SocietyOne Surpasses $300 Million in Loans Issued

Australian P2P lending platform SocietyOne reached a milestone this week. The company has surpassed $300 million in loans issued since it was founded in 2011.

During a time when P2P lending in the U.S. is under scrutiny, SocietyOne is reporting an increasing demand for P2P lending in Australia. In the first two quarters of 2017, lending on the SocietyOne platform is up 67% compared to the same period last year. In fact, the P2P lending environment seems to be healthy across Australia. SocietyOne competitor RateSetter recently reported that its funding amount has roughly doubled since December of 2016.

SocietyOne CEO Jason Yetton said that this “growing interest” proves that the company is “offering a better deal than the major banks and providing investors attractive risk-adjusted returns is making a real different in the marketplace for personal loans.” Yetton added, “Over the past 12 months, we have had more than 140,000 Australians enquire about a loan with SocietyOne which shows that consumers are responding in large numbers to the idea they can leverage their good credit history to get a better deal.”

SocietyOne presented its P2P lending platform at FinovateAsia 2012 in Singapore. The company offers borrowers personalized repayment programs with lower interest rates than major banks. Users can borrow between $5,000 to $50,000 for unsecured, personal loans for two, three, or five year terms.

The SocietyOne platform hosts 315 lenders offering to lend an aggregate of $68.3 million. The company was recently named to CB Insights’ Fintech 250 list and has aligned itself heavily with Australia-based Westpac Bank. In 2014, SocietyOne received a $5 million Series A investment from Westpac Bank. Since then, the company appointed a former Westpac executive as CEO in 2016 and another former Westpac executive as Chief Investment Officer in 2017.

Finovate Alumni News

On Finovate.com

  • SocietyOne Surpasses $300 Million in Loans Issued
  • Fidor Bank’s Digital Marketplace Features Nutmeg as Inaugural Partner

Around the web

  • DefenseStorm to serve as cybersecurity partner for Bank of Jackson Hole to enhance security.
  • Baker Hill NextGen to power consumer loan origination for CapStar Bank.
  • Zenmonics Teams Up With Queen City Fintech To Drive Fintech Innovation in Charlotte
  • Fiserv partners with Vestwell to add digital retirement planning to its wealth management network

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.

44 Alums Populate CB Insights’ Fintech 250 List

This week, CB Insights unveiled its Fintech 250 list. The research outfit selected 250 emerging, private companies in 17 sub-sectors of fintech that are changing the face of financial services. The roster includes 44 Finovate and FinDEVr alums that were selected using CB Insights’ data-driven process that analyzes company momentum, market participation, funds raised, and investor quality.

The list is in alphabetical order.

Algomi

AutoGravity

Avalara

Behalf

Betterment

Blend

Chain

Coinbase

Credit Karma

Currencycloud

CurrencyFair

Fenergo

Financeit

Gusto (formerly ZenPayroll)

Juvo

Kabbage

Kensho

Kreditech

Klarna

LendUp

Moneytree

PayNearMe

Payoneer

Personal Capital

Plaid

Quantopian

Quovo

Revolut

Ripple Labs

Roostify

Signifyd

SocietyOne

Socure

Tink

Token

Tradeshift

Transferwise

TrueAccord

Trulioo

VATBox

Wealthfront

Xignite

Zooz

Zopa

Finovate Alumni News

On Finovate.com

  • Check out sneak peeks from FinovateSpring demoing companies SpeechPRO, CallVU, ACH AlertnanoPay DefenseStorm, and SuperMoney.
  • InComm Partners with WeChat Pay Parent Tencent.

Around the web

  • PYMNTS.com looks at Payoneer and escrow service as a way to support B2B payments.
  • SelfScore launches Achieve Card to provide international students with access to credit.
  • New service from Azimo enables money transfers with just a phone number.
  • PYMNTS profiles LendUp’s target market focus.
  • Loan validation firm Global Debt Registry Adds Prosper to Network.
  • DemystData celebrates its one-year anniversary in Singapore by expanding its offices.
  • EyeLock receives patent for sequentially linking iris matching with facial imaging.
  • Wired gets into the algorithmic brains of Quantopian.

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.

SocietyOne Appoints Former Westpac Exec as Chief Investment Officer

Screen Shot 2017-01-25 at 10.54.12 AM

Screen Shot 2017-01-25 at 11.04.59 AMAustralia-based P2P lender SocietyOne landed an all-star player for its newly-created chief investment officer position. The company has appointed John Cummins, industry veteran and former Westpac, RBS, and Macquarie employee to serve in the newly-created position.

Cummins previously served as head of institutional markets at FIIG Securities. In his new role at SocietyOne, Cummins will manage the company’s funding requirements and be in charge of investor relations.

SocietyOne’s online platform uses risk-based pricing to connect borrowers and investors to loans using its ClearMatch technology, which it launched at FinovateAsia 2012. ClearMatch allows investors to bid together at different interest rates and amounts against a single loan.

