LendingRobot and NSR Invest are robo-advisors in marketplace lending; the firms have now merged to become the largest robo-advisor in the space; Lend Academy discusses the history of each company and the reasoning behind the merger; discusses the unique aspects of each offering and what the go forward plan is for the merged company. Source
RateSetter now has over 2,000 broker dealers supporting loan originations on its platform with loans from the intermediaries doubling approximately every six months; top reasons for the borrowing from this channel include vehicle loans, home improvement and debt consolidation; firm has also lent $150 million since its launch in 2014. Source
Blend has signed new bank partnership agreements and announced fundraising of $100 million; the firm will partner with Wells Fargo and US Bancorp, providing its mortgage software to help improve the mortgage application process for the two large banks; concurrently, it has also completed a $100 million fundraising round led by Greylock Partners that will increase its value to approximately $500 million and allow it to potentially expand to other lending markets. Source
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
The China Banking Regulatory Commission has released new rules on disclosure requirements for online lenders; new rules additionally require online lenders to disclose the information of "compensation", which is the money that third parties pay for the loans that cannot be paid back by borrowers; stricter rules in terms of information disclosure will help investors to know the operational conditions of online lenders better. Source (Chinese)
Inc. has released their list of the 5000 fastest growing private companies; this year over 250 companies made it in the financial services category; the list shares basic information about each company including revenue numbers; several online lenders made the list including Avant, OppLoans, Kabbage, loanDepot, Lighter Capital, FastPay, National Funding and ZestFinance. Source
As a thirty year veteran of consumer lending, loanDepot CEO Anthony Hsieh has seen his share of transformative changes; his keynote at LendIt USA 2017 focused on the modern version of consumer lending and how online lenders are only just scratching the surface; while originations have grown each year loanDepot still only accounts for about two percent market share as the second largest non bank consumer lender; he believes online lending is still in the bottom of the first or top of the second inning; non bank mortgage lenders now account for five of the top ten originators, a few years ago only two non bank lenders cracked the top ten; regulations, capital markets and technology have all contributed to the market changing since the crisis of 2008; he also talks about the future of the customer experience and their continued investment in technology. Source
Fluid received the LangDi PitchIt Fintech Choice Award; competing as one of eight finalists in the LangDi PitchIt competition, the company was recognized for its development of an innovative credit product for college students; Fluid provides college students with interest free loans of up to $500 and is supported by adtech revenue. Source
Zopa will reduce its high risk loan exposure following reports on the UK market's consumer credit outlook; data shows consumer defaults and insolvency levels are increasing; the firm says it will seek to target more low risk borrowers; the changes will allow it to offer higher returns in some of its leading products; the company plans to publish a monthly blog post with its perspective on the consumer credit market. Source
After receiving FCA authorization earlier this month, ThinCats provides some insight on plans for its IFISA; Stewart Cazier, head of retail for ThinCats, says the company is planning for a 2017 release of its IFISA; Cazier also says the firm is planning a staggered rollout with registered investors receiving first priority. Source