Weekly Online Lending Snapshot – March 16, 2018
The senate passed a bill to rollback the Dodd-Frank Act of 2010, but the proposed bill still needs approval from the House. The bill would raise the threshold for financial institutions from $50B to $250B in assets for regulations concerning “too big to fail” institutions. It was reported by Bloomberg, online lender Funding Circle is planning to IPO in London at a valuation between 1.5 billion and 2.5 billion pounds. This would make it the largest IPO by a British fintech company. Yields on US Treasury Bonds dropped as CPI growth for February came in at .2%, curbing fears of inflation, and investors flocked to safe-haven investments with weak economic data points in retail. Today, US Treasury Bond yields have picked up with better than expected results from the Empire Manufacturing Index.
In other news BBVA Compass will be offering digital instantaneous personal loans to customers becoming a new participant in the online consumer lending space. A report co-authored by researchers at IFC, CreditEase, and Stanford states fintech companies’ technology and business models are making significant progress with financial inclusion.Ondeck announced the hire of Kenneth (Ken) A. Brause as its Chief Financial Officer effective March 26, 2018. HousingWire has reported Amazon is looking to get into the Mortgage business and currently hiring for their mortgage lending division. The World Economic Forum has created a new consortium to strengthen cybersecurity for fintech companies and data aggregators. Citigroup, Zurich Insurance Group, the Depository Trust & Clearing Corporation (DTCC) and Kabbage, are among the consortium’s founding members.
Note that this report is updated as of Thursday’s market close to ensure we can get it to you before the weekend. Please contact us with any feedback or suggestions you may have for future snapshots.