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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on May 23, 2016
Categories: Ayasdi, ayondo, BBVA, Buzz Points, Comarch, FIS, Fiserv, Guardian Analytics, Ignite Sales, Infosys, LendingRobot, Lighter Capital, Markit, Plaid, Realty Mogul, Signifyd, Temenos, Twilio, VoicePIN, WorkFusion, Zopa

On Finovate.com

“Social Trading Company ayondo Appoints New CFO Prior to Reverse Takeover IPO”

“FinovateSpring Demo Videos Now Online“

“Ignite Sales Taps Ex-Fiserv SVP as New CEO”

“VoicePIN Launches New SaaS Model for SMEs”

“Realty Mogul Reaches $200 Million in Funded Real Estate Transactions”

Around the web

Markit adds Federal Republic of Germany to derivatives trade-management service.

FIS introduces Banking by Appointment with TimeTrade.

Zopa partners with UNSHACKLED.com to offer cell phone financing.

RegTech event sponsored by BBVA features presentation by Ayasdi.

Infosys wins five-year contract with Commerzbank.

Temenos welcomes new core banking client, BMO Asia Pacific.

Fiserv adds ten years to its loan processing, private-label credit partnership with John Deere Financial.

Buzz Points and Xtend partner to provide new loyalty rewards program to credit unions.

Bloomberg features TradeSafe, a distributed ledger from Standard Chartered and DBS Group that uses Ripple.

eSignLive unveils new UX featuring responsive design.

TechCrunch column on APIs features Signifyd, Plaid, and Twilio.

The Law of Startups interviews B.J. Lackland, Lighter Capital CEO.

WorkFusion earns recognition from Gartner in its “Cool Vendors in Smart Machines” 2016 report.

Guardian Analytics introduces a certification program to help fraud examiners become familiar with the Guardian Analytics platform.

Crowdfund Insider interviews Emmanuel Marot, LendingRobot CEO.

Comarch launches prototype of wealth management app for virtual reality.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Revolut Receives FCA License, Announces $1 Billion Annual Run Rate

By Julie Muhn (@julieschicktanz) Posted on May 20, 2016
Categories: Revolut

London-based startup Revolut today announced it now has an e-money license from the FCA after submitting its application in January. The company will use the certification to bolster its application that allows users to exchange currencies at interbank rates and spend in different countries using a multicurrency card and mobile app.

Revolut also announced some meaty figures of recent growth in a Business Insider piece. In the past 10 months, the company surpassed $500 million processed on the Revolut card (this includes money spent over the Revolut card, the mobile app, and withdrawn from ATMs). That’s up $300 million from February, when the company announced it had processed $200 million.

Additionally, Revolut CEO Nikolay Storonsky states the company is seeing volume increases of 30% per month. The company boasts 180,000 cardholders and signs up 1,500 new customers per day.

In February, Revolut closed on $4.8 million. The company, which hopes to close a $14.5 million round, now has $7.6 million in total funding. In January, Revolut unveiled version 2.0 of its Personal Money Cloud, which it launched at FinovateEurope 2015 in London.

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CardFlight Adds Global Payments as EMV Processor

By Julie Muhn (@julieschicktanz) Posted on May 20, 2016
Categories: CardFlight

Mobile payments and point-of-sale solutions provider CardFlight announced this week it has added Global Payments as an EMV-enabled processor after receiving certification from the payment technology services provider.

This move enables merchants who process payments using Global Payments to accept EMV payments on CardFlight’s software and card readers. Along with the new certification, the company announced that more than 50% of merchants using CardFlight are EMV-enabled, a metric that surpasses industry averages and represents a 13% increase from the 37% of merchants enabled four months ago. This high percentage is due in part to today’s global payments certification, as well as past certifications with First Data, Stripe, and TSYS.

CardFlight’s payment infrastructure boasts a number of certifications, including:

Visa Acquirer Device Validation Toolkit (ADVT)
MasterCard Terminal Integration Process (M-TIP)
American Express Integrated Circuit Card Payment Specification (AEIPS)
Discover Payment Application Specification (D-PAS)

Founded in 2013, CardFlight closed on $4 million in Series A funding just after the October 1 liability shift for EMV in the United States. That installment brought the company’s total funding to $6 million.

