Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
Mastercard has announced a new platform (in the US initially) which issuers can offers to their customers called Assemble. The first product allows millennials to manage money through a digital prepaid account, a mobile app and a payment card (virtual or physical). Its a great example of the emerging digital tools aimed to build loyalty, … Continue reading “New Mastercard Digital Platform Launched”
Last Friday, the People’s Bank of China and China Banking Regulatory Commission issued a regulation to rectify excesses in internet-based consumer finance says Moody’s. The regulation is credit positive for banks because it will help prevent a rapid increase in consumer leverage, strengthen banks’ risk management and limit disorderly competition. Exhibit 1 shows that outstanding … Continue reading “China’s Tightens Regulation of Internet-based Consumer Finance”
S&P Global just published their 2017 U.S. Digital Lending Landscape report. They estimate that 15 of the most prominent U.S. digital lenders grew originations at a compound annual growth rate of 129.4% during the five-year period ended Dec. 31, 2016. Going forward, they project slower growth for the industry as lenders focus on building sustainable … Continue reading “Digital Lending; On The Up”
A really mixed bag of news this week, with stronger business and employment data, lower mortgage defaults and yet weak wage growth, and more evidence of the pressure on households. We pick over the coals and try to make sense of what’s going on. Welcome to the Property Imperative Weekly to 18 November 2017. Watch … Continue reading “Walking The Tightrope – The Property Imperative Weekly 18 Nov 2017”
An interesting paper from the Federal Reserve Bank of Cleveland “Three Myths about Peer-to-Peer Loans” suggests these platforms, which have experienced phenomenal growth in the past decade, resemble predatory loans in terms of the segment of the consumer market they serve and their impact on consumers’ finances and have a negative effect on individual borrowers’ … Continue reading “Is Peer To Peer Lending Mirroring Sub-Prime?”
Peer-to-peer lender RateSetter has now reached the $150m mark in loans facilitated thanks to a rapid influx of lenders into the platform. They provide data on their portfolio via their web site, great disclosure (mainstream players take note!). From this we see that debt consolidation and home improvement were the two main purposes, and the … Continue reading “RateSetter Passes $150m in loans”
Interesting speech from Carl-Ludwig Thiele, Member of the Executive Board of the Deutsche Bundesbankentitled “From Bitcoin to digital central bank money – still a long way to go“. He says the Bundesbank actively shapes the ongoing conversation about distributed ledger technology (DLT) by contributing insights of its own, not least because as a central bank, … Continue reading “Is a Central bank-issued digital currency a realistic prospect?”
A new report from the Financial Stability Board overviews the development of FinTech platforms and looks at potential risks such activity brings. The report highlights that the growth is strong in certain markets, but the business models and partnering models vary widely. In volume terms China, US and UK lead the way. There is diversity … Continue reading “Rapid growth in FinTech credit carries opportunities and risks”
Mark Carney, Governor of the Bank of England, spoke on ‘The Promise of Fintech.” Specifically, he looked across the banking value chain, and highlighted how digital transformation may be applied across it, as well as the risks which may emerge is so doing and how regulators need to respond. To its advocates, this wave of … Continue reading “The Bank of England On Fintech”
From InvestorDaily. Digital trends and the increasing sanctity of data will be as disruptive a force on the provision of financial services in the years ahead as deregulation was in the 1980s, says CommInsure. In a forward-looking article penned for InvestorDaily sister title ifa magazine, CommInsure head of life product and strategy Franco Crapis drew … Continue reading “Data akin to deregulation on disruption scale”