David Chan, CEO at Monedo (previously Kreditech), a point of sale (PoS) lender that claims to have more than one million customers who have reportedly received over 2 million loans (as of March 2020), says that the online lender has a global addressable market of 300 billion Euros in consumer credit issuance.
Chan said his company aims to tap into this market segment in order to further expand Monedo’s operations.
During a recent interview with the Fintech Times, Chan confirmed that the alternative online lender is currently offering services in India, Poland, Spain, and Russia. The company aims to leverage the latest technology in order to enable greater financial inclusion.
Like many other Fintechs, Monedo aims to serve consumers that may be unable to access traditional banking services.
Chan said the company’s data scientists are using AI and machine learning to enhance the lending process. Monedo uses advanced algorithms to determine customers’ credit worthiness.
“Our AI-driven credit scoring technology and digital lending process is fully automated and needs no human intervention. This means Monedo customers can receive personalized loan offers and pay-outs when they need them.”
Responding to a question about how the Fintech sector can respond effectively to the challenges created by COVID-19, Chan said:
“Fintechs need to focus on managing cash flow and profitability as a matter of urgency. The pandemic is also creating new challenges in terms of assessing credit risk.”
While explaining how Monedo’s PoS tech works, Chan noted:
“Our e-commerce or ‘point-of-sale’ technology also means we’re able to open up new lending channels, which is creating new revenue streams for us and online retailers, while providing more flexibility for online shoppers.”
He claims that the company’s “pay-later” service has seen increased adoption in Poland, especially during the pandemic
Like many other Fintech professionals, Chan believes that the changes in consumer behavior due to the Coronavirus crisis might be permanent.
“I strongly believe this ever-evolving behavior of more people shopping online using their laptops and mobile phones will be a permanent change and reinforce opportunities for digital businesses like ours.”
Founded in 2012, the company focuses on online lending to customers in the near-prime segment. Installment loans are Monedo’s key product and constitute as much as two-thirds of its global portfolio.
Financial Technology Association Creates Advisory Board, Adds Top Fintech Experts to Guide Strategy
The Financial Technology Association (FTA) announces the formation of an advisory board. The new board will help guide the nascent group’s mission to proactively guide regulation and policy in the booming Fintech sector. Founded in March, the FTA has moved quickly to boost its ranks with top Fintech experts to both educate and work directly with policymakers.
Daniel Gorfine, a prominent voice in the Fintech sector and FTA Senior Policy Advisor, said the advisory board is indicative of the FTA’s commitment to receiving robust and independent feedback from a diverse set of leaders in the financial technology and policy space:
“FTA’s advisory board will strengthen the Association’s work and help member companies continue their work to drive financial inclusion, equity, and opportunity.”
The FTA has shared a list of the advisory board members and as well as comments by the members.
- Timothy Massad, former Chairman, U.S. Commodity Futures Trading Commission: Tim served as the Chairman of the Commodity Futures Trading Commission (CFTC) from 2014 to 2017. Prior to his tenure at the CFTC, he served as the Assistant Secretary for Financial Stability at the United States Department of the Treasury. He is currently a Research Fellow at the Harvard Kennedy School and an Adjunct Professor at the Georgetown University Law Center.
“The financial sector constantly innovates, and we must modernize our regulatory framework to address the advantages that innovation can bring, particularly in terms of greater financial inclusion, while making sure it does not lead to excessive risk. I welcome the FTA’s commitment to sound regulation that can protect consumers and investors and improve financial inclusion and overall outcomes.”
- J. Christopher Giancarlo, former Chairman, U.S. Commodity Futures Trading Commission: J. Christopher served as a Commissioner for the Commodity Futures Trading Commission (CFTC) from 2014 to 2019 and as Chairman from 2017 to 2019. Now, he serves as Senior Counsel at Willkie Farr and advises several financial technology companies. Chris is the co-founder of the Digital Dollar Project, a non-profit think tank dedicated to digitizing the U.S. Dollar. Throughout his career, Chris has been a well-known and well-respected advocate and expert on financial technology innovation.
“I applaud the formation of the Financial Technology Association and believe strongly in the need to ensure that regulation keeps pace with inevitable digital change. Now is the time to build the digital infrastructure and advance digital financial services models that benefit consumers and ensure a leadership role for the United States in shaping the future of finance.”
