Mobile Banking & Payments
Two online lending platforms announced major funding wins recently, signaling a continuation of last year's growing interest in the online lending model. Real estate platform Patch of Land has received a $250 million investment from an East Coast credit fund which will purchase loans through a forward flow arrangement. Credibly, a small business lender, has secured a $70 million credit facility led by SunTrust Bank.
SAP Ariba is partnering with First Data to expand its AribaPay invoice payments processing to Europe and Latin America. The partnership will add payment transfer and settlement to the invoice management and related services offered through SAP Ariba's business-to-business (B2B) network.
Lloyds Banking Group has launched a digital banking hub aimed at communicating to customers the ways it is using digital technologies to better serve them.
Started as a way to help university students drastically reduce fees associated with cross-border tuition payments, Flywire began partnering with hospitals last year to extend its business model to international patients. The expansion is a sign of both the growth of cross-border payments, and the growing number of choices targeting the parties making those payments.
The first full week of the year started with major fundraising announcements from two alternative online lenders. Student loan lender CommonBond raised $275 million, and non-prime consumer lender LoanNow secured a $50 million credit facility from an institutional investor.
Banks are getting used to competition from online lenders, but a new service in the UK is coming from a pretty powerful competitor.
The confluence of new technologies in the payments space, ranging from mobile payment technology to the blockchain, is expected to drive increased bank spending on payments, according to a recent survey.
Dutch lender Rabobank said it plans to cut 9,000 jobs over the next few years, representing approximately 19 percent of its workforce. The cuts, which are on top of 3,000 job cuts already announced, will be phased-in through 2018.
Microsoft is reaching out to the financial services community with its new cloud-based blockchain development environment by adding financial settlement vendor Ripple to the platform.
A startup company is looking to add an extra layer of security to card-not-present transactions by rethinking the model for the three-digit CVV security codes commonly found on the back of cards.