The 6 biggest trends in #Fintech today -

The 6 biggest trends in #Fintech today – Chris Skinner’s blog.

Data is having a tremendous impact on customer experience, and through enhanced insight is boosting customer profitability in the financial sector. Take a brief glimpse at six trends in which fintech innovation is steering imaginative and profound approaches to rich customer experiences for financial consumers.

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Best of Both Worlds: The Composite Lending Business Model

By Sergey Vasin on 22nd February 2016

Alternative lending has become an important part of the financial landscape. Two major lending business models in this industry are marketplace and balance sheet lending, which differ mainly in the distribution of risk and the amount of return. Composite lending bridges those models and brings the benefits of marketplace lending to balance sheet loan originators.

In the world of alternative lending, two prominent lending business models are marketplace lending and balance sheet lending.

Marketplace lending for lower risk

In the marketplace lending model, lending companies sell loan portfolios to third party investors in exchange for collection of […] Read more

Are Changes Coming To The P2P Lending Model?

Are Changes Coming To The P2P Lending Model?

LendingClub was the first peer-to-peer lender to file for an IPO and raised $900 million in 2014 – marking the largest U.S. tech IPO of the year. The company’s peer-to-peer model introduces loan seekers to individual investors who offer loans at a typically higher interest rates versus what banks and other traditional lending institutions offer.

In a report published Monday, Michael Tarkan of Compass Point maintained a Sell rating on LendingClub with a $12 price target as investor appetite is “evolving” to account for the Madden v. Midland case.

“The Madden v. Midland case, which called into question federal preemption laws for […] Read more

PeerIQ Secures $2.5M in Follow-On Seed Funding for P2P Credit Risk Analytics Platform

PeerIQ, a financial information services company that connects peer-to-peer (“P2P”) lending to the capital markets by helping institutional investors analyze, access and manage risk, today announced that it raised $2.5 million in a seed-extension round. Participants in the round include new investor and customer Victory Park Capital, as well as Fenway Summer Ventures and existing investors Uprising and former Morgan Stanley chairman and CEO John Mack. The financing follows the Company’s April 2015 receipt of $6 million in seed funding from several prominent capital markets and technology investors.

PeerIQ will use the funds to accelerate its core growth initiatives: continuing new […] Read more

Funding Circle is doing so well it hasn’t touched the £97 million it raised in April

Funding Circle is doing so well it hasn’t touched the £97 million it raised in April

Funding Circle, the UK peer-to-peer small business lender, is on track to do over £35 million ($53.8 million) in revenues this year, Business Insider can reveal.

Funding Circle’s online platform lets savers lend directly to small businesses at more favourable interest rates than offered by traditional bank savings accounts.

Accounts filed with Companies House in the UK show Funding Circle Holdings, the parent company of both Funding Circle’s UK and US businesses, did revenues of £13.1 million ($20.1 million) in the year to December 31, 2014. That was up from £5.3 million ($8.1 million) in 2013.

But CEO and cofounder Samir […] Read more

Beyond P2P – The next wave of innovation in business finance

The reluctance of banks to lend to businesses has kick-started massive innovation in business finance. This week peer-to-peer (P2P) lender Zopa passed the £1bn lending mark and is expecting to do the next billion by the end of 2016. Peer-to-peer lenders have captured the public imagination by offering an alternative to banks.

Yet, focusing on P2P misses a huge part of the story of how funding in Britain is changing. P2P lenders innovated on the funding side by sourcing liquidity from individuals rather than institutions. That was helpful during the banking crisis when funding was scarce. Today we are facing […] Read more

The next wave of innovation in business finance

The reluctance of banks to lend to businesses has kick-started massive innovation in business finance.  This week peer-to-peer (P2P) lender Zopa passed the £1bn lending mark and is expecting to do the next billion by the end of 2016. Peer-to-peer lenders have captured the public imagination by offering an alternative to banks.

Yet, focusing on P2P misses a huge part of the story of how funding in Britain is changing. P2P lenders innovated on the funding side by sourcing liquidity from individuals rather than institutions. That was helpful during the banking crisis when funding was scarce. Today we are facing fundamentally […] Read more