News Roundup

This page contains an archive of the newsletters produced by LendIt Fintech.


Every day the LendIt Fintech news team scours the globe for the most important stories of the day to include in our daily newsletter. Then every Monday, Wednesday, and Friday we produce our Europe-focused newsletter and on Tuesday and Friday, we produce our bilingual newsletter focused on the Latin American fintech market.


Then every Saturday we bring you our weekly news roundup of the top 10 stories of the week with commentary from Peter Renton.


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Consumer lenders who are repaid from borrower’s salaries have raised $232mn recently in the UK; Insurer Legal & General are set to announce a $53mn Investment into SalaryFinance for their US expansion; other market leaders in this segment include Neyber who recently raised $179mn in debt financing; the companies have built relationships with more than 50 groups in the UK and tying repayment to salaries helps to keep defaults extremely low. Source.

Facebook has partnered with TransferWise for international money transfers as the firm continues to increase its financial services activity on the platform; TransferWise has internally developed a Facebook Messenger chatbot that will facilitate the international money transfer service; the service will expand on Facebook's current domestic money transfer capabilities.  Source

Over half of China’s online lenders have run into trouble by failing to comply with data privacy rules; Renmin University and Nandu Personal Data Protection Research Centre conducted a survey of over 200 finance apps and found more than 110 to be in low compliance; the issues include collecting phone numbers from users’ contact lists which can be used to harass and shame borrowers who fall behind; most apps also lacked a privacy agreement when signup occurs, which doesn’t allows users protection from the company. Source.

Originators of all stripes are using machines in the underwriting process. Understanding the capabilities and how best to underwrite in a more automated way is something lenders are still working on.

At LendIt USA 2016 Douglas Merrill of Zest Finance discusses the credit and underwriting process and how consumers are really looking for an experience that automates the choice of loans for them based upon the existing data available.

Douglas believes that speed matters but nobody knows that it matters, when consumers come to the lender for a loan they are not looking for a loan but for life certainty. The loan is just a product, a seamless and improved experience is what the borrower wants.

We should be discussing loans in seconds and microseconds, not days or weeks. Machines can help to automate the process based on your existing data set and a borrower should not need to fill out a loan application. Computation, storage and bandwidth are free and infinite. The things we can do with data are exciting and seemingly endless.

The current underwriting has been stuck in the 70's. Data has enabled us to change underwriting and develop new types of products; machines can help to make this happen. Why do lenders make you apply for a loan? Lenders know enough about you to know what you should need and they don't need you to fill out an application at all.

An automated underwriting process and the amount of data available through traditional and nontraditional means will help to continue the advancement in credit. At LendIt USA 2017 we will be covering the latest innovations in credit and underwriting. Learn what is coming next from the top originators, credit bureaus and service providers.  

Check out the full video here:

Consumerization of Credit

UK consumer lending platforms reported originations of 154 million British pounds ($191.81 million) in January which topped a previous high in September 2016; Zopa led UK consumer lenders in January with originations of 80 million British pounds ($99.64 million); other consumer lenders contributing to the January record included RateSetter, Lending Works, Funding Secure and Lendable.  Source

Louis Beryl was co-founder and chief executive of Earnest; he left the company this week; Navient Corp purchased Earnest back in October 2017 for $155 million; Earnest co-founder Ben Hutchinson remains at the company as chief operating officer. Source

HSBC intends to launch a new product in 2018 to address problems they see in the automated investment market; the new product is dubbed robo-advising 2.0 by Dean Butler, HSBC’s head of retail wealth; it will provide holistic financial advice and will eventually include recommendations for other products such as pensions and insurance. Source