Loot has launched version two of its app which provides for cash deposits and personal finance management; in its newest launch the app has accepted 25,000 new customers; the app helps customers track their spending and provides discounts from affiliated merchants; the version two launch of the app follows a $3.13 million funding round in November. Source
Investors in China are increasingly looking for an unbiased, lower cost option for managing their wealth; robo advisors are beginning to fill that void; the new firms are helping the non ultra rich access markets and helping the wealthy allocate their money without fear of a broker who is thinking of the corporate firm; though the data on robo advisors in China is currently thin, China Merchants Securities Co. believes that assets managed by robo advisors will reach over $750 billion by 2020. Source
A blog post from Frank Rotman of QED Investors says fintech companies should keep in mind growth strategies from the previous generation; outlines three important phases for business growth, 1) testing 2) scaling and 3) cost efficiency; says growing exponentially in the early phases is not always the best approach and that building a lending business with land grab as a justification for growth is not necessarily the best strategy. Source
Polychain Capital, a hedge fund that focuses on investing in digital assets such as bitcoin and ether has raised $10 million; the funding comes from venture firms Andreessen Horowitz and Union Square Ventures; the company launched in September with $5 million from 30 investors and is led by Olaf Carlson-Wee who was also the first employee of Coinbase; according to Olaf: "There will be many types of assets codified into the blockchain, and they are all not just going to be on the bitcoin blockchain — it's going to be a number of different assets here. And the best way to invest in that is a diversified portfolio." Source
Bank and non-bank mortgage lenders are currently having a debate seen across the financial landscape on whether to build, buy or partner with new technology; mortgage lending in particular is seen as archaic and overly reliant on paper applications; companies like Better Mortgage are trying to change this through innovative technology; other firms like Finance of America Holdings, a portfolio company of Blackstone Group, are still weighing their options as more fintech firms are beginning to disrupt the mortgage business. Source
Moody's has issued comments on the OCC's announcement to offer a fintech charter; says the fintech charter would help reduce legal risks from partner bank funding; focuses on the effects from the charter on partner bank funding relationships; says banks could stop relying on partner banks to fund loan originations. Source
Anju Patwardhan is researching the potential for financial technology to increase financial inclusion for small businesses at Stanford University; Anju was previously chief innovation officer at Standard Chartered Bank and currently is a venture partner at CreditEase; in an interview on the Pacific Exchanges Podcast, she talks about collaboration between banks and fintech firms as well as her research at Stanford University. Source
Juniper Research has released a study titled, "Fintech Futures: Market Disruption, Leading Innovators & Emerging Opportunities 2016-2021"; study finds that fintech platform revenues generated from supporting the insurance industry will total approximately $175 billion in 2016; the analysis projects that these platform revenues will grow at an annual rate of 34% with revenue of $235 billion globally by 2021; Juniper Research says growth will be driven by machine learning, increased use of mobile apps and blockchain technology. Source
The Financial Conduct Authority (FCA) has launched a study analyzing the UK's mortgage industry; study will focus on the industry's tools for consumers and the partnerships among mortgage lenders; the FCA will specifically seek to identify ways to better utilize technological solutions within the industry; the FCA will be obtaining information from a range of market participants and plans to release the results of the study in an interim report in 2017 followed by a comment period and final report in 2018. Source
Greenland Financial is expected to report a profit after one year of business; the internet finance company is a newly developed business unit of Greenland Group which is known for its focus on real estate; Greenland Financial offers three main services 1) a wealth management platform with various investment products 2) professional asset allocation and wealth management services and 3) a cloud platform for internet technology and data analysis services; contributing to the success of China's real estate conglomerate, Greenland Financial's president, Yang Xiaodong, had the following comments about the company and its future growth: "The company's revenue and profit will double each year over the next two to three years. I am confident about that. And I hope after three years, the company will seek listing on the capital market." Source