Category Archives: Marketplace Lending/P2P, Online Lending

Nov 20, 2017: NCFA Canada Welcomes Competition Bureau’s recommendations to encourage competition and innovation in Canada’s financial services sector

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NCFA Canada | Robin Ford | Nov 20, 2017

Competition Bureau request for public comments on draft study:  Technology-led innovation and emerging services in the Canadian financial services sector

The Competition Bureau recently announced a draft report and issued a request for public consultation regarding technology-led innovation and emerging services in the Canadian financial services sector.  The consultation took place between November 6 and November 20, 2017 (11:59 pm Pacific time). and interested parties including NCFA Canada were invited to provide their feedback on the draft report no later than November 20, 2017.

Visit this link to learn more about the Competition Bureau and the scope and the premise of the study/report:  http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/04315.html

NCFA Canada's submitted response:

  1. NCFA welcomes this report and its recommendations to encourage competition and innovation in Canada’s financial services sector.
  2. We agree that " competition is good for both business and consumers—and regulation should be minimally intrusive on market forces". We also agree that SMEs "are key drivers of economic growth—and their success is crucial to Canada's long‑term prosperity".
  3. We agree with the barriers to entry listed in the draft report (paragraphs in the report are not numbered) but would add to the list: inadequate incentives and assistance by governments, public funders, and regulators compared to other jurisdictions (eg, tax incentives, start-up loans or guarantees, grants, collaboration on data collection and analysis, educational programs for investors and start-ups, help with regulatory compliance, etc).As the draft report mentions, the UK has been very assertive in supporting start-ups and fintech. HM Treasury recently announced that small businesses struggling to access finance from the banks have found funds via government requirements that the biggest banks pass on the details of small businesses they have rejected for finance to alternative finance platforms - Funding Xchange, Business Finance Compared, Alternative Business Funding, and Funding Option. <https://www.gov.uk/government/publications/designation-of-banks-and-finance-platforms-for-finance-platforms-regulations>4. With respect to barriers caused by regulation, we add only that regulatory burden also tends to favour larger incumbent firms.5. Regulatory arbitrage is not necessarily a bad thing, as the report appears to suggest.6. We support all the recommendations in the report, in particular the recommendation for a FinTech policy lead in this complex and fast moving area.7. We would like to see an additional recommendation for more transparency in regulatory analysis. It has been very difficult in the past to respond to regulators' proposals because the published analyses have not been clear or complete. The problem proposed to be solved by regulation is rarely defined, the reasons for concluding that a regulatory intervention is needed are rarely set out, alternative solutions are not described with the reason(s) why one solution has been chosen rather than another, and (published) cost benefit analysis or impact assessment is rare. This means that stakeholders must infer much of the analysis and often do not have the data they need to respond. We would like to see a more transparent regulatory approach to reduce the risk of unnecessary or incorrect regulation and to enhance collaboration.

    We would also like to see the encouragement of fintech advisory groups to governments and regulators with strong representation from the businesses themselves.

    8. The statements in the following paragraph are contestable - some are highly contestable.

    "The large financial institutions in this country did not fail, largely due to Canada’s strong regulatory regime and the sound business practices of those institutions. Because our financial institutions did not fail, demand for P2P lending and equity crowdfunding is significantly lower in Canada than in jurisdictions where the financial crisis had a greater impact or where regulatory regimes were insufficient to prevent widespread bank failure. In those jurisdictions, regulators responded by strengthening restraints on financial institutions, effectively causing a contraction in available SME credit. As a result, demand for P2P lending and equity crowdfunding increased significantly faster than in Canada."

    We suggest that references to support these conclusions be added.

    9. We are not sure why, in the description of the UK's regulatory framework for P2P, the word "forces" rather than simply "requires" is used.

    10. We do not agree that "in the UK, [a] renewed focus on competition has led to the establishment of the "twin peaks" of regulatory structure: the Prudential Regulation Authority (PRA) and the FCA." Rather, it was the other way round. As HM Treasury's consultation document of July 2010 states -

    "1.4 The UK’s ‘tripartite’ regulatory system made three authorities – the Bank of England (the Bank), the Financial Services Authority (FSA) and the Treasury – collectively responsible for financial stability, and, as a result, this system failed in a number of important ways."

    "1.6 Perhaps the most obvious failing of the UK system, however, is the fact that no single institution has the responsibility, authority or powers to monitor the system as a whole, identify potentially destabilising trends, and respond to them with concerted action." [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/81389/consult_financial_regulation_condoc.pdf]

    The UK Government's decision to change the regulatory structure led to a renewed focus on (among other things) the competition objective of the regulator and (after strenuous debates in Parliament) a stronger competition objective was added to the legislation.

    11. We suggest that "risk" be defined. For most risk professionals, it simply means "uncertainty". With uncertainly comes both threat and opportunity. And of course risk does not exist in a vacuum, it is always 'risk to what?' (to competition? to regulatory objectives?).

    Thank you for the opportunity to comment.


 

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada.  For more information, please visit:  www.ncfacanada.org

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BCSC sponsors British Columbia’s first Regtech Hackathon

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British Columbia Securities Commission Release | Nov 16, 2017

VANCOUVER, Nov. 16, 2017 /CNW/ - The British Columbia Securities Commission (BCSC) today announced its sponsorship of the first ever Regtech Hackathon held in British Columbia. The one-day Hackathon will challenge participants to create innovative solutions to help industry meet its regulatory requirements more efficiently and effectively, and improve regulatory quality and competitiveness.

"The BCSC is a strong supporter of industry-led innovations and solutions," said Mark Wang, Director, Capital Markets Regulation, BCSC. "We are excited to be a part of this event, because we believe it has the potential to generate some truly novel and exciting ideas to help advance regulatory technologies."

The Regtech Hackathon is part of the National Crowdfunding Association of Canada's (NCFA) VanFUNDING 2017 Conference on Tuesday, November 28. Teams of three to six people will select a problem statement to solve and work throughout the day on their pitch with help from experienced mentors, including some BCSC staff members.

The full problem statements are available on the VanFUNDING Conference's website, and address the following five areas of focus:

  • Blockchain, Crowdfunding, and Smart Contracts
  • Capital Markets Innovation
  • Know Your Client (KYC)
  • Investor Protection and Investment Literacy
  • Registration and Compliance (Tracking)

"We are thankful to the BCSC and other industry partners for their support," said Craig Asano, NCFA Founder and CEO. "This collaborative approach is the basis for developing creative and innovative regtech solutions. We encourage entrepreneurs and regulatory experts, innovators, data analysts, designers, and developers to join us in helping discover and launch some amazing B.C. regtech-focused projects."

The winning team will have an opportunity to present their pitch to the VanFUNDING Conference, as well as a chance to win prizes valued at over $20,000. Submissions will be judged on innovation, user experience, pitch, and viability.

The Regtech Hackathon will take place at the Morris J. Wosk Centre for Dialogue located at 580 West Hastings Street, Vancouver, B.C. More information on the Hackathon, including how to register, can be found on the VanFUNDING Conference website.

About the British Columbia Securities Commission (www.bcsc.bc.ca)

The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

  • A securities market that is fair and warrants public confidence
  • A dynamic and competitive securities industry that provides investment opportunities and access to capital

Learn how to protect yourself and become a more informed investor at www.investright.org

SOURCE British Columbia Securities Commission

For further information: Media Contact: Alison Walker, 604-899-6713; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), inquiries@bcsc.bc.ca

Related Links

http://www.bcsc.bc.ca


The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada.  For more information, please visit:  www.ncfacanada.org

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VanFUNDING 2017 Brings Over 50+ Leading Blockchain, Fintech & Capital Innovation Experts to Vancouver NOV 28 @Morris Wosk Centre

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NCFA Canada | Craig Asano | Nov 15, 2017

Looking for world class education, funding, partnerships and growth within the blockchain and financial tech sector?

VanFUNDING 2017 GOING MAINSTREAM is the premier West Coast conference dedicated to connecting people looking to form long-lasting partnerships, investment and business opportunities.

In less than 2 weeks, VanFUNDING2017 Blockchain, Fintech & Funding Conference and Regtech Hackathon  descends on Vancouver November 28th, 8am-6pm at the Morris Wosk Centre for Advanced Dialogue. There is also a VIP networking event on November 27 from 530-8pm at the Diamond cocktail lounge where you can meet the biggest names in Fintech.

VanFUNDING 2017 offers world class program and education delivered via keynotes, TEDx-style presentations, panels and workshops covering Blockchain, Fintech, Regtech, and Innovation Finance topics from a diverse range of perspectives including technology, finance, legal, global innovation and humanity.

The title sponsor is Raymond James, with Gowling WLG, Victory Square Technologies, Blockchain Intelligence Group, and Etherparty as platinum partners.

“We are proud to sponsor The National Crowdfunding Association of Canada,” says Sean Martin, Managing Director, Investment Banking at Raymond James Ltd.  “There has been an explosion of blockchain technology that has proven 2017 to be the tipping point of financial innovation.”

The conference features over 50+ expert speakers and mentors from companies and organizations such as Microsoft, IBM, TSX Venture Exchange, Blockchain Intelligence Group, RightMesh, Grow VC, AIBB.io, CoinPayments, Pegasus Fintech and TokenFunder. They will be covering ground-breaking topics such as Blockchain smart contacts, Initial Coin Offerings, emerging regulations, and opportunities in PeerToPeer crowdfinancing, investment opportunities, cryptocurriences, intelligence applications and global financial marketplaces.

"Vancouver is quickly establishing itself as a prominent market for blockchain innovation on the global scene. Victory Square has always supported events that facilitate discussion and collaboration on disruptive new technologies and the VanFUNDING conference falls in line with this mandate. We look forward to an excellent event that will allow our local tech community access to some of the global thought leaders in the blockchain space," said Shafin Diamond Tejani, CEO of Victory Square Technologies.

"We look forward to a great conference & BCs first ever Regtech Hackathon and would like to thank everyone involved from organizers, volunteers, sponsors, community partners and of course our awesome speaking roster!  Special thanks to the BC Securities Commission for their support, and a growing list of Regtech Hackathon partners such as Vancity, Supirio and Launch Academy who all recognize the need for a collaborative approach to developing innovative Regtech solutions.

While Regtech is new in Canada, its gaining significant traction globally, and firms are gaining a competitive advantage.  Participation in the hackathon is inclusive and we encourage entrepreneurs and regulatory experts, innovators, data analysts, designers and developers to all join us in helping discover and launch some amazing BC Regtech-focused projects", said Craig Asano, CEO VanFUNDING.

VanFUNDING 2017 brings together start-ups and leading industry professionals in a unique venue, selected to promote interactive dialogue and discussion. Combined with workshops and a Regtech Hackathon co-hosted with the BC Securities Commission where $20,000 is up for grabs in cash and prizes, this is a not to be missed event that provides opportunities for all types of businesses in the blockchain and financial technology sector to innovate, learn and network.

 

For more information about VanFUNDING 2017, please visit:  http://vanfundingconf.ca/

 


The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada.  For more information, please visit:  www.ncfacanada.org

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New matchmaking service for small businesses looking for finance

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Wired Gov UK Release | Nov 1, 2017

Small businesses struggling to access finance from big banks will be matched with alternative finance options, under a new government scheme

From today (1 November 2016) 9 of the UK’s biggest banks will pass on the details of small businesses they have rejected for finance to three finance platforms - Funding Xchange, Business Finance Compared and Funding Options.

Update: Alternative Business Funding Ltd. added to the list of designated finance platforms on 1 November 2017.

These platforms will then share these details with alternative finance providers and go on to facilitate a conversation between the business and any provider who expresses an interest in supplying finance to them.

These new rules make it easier for businesses to access finance when they have been turned down by traditional lenders.

RBS, Lloyds, HSBC, Barclays, Santander, Clydesdale and Yorkshire Bank, Bank of Ireland, Danske Bank and First Trust Bank, will all have to offer access to these finance platforms, with small business having to give their permission before their details are shared.

Research shows that 71% of businesses seeking finance only ask one lender and, if rejected for finance, many simply give up on investment rather than seek alternative options.

See:  Feds to consider expanded services from banks, fintechs

Last year 324,000 small and medium sized business sought a loan or overdraft, 26% of these were initially declined by their bank and only 3% of those declined were referred to other sources of help.

Chancellor of the Exchequer, Philip Hammond said:

Small- and medium-sized businesses are the backbone of Britain’s economy and it is right they have access to a wide range of sources of finance.

A refusal from a big bank should not be the end of the line for a small business and, thanks to the finance platforms being launched today, now it won’t be.

We are determined to maintain the prosperity of our business sector and to support an environment where small businesses can grow and thrive.

Keith Morgan, CEO of the British Business Bank said:

This new government initiative, supported by the British Business Bank, has the potential to make a real difference to smaller business finance markets in the UK. It gives businesses additional opportunities to secure funding, alternative providers access to a bigger market of potential clients, and major banks an extra service to offer their business clients when they cannot themselves provide finance.

Mike Cherry, National Chairman, Federation of Small Businesses, said:

Small firms struggling to access finance will now automatically have a new way to get the support they need to invest and grow. FSB pushed hard for these reforms, and today’s announcement is good news as the government delivers on them. This change will boost alternative lenders, bringing more competition and choice in the market beyond the big banks.

The alternative finance platforms scheme is the latest measure from the government designed to help small businesses access the finance they need to invest and grow.

In April, the government introduced the SME credit data sharing scheme which requires banks and credit reference agencies to share SME credit information equally with all providers. This increases competition in business lending by making it easier for challenger banks and other lenders to make good credit decisions on businesses to help them get the funding they need.

View source release:  here


The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada.  For more information, please visit:  www.ncfacanada.org

 

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How to Take Advantage of the New Trends in Blockchain, Cryptocurrency and Financial Technology

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VanFUNDING 2017 | November 6, 2017 | Morris Wosk Centre for Advanced Dialogue, Vancouver

In just 3 weeks timing, on Nov 28 the 3rd VanFUNDING 2017 (#VF2017) takes place in downtown Vancouver at the Morris Wosk Centre for Advanced Dialogue, an immersive financial innovation forum and premiere hackathon dedicated to connecting people looking for leading education, funding, investment opportunities and partnerships within the financial tech sector.

Hosted by the National Crowdfunding Association of Canada in partnership with Raymond James, Gowling WLG and Blockchain Intelligence Group, VanFUNDING is back for a third year. This year’s theme is “Financing Infrastructure Eruption – