An opinion editorial in American Banker makes the case for eliminating the Consumer Financial Protection Bureau; says the agency provides for unnecessary expansion of federal regulatory power; suggests a return to segregated oversight; provides a list of overreaching executive powers in addition to its recent unconstitutional ruling. Source
Upstart has been steadily growing its online lending business and has now announced a new fundraising as well as the launch of a white label software as a service (SaaS) product; the fundraising will add $32.5 million in new capital from investors including: Rakuten, a large US-based asset manager, Third Point Ventures, Khosla Ventures and First Round Capital; Upstart has emerged with many significant developments in the online loan business including next-day funding and a robust proprietary credit underwriting platform built on machine learning and modern technology; with the evolution of the business, the firm has developed a new white label SaaS product called by Powered by Upstart which it is launching at LendIt USA; the service is an extension of the firm's proprietary credit underwriting system driven by machine learning and modern data science. Source
Banking and finance software specialist Temenos has worked with Baxter Credit Union to launch the Temenos Lifecycle Management Suite on Microsoft Azure; the loan platform includes modules for collection service and loan origination; its launch marks the first use of the Lifecycle Management Suite in the cloud through integration with Microsoft Azure and Baxter Credit Union says it is currently focusing on a strategic initiative to move all of its technology to the cloud. Source
Betterment has increased its assets under management (AUM) by approximately $1 billion in eight months; AUM is currently $6.2 billion; diversification to new client segments has significantly helped the firm to grow; beginning as a consumer focused platform, it now has a Betterment for Business platform with approximately 300 customers; the early expansion to businesses primarily underserved by legacy providers is likely to be an advantage for the firm as robo advisor offerings increase. Source
Following up on a recent article highlighting the Marqeta deal with Visa, the publication interviews Candace Klein, head of alternative lending at Marqeta; the interview covers the difference between credit cards and online lenders using prepaid cards to deliver funds; how does the borrower view the experiences and if credit card companies can bring rates down does that change the equation; Marqeta provides an open API issuer processor platform to change how payment cards, virtual cards, and mobile authorization products are being used and developed. Source
Summit will be held in Washington D.C.; the Online Lending Policy Institute (OLPI) is one of the leading industry groups to promote regulatory discussions in Washington; the event will be held on September 25 at the Renaissance Hotel; industry participants will share insights, propose standards and have a dialogue with regulators and policymakers; the OLPI was founded by Cross River, the Boston University Center for Finance, Law & Policy (CFLP) and RocketLoans. Source
A former SoFi employee has filed a California lawsuit; he is arguing that he was fired for reporting sexual harassment and has included in his court filing, allegations of impropriety in the handling of loans; source also reports that a broader class action lawsuit is being prepared on behalf of a group of mistreated employees. Source
Orchard has been working for a long time on their new platform called Orchard Deals; the platform has been redesigned from the ground up and boasts more than just a secondary market; features include deal listings, capital management, advanced analytics, data services and news & insights; Peter Renton from Lend Academy spoke with Orchard CEO Matt Burton and outlines what’s new in the blog post. Source
Scott first looks back at 2016, how Lending Club was able to overcome adversity and highlights some of the leading lenders in the space like SoFi and OnDeck; he makes the comparison that online lending is a lot like online retail and there are many lessons to be learned; just like customers in retail the customers in banking do not want to go to the local branch to get a loan, they want to have a seamless digital experience like they already have with the likes of Amazon; Scott offers three ideas to define the next decade for a stronger industry, evolve the customer experience, unleash the platform's potential and amplify the core innovations that serve customers; he finishes up with a few questions from audience members. Source
Avant and Marlette Funding are battling state law in Colorado; the state has a 12% rate cap for consumer loans and both lenders advertise loans that exceed that limit; both partner banks that work with the online lenders have filed lawsuits against Colorado claiming the interest rates they charge are acceptable by federal law because of the charters they hold from their state. Source