Weekly Online Lending Snapshot – December 15, 2017
It was interest rate week for a number of central banks. As expected, the U.S. Federal Reserve announced their decision to increase its benchmark interest rate by 25bps, to a range of 1.25 percent to 1.5 percent. In response, it was reported that the People’s Bank of China raised the rates it charges commercial banks on seven-day and 28-day loans by 5bps each to 2.5 percent and 2.8 percent respectively. It also raised the rate of one-year medium-term lending facilities by 5bps to 3.25 percent. The European Central Bank kept its benchmark rate for the Eurozone at 0.05 percent, as did the Bank of England.
There were a couple fundraising announcements this week. The biggest was Affirm’s announcement of a $200 million round led by the Singapore government’s sovereign wealth fund, GIC, and was joined by earlier investors including Khosla Ventures, Lightspeed Venture Partners, Founders Fund and Spark Capital. INSIKT, a lender focused on serving the underbanked, announced it raised an additional $50 million round led by Grupo Coppel, with participation from FirstMark Capital, Revolution Ventures and Colchis Capital.
In other news, First National Bank and Trust Company (FNBT) announced it has selected RCGILTNER Services, Inc. to deploy a new digital lending platform for small businesses. It was reported that National Australia Bank is doubling to $100,000 the maximum amount it will extend to small businesses through its online platform. PayNet, Inc., and Akouba, a provider of a secure cloud-based small business lending platform, announced a data and technology relationship.
Note that this report is updated as of Thursday’s market close to ensure we can get it to you before the weekend.