CardFlight launched at FinovateSpring 2013 to offer a transparent approach to payment processing. What makes the company unique is that it focuses on offline, in-store transactions. However, CardFlight also offers online payment processing capabilities. At FinDEVr San Francisco 2014, Cardflight’s CEO Derek Webster and Elie Toubiana, VP engineering, presented CardFlight’s SDK for mobile payments.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on May 20, 2016
Categories: CardFlight, Cardlytics, Larky, Revolut, Temenos

On Finovate.com

“CardFlight Adds Global Payments as EMV Processor”

“Revolut Receives FCA License, Announces $1 Billion Annual Run Rate”

Around the web

Drawbridge to use Cardlytics’ purchase intelligence to measure the purchase impact of campaigns.

Bank of Montreal Asia Pacific selects Temenos as core banking provider.

Larky adds Sunshine Coast Credit Union, its first foray into Canada.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Fintech Fundings: 114 Companies Raised $7.3 Billion in April

By Jim Bruene Posted on May 19, 2016
Categories: Funding

The month of April ended on busy note as 29 companies raised $427 million in the final week (ending April 29). That brought the total raised in April to $7.3 billion, which would have been a record year anytime before 2014.

The previous weekly totals in April:

The total number of deals YTD stands at 438, almost double last year’s 238. Total dollars raised YTD stands at $14.0 billion, 2.5x the $5.6 billion raised during the same period a year ago.

This week, seven deals did not reveal the amount raised including Finovate alum BlueVine which added Citigroup to the $40 million round originally closed last year.

——-

Fintech deals by size from 23 April to 29 April 2016:

Mosaic
Marketplace lender for residential solor projects
Latest round: $200 million Private Equity
Total raised: $224.9 million
HQ: Oakland, California
Tags: Consumer, lending, credit, underwriting, crowdfunding, peer-to-peer loan marketplace, clean energy, investing, P2P
Source: Crunchbase

Nubank
Digital banking company
Latest round: $56 million Debt (from Goldman Sachs)
Total raised: $154.3 million ($98.3 million Equity, $56 million Debt)
HQ: Sao Paulo, Brazil
Tags: Consumer, deposits, payments, prepaid, debit card, banking, mobile
Source: Crunchbase

Remitly
International payments service
Latest round: $38.5 million Series C
Total raised: $61.5 million
HQ: Seattle, Washington
Tags: Consumer, SMB, remittances, payments, FX, international funds transfers
Source: Crunchbase

bitFlyer
Japanese Bitcoin exchange
Latest round: $27 million Series C
Total raised: $34.4 million
HQ: Tokyo, Japan
Tags: Consumer, payments, bitcoin, blockchain, cyrpto-currency
Source: Crunchbase

Trov
On-demand insurance
Latest round: $25.5 million Series C
Total raised: $37.8 million
HQ: Danville, California
Tags: Consumer, insurance, object insurance, mobile, risk management
Source: FT Partners

SunFunder
Crowdfunding platform for investing in solar projects
Latest round: $17 million Debt
Total raised: $22.82 million ($5.82 milllion Equity, $17 million Debt)
HQ: San Francisco, California
Tags: Consumer, investors, advisers, crowdfunding, equity, clean energy
Source: Crunchbase

E la Carte
Mobile ordering & payments for restuarants
Latest round: $15 million Debt
Total raised: $67.5 million ($52.5 million Equity, $15 million Debt)
HQ: Palo Alto, California
Tags: SMB, B2B2C, payments, point of sale, acquiring, credit/debit cards, merchants
Source: Crunchbase

TranServ
SmartPay payments platform for enterprises
Latest round: $15 million Series C
Total raised: $15+ million
HQ: Mumbai, India
Tags: Enterprise, B2B2C, payments, merchants, APIs, developers
Source: Crunchbase

Lendix
Marketplace small business lending platform
Latest round: $13.5 million Series B
Total raised: $27.1 million
HQ: Paris, France
Tags: SMB, lending, credit, underwriting, crowdfunding, peer-to-peer loan marketplace, investing
Source: Crunchbase

Savedo
Deposit price comparison site
Latest round: $5.6 million Series A
Total raised: $5.6 million
HQ: Berlin, Germany
Tags: Consumer, deposits, investments, price comparison, discovery, investing, lead gen
Source: Crunchbase

GoHenry
Prepaid debit for youth (18 and under)
Latest round: $3.58 million Equity Crowdfunding (Crowdcube)
Total raised: $3.58 million
HQ: Lymigton, England, United Kingdom
Tags: Consumer, youth, debit card, mobile, spending, controls, mobile
Source: Crunchbase