- Sheila Warren, Head of Data, Technology, and Digital Assets and Member of the Executive Committee, World Economic Forum: Sheila brings extensive experience related to the financial technology industry, serving as the Head of Data, Blockchain and Digital Assets at the World Economic Forum. She also holds advisory positions at multiple financial technology institutions and organizations. As a global expert in financial technology, Sheila collaborates with global regulators, companies, and NGOs to explore the benefits of fintech adoption. Sheila is an influential advocate for diversity and inclusion in the industry.
“Technological innovation holds substantial promise in advancing financial services equity, inclusion, and opportunity both in the U.S. and globally. I welcome FTA’s focus on shaping innovative and well-informed regulation that ensures fintech’s inclusive growth. I look forward to working with the FTA and its members on a better future of finance.”
- Anthony Alexis, former Head of Enforcement, Consumer Financial Protection Bureau: Anthony previously served as the Head of Enforcement of the Consumer Financial Protection Bureau (CFPB) and assistant U.S. Attorney. He is now a Partner at Goodwin Procter LLP and brings a unique perspective with his experience in shaping and enforcing the regulatory environment.
“Companies that understand the importance of compliance and safeguarding consumers will be those that prove to be sustainable and of real benefit to Americans and the economy. I look forward to sharing my perspective on how innovators can build new models responsibly and live up to the promise financial technology offers.”
- Jo Ann Barefoot, CEO & Co-founder of the Alliance for Innovative Regulation: Jo Ann is CEO and Founder of the Alliance for Innovative Regulation (AIR) and host of the podcast show Barefoot Innovation. A noted advocate of “regulation innovation,” she is Senior Fellow Emerita at the Harvard Kennedy School Center for Business & Government. Jo Ann previously severed as the Deputy Comptroller of the Currency at the Office of the Comptroller of the Currency (OCC) from 1978 to 1982.
“Technological innovation is impacting how we provide financial services and how we regulate, creating both new opportunities and new risks. I applaud FTA’s recognition of the importance of regtech innovation and forward-leaning regulatory oversight models that incorporate technology to improve regulatory efficiency and its effectiveness, especially relating to consumer financial health. I look forward to engaging with the FTA’s members on how to advance digital regulation.”
- Richard Berner, former Director, Office of Financial Research: Dick served as the first Director of the Office of Financial Research (OFR) from 2013 until 2017. Prior to his confirmation as OFR Director, he served as Counselor to the Secretary of the Treasury. Dick has been a member of the Economic Advisory Panels of the Federal Reserve Bank of New York and the Congressional Budget Office and of the Board of the National Bureau of Economic Research. Now he is Clinical Professor of Finance and Management Practice at the NYU Stern School of Business and Co-Director of the NYU Volatility and Risk Institute. He teaches Integrated Risk Management and Fintech Regulation.
“Companies and regulators need high-quality financial data to identify risks and opportunities, and innovations in digital reporting promise to improve data quality and reduce costs. I applaud FTA’s desire to advance regtech models and processes, especially now in light of emerging new risks, and I share its desire to modernize and improve financial regulation for the benefit of consumers and businesses.”
- Ben McAdams, former Congressman from Utah: Ben served as a member of the U.S. House of Representatives (D-UT) from 2019 to 2021. As a founding member of the House Financial Services Task Force on Financial Technology, he was an avid supporter of responsible fintech innovation while serving Utah’s fourth district. Prior to Congress, he served as mayor of Salt Lake County and was a Utah state senator.
“I have been at the forefront of ensuring that federal banking regulation keeps pace with financial services innovation and believe strongly that modern chartering approaches can safeguard consumers by bringing more financial services activity into the regulated banking space. I am aligned with FTA’s important focus on modernizing the regulatory perimeter and look forward to working with its members.”
- Staci Warden, Executive Director, Global Market Development, Milken Institute: Staci is the former Executive Director of Global Market Development at the Milken Institute and has spent her career executing, managing, advising, and writing on issues across several fields including innovative finance and FinTech. Prior to the Milken Institute, she worked at JPMorgan and Nasdaq. Staci is currently Chair of the Rwandan Capital Markets Authority, a cabinet-appointed position.
“I have spent a career advancing consumer and market outcomes by responsibly leveraging financial technology innovation, and supporting organizations like FTA that understand the importance of regulation. FTA member companies represent the leading financial technology companies in the U.S. and have an opportunity to shape policy for the next generation of financial services.”
UK’s Open Banking Fintech TrueLayer Introduces New Approach to Account Ownership Checks with Verification API
TrueLayer, Europe’s Open Banking platform, reveals that it has launched a new approach to account ownership checks with its Verification API.
