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LendingClub drops SME lending arm. Personal loans, and P2P lending

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United States

United Kingdom

European Union

International

India

Other

News Summary

  • United States
  • LendingClub shuts down SME lending arm (Banking Tech), Rated: AAA
  • How Personal Loans Impact Debt and Credit Scores a Year Into Repayment (LendingTree), Rated: AAA
  • How To Get Your Paycheck Early (Forbes), Rated: AAA
  • Deserve’s Kalpesh Kapadia: ‘We promise the best credit card for our customer’s profile and life stage’ (Tearsheet), Rated: AAA
  • Resolve Accelerates Shift to B2B eCommerce with Automated Net Payment Terms (GlobeNewswire), Rated: A
  • Online Auto Loans: The Pros and Cons (U.S. News), Rated: A
  • It’s Not Easy Solving For $ 1.5 Trillion In Student Debt (PYMNTS), Rated: A
  • Would You Take a Job Just for the Fertility Insurance? (Glamour), Rated: AAA
  • dv01 Launches Credit Risk Transfer Market Surveillance Offering (dv01 Email), Rated: A
  • Let’s give post offices another job (The Student Life), Rated: A
  • Equifax acquires PayNet to help expand access to capital for small and mid-sized businesses (PR Newswire), Rated: A
  • Marketplace Lending Update #5: The Very Long Arm of Colorado Law (The National Law Review), Rated: A
  • Berman Tabacco Announces Major Win for Victims of Plain Green Online Lending Scheme (BusinessWire), Rated: A
  • 2nd Circ. Says Tribal Officers Not Immune In Payday Loan Suit (Law360), Rated: B
  • White Oak Global Advisors Completes $ 30M Loan for Danimer Scientific Holdings (AP News), Rated: B
  • Online Lender Upgrade Recognized as Top Place to Work in San Francisco (Crowdfund Insider), Rated: B
  • United Kingdom
  • Funding Circle lowers return projections (P2P Finance News), Rated: AAA
  • Peer to Peer Lender RateSetter Receives Queen’s Award for Enterprise (Crowdfund Insider), Rated: AAA
  • Challenger bank Tandem to double headcount as CEO warns of Brexit brain drain (Yahoo! Finance), Rated: A
  • Consumer P2P loans weigh on P2PGI fund returns (P2P Finance News), Rated: A
  • China
  • How Leverage Turns Market Corrections into Crashes (Yale Insights), Rated: AAA
  • Trade war with US could lead to economic ‘cold war’ for China, Beijing researchers say (SCMP), Rated: A
  • European Union
  • French Lender Societe Generale Issues $ 112 Million Bond on Ethereum (CoinDesk), Rated: AAA
  • N26 opens tech hub in Vienna with a focus on security (TechCrunch), Rated: A
  • API card platform Marqeta signs up three customers in Europe (Verdict), Rated: B
  • CoinLoan Plans IEO and Seeks Partners (Digital Journal), Rated: B
  • International
  • SoFi Is in Talks With Qatar for $ 500 Million Funding Round (Bloomberg), Rated: AAA
  • These are the top 10 hottest fintech startups and companies in the world (Business Insider), Rated: AAA
  • U.K. fintech now has war chest to push stateside (American Banker), Rated: A
  • BlockFi Is Now Paying Interest on $ 53 Million of Crypto Deposits (CoinDesk), Rated: A
  • No crypto winter for BlockFi as client base reaches 50% (CoinGeek), Rated: B
  • Funds at your disposal: Digital lending making inroads into traditional lending (Finextra), Rated: A
  • Microsoft Will Pay You To Develop… Ethereum? (CryptoBriefing), Rated: B
  • India
  • Indian lendtech ZestMoney raises $ 20m (Banking Tech), Rated: AAA
  • ‘Money Loji’ launches App that offers loans to salaried professionals within 5 Minutes (Business Standard), Rated: A
  • Blockfi Launches High-Interest Crypto Lending Program in India (Bitcoin.com), Rated: A
  • Asia
  • Nuo Network Crypto Lending Platform Becomes Asia’s Biggest with $ 2 Million in Reserves (Bitcoin Exchange Guide), Rated: AAA
  • Why China’s Ping An OneConnect picks Indonesia for expansion (The Asset), Rated: A
  • MENA
  • Banks use fintech to make up for lost time on financial inclusion (Financial Times), Rated: AAA
  • Iraq’s financial inclusion drive boosted by homegrown fintech (Financial Times), Rated: A
  • YouHodler Cryptocurrency Lending Platform Adds Dash (Dash News), Rated: A
  • Canada
  • 7 ways emerging fintech hubs are taking on the giants (PaymentsSource), Rated: AAA
  • Latin America
  • Brazilian Credit Marketplace FinanZero raises USD 11 Million in Series B Round (Yahoo! Finance), Rated: AAA

United States


US peer-to-peer lending pioneer Lending Club has closed the doors on its in-house small business lending operation, reports Julie Muhn at Finovate.

