BBVA Compass and the Opportunity Finance Network are teaming up to identify and increase training for 25 leaders in community lending through an Opportunity Fellows Program; BBVA Compass is a leading banking franchise with 668 branches mainly in the US sunbelt; Opportunity Finance Network is an association of community development financial institutions (CDFIs); the chosen Fellows will receive six days of training through early 2017 on themes including financial innovation and financial inclusion; applications open mid-November 2016; cost is not specified but appears to be complimentary or highly-subsidized for the leaders given the opportunity to participate. Source
Mastercard is the latest company to be added to OnStar Go, a cognitive mobility platform where drivers can browse stores and restaurants and purchase directly on their dashboard; get gas and pay for it without getting out of the car; after its launch in July, Masterpass is currently available in 33 markets, with plans to expand into 36 by the end of this year; the new dashboard will be deployed across two GM vehicles in the US by 2017; "The global momentum we're achieving with banks, merchants and consumers is proof-positive of our efforts to create simple and secure digital payment experiences anywhere consumers want to shop," said James Anderson, Executive Vice President of Digital Payment Products at Mastercard. Source
Prosper is lowering rates for higher credit quality borrowers and increasing rates in the lower credit quality segments; borrowers with loan ratings AA through C will see a rate decrease of as much as 79 basis points while borrower ratings D through HR could see an increase of as much as 74 basis points; in total, across all ratings, rates will be lower by approximately 39 basis points; Prosper says the rate changes are a result of the credit market environment, interest rate expectations and competition for consumer loans. Source
Student loan marketplace lender, Earnest, has completed its fourth securitization; Goldman Sachs and Barclays were the lead arrangers; portfolio valued at $174.44 million; the October securitization is the fourth for the year with previous securitization deals in February, May and July. Source
IRA Financial Group, a New York provider of retirement plan solutions, is offering a self-directed IRA for P2P loan investors; the firm has designed the IRA for P2P lending; loan investments in the self-directed IRA would be tax deferred. 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
Small Change is claiming to be the first real estate crowdfunding platform that's issuing investments under Reg. CF; the company focuses on investment projects with community enhancement benefits; Reg. CF (covered by the JOBS Act Title III) is one of several regulatory frameworks to facilitate private investments; Reg. CF is suited for smaller startups and investment offerings up to $1 million, without the full SEC filing requirements of Reg. A+; in the Crowdfund Insight interview, Small Change CEO, Eve Picker, suggests that they will use Reg. CF for smaller real estate investment projects and broader outreach to all levels of investors, while using Reg. D in parallel to reach accredited investors for larger deals. Source
Lending Club announces Q3 earnings on November 7th; LendingRobot provides a review of past quarters including comments on regulation, revenue and loan performance; shares three things they are looking for in the next release including results from corrective actions, a clear path forward for 2017 and a hint of something new. Source
Since 2008, a number of changes have occurred affecting the U.S. financial industry and its regulations; simultaneously financial technology has also been evolving rapidly and market conditions have actually been a catalyst for P2P lending platforms; Forbes finds, as many market experts have recently discussed, that P2P lending platforms' extension of credit to a more diverse range of borrowers and built in accountability through investors and lenders, is providing a new type of support for the credit market that could help to prevent another crisis in the future. Source
The Office of the Comptroller of the Currency (OCC) has announced it will create an Innovation Office with staff in Washington, New York and San Francisco; the new Innovation Office is part of a broader framework for responsible innovation also released this week; the Innovation Office will provide a dedicated staff of government officials focused on innovation affecting federally chartered banks and the banking system; it will also seek to manage the OCC's framework for responsible innovation for banks and nonbanks. Source