Weekly Online Lending Snapshot – November 3, 2017
Already ‘old news’ as of this writing, the Bank of England voted to raise its Bank Rate by 25 bps to a target of 0.5%. The move was widely expected despite regional concerns over consumer and corporate debt levels. In the U.S., the Federal Open Market Committee announced its decision to hold its target range for the federal funds rate at 1-1.25%. It was also announced that Jerome Powell was nominated by Trump to replace Federal Reserve chair, Janet Yellen.
In small business lending news, Citizens Bank announced the launch of a new digital lending platform for small businesses in collaboration with small business lender, Fundation. Trevor Dryer, CEO of Mirador Financial, a provider of white-label digital small business lending solutions for banks and other traditional lenders, testified during a hearing of the Small Business Subcommittee on Economic Growth, Tax, and Capital Access titled, “Financing through Fintech: Online Lending’s Role in Improving Small Business Capital Access”. It was reported that U.K.-based peer-to-peer invoice financing firm, MarketInvoice, is expanding to begin offering short-term small business loans between £10k and £100k.
French telecom company Orange, launched its own bank last week, becoming the latest large technology company—albeit one of the first telecoms in a developed market—to begin providing banking and lending services. It was also reported this week that subprime lender Elevate Credit, is seeking to partner with a bank to expand into the credit card business.
Lastly, Kroll Bond Rating Agency (KBRA) assigned preliminary ratings to three classes of notes issued by SoFi Consumer Loan Program 2017-6 (“SCLP 2017-6”), a $591 million consumer loan ABS transaction.
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.
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