Opportunity Fund, a non-profit small business lender; Funding Circle, one of the largest alternative small business lending platforms in the US; and Lending Club have teamed up to offer Lending Club’s small business clients’ access to credit. Businesses can now borrow up to $300,000 for rates as low as 5%.

Key findings

Speaking of Walmart, the retailer has partnerships with two fintech startups–Even Responsible Finance and PayActiv–that enable its US workers get part of their salary paid before payday.

Employees can get up to eight drawdowns (called Instapays) on their salary ahead of scheduled payouts. The first eight drawdowns are free to the employees, and then in subsequent use, fees are levied across a personal finance app available through Even.

Continuous Billing

There’s no reason why billers can’t provide continuous information about what a customer owes, in real time, online or through mobile apps.

The financial system has always struggled with young people. Because the system uses credit history, young people were frequently excluded from credit products because they’re new to the system. If you’re an immigrant or foreign student studying in the US, it’s way worse. Kalpesh Kapadia set out to change a system that was skewed against young people. He’s the co- founder and CEO of Deserve, which offers credit cards to college students at 2500 universities in the US.

To do this, he’s created an analytics-based lending platform that’s also branching out into powering credit cards as a service. We talk about how Deserve is able to underwrite credit-thin files and why he thinks his firm is at an advantage when it comes to competing against Marcus’s credit products and Apple’s new credit card.


According to Forrester Research, business-to-business (B2B) eCommerce is poised to reach over $1.8 trillion by 2023. To help power this explosive growth, Resolve today announced that it has formally spun out of Affirm to launch an automated payments platform offering extended net terms. Early customers using Resolve’s payment automation technology have realized significant increases in B2B sales, growth in order size, and faster sales cycles.

Things are different now. Almost every financial institution has an online presence, and most offer information about car loans on their site. Most also provide an opportunity to apply for financing online, with a growing number able to take car buyers through the entire auto loan process without ever having to visit a bank or credit union branch.


There is $1.5 trillion worth of student loan debt outstanding in the U.S. and it is creating problems.

Admittedly the plan is quite a bit more complex than that, as detailed by Sen. Warren in a Medium post that went live yesterday (April 22). In broad strokes, for students from families with less than $100,000 a year in annual income, $50,000 in student loan forgiveness would be available. The post also calls for “substantial debt cancellation for every person with household income between $100,000 and $250,000.” The Warren plan also calls for the elimination of tuition at all two-year and four-year public institutions of higher learning, and would create a fund of at least $50 billion specifically for historically black colleges and universities. Federals subsidies for for-profit colleges would be banned.


The cost, however, put it out of reach. A single round of IVF rings in at about $20,000 on average, once you tally up the procedure itself along with a long list of other out-of-pocket expenses: medication, consultations, genetic screening. Most families pay for IVF out of pocket, and many rack up serious medical debt in the process—one survey by an online lender of 200 women undergoing fertility treatments found 44 percent of women were left at least $10,000 in debt after fertility treatments—making insurance coverage of fertility treatments a rare but game-changing beacon of hope. As a teacher (and track and cross-country coach), Gina didn’t have fertility benefits, which can potentially cover anything from IVF to egg freezing to fertility testing, so she took a third job as a barista at Starbucks, where a part-time gig was enough to get the insurance coverage she needed. “I don’t drink coffee and I knew nothing about coffee, but at the end of the day, I was there for a specific reason: insurance coverage,” she says. During her time at Starbucks, Gina went through another successful round of IVF and gave birth to a healthy baby girl.

dv01 Launches Credit Risk Transfer Market Surveillance Offering (dv01 Email), Rated: A

dv01 today announces the launch of its Credit Risk Transfer (CRT) Market Surveillance offering, which will be showcased on April 25 at the 4th Annual Credit Risk Transfer Symposium in New York.

dv01’s latest offering adds $1.8 trillion of Freddie Mac (STACR) and Fannie Mae (CAS) CRT securitizations to dv01’s modern web-based data analytics platform, furthering their goal of bringing greater transparency to capital markets. Building on the success of dv01’s Market Surveillance offering for consumer loans (launched in 2017), the CRT offering will allow investors to analyze historical performance of CRT deals both individually or as combined deals, perform whole market analysis, and run cash flow scenarios.


As of 2017, approximately 6.5% of households in the U.S., totaling more than eight million, don’t have an account open at an insured bank, according to the Federal Deposit Insurance Corporation. An additional 24.2 million households utilize non-traditional financial services that often make them vulnerable to usurious lending rates.

Americans utilizing alternative forms of credit spend nearly 10% of their salaries on fees alone. For a family making the average salary of $25,500 in 2012, those fees average out to $2,412.

The USPS has 59% of its locations in zip codes that have one or fewer banks, according to a 2011 government report. This could help people to overcome a geographic boundary.


Equifax Inc., a global data, analytics and technology company has acquired PayNet, a company that provides commercial credit risk underwriting and management solutions to online and alternative finance lenders, and commercial finance and leasing companies in the U.S. and Canadian markets.