As noted in the announcement from TrueLayer, the Verification API will be leveraging Open Banking along with with machine learning algorithms. This should help with making the onboarding process more seamless. It has been designed to achieve success rates that are more than 20% greater than traditional credit bureaus with results being returned within seconds, instead of taking several days (when using manual bank statement checks).
By pre-verifying clients’ information, it also simplifies payments setup – which means there should be no more failed transactions.
Many TrueLayer customers are using the Verification API, including Authologic, a Y Combinator-backed provider of ID verification services.
Jarek Sygitowicz, co-founder of Authologic, stated:
“Whether you are a fintech, a marketplace, or an ecommerce platform you want to deliver the best possible onboarding experience. We are aggregating different identity verification methods and we are big supporters of using open banking thanks to its ability to make the entire process more intuitive. Working with a market leader like TrueLayer to integrate its Verification API will help us to further strengthen the identity verification process for our customers.”
Traditional verification steps like bank statement uploads tend to be slow, prone to errors, and offer a poor user experience (UX). Although Open Banking provides another approach, current service providers offer access to raw data that requires firms to develop and maintain their own logic to verify that the clients’ name matches their name on file at the bank.
TrueLayer’s Verification API addresses these issues. Instead of requiring the cumbersome, time-consuming and resource-intensive task of developing a matching engine, TrueLayer has created verification logic that can sit on top of Open Banking channels.
It’s able to match the names provided during the onboarding process with the name on file at the bank, offering a single feed that aims to ensure a quick and accurate response on whether their client’s account has been verified.
The Verification API from TruelLayer offers several key benefits, such as:
- An faster onboarding process (time reduced from 3 business days to only a few clicks).
- Coverage spanning established banks, leading to about a 22.5% higher success rate when compared to credit bureau checks.
- Lower risk of fraud via embedded Strong Customer Authentication (SCA) as part of the bank verification flow.
- An enhanced UX, with a simple redirect to their banking app to confirm account ownership with a fingerprint or Face ID.
- Reduced payment failures with pre-verified account details.
- Reduced burden on compliance teams by automating checks via a simple API call.
- Reduced burden on software engineers who are now able to focus on addressing core business problems, instead of developing and maintaining name-check logic.
Ossama Soliman, Chief Product Officer at TrueLayer, remarked:
“Verification is the first step to onboarding a new user and yet it can often take days to verify an account owner using traditional methods. Their security is questionable, they’re prone to errors and they take forever. It doesn’t need to be that way. With the Verification API we’ve built on top of open banking to create a faster, more secure and more accurate approach to verifying a user’s account. It serves businesses across multiple industries, including financial services, PSPs, wealth management and trading, marketplaces, property and iGaming.”
Coinsmart. Beste Bitcoin-Börse in Europa
illimity’s Strategic Plan Focuses on Loans, Predicts €60+ Net Profit for 2021
illimity, the first digital bank in Italy that previously completed a SPAC deal, has distributed its strategic plan for the time period of 2021 to 2025. After reporting net income in 2020 of €31 million following a net loss of €16.1 million in 2019, illimity expects a net profit of €60-€70 million in 2021. By 2025, illimity predicts a net profit of over €240 million.
As has been previously reported, illimity’s revenue is largely generated by its lending activities. The bank intends on focusing more effort on SMEs including:
- performing loans to corporates: a market worth €700 billion that in two years of activity, illimity says it has succeeded in becoming a reference player, disbursing corporate loans of around €1 billion and gaining a key position also in the Acquisition Finance sector;
- unlikely to pay (“UTP”) corporate loans: a rapidly growing market where transactions of over €35 billion are expected to occur between 2021 and 2025 and where illimity is already positioned as a leading operator;
- corporate NPLs: a market where transactions of over €140 billion are forecast to take place between 2021 and 2025 and where illimity says it has already succeeded in becoming one of the largest private investors over the past two years.
illimity has become one of the three largest private investors in distressed credit, according to the bank. Illimity’s “Distressed Credit Division” has launched “neprix,” a special servicing company focussing on the management of corporate distressed loans with unique characteristics in Italy. The Division is also said to be active in providing funding to non-banking investors in distressed loans. For the 2021-2025 period, illimity anticipates purchasing NPL and UTP loans for a total of approximately €3 billion.
illimity states that revenue is expected to increase by an annual average of over 30% in the period 2020-25, reaching over €450 million in 2023 and approximately €660 million in 2025. A gradual rebalancing of the net interest income contribution, from 59% in 2020 to 55% in 2025, is forecasted.
Additional information is available on the illimity website.
