technology, also opening the market to increased entrants in the merchant cash advance business; both companies have now simultaneously reached new junctures; CAN Capital suspended funding in November 2016 and AmeriMerchant, now Capify, has been partially acquired by Strategic Funding Source; Strategic Funding Source has acquired the US operations of Capify in one of 2017's first acquisitions; international businesses of Capify were not acquired and will continue to be led by Capify executives. Source
Canada reported significant growth in online and marketplace lending in 2016; fintech growth in the country was also substantial with Canada reporting a 74% increase in fintech investment; a blog post from Aspire gives a roundup of online and marketplace lending activity in 2016 which included many partnerships and equity rounds; also provides predictions for the market in 2017; among its seven predictions are more bank partnerships and increased institutional investment. Source
loanDepot has been steadily becoming one of the US's top mortgage lenders, rivaling both online businesses and traditional institutions; Anthony Hsieh talked with Forbes at LendIt USA about the growth of the business; the company has funded over $100 billion in mortgage loans and is building out a fintech ecosystem that will empower future market growth and product expansion; loanDepot is the third online mortgage company founded by Anthony Hsieh and the company is in its eighth year of operations; Hsieh says the firm is potentially considering an IPO. Source