Weekly Industry Update: Rebounding Equity Markets, The Case for Bank M&A
By Vy Phan
February 19, 2018
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- Are active in lending, but have a gap in unsecured consumer loans
- Banks with asset management or structured products arms that can package loans into new products (e.g., ABS offerings, investment vehicles, etc.). Also, banks that have aspirations to develop a robo-advisor
- Banks that have a demonstrated history of partnering with FinTechs
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Conferences:
- Ashish Dole will speak on the “Marketplace Lending Snapshot: Performance, Review, ABS Issuance Outlook and Funding Trends, and Bank Partnerships” panel at SFIG Vegas 2018 on Wednesday, February 28 at 9:15 AM.
- Kevin Walsh will speak on a panel at SFIG Vegas 2018 titled, “Predictive Modeling: The Role of Big Data and Machine Learning Across the ABS Market” taking place on Monday, February 26 at 4:35 PM.
PeerIQ in the News:
- Finalists Announced for Second Annual LendIt Fintech Industry Awards(PRnewswire, 2/16/18) PeerIQ is a finalist for “Most Promising Partnership” for our partnership with Macquarie.
- Fintech-friendly Cross River Bank partners with PeerIQ on loan data(AmericanBanker, 2/16/18)
Industry Update:
- S&P 500 Caps Best 5 Days Since 2011 as Oil Jump (Bloomberg, 2/14/18) S&P500 posted its best 5-day rally to recover above 2700.
- U.S. CPI Tops Estimates as Apparel Costs Jump Most in 30 Years (Bloomberg, 2/14/18) US CPI increased by 0.5% MoM driven primarily by apparel prices.
- Retail Sales in U.S. Decline After December Revised Down (Bloomberg, 2/14/18) Retail sales declined by 0.3% in January and were revised lower for December.
- U.S. Consumer Sentiment Jumps After Tax Cuts Blunt Stock Gyrations(Bloomberg, 2/17/18) US consumer sentiment rose to 99.9, the second-highest level since 2004, signaling that the US consumer was still optimistic about the economy.
- Three Gauges Show Prices Rising in U.S. Production Pipeline (Bloomberg, 2/15/18) US CPI, PPI and the Empire State Manufacturing Index point to higher inflation.
- House Backs Bill That Would Benefit Fintech Partnerships With Banks (WSJ, 2/14/18) The House passed a bill that would ensure that loans retain the original interest rate issued by a bank, and clears a lot of regulatory uncertainty around the Madden vs. Midland issue.
- B of A’s Moynihan: Big banks are 'fine' with Dodd-Frank (American Banker, 2/15/18) Moynihan said that Dodd-Frank had made the financial system safer but would work on rationalizing capital ratios to spur loan growth.
- Americans Can’t Get Enough Consumer Debt (WSJ, 2/14/18) Consumers borrowing is approaching 30% of non-mortgage debt.
- SmartBiz Loans Surpasses JP Morgan Chase as Number One Provider for SBA 7(a) Loans Under $350,000 (Businesswire, 2/14/18) SmartBiz Loans has outpaced many national banks, to become the top facilitator of Small Business Loans for 2017.
- MoneyLion Reaches 2 Million Customer Milestone As Growth Accelerates(Businesswire, 2/13/18) Rapid customer adoption reflects demand for financial products that address the challenges of the financial middle class.
- SoFi Reports Disappointing Earnings as Loan Performance Suffers (WSJ, 2/9/18) Lower-than-expected credit performance hampered the returns on the retained securities.
- Review of OnDeck Q4 2017 Earnings Results (Lend Academy, 2/13/18) OnDeck delivered its first GAAP profit with net income of $5 Mn.
- Citi, PNC invest in B-to-B payments fintech (AmericanBanker, 2/14/18) Citi Ventures and PNC on Wednesday announced a strategic investment in the payments firm HighRadius, continuing the trend in partnerships between banks and fintech firms.
- Podcast 138: Vishal Garg of Better Mortgage (Lend Academy, 2/9/18) CEO and Founder of Better Mortgage explains how his company is making it easier to buy a mortgage (Transcript)
Lighter Fare
- The Songs That Bind (NYT, 2/11/18) Data drawn from Spotify listeners reveal we stick with the music that captured us in the earliest phase of our adolescence.