Marketplace lenders are typically online non-bank financial companies that leverage technology to reach potential borrowers, evaluate creditworthiness, and obtain credit sources for loans. Marketplace lenders tout the ability to provide consumers with a faster, cheaper, and easier way to get credit than some traditional lenders. Participants at the June 9th Forum also discussed the potential for marketplace lenders to reach and provide credit to borrowers with limited credit histories and to historically underserved communities. Marketplace lending has seen huge growth, and, as a presentation by the FTC’s Office of Technology Research and Investigation showed, has expanded to include loans for purposes as wide-ranging as education, mortgages, and medical expenses.
In an increasingly complex regulatory environment, many financial institution executives are concerned that they have insufficient staff, technology and budgetary resources to support their anti-money-laundering (AML) efforts, a survey of financial service executives released today by financial technology solutions provider NextAngles™ revealed.
Machine learning; a subset of AI; has seen a tremendous leap in activity since 2011, with substantial increases in VC and R&D investment. For example, 2 Fintech start-ups, Kabbage and ZestFinance, have collectively raised $500 million in funding alone. Meanwhile vendors analysed in Juniper’s research have spent a total of $83 billion in R&D during 2015. Each of these vendors names AI as a part of core strategy.
The report shows that the current market for robo advice is dominated by the USA, with an estimated $1.2 trillion under management. The USA’s favorable regulatory environment, high propensity to save in equities and the size of its retirement savings market all mean that the USA is the most promising market for robo advice. India and China present long term opportunities but continue to be tied to traditional property, gold and money market fund investments. In Europe, the UK looks set for growth, with major pension funds available for investment and a positive environment for fintech.
Manulife’s Lab of Forward Thinking will use Nervana intelligent applications to develop an artificial intelligence (AI) and deep learning tool to analyze the high volume of online information, financial news, emails and documents that portfolio managers receive each day when researching investments.