Weekly Online Lending Snapshot – April 7, 2017
As mentioned in earlier snapshots, we are closely watching the growing “coopetition” between traditional financial services firms and new fintech companies. Known for their widely-used consumer credit score, FICO® announced the launch of FICO® Origination Manager Essentials this week, a cloud-based loan origination service designed to help banks and credit unions reduce the operational costs associated with making small business loans. The trend of credit unions launching new credit offerings for their members also bears watching. A new partnership was announced between the New York Credit Union Association and SimplyCredit, a San Francisco-based fintech company that offers lines of credit to consumers to help them refinance existing credit card debt. The partnership will make SimplyCredit’s offerings available to New York credit union members. In related news, it was reported that a bill for The Investing in America’s Small Businesses Act of 2017, was introduced this week by U.S. Rep. Carolyn Maloney (D-NY), and is meant to help increase lending to businesses in developing communities. If passed into law it would provide grants to Community Development Financial Institutions (CDFIs) and allow them to use private investments to expand small business lending programs. On the other side of the equation (and the Atlantic) TechCrunch reported that Monzo, a U.K.-based digital-only bank has met regulatory infrastructure and capital requirements that will allow it to begin holding customer deposits, and eventually to use those deposits to support lending operations.
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Note that this report is updated as of Thursday’s market close to ensure we can get it to you before the weekend. Please contact us with any feedback or suggestions you may have for future snapshots.