PNC Financial Services Group is looking to launch a national consumer lending product through their mobile app and new branches; they plan to launch into new markets with branches in Minneapolis, Dallas, Kansan City and more; “We're going there to be there with our full-service capabilities, patiently banking the clients that we ultimately want to bank,” Chairman and CEO William Demchak said this week; the new plans will take place in 2018. Source.
PayPal CEO Dan Schulman is committed to helping support and promote financial inclusion by democratizing financial services and making banking activities more broadly available to everyone; the company is well positioned to support this initiative with more than six billion transactions occurring on its platform annually; Schulman provides some metrics around the benefits of digital transactions noting that the typical underserved population spends 10% of its disposable income on unnecessary fees and interest rates and with technology the cost of basic transactions can be lowered by as much as 80% to 90%.
Partech Ventures has raised 100 million euros for its Partech Entrepreneur II investment fund; funds are used to invest in seed funding for startup companies; investment was raised from 90 entrepreneurs, business angels, senior managers of tech groups, and public and private participants; the fund invests in disruptive companies with the potential for major technological innovations; the company plans to use the funds to invest in 80 startups with company investment averaging three per month; the firm has been an active investor in marketplace lending companies. Source
Cybercrime is a growing problem with ID theft hitting a record high in 2016 affecting 15.4 million people; Credit card fraud resulted in $21.84 billion in losses across the world; synthetic identities are a top risk for the banking industry and banks need next-generation KYC tools to protect themselves. Source
BFS Capital Inc., a leading small business financing company, announced that it has appointed Michael Marrache as chief executive officer to succeed outgoing CEO and co-founder Marc Glazer; Michael has been with the company for four years and previously served as COO then President; "I began work with BFS Capital nearly four years ago because I thought the company had enormous potential, and I'm even more certain of this today. I'm honored to have been asked by Marc and the board to lead the company's next phase of growth," said the new CEO; Marc Glazer will continue in his role as chairman of the board. Source
Ning Tang, founder and CEO of CreditEase, has received the China Financial Literacy Distinguished Contribution Award; the honor was awarded at the 2nd China Financial Literacy Annual Conference; as an institution, CreditEase was also honored with the China Financial Literacy Distinguished Contribution Award; the awards recognize Ning Tang and CreditEase for their broad commitment and contribution to financial inclusion, wealth management, fintech innovation and public financial education. Source
Jianpu listed on the NYSE on November 16th under code JT; it is the fourth fintech company to IPO in the US in the second half of 2017; others included Quidian, Hexindai and PPDAI; Jianpu is a subsidiary of Rong360 and has an active user base of 95.8 million; the platform has provided 170,000 financial products in more than 350 cities. Source
The companies are grouped into 16 categories with total average fundraising from all 100 companies of $14 million; year to date ICO fundraising is at $1.5 billion with the top fundraisings from Filecoin and Tezos; in the US, most are falling within the SEC's definition of securities issuances, with the prevalent testing measure being the Howey Test. Source
Linked Finance, an Irish P2P SME lender, has received new funding from Eiffel Investment Group; under the deal Eiffel Investment Group has agreed to provide up to 20% of funding for new loans on Linked Finance's platform; Eiffel has been around the space since 2011 and manages 200 million euros ($213.43 million) for institutional investors across other platforms including Lendix and Funding Circle; Linked Finance has originated 700 loans since launching in 2013 and plans to lend 350 million euros ($373.50 million) by 2020. Source
The worst week in SoFi‘s history is coming to an end. The company announced today that Mike Cagney has stepped down as CEO effective immediately. This follows the news on Monday that Cagney would be stepping down as CEO by the end of the year. But the bad news this week kept escalating and the board decided it needed to take action now. Source.