AROUND THE WORLD
In this Bloomberg article Lending Club has raised rates and tightened credit policies. LC is calling it a ‘weighted average increase of 0.26%’ with increases in rates larger on the riskier grades than on the more conservative ones.
And in this Investment News article LC announced their tool for robo investing on loans in their platform for advisers. Industry investing tool Lending Robot had only been for individuals until now and their adviser product is approved to invest on Lending Club. This should allow more money to get invested on their platform more quickly. It’s a great tool for investment advisers.
Crowdfund Insider reports that US consumer p2p lender Circleback Lending has stopped making loans. They are hoping to securitize their portfolio of loans or transfer them to another company.
The Financial Times reports that the UK p2p lending industry is asking the FCA for a little tighter regulation. This request is so consumers understand what they are investing in and so the industry won’t see a backlash if returns on their investments starts to decline.
The Chinese government listed a number of new restrictions for p2p lending platforms there. A couple of the restrictions include extension of loans and offline marketing with the exception of credit information collection and the other information needed to get approved for the loan. An ECNS report there showed almost half of China’s platforms have either operational or fraud issues in them so these newer regulations from the government were expected.