Weekly Online Lending Snapshot – July 21, 2017
This week, it was reported that Upgrade, an online lender founded by Renaud Laplanche, the former CEO of LendingClub, is growing loan volume and has hired about 100 new employees. In international lending news, FinLeap, the fintech incubation startup platform behind Germany’s solarisBank and twelve other fintech ventures in Europe, has secured €39 million from German insurer Signal Iduna, Japan’s SBI Group and Dutch bank NIBC. Also, it was announced that Rocket Internet, is selling its majority stake in German P2P platform Lendico to Arrowgrass, a hedge fund in the U.K. The Guardian reports that P2P lender Ratesetter will use its own funds instead of its Provision Fund to prevent £80 million in losses for its mostly small investors, resulting from loans of its wholesale lending program which was shuttered in December. It is acquiring two companies that it lent money to through the program, Vehicle Trading Group Limited and Adpod, in hopes that this will better protect their investors’ interests. Chinese online lender Dianrong said it has completed a proof of concept of how it can use blockchain in its loans assessment system. Dianrong worked alongside Chained Finance, Foxconn’s financing arm, to originate $6.5 million in loans to its small- and medium-sized suppliers through the blockchain technology. In regulatory news, the head of the Office of the Comptroller of the Currency (OCC), Keith Noreika, is defending the agency’s initiative to explore the regulation of fintech firms. While state regulators have sued the OCC as it explores creating a national charter for fintech firms, in recent remarks, Noreika has dismissed these claims saying it is clear the OCC has the authority to grant bank charters to nondepository fintech companies. In the U.K., state-backed British Business Bank has published a new study finding that alternative lenders are becoming a very important source of financing for small- and medium-sized enterprises and that they need to be fostered. In securitizations, DBRS has assigned preliminary ratings to SoFi Professional Loan Program (SOFI 2017-D). Classes A-1, A-2, and B were assigned preliminary ratings of AAA (sf), AAA (sf), and AA respectively.
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Thanks and have a great weekend!