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MonJa’s Digital Banking and Lending Monthly Roundup – Why Subscribe?

Digital banking and lending is evolving rapidly. Recent fintech-banking partnerships and innovation in technology with the introduction of AI, ML and blockchain herald a new era in lending. Fintech’s are changing the competitive ecosystem,  empowering lenders to process loans faster and smarter.  In a world full of noise, understanding how the technologies and developments may impact your financial institution’s credit decisions and credit portfolio is of critical importance. With MonJa’s Digital Banking and Lending Monthly Roundup, it’s easy to stay up to date on what’s happening in the space. Get the latest updates, analysis and commentary on digital banking and lending segment!


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With the rise in the number of challenger banks in the US, Europe, and Australia, all headlines have been about the hundreds of millions of dollars they have raised. But what is interesting is the emergence of niche banks coming up to serve the SMEs and the local market.  Take for instance, the AlbaCo, which is a banking startup that aims to serve the local Scottish businesses. These banks are springing up to fill up the voids that the large banks have created. Another example of this model is the newly opened Carolina State Bank, is working towards serving the local SMBs in the US, to fill the gaps the large institutions have left.

SoFi completed a postgraduate student loan certificate offering of $200 million which was issued by the SoFi Alternative Trust 2019-C. Rated a single-A DBRS, these certificates are the first of their kind in a publically rated transaction in the student loan space. SoFi, continues to be amongst top-ten in ABS sponsor space and ranks seventh among all sponsors whereas stands first among online lenders in 2019. Certificates issued will be secured through the company’s private student loan refinancing program. This recent offering powers the company with an additional source of liquidity and also the company is planning to offer additional rated certificates as part of its ABS program. The demand for marketplace lending offerings shows how far the segment has progressed and is now truly part of mainstream finance and banking. 

Monzo, a leading U.K. based challenger bank has raised GBP 113 million in additional funding from new and existing investors, led by Y Combinator’s continuity fund. The bank has doubled its valuation after the latest funding round. Monzo, which was founded in 2005, has also confirmed that it will be targeting adding 200,000 new customers every month. The digital bank has gained strong traction and is recognized as a well-positioned bank and this funding will give further comfort to all stakeholders. [/vc_column_text][vc_single_image image=”9316″ img_size=”large” alignment=”center”][vc_column_text]

With half of the US’ state regulators agreeing to a multistate licensing for money servicers, that includes fintechs, the sector might see a simpler era of regulatory compliance. The 23 states have expressed their agreement in carrying all states onboard by the coming year. Known as Vision 2020, this will help fintechs escape from the dreary state-by-state permission mechanism currently fostered on them by archaic state laws. Washington was among the first ones to start on, followed by Georgia, Texas, Illinois, Kansas, Massachusetts and Tennessee among others.

With digital banks springing up everywhere, small banks are desperate to make the sign-up process short and sweet for its customers. The struggle for these banks is real and they are now turning towards fintech partners who can do the heavy tech lifting necessary.  And though every banker understands the benefits of a streamlined hassle-free account opening process, many are still vary of the risk of fraud or data theft that might accompany such partnerships.  

Though cryptocurrencies have had a wild ride in the last couple of years, the underlying blockchain technology has converted many Silicon Valley tech hot shots and Wall Street financiers. Entering into the fray with its own cryptocurrency, Libra, is Facebook. Scheduled for launch in 2020, the company has partnered with corporate biggies like Visa and Uber. Libra is intended to be a stable coin, a digital currency that is backed by government-supported currencies and securities. Facebook intends to keep the value fluctuations at an arm’s length to allow the use of Libra in regular transactions across Facebook.

Brex, “the startup-friendly credit card” is making waves. It crossed the unicorn mark in October 2018 and has now raised a $100 million Series C at a jaw-dropping valuation of $2.6 billion. Founded in 2017, Brex earns revenue by offering corporate credit cards for startups. The company is now planning to diversify their product range for larger companies as well and will offer credit cards along with various other services like expense management and tailored rewards. 

Lendable, a peer-to-peer lending platform has attained secured funding of GBP 500 million from Waterfall Asset Management, along with NatWest and Varadero.  Waterfall has been associated with Lendable since 2017, whereas other two investors are funneling cash into the startup for the first time. The platform also confirmed the launch of a GBP150 million closed-ended fund by partnering with a global investment bank.

The largest American bank, JP Morgan Chase introduced its Finn by Chase, a one of its kind mobile bank account less than twelve months back. Targeted at millennials, it was released with much fanfare. But as per reports from Wall Street Journal, the Chase Bank is shutting the Finn accounts and shifting everyone to the regular Chase accounts from August 10. While bidding adieu to the mobile bank account, the Bank is introducing its mobile application that will have the features of Finn, free of charge. With the app, the customers will get their hands on a new Chase debit card, and to receive it they will just have to download the new Chase app.

  1. 06/05/2019 A record $117 billion in fintech deals have been done this year as cashless payments soar in popularity (Markets Insider)

2019 is witnessing some really heightened activity in the global fintech market. With fintech becoming more and more popular, the M&A activity in this sector has soared high with 86 deals summing up to a whopping $116.6bn YTD, a quadruple jump from$31.8 billion through the same time last year with 89 deals. This was triggered by three US-based fintech deals this year, including the biggies Fidelity National Information Services, Fiserv, and Global Payment deals. Major triggers for such frenzied activity is growing comfort with online payments, the emergence of fintech lenders as the first port of call for credit and fintech innovations which are reimagining how we interact with our financial services providers. [/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_custom_heading text=”MonJa Commercial Lending Technology For Financial Institutions” font_container=”tag:h4|font_size:16|text_align:left|color:%23000000″ google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:700%20bold%20regular%3A700%3Anormal”][vc_custom_heading text=”Request Free Demo Today!” font_container=”tag:p|font_size:22|text_align:left|color:%23000000″ google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:700%20bold%20regular%3A700%3Anormal”][/vc_column][vc_column width=”1/2″][vc_column_text][yikes-mailchimp form=”10″ submit=”Schedule a Demo Today”][/vc_column_text][/vc_column][/vc_row]

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