Weekly Online Lending Snapshot – Aug 4, 2017
This week, Kabbage, an online lender focused on small business lending, announced a $250 million equity investment from Japanese telecom giant SoftBank. The company plans to use the money to expand its lending products for small businesses and explore non-lending products and services for these customers, including invoicing and payments products. Chinese lender Dianrong raised $220 million from a number of investors including Singapore’s sovereign fund GIC. The firm will use the funds for automation across some of its branches in China, for R&D, and for potential acquisitions. Australian online lender Prospa has secured a $20 million debt facility from the Australian arm of U.S.-based commercial finance provider, Partners for Growth (PFG). Business Insider reported that Ratesetter, a U.K.-based lender, has surpassed £2 billion in loans originated through its platform. In regulatory news, the Office of the Comptroller of the Currency (OCC) has filed a motion to dismiss a lawsuit by state regulators challenging the agency’s fintech charter, arguing that the group had no standing to challenge the charter mostly since it hasn’t granted one yet. The Wall Street Journal reported that there has been an increase in the average net charge-off rate for large U.S. card issuers to 3.29% in the second quarter, its highest level in four years. This is concerning for banks as they watch for signals of a downturn in the credit cycle. In securitizations, Kroll Bond Ratings has assigned preliminary ratings to Prosper Marketplace Issuance (PMIT 2017-2). The three classes of notes, classes A, B, and C, totaling $501.06 million, were assigned preliminary ratings of A (sf), BBB (sf), and B+ (sf) respectively. Also Sofi Consumer Loan Program 2016-2’s (SCLP 2016-2) class A notes were upgraded from A to AA and its class B notes were upgraded from BBB to A. In addition, Marlette Funding Trust 2016-1 (MFT 2016-1) class A notes were upgraded from A to AA and its class B notes were upgraded from BBB to BBB+.
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Thanks and have a great weekend!