Michael Lewis, the bestselling author of numerous books including The Big Short,...
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News Roundup
This page contains an archive of the Global Newsletter summaries and the weekly fintech news roundups.
Every day the Fintech Nexus news team scours the globe for the most important stories of the day to include in our daily newsletter.
Then every Saturday we bring you our weekly news roundup of the top 10 fintech stories of the week with commentary from Peter Renton.
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Online lenders don't have a deposit base to lend out money, so they need to look at different forms of capital sources and Paul Fielding of SoFi talked about these options at LendIt USA 2017; they break up the investor pool into a few different buckets; investors looking to buy whole loans, their securitization shelf that has thus far done over 20 securitizations and direct capital from banks; understanding the right fit for the right investor and how that fits into the capital buckets is the key; while taking questions Paul discussed the recent formation of 1940 Act funds and believes the likes of BlackRock and AllianceBernstein could move into the consumer whole loan market as pensions begin to look at playing in the space; he also talked about the ABS markets being fickle, but in his view all markets are fickle as investors look at their allocation strategies. Source
Asia's alternative lending sector has been growing exponentially with a number of industry dynamics influencing the market; Forbes provides an overview of current market developments in China, India and Southeast Asia; growth in the three regions has been significantly influenced by a shift towards digital and a growing middle class increasingly using mobile technology; while marketplace lending has been growing in Asia a permeating challenge across all three regions is the lack of a deeply rooted credit underwriting system with robust data for lenders; China has approximately 2,200 P2P lenders with its P2P lending market valued at an estimated $100 billion however new regulations to handle fraud are likely to shrink the market; India is reporting about 30 P2P lenders in the country; India and Southeast Asia have a number of credible alternative lenders but seem to be growing cautiously in order to avoid the outbreaks of fraud experienced in China; Forbes provides a taxonomy of the various alternative lenders in Asia. Source
In a LinkedIn post, Sukhwinder Shoker provides insight into MarketInvoice's loan book which the company shares publicly; analysis includes data on originations and advance rates, invoice terms, risk-price grade, gross discount rates, diversification and net returns; according to Shoker's analysis, the average monthly net return achieved since January 2012 by investors before fees and tax is 50 basis points. Source