LendIt has partnered with Sharestates to provide a list of LendIt USA 2017 speakers to follow on Twitter; the list includes over 300 speakers with company and personal twitter handles; you can also follow @LendIt and #LendItUSA for details about the event. Source
In 2016 the online consumer lenders had an unexpected downturn; platforms experienced a capital markets crunch as well as concerns over credit quality; this panel with some of the largest consumer online lenders explores their expected growth going forward; despite the pullback, the major lenders continued to underwrite a significant amount of loans and believe growth for their businesses will return albeit in a more measured way; panelists discuss changing platform strategies and the focus on profitability. Source
At LendIt USA 2017, Lang Di CEO Gabriel Hai hosted a panel themed how fintechs are changing the way that Chinese people bank; one approach is to use big data technology to reach the individual credit market; panelists agree that China's fintech platforms are more willing to cooperate with traditional banks, as the banks have a more friendly regulatory environment and sufficient cheap money, whilst platforms are at advantages of bringing new technologies to the cooperation; however, Zhou Xinming, CEO of Hexindai, pointed out that China's fintech companies' customer base is more of individual investors rather than institutional investors, and the former are still not financially sophisticated. Source
Online lenders don't have a deposit base to lend out money, so they need to look at different forms of capital sources and Paul Fielding of SoFi talked about these options at LendIt USA 2017; they break up the investor pool into a few different buckets; investors looking to buy whole loans, their securitization shelf that has thus far done over 20 securitizations and direct capital from banks; understanding the right fit for the right investor and how that fits into the capital buckets is the key; while taking questions Paul discussed the recent formation of 1940 Act funds and believes the likes of BlackRock and AllianceBernstein could move into the consumer whole loan market as pensions begin to look at playing in the space; he also talked about the ABS markets being fickle, but in his view all markets are fickle as investors look at their allocation strategies. Source
Providing credit to the underserved is something a lot of companies attempt to achieve; 138 million people in the US need access to credit and most of these individuals are concentrated in nine states; when it comes to credit there isn't a lot of options for non prime consumers; at LendIt USA 2017 James Gutierrez of Insikt discussed expanding access to credit where the consumer gets a personal touch to their experience; at his previous firm James offered face to face loans in Latino supermarkets to the underbanked; his experience there allowed him to bring that personal interaction to a digital platform without losing the intimate feel; Insikt is able to scale in a quicker fashion but still provide credit where the consumer knows they are getting an option that suits their needs. Source
LendIt USA 2017 is now history. It was a great event, I think it was our best ever, it was...
Dave Girouard is the founder and CEO of Upstart; Girouard spent almost his entire career working for tech firms including Apple and Google and a lot of Upstart's team actually comes from Google; given that they lean heavier towards the 'tech' side of fintech, Girouard has a unique perspective; shares the general trend of software disrupting every business and that every business will become a tech business; discusses the history of marketplace lending, attributes of a marketplace and the evolution of the marketplaces; reports on how artificial intelligence and machine learning can help in a number of ways including creation of real time analysis, development of customized credit scoring, expanded access to credit through broader underwriting variables and faster processing; also discusses some of the challenges that currently keep machine learning solutions from the mainstream including adverse selection, loan stacking, fraud and regulatory concerns; ends with the benefits of alternative machine learning technology including more inclusion, lower rates, lower costs and greater financial support for consumers. Source
Zane Wang shares the contrast of consumer finance in the US and China from 2000 to 2017; in 2000 China had no credit bureau, no decisioning engines but there was a vast market opportunity; this is the opportunity that China Rapid Finance has capitalized on; in recent years there have been many developments in China with more people covered by the credit bureaus and in consumer finance/credit cards; Wang shares the tremendous growth potential that still exists in the Chinese market and their focus on the emerging middle-class mobile active. Source
Scott Sanborn gave a recap of his LendIt USA 2017 keynote presentation and reiterated his excitement and positive outlook for the marketplace lending industry in a blog post; Sanborn identified three key areas of importance: evolving the customer experience, unleashing the platform potential and amplifying core innovations; with a focus on these three things Lending Club plans to see more borrowers and investors as well as a number of new and innovative partnerships fueling its future business growth. Source
Lend Academy provides insight and highlights from the event's keynote speakers in their article; day one featured Scott Sanborn from Lending Club as the event's leading keynote speaker and also included three keynote presentations on regulation in the industry from Congressman Patrick McHenry, Comptroller Thomas Curry and CFPB Director Richard Cordray; day two began with Alex Tapscott discussing blockchain and followed with a variety of insights from leading industry innovators; Lend Academy also reports on PitchIt and the LendIt Industry Awards additionally including key takeaways from the event overall; videos from the event will all be published within the next few days and can be found on the LendIt USA 2017 video page. Source
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