Weekly Online Lending Snapshot – January 12, 2018
In a continuation of last week’s macro story — i.e., the extension of many 2017 trends — the Bank of England released the results of its 2017 Q4 Credit Conditions Survey. Banks in the U.K. have reduced the availability of unsecured consumer credit in each quarter of 2017 and intend to continue tightening standards in Q1 of this year. This led to a quick ‘Google’ of Consumer Debt Levels which yielded the following results: UK consumers trapped in credit card debt for longer than thought (UK), Is Record-High Consumer Debt a Good or Bad Thing? (US), Household debt is the real threat, not Labor’s property tax reform (AU), and Canadian Household Debt Hits Record High As Net Worth Declines (CA), among others. And for good measure, I also stumbled onto chapter two of the International Monetary Fund’s 2017 Global Financial Stability Report entitled, Household Debt and Financial Stability, which was published in Q4 of last year and is worth a read if you haven’t already.
In other news, German consumer lender Smava announced that it raised $65 million to expand its business across Europe. In the U.S., alternative asset manager, Drift Capital Partners, LLC, announced that its fund, Drift Credit Opportunities Fund, LP entered into a new $50 million senior secured credit facility. Near-prime consumer lender, LendingPoint, formally announced its acquisition of point-of-sale lender Loan Hero for an undisclosed amount. Chase announced a partnership with AutoFi, a platform connecting auto dealers, buyers, and lenders. Lastly, in China, it was reported that consumer and small business lender Dianrong and the Dalian Finance Development Bureau and Dalian Finance Industry Investment Group (DFIIG) signed a strategic agreement to drive financial innovation in the city of Dalian and across China.
Note that this report is updated as of Thursday’s market close to ensure we can get it to you before the weekend.