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After public outcry, Beijing says it will ban new online lending platforms

“Now, authorities covering internet financial and loan risks have laid out 10 policy measures, such as bans on new online lending platforms, state-run news agency Xinhua reported Sunday” writes Evelyn Cheng for cnbc.com. Seventy-three percent of P2P platform failures since June were due to liquidity issues, Citi analysts Daphne Poon and Judy Zhang said in a July 18 report.The Chinese government is stepping up scrutiny of and instituting new measures for a once-burgeoning online lending sector, where fund closures have prompted protests and even caused a convenience store chain in…

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Beijing struggles to defuse anger over China’s P2P lending crisis

“Since June, 243 online lending platforms have gone bust, according to wdzj.com, another P2P industry data provider” writes Min Read for reuters.com. Many P2P platforms lend to customers that might be deemed too risky for a commercial bank.Across the city, others who had lost money investing in China’s online peer-to-peer (P2P) lending platforms – including some who had traveled from as far away as Shandong and Shanxi provinces – got similar visits from police.That’s not only hurting the financial system but also the real economy.” For Wang, the Beijing investor,…

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Buy now, pay later: Tech startups are reviving point-of-sale lending

“Affirm, an online lender based in San Francisco, was founded by Max Levchin, who co-founded PayPal” writes The Economist for economist.com. Such “point-of-sale” loans, which have been around for decades in one form or another, are becoming increasingly popular in America.Investor enthusiasm for online lenders can be fickle, however.Some new entrants offer credit mainly through online merchants. Source: economist.com Share This:

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Crypto News Platforms 

Inlock launches blockchain-powered lending for cryptocurrency holders

“Excluding any interest payments, Inlock users pay every cost associated with borrowing and lending in ILK tokens” writes Stewart Rogers for venturebeat.com. Basically, Inlock pairs those with cryptocurrency holdings with those who want to borrow.Borrowers choose the most competitive offers from lenders, which gives them the opportunity to avoid selling their cryptocurrency to finance a temporary liquidity problem.Inlock today announced the global launch of its platform that matches licensed lenders with borrowers. Source: venturebeat.com Share This:

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Square partners with eBay to expand lending for ‘underserved’ small businesses

“Square Capital, the lending arm of the payment start-up, will be available to eBay sellers looking to expand their business operations” writes Kate Rooney for cnbc.com. Amazon also does this for sellers, and began extending credit to small business owners in 2011.Heading into this year, small businesses reported stronger revenue growth and profitability but still struggled to get loans to pay operating expenses and wages, according to the Federal Reserve’s 2017 Small Business Credit Survey.Square Capital originally provided loans to merchants already using its credit card processing services. Source: cnbc.com Share…

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Santander Adopts nCino Platform For Faster SMB Lending

“Santander Bank is adopting nCino technology to accelerate its business lending operations, the FI announced on Wednesday (July 18)” reports pymnts.com. Last year, nCino announced updates to its banking operating system to accelerate small business lending functionality, including underwriting and eSignature capabilities.Additional features will be added onto the nCino platform for Santander customers as the year continues, the bank noted, beginning with online loan application and customer relationship features.In another statement, nCino CEO Pierre Naudé said that Santander’s adoption of the nCino platform represents the bank’s understanding of the importance of…

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Fed’s banking supervisor backs new interest rate benchmark

“The Federal Reserve’s banking supervisor gave his backing Thursday to a new interest rate benchmark for institutions to use when lending to each other” writes Jeff Cox for cnbc.com. In furtherance of providing a LIBOR alternative, Quarles said the Fed could publish an SOFR average that banks could use.Fed Governor Randal Quarles said banks can use the central bank’s Secured Overnight Financing Rate as an alternative to the London Interbank Offered Rate, or LIBOR, a benchmark that has come under scrutiny due to multiple issues of fraud.SOFR indicates the cost…

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AmEx 2Q profits rise, but there are worry spots on lending

“Total loans carried by AmEx customers stood at $75.4 billion last quarter, the company said, up from $67.9 billion a year earlier” writes The Associated Press for seattletimes.com. But it had to set aside more money to cover potential bad loans, and saw its delinquency rate rise noticeably.AmEx said it set aside $806 million, up 38 percent from a year earlier, to cover for potentially bad loans. The company’s worldwide write off rate for loans was 2.1 percent in the quarter, up from 1.8 percent a year earlier. Source: seattletimes.com Share…

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Postal banking faces challenges, but is more plausible than you’d think

“Opponents insist that government-to-consumer lending is an unproven, big-government takeover of a mature, well-regulated (but disliked by some) industry” reports washingtonexaminer.com. We don’t think of state and federal agencies as financial services institutions, but that’s exactly what Sen.Additionally, these same governments offer direct loans for mortgages, student aid, rural development, and more.More recently, Native American tribal governments have developed internet-based financial services businesses and used the revenues for social, cultural, and infrastructure projects on the reservation.However, state, federal, and tribal government-to-consumer direct lending is nothing new. Source: washingtonexaminer.com Share This:

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