Recently a state court in Colorado ruled that securitization trusts that acquire marketplace lender loans originated to Colorado consumers are subject to Colorado jurisdiction. The court’s ruling derailed the attempt by the securitization trusts to escape the ongoing battle between the State of Colorado and marketplace lenders over rates and fees that can be charged to Colorado residents.

In a long-awaited opinion, the U.S. Court of Appeals for the Second Circuit today ruled that borrowers who took out loans from the Native American-affiliated online lender Plain Green can proceed with their nationwide RICO class action in Vermont federal court. The Second Circuit affirmed a May 2016 ruling by District Judge Geoffrey W. Crawford and comes nearly two years after oral argument on Defendants’ appeals. Berman Tabacco and Gravel & Shea PC are Lead Counsel in the case, Gingras, et al. v. Rosette, et al., No. 5:15-cv-00101-gwc (D. Vt.).

The Second Circuit on Wednesday rejected a bid by officers of tribe-owned lending company Plain Green LLC to escape a suit claiming they charged exorbitant interest rates on so-called payday loans,…

White Oak Global Advisors, LLC (“White Oak”) today announced it acted as sole lender and administrative agent to provide a $30 million senior credit facility to Danimer Scientific Holdings, LLC (“Danimer”), a manufacturer of specialty compostable and biodegradable plastics. This transaction expands on White Oak’s ESG-lending platform, which aims to finance small and medium-sized enterprises (“SMEs”) that are developing solutions to help address environmental and social issues around the world.


Online Lender Upgrade, a Fintech serving the consumer credit market, has been named a “Best Place to Work in the Bay Area’”by the San Francisco Business Times and Silicon Valley Business Journal. Upgrade is the creation of  CEO Renaud Laplanche, the founder of publicly traded marketplace lending platform LendingClub. This is the second time Upgrade has been recognized as a nice place to work in the notoriously work focused bay area.

United Kingdom

FUNDING Circle has revised down its annual return projections in the face of a weaker environment for consumer credit.

The peer-to-peer business lender now predicts investors in its Balanced portfolio will achieve a return of 4.5 to 6.5 per cent a year.

Investors in its Conservative portfolio, meanwhile, could achieve 4.3 to 4.7 per cent a year.


Peer-to-peer investment platform RateSetter has been recognized with a prestigious Queen’s Award for Enterprise for excellence in innovation.

Tandem Bank said on Tuesday it had moved into a new 16,000 square foot office in London as part of plans to double headcount this year to 230 and grow to 300 people by the end of 2020.

“Last year we hit 500,000 customers when we had an expectation for 150,000,” Knox told Yahoo Finance UK.

P2P Global Investments (P2PGI) has warned that its legacy peer-to-peer lending portfolio continues to be more volatile than expected despite posting an improved net asset value (NAV) return for 2018.

P2PGI – the world’s first P2P-focused investment trust – revealed in its annual report that its NAV for 2018 was 5.2 per cent, up from three per cent in 2017.

China

Q: Is shadow borrowing unique to China?

It’s difficult to study the phenomenon very precisely. We do observe shadow lending in various forms growing throughout the world, including in the U.S., and, if left unregulated, this type of lending could mean that household and financial institution leverage keeps rising in a way that is both unregulated and undocumented.

Because the Chinese government believed that the shadow sector was partly responsible for the crash, it seized the data from some shadow lending platforms and allowed us to analyze it.

Q: Who’s providing the financing in these situations?

The exact sources of financing are not well known. Some of it could be other stock investors that have put up their own holdings as collateral and borrowed against it and then lend out the proceeds on the shadow market. It could also be peer-to-peer lending platforms. It’s also believed that some of the financial institutions and brokerage firms within China may have also lent out within the shadow sector.

The tit-for-tat tariff war with the US and the broad hostility is seen as a major risk endangering China’s “economic security”, along with a property bubble, local debt, unemployment and online financing including peer-to-peer lending, according to the latest edition of China’s Economic Security Outlook.

European Union

French financial services giant Societe Generale Group has issued about $112 million worth of bonds in the form of a security token on the public ethereum blockchain.

Announced today, a subsidiary called Societe Generale SFH used the OFH token (obligations de financement de l’habitat, or home financing obligations) to represent 100 million euros of covered bonds, a type of security that is backed by specific assets but remains on the issuer’s balance sheet.

The bond has a five-year maturity with a 12-month extension period, Moody’s said.


Fintech startup N26 is opening an office, its fourth, in Vienna. Eventually, the company plans to hire 300 software engineers, product managers and IT specialists.

The platform has been signed up by French digital bank Morning, Swiss digital bank Yapeal, and Spanish POS lender Aplazame.

CoinLoan crypto-backed lending platform declares its intention to launch an Initial Exchange Offering and invites discussion with major crypto exchanges interested in the listing.

International

Fintech startup Social Finance Inc. is in the final stages of closing a funding round from the Qatar Investment Authority and others, according to four people familiar with the matter.

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