Weekly Online Lending Snapshot – June 23, 2017
In an interview with CNBC, Goldman Sachs CEO Lloyd Blankfein announced that Marcus, the online consumer lending business they launched last year, has already lent $1 billion and is on track to lend $2 billion by the end of 2017. Some of the most successful online lenders in the U.S. such as SoFi, OnDeck, and Kabbage are exploring international expansion, particularly in Australia, Canada, and parts of Europe. These firms may benefit from international banks being more amenable to partnering with online lenders. In China, it was announced that the country’s largest P2P platform Yirendai is expanding its product offering by creating a wealth management platform that will sell funds and insurance online. Yirendai and its majority shareholder, CreditEase, will be able to cross-sell these products to their 900,000 active users. It was reported that fintech firms could take a sizable share of the banking market in Mexico by providing services to the unbanked. A number of the 158+ new fintech companies are lending focused platforms including Kubo Financiero, a P2P lender, and Kueski, a micro lender. The World Retail Banking Report 2017 by Capgemini highlights the success of fintech firms in improving the user experience for customers and makes the case that more traditional banks need to adopt an open-source model to evolve and avoid disintermediation. In securitizations, SoFi Consumer Loan Program (SCLP 2017-4), filed form 15G with the SEC. This will be the fourth securitization of 2017 for SoFi. Kroll Bond Rating Agency, assigned preliminary ratings to three classes of notes worth $322 million issued by Marlette (Marlette Funding Trust 2017-2). Classes A, B, C were assigned preliminary ratings of AA (sf), A (sf) and, BBB (sf), respectively.
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Thanks and have a great weekend!