Jason Yetton, who was appointed SocietyOne’s CEO in April 2016, said Cummins has “specialist knowledge of the fixed income and credit markets, which will be of critical importance to our future growth given the opportunities that we offer our growing base of investor funders to earn solid returns from a new asset class.” Yetton also mentioned Cummins will be key in growing the company’s borrower base to 100,000 within five years and increasing its share in the $100 billion consumer lending market.

Founded in 2011, SocietyOne has facilitated a total of $200 million in loans. Of that amount, $129 million was done in 2016 alone, which indicates a 320% increase in loan bookings in the course of a single year. The company recently took in a $1.5 million equity investment from Beyond Bank Australia, bringing its total funding to $55 million.

Somewhat ironically, the same day SocietyOne announced Cummins as its new CIO, U.S.-based alternative lender OnDeck announced it appointed SocietyOne’s former chief financial officer, Jerry Yohananov, to its management team. OnDeck most recently presented at FinDEVr New York 2016. At FinovateSpring 2012, the company debuted OnDeck Connect.

Finovate Alumni News

On Finovate.com

  • Ripple Releases XRP Metrics in New Report.
  • SocietyOne Appoints Former Westpac Exec as Chief Investment Officer.
  • Check out this week’s FinDEVr APIntelligence

Around the web

  • Fenergo announces new rules-based solution to better enable FIs to meet margin requirement obligations.
  • NCR unveils redesigned tablet point-of-sale app.
  • New development and support center for Monitise supported by $664,000 in business financing from Welsh government.
  • Let’s Talk Payments interviews Marcin Truszel, Founder & CEO of Kontomatik.
  • Overbond Ltd is launching a service that will allow companies to issue bonds digitally.
  • Kony powers KMC Connect Lite mobile app for KMC Controls.
  • Irish Tech News interviews BancVue’s John Waupsh on his book, Bankruption.

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.

Finovate Alumni News

On Finovate.com

  • Microsoft Marketing Vet Jeremy Korst Joins Avalara as New CMO.

Around the web

  • New York-based BizFi reaches $2 billion in originations.
  • LTP: Trulioo CEO Stephen Ufford writes about the problem of gift card fraud.
  • Boku extends partnership with Microsoft to support carrier billing to France.
  • Exostar teams up with Taulia to bring supply chain finance to the aerospace and defense industry.
  • Avoka, SocietyOne, and SuiteBox named finalists for Fintech Business Awards.
  • HBR: Narrative Science CEO Stuart Frankel writes about talking chatbots.
  • Quantopian recognized by Boston Globe as a “Company to Watch in 2017.”
  • Let’s Talk Payments features Kontomatik’s successful 2016.
  • Dashlane to support Intel Software Guard Extensions to help protect your passwords with hardware-enhanced security.
  • OurCrowd marks 4 years, $320m raised, 100 startups, 9 exits.

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.

Finovate Alumni News

On Finovate.com

  • Behavioral Biometrics Startup Zighra Lands $1 Million in Seed Funding
  • Tuition.io Appoints Former Yahoo CEO Scott Thompson as New CEO

Around the web

  • Commerce Bank chooses Temenos to upgrade core deposit banking system.
  • ThetaRay earns recognition from CIO Review as a top 20 financial services provider for 2016.
  • Financeit reports a doubling of its business since acquiring the home improvement financing assets of TD Bank.
  • Green Dot teams with WalMart to encourage Americans to build savings.
  • Bizfi expands its business lending capabilities through a new partnership with InterNex Capital.
  • OnWallStreet recommends advisers keep their eyes on Wealthfront’s Andy Rachleff; SigFig’s Mike Sha; and Betterment’s Jon Stein.
  • Passport acquires Arizona-based mobile parking payment startup ParkX.
  • P2P lender SocietyOne facilitates $126 million in loans in 2016, finishing a record-breaking year.
  • InComm expands partnership with Target Australia to offer gift cards in stores and online.

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

Finovate Alumni News

On Finovate.com

  • “Socure Raises $13 Million in New Capital”
  • “Investment from Rakuten Boosts Kreditech’s Total Capital More Than $10 Million”
  • “Personal Capital’s Growth Leads to Additional $25 Million in Funding”

Around the web

  • eToro forges strategic partnership with Lufax Holding, China’s largest internet financing company.
  • PayPal teams up with Citibank, FIS to expand cross-channel presence.
  • NICE Systems celebrates record year in customer acquisitions.
  • SocietyOne appoints Maria Loyez as chief marketing officer.
  • NuData Security partners with Arvato Financial Solutions to combat fraud and enable a smoother customer experience.
  • Quantopian hires Marc Volpe as chief financial officer.

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

Finovate Alumni News

On Finovate.com

  • “Finovate Debuts: Daon Brings Security and Convenience to Mobile Authentication”
  • “Quid Unveils New Data Visualization Solution, Opus

Around the web

  • Thomson Reuters partners with FX analytics firm, BestX.
  • Visa announces two-day, digital payments hackathon during 2016 UAE Innovation Week.
  • First Financial Bank chooses Fiserv as new technology partner.
  • FXCM and QuantConnect team up to offer live trading integration.
  • Kontomatik expands to Italy, now the tenth country served by Kontomatik’s banking API.
  • Envestnet | Yodlee unveils incoming 2016-2017 incubator class.
  • The Age reports SocietyOne to start making profits within the next 12 to 18 months.