Bitso
Mexican Bitcoin exchange
Latest round: $1.85 million
Total raised: $1.85 million
HQ: Mexico City, Mexico
Tags: Consumer, payments, blockchain, virtual currency, crypto-currency, remittances
Source: Crunchbase

ID Global Solutions
Payment security technology
Latest round: $1.55 million
Total raised: $1.55 million
HQ: Longwood, Florida
Tags: SMB, merchants, security, payments, POS, credit/debit cards, authorization
Source: Crunchbase

ClearTax
Income tax service
Latest round: $1.3 million Seed
Total raised: $1.42 million
HQ: New Delhi, India
Tags: Consumer, SMB, accounting, bookkeeping,, tax returns, tax prep
Source: Crunchbase

Impact Health
Health insurance comparison site
Latest round: $1.3 million Seed
Total raised: $1.51 million
HQ: Los Angeles, California
Accelerator: TechStars
Tags: Consumer, insurance, healthcare, discover, price comparison, lead gen
Source: Crunchbase

Rooam
Payment system for bars and nightlife services
Latest round: $1.2 million Seed
Total raised: $1.2 million
HQ: Washington D.C.
Tags: Consumer, SMB, payments, merchants, point of sale, mobile, POS, restaurants, bars
Source: Crunchbase

DreamFunded
Private tech stock market to sell pre-IPO shares
Latest round: $1 million Equity Crowdfunding
Total raised: $1.2 million
HQ: San Francisco, California
Tags: Consumer, investors, employees, HR benefits, stock exchange, investing
Source: Crunchbase

Kasisto
Virtual assistant banking services
Latest round: $1 million
Total raised: $ million
HQ: Burlingame, California
Tags: Enterprise, B2B2C, service, AI, DBS Bank (investor), mobile
Source: FT Partners

Impact Guru
Crowdfunding solution for nonprofits
Latest round: $500,000 Seed
Total raised: $500,000
HQ: Mumbai, India
Accelerator/Incubator: Harvard iLab
Tags: Consumer, payments, crowdfunding, nonprofit, fundraising
Source: Crunchbase

Tramonex
International payment service for small businesses
Latest round: $365,000 Grant
Total raised: $ million
HQ: London, England, United Kingdom
Tags: SMB, payments, cross border, FX, remittances
Source: Crunchbase

CallforLoans
Personal loan comparison site
Latest round: $105,000 Seed
Total raised: $105,000
HQ: India
Tags: Consumer, lending, credit, underwriting, discovery, quotes, lead gen
Source: Crunchbase

Fundwise
Equity crowdfunding platform
Latest round: $34,000 Convertible Note
Total raised: $143,000
HQ: Tallinn, Estonia
Tags: SMB, equity, crowdfunding, peer-to-peer marketplace, investing
Source: Crunchbase

Almax Analytics
AI for capital markets news
Latest round: Undisclosed Seed
Total raised: Unknown
HQ: London, England, United Kingdom
Tags: Investors, advisers, traders, investing, data analytics, information, news
Source: FT Partners

BlueVine
Invoice factoring
Latest round: Undisclosed
Total raised: $64 million
HQ: California
Tags: SMB, factoring, accounts receivables, trade finance, lending, credit, underwriting, Citibank (investor), Finovate alum
Source: Finovate

Deposit Rates Exchange
Deposit rates information site
Latest round: Not disclosed
Total raised: Unknown
HQ: Australia
Tags: Consumer, deposits, savings accounts, investing
Source: FT Partners

HireAthena
Accounting, payroll and HR platform for small businesses
Latest round: Not disclosed
Total raised: Unkown
HQ: San Francisco, California
Tags: SMB, human resoures, accounting, billing, payroll, invoicing, bookkeeping, insurance
Source: FT Partners

Nvstr
Social platform for investors
Latest round: Undisclosed Seed
Total raised: Unknown
HQ: New York City
Tags: Consumer, investors, social, mobile
Source: Crunchbase

Parasail
Alt-lender for medical expenses
Latest round: Undisclosed Seed
Total raised: Unknown
HQ: San Francisco, California
Tags: Consumer, lending, credit, underwriting, healthcare, payments, insurance
Source: Crunchbase

Pariti Technologies
Mobile spending app
Latest round: Not disclosed
Total raised: Unknown
HQ: London, England, United Kingdom
Tags: Consumer, mobile, spending, budgeting, PFM, personal finance
Source: FT Partners

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Zopa to Offer Auto Loan Refinancing

By Julie Muhn (@julieschicktanz) Posted on May 19, 2016
Categories: Zopa

U.K.-based P2P lender Zopa has expanded its loan offerings to tap into the used-car financing market worth an estimated £12 billion in annual loan originations in the United Kingdom. The company’s new auto loan refinancing product, Zopa CarReFi, enables U.K. consumers to pay off expensive car-financing deals with a loan that’s a better value and has a more flexible agreement.

The direct-to-consumer offering maintains transparency by offering a free, instant, personalized savings quote. The platform, which was built in-house, uses Zopa’s API to tap into the company’s credit-risk algorithms and combines the data with vehicle information to help users decide if it’s worth refinancing. Similar to traditional auto lending, the ownership of the vehicle remains with Zopa’s lenders until the consumer makes the final payment.

Zopa CEO Jaidev Janardana talked about the motive behind the launch: “Buying a car is by far the most common reason for a customer to take a personal loan from Zopa, so we are proud to now also offer a product that can help customers that already have a car on a finance agreement. With an outstanding team and a deep understanding of technology, it is possible to combine longstanding history and credit excellence with lean, design-led innovation.”

The move comes at a time when P2P lenders in the U.S. are facing a lot of heat. Check out Jim Bruene’s take on the recent news in his piece, Lending Club’s Stock Price is Not a Leading Indicator for Fintech.

Since its launch in 2005, Zopa has matched borrowers with £1.5 billion in P2P-funded loans. The company, which demoed at FinovateSpring 2008, was recently voted MoneySuperMarket’s Best Personal Loans Provider of 2016.

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New Investment in Personal Capital Takes Valuation to $500 Million

By David Penn Posted on May 19, 2016
Categories: Funding, Fundings, Personal Capital

Courtesy of a Series E round led by IGM Financial, digital wealth management giant Personal Capital picked up an investment of $50 million now, with another $25 million coming in 2017. The new capital takes the company’s valuation to $500 million.

Calling IGM Financial “the ideal investor,” Personal Capital CEO Bill Harris said his company would benefit from IGM Financial’s “expertise in financial advice and asset management.” Harris added that the partnership with IGM Financial would help his company meet the growing demand for Personal Capital’s digital wealth-management services.

Pictured (left to right): Personal Capital’s Jim Del Favero, chief product officer, and CFO Bill Harris demonstrated their platform’s One Click Investment Proposals at FinovateSpring 2014.

In the same statement, IGM President and CEO Jeff Carney praised Personal Capital’s veteran management. “We believe the financial advisory landscape will be enhanced by the type of service that Personal Capital provides,” Carney said. “We’re delighted to be backing the leader in digital wealth management.”

Personal Capital uses a hybrid approach of online technical tools and personalized advice to give average investors the same kind of service historically enjoyed by the high-net-worth clients. “Our approach allows people not only to manage their entire financial life through the mobile devices they carry in their pockets, but also to receive a level of personalized advice previously available only to the ultra-wealthy,” Harris explained. Personal Capital manages $2.4 billion in investments for more than a million investors.

In addition to management, Personal Capital offers investors free resources to help them manage their investments better. These solutions include a dashboard that lets investors see all their investment accounts in one place, as well as a Fee Analyzer and Investment Checkup. For fund management, Personal Capital charges a flat fee based on the percentage of assets managed, starting at 0.89% for the first million.

Founded in 2009 and headquartered in Redwood City, California, Personal Capital demonstrated its technology at FinovateSpring 2014 and presented at FinDEVr San Francisco 2015. The company surpassed $2 billion in assets under management in March, and lowered its investment minimum from $100,000 to $25,000 back in November.

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Narrative Science Teams Up with Vermilion, Bringing Advanced NLG to Portfolio Commentary

By David Penn Posted on May 19, 2016
Categories: Narrative Science

Courtesy of a new partnership between Narrative Science and Vermilion Software, asset managers will have access to advanced natural language generation (NLG) technology to help them compose portfolio commentary.

“This fully integrated offering will be invaluable to our joint clients, as writing portfolio commentary is a universal pain-point in the reporting process,” Vermilion SVP Ben McCormack said. He added that the technology will give clients an “immediate return” and enable asset management companies to provide “compliant, high-quality client experiences.”

Pictured (left to right): Narrative Science CTO Kris Hammond and Katy De Leon, VP of marketing, demonstrated Quill for Financial Services at FinovateSpring 2013.

