Weekly Online Lending Snapshot – February 02, 2018
To begin February, we thought we might try taking a look around the globe at the latest headlines about fintech and online lending regulation to gauge the general sentiment: Lawmakers struggle to find right balance on fintech policy (U.S.); India’s flourishing fintech sector is craving the finance minister’s attention (India); ‘Balanced’ regulation of fintech the way forward for China’s authorities, industry investor says (China); and Paris Is City of Fintech Love for Startups Seeking Hookups (France) were a few that caught our eye. Generally speaking, the broad conversation about how best to promote financial innovation while providing oversight to protect consumers and the stability of financial systems rages on.
In other news, it was reported that China’s Alibaba Group Holding Limited will acquire a 33% equity interest in small and microlender Ant Financial. Hexindai Inc., a consumer lending marketplace in China, announced a RMB1 billion line of credit agreements with Ping An Bank and Xiamen International Bank. In the U.S., it was reported that small business lender Kabbage is expanding its business by offering credit lines of up to $250,000. It was also reported that SoFi ordered the lay off of ~65 employees from its mortgage lending unit. This comes after reports earlier this month that Twitter COO Anthony Noto was to become SoFi’s new CEO. Banco Popular relaunched their Eloan brand (initially launched in 1997) to compete with online lenders and banks like Goldman Sachs’ Marcus, and will initially make consumer loans available in all U.S. states except Massachusetts.
Read our latest Industry Profile. We featured Martin Chorzempa, a research fellow at the Peterson Institute for International Economics (PIIE), a private, nonpartisan, nonprofit institution focused on the study of international economic policy. He’s been on the front lines of Chinese fintech and economic research.