News Roundup

This page contains an archive of the Global Newsletter summaries and the weekly fintech news roundups.

Every day the Fintech Nexus news team scours the globe for the most important stories of the day to include in our daily newsletter.

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

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The NFIB Small Business Optimism Index decreased to 104.7 from 105.3 in March and fell below expectations of 104.8; small businesses were less optimistic about business growth as momentum from the Trump administration slowed; lower sales expectations and uncertainty were key factors for the March Small Business Optimism Index report which collected its data prior to the delayed Obamacare vote which many small business owners were watching closely. Source

After substantial growth in 2016, Money360 has expanded its team by adding two new divisions and directors; David Christensen will lead the Northwest region and Kenneth Wood will lead the Northeast region; in December the company reported a record month of lending with $35 million in loans; in the first few months of 2017 it expects to report cumulative lending of over $200 million.  Source

CoinTribe is using advanced credit modeling to provide online lending to small and medium-sized businesses in India; it also offers personal loans; its services are leading the marketplace for small and medium-sized businesses; company provides an online marketplace for loans and also offers platform as a service digital technology to banks; CoinTribe has been originating loans since March 2016; has raised $3 million in funding and has plans to raise another $10 million to $15 million in the near-term.  Source


While P2P lending platforms have taken a significant amount of lending from banks since the financial crisis, data from the Financial Times suggests that growth could be slowing; an Ernst & Young survey shows only 7% of 1,100 people using P2P lending platforms for borrowing and a separate survey from Blumberg Capital says only 4% of 1,050 British adults have used the platforms in the past 12 months, signaling less awareness and demand; banks have also increased investment in fintech regaining some market share; overall, the Financial Times reports that the market in the UK is changing with regulations supporting P2P lenders but less demand and market risks slowing growth. Source

In an article from American Banker, the pros and cons of AI-based credit scores are outlined; pros include more precise scores through more nuanced evaluations of data and the ability to consider consumers that linear models would reject; the cons are the risk that regulators will consider an AI-based score a "black box" and being able to provide one clear reason for credit denial; perspectives from Elevate, ID Analytics, Experian and FICO on AI credit scoring are presented in the article.  Source

Sunlight Financial has gained a $130 million investment from Route 66 Ventures for expansion of its residential solar systems lending business; the firm plans to develop new financing products, expand its Charlotte business center and partner with more solar installers; the firm is currently a trusted provider for a network of solar installation companies and offers its credit products through an easy to use online platform.  Source