Calling the partnership a milestone and a “major innovation for the asset management industry,” Narrative Science COO Nick Beil said that the combined technology offers asset managers “a unique competitive advantage … by fully automating the process around commentary creation and distribution.”

Narrative Science’s advanced NLG platform, Quill, will be integrated into the Vermilion Reporting Suite (VRS). The integration will streamline the portfolio commentary creation and distribution process, and scale reporting coverage and frequency “exponentially” to support both high-volume and rapidly growing customer bases. The company says the integration will also boost productivity by reducing the time taken to build portfolio commentary “from weeks to seconds.”

Founded in 2010 and headquartered in Chicago, Illinois, Narrative Science last demonstrated its technology at FinovateFall 2013. The advanced natural language generation specialist launched its Narratives for Power BI technology in April, and Narratives for Qlik in January. Recently profiled in Forbes and featured in The New York Times, Narrative Science has raised more than $29 million in funding. Stuart Frankel is CEO.

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TSYS to Leverage Featurespace’s Machine Learning Fraud Capabilities

By Julie Muhn (@julieschicktanz) Posted on May 19, 2016
Categories: Featurespace, TSYS

Payments service provider TSYS and behavioral analytics company Featurespace have today formed a partnership in which TSYS will leverage Featurespace’s ARIC Engine, software that uses machine learning to monitor online customer behavior in real time to deliver instant fraud decisions.

TSYS, which prides itself on providing faster payments capabilities, can now offer actionable fraud insights to clients in real time. Andrew Mathieson, a group executive for the company, elaborated on plans for the enhanced fraud protection: “We will incorporate these capabilities across the credit risk lifecycle, enabling our issuers to catch more fraudulent transactions while dramatically reducing false-positive alerts for genuine transactions—a sharp contrast to the industry paradigm of blocking more valid transactions in order to detect actual fraudulent activity.”

TSYS has often taken a partner-centric approach, especially when it comes to security. In February. the Georgia-based company partnered with Finovate alum Ethoca (FinovateEurope 2016 demo) to launch the TSYS Transaction Recovery Network, an offering that reduces CNP fraud and minimize chargebacks.

Earlier this month TSYS, which debuted its Authorization Controls at FinovateAsia 2013 in Singapore, appointed Pamela Joseph as new president and COO.

After its debut at FinovateEurope 2016, Featurespace was named a Top 100 company by Red Herring Europe. We covered the U.K.-based company’s launch of its ARIC Sandbox earlier this year.

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Tink Pulls in $10 Million to Launch Virtual Bank

By Julie Muhn (@julieschicktanz) Posted on May 19, 2016
Categories: Funding, Tink

The creators of Swedish PFM app Tink, Daniel Kjellén and Fredrik Hedberg (pictured below), have just closed on $10 million to launch a virtual bank. The Series B round was led by Creades and SEB; ABN AMRO and Sunstone Capital also contributed. Combined with its Series A round in 2014, the company’s total funding is $14 million.

Tink will use the funds to expand internationally and launch a virtual bank, Tink 2.0. The virtual bank will allow users to transfer money, make payments, scan and approve bills, and manage their money across any account directly from within the Tink app. These new capabilities are made possible by Europe’s new Payment Service Directive (PSD2), approved in January, that opens Europe’s banking infrastructure by making their APIs available to third parties.

Fredrik Hedberg, founder and CTO of Tink, comments on the coming launch: “Ultimately, it’s about building a virtual bank, helping people with banking without being a bank. The consumer will not only get a better understanding, tips and advice on her finances, but also the ability to take action on it.” Founder and CEO Daniel Kjellén chimes says, “We think it should be easy to make smart financial decisions, and we want to contribute to a greater transparency in the industry, which will benefit both the consumer and the best banks. To get investors with such solid experience and the ability to develop partnerships with traditional banks is of course a huge asset for a company like Tink.”

Tink differentiates itself in the PFM space by collecting two years of historical account data across all of a user’s bank accounts and payment cards. The company uses hands-off spending categorization and simplifies the user’s view of their income and expenses. The app suggests budget options, sends alerts, and offers a feed of the user’s own personal finance highlights.

Since launching the app in Sweden at FinovateEurope 2014, Tink now boasts more than 300,000 users and is currently running beta tests in 10 different European markets to prepare for the international launch later this year.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on May 19, 2016
Categories: eToro, Featurespace, Micronotes, Narrative Science, NICE Systems, Personal Capital, Socure, Student Loan Genius, Temenos, TIBCO Software, Tink, TSYS, Tuition.io, Valuto, Zopa

On Finovate.com

“Tink Pulls in $10 Million to Launch Virtual Bank”

“TSYS to Leverage Featurespace’s Machine Learning Fraud Capabilities”

“Narrative Science Teams Up with Vermilion, Bringing Advanced NLG to Portfolio Commentary”

“New Investment for Personal Capital Takes Valuation to $500 Million”

“Zopa to Offer Auto Loan Refinancing”

Around the web

Fortune highlights Tuition.io.

TIBCO introduces integration-software solution, Project Flogo and translytical database for big data, TIBCO Graph Database.

InFakt accounting system integrates with Valuto open API.

Micronotes launches downloadable trial version of Micronotes Cross-Sell Basic.

eToro appoints Robert Brown as new non-executive director in the U.K.

Socure expands coverage for global watchlist filtering and sanctions compliance.

Philippine-based credit union groups to build payments and banking platform based on technology from Temenos.

Robotic automation technology from NICE Systems helps prevent credit card fraud at Italian bank, Banca Popolare di Sondrio.

Finovate newcomer Student Loan Genius adds Honest Dollar co-founder Henry Yoshida as vice president of partnerships and product strategy.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Lending Club’s Stock Price is Not a Leading Indicator for Fintech

By Jim Bruene Posted on May 18, 2016
Categories: Lending Club, LendingRobot, Marketplaces, P2P Lending, Uncategorized

Lending Club (LC) will always have a fond place in my heart. Renaud Laplanche’s small team presented at our very first Finovate in 2007. And until a few months ago, they were our most successful startup alum, at least measured by company valuation (Credit Karma gets the nod for now). While LendingClub is still a unicorn (market cap = $1.5 billion today), the loss of 7 or 8 unicorns’ worth of market cap in the past 12 months is unsettling.

I have had little interaction with the company in the past few years as it moved from demoing tech at Finovate to keynoting alt-lending events. But I’ve always been a fan, both of the business model, and also of Laplanche and the company as a whole. I will say this, though, they were one of our more intense alums. But that’s not necessarily a negative. That’s often what it takes to scale in the difficult world of consumer credit where one misstep can sink you (RIP Nextcard).

But they’ve also been willing to give back. Laplanche personally introduced us to a potential strategic partner several years ago. He did it purely as a friendly favor. It was long past the point where he had anything to gain from that introduction.

So, yeah, it’s been hard to watch the s***storm of the past 10 days. I was preoccupied with FinovateSpring during the worst of it last week, but I’ve been soaking up the various articles the past few days. I agree with Peter Renton’s post today: Lending Club must overcome some serious challenges in the short-term. But to say that the marketplace lending model is broken (paywall warning), or to jump to the conclusion of a fundamental flaw in the entire fintech industry is just so much hyperbole.

From what I can discern, Lending Club had a relatively minor disclosure issue. And while LC lost major trust-points (albeit a HUGE issue), it’s important to note there were ZERO financial losses for anyone involved other than shareholders (see inset) and fired LC execs. A single bad consumer loan would produce more financial damage to LC lenders than this whole sordid situation.

What does this mean for the future of P2P lending? Well, it’s bad for LC short-term. But for other players, the situation is mixed. Less volume going through the LC platform means more loan demand for other players. But it’s a two-sided market, and clearly some institutional money is pulling back, so it may be harder to fund loans. That means rates go up, which will spike lender returns, bringing more capital back into the system. Money always flows to the best risk-adjusted return. So marketplace lending survives.

And what does all this mean to the other fintech players? We had 72 demos at FinovateSpring last week. Exactly zero of them are impacted negatively by the LC situation. The primary P2P loan-play, Best of Show winner Lending Robot, is probably helped by volatility. As the “Mint for individual P2P lenders,” that YC alum acts as a front-end to multiple loan platforms (see their demo here).

You could argue that the stock-price decline of Lending Club puts a damper on future fintech IPOs. That is probably true for U.S. consumer lending marketplaces like Prosper (which recently laid off 28% of its workforce, which, remember, had doubled in 2015). But serious investors don’t view fintech as one homogeneous field. Returns from angel investing in Hip Pocket or UBS’s recent investment in SigFig, have no correlation with the stock market return of a single public marketplace lender.

So yes, one high-flyer falls back to earth, but that’s not an indictment of an entire, highly diversified industry.

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