Digital Insurance Platform Honeycomb Launches in North America
Honeycomb, a platform providing property insurance via a digital platform, has raised $3.3 million in funding from Phoenix Insurance, New Era Capital Partners, IT-Farm Corporation and NFP Ventures, according to a release.
Honeycomb, previously operating under the name Agilius, is a managing general agent (MGA) for commercial real estate insurance serving condo owners, HOAs, landlords etc.. Honeycomb says its data-driven AI-based underwriting is the first to provide customized right-priced policies through an intuitive online interface that allows customers to rate-quote-bind in minutes. The funding follows the announcement ot its launch in North America.
Itai Ben-Zaken, co-founder and CEO of Honeycomb, explained that while personal insurance has advanced, commercial is stuck in the past:
“Insureds purchasing HOA insurance shouldn’t have to deal with manual forms, long underwriting reviews, weeks of waiting, or documents being passed from customer to broker to underwriter and back for every change. That’s where we are changing things. With Honeycomb, there’s no more manual underwriting or lack of quality data points, no more paper forms and no more endless back-and-forth emails. Through our online platform and AI-powered remote inspection application, it’s never been easier or more efficient for COA/HOAs, condo owners and landlords to get quick and fair pricing.”
Honeycomb states that it is partnering with brokers across the U.S., so customers have the choice of purchasing insurance through an agent or directly on the website.
Online customers are said to receive real-time options after answering questions about their property. The policy can become effective immediately with up to seven days to complete the remote inspection through the Honeycomb app.
Adam Blumencranz, Vice President at NFP Ventures, noted that multi-family property insurance is one of the most inefficient markets for insurance. Policies tend to be complex and too small for a manual underwriting process.
Honeycomb is now available in Illinois followed by five additional states by the end of 2021.
Select Smart Genshin Impact: How to Make the Personality Quiz Work
Bitmain Released New Mining Machines For DOGE And LTC
How to complete Path to Glory Update SBC in FIFA 21 Ultimate Team
Why is 25th June critical for Ethereum?
Digital Renminbi and Cash Exchange Service ATMs Launch in Beijing
Southwest celebrates 50 Years with a new “Freedom One” logo jet on N500WR
Zenefits Payroll Glitch Results In Delayed Paychecks For Small-Business Employees
Bitcoin isn’t as Anonymous as People Think it is: Cornell Economist
Larcenauts Review-In-Progress: A Rich VR Shooter With Room To Improve
Delta Air Lines Drops Cape Town With Nonstop Johannesburg A350 Flights
Blockchain Intelligence Firm TRM Labs Secures $14 Million in Funding
All Characters, Skills, and Abilities in Naraka: Bladepoint
Index Publisher MSCI Considers Launching Crypto Indexes
Inna Braverman, Founder and CEO of Eco Wave Power Will be Speaking at the 2021 Qatar Economic Forum, Powered by Bloomberg
Paraguay Follows El Salvador In Tabling Bitcoin Bill, The Crypto Revolution Is Happening
Paraguayan Official Confirms: In July We Legislate Bitcoin
U.K’s crypto-users are growing in number, but do they even understand the asset class?
Breaking: British Airways 787 Suffers Nose Gear Collapse
Clair Labs Targets $9M Seed On Contactless Patient Monitoring
Spanish Banking Giant BBVA to Launch Bitcoin Trading and Custodial Services in Switzerland
Energy1 week ago
Extensive Demand from the Personal Care and Cosmetics Industry Coupled with the Booming Construction Industry will Invite Impactful Growth for the Mineral Oil & Mineral Spirit Market: TMR
Esports3 days ago
Select Smart Genshin Impact: How to Make the Personality Quiz Work
Esports6 days ago
World of Warcraft 9.1 Release Date: When is it?
Esports1 week ago
Genshin Impact Music Rock Puzzle Guide
Esports6 days ago
Here are the patch notes for Brawl Stars’ Jurassic Splash update
Energy6 days ago
Biocides Market worth $13.6 billion by 2026 – Exclusive Report by MarketsandMarkets™
Blockchain3 days ago
Bitmain Released New Mining Machines For DOGE And LTC
Esports1 week ago
Genshin Impact Murals: Location Guide
Esports1 week ago
Lost Ark Founders Pack: Everything You Need to Know
Esports1 week ago
Clash of Clans June 2021 Update patch notes
Big Data1 week ago
In El Salvador’s bitcoin beach town, digital divide slows uptake
Aviation1 week ago
Delta Air Lines Flight Diverts To Oklahoma Over Unruly Off-Duty Flight Attendant