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

 

Fintech Trending: Australia and the Road to Fintech in Asia

australia_newzealand_flagsFinovateAsia 2016 is right around the corner. Be sure to visit our registration page and pick up your tickets today. We look forward to seeing you next week, 8 November, as Finovate returns to Asia.

When we talk about financial technology in Asia, we typically turn to places like Singapore, widely regarded to be the fintech “hub” of the region, or to Japan, with its advanced consumer economy (and increased participation in fintech events in the West, like Finovate and FinDEVr, or to China which was recognized by H2 Ventures and KPMG in their 2016 Fintech 100 report as follows:

China now tops the global ranks—swithin three years, China’s fintech ventures have gone from only one company included in the top Established 50 rankings in 2014, to this year China featuring four of the top five companies and eight of the top 50.

This includes Ant Financial, formerly known as Alipay, which as the world’s largest third-party payment platform, is the #1 company in the report, as well as Qudian, a Beijing-based student micro lender, ranked #2.

But there’s a reason why analysts refer to the area as the Asia-Pacific region, and part of that reason is the presence of countries like Australia and New Zealand which, while very much a part of the Asian financial ecosystem, are often overlooked in discussions about the growth of fintech in the area.

Turning back to the H2 Ventures/KPMG report, we see that of the top 100 companies highlighted, while 14 are from Asia, 1o are from Australia and New Zealand. This compares well with the U.K., a long-standing global fintech center, that landed 12 companies in the top 100. These companies include:

  • #14 Xero (F11; FD14) – New Zealand
  • #31 Prospa – Australia
  • #43 Tyro – Australia
  • #50 SocietyOne (F12) – Australia

As well as emerging stars:

  • AfterPay – Australia
  • Bright – Australia
  • Data Republic – Australia
  • HashChing – Australia
  • Identitii (F16) – Australia
  • springy – Australia

Australian and New Zealand fintech companies are clearly punching above their weight. As one illustration noted by Let’s Talk Payments, in December 2015, 5% of Australian fintech startups raised capital. Yet that 5% represented 14% of all capital raised by fintechs in December. Compare this to the United Kingdom where 15% of fintechs received investment dollars in December 2015, yet the amount raised was 11% of the total for that month. It is no surprise that China stands out as the true overachiever, with only 2% of Chinese companies raising capital in last December, but those companies represented 17% of all financing raised.

The takeaway here is more than a call for FinovateDownUnder—although that’s an intriguing idea. It suggests that more attention paid to Australia—as both a developing fintech nation in its own right, as well as a way for Western companies, technical talent, and capital to begin making its way eastward—could be well-rewarded.

See also:

  • 9 Australian companies have made it to the latest global Fintech 100 – Business Insider Australia
  • Australian FinTech Firms Recognized as World Leaders in FinTech – Cryptocoins News
  • Australian fintech founders recognized as world leaders next to tech giants Stripe, Xero and Square – Startup Smart
  • CBA takes pop-up innovation lab on a tour of Australia – Finextra

Our friends from Down Under

This discussion of Australia and New Zealand merits a reminder of how many innovators from Down Under are alums of our Finovate and FinDEVr conferences. In addition to those mentioned above, here’s a quick look at some of our more recent Australian and New Zealander alums:

H2 Ventures and KPMG Unveil 2016 Fintech 100

h2_kpmg_2016fintech100

H2 Ventures and KPMG have released their Fintech 100 roster for 2016. Divided equally between 50 “industry leaders” and 50 “emerging stars,” the roster features 17 Finovate/FinDEVr alums in the first category, and 10 in the second. Calling its roster a “celebration” of the most compelling innovators in this “bold new space,” the H2 Ventures/KPMG 2016 Fintech 100 covers a variety of different shades of fintech:

  • Lending (32 companies)
  • Payments (18 companies)
  • Insurance (12 companies)
  • RegTech (9 companies)
  • Data & analytics (7 companies)
  • Wealth management (6 companies)
  • Blockchain (5 companies)
  • Digital currency (5 companies)
  • Capital markets (3 companies)
  • Crowdfunding (2 companies)
  • Accounting (1 company)

And here is a look at how Finovate/FinDEVr alums fared. Earning recognition among the companies in the Leading 50 group are:

Also noteworthy in the Leading 50 are Ant Financial, which acquired Best of Show-winning EyeVerify in September 2016, and Avant, which acquired Finovate alum ReadyForZero in the spring of 2015.

Additionally, Finovate/FinDEVr alums earning spots in the Fintech 100’s 50 Emerging Stars roster were:

The H2 Ventures/KPMG report includes a geographic breakdown of the 2016 Fintech 100, as well as a set of key takeaways such as increased geographic diversification, the return of lending, the continued ascent of Insurtech, and the appearance of RegTech. The report also notes that China now has four out of the top five companies in the report’s top 10, and eight companies in the top 50. The report says funding for fintech “continues to rise,” and its authors cite more than $14 billion in capital was raised by the Fintech 100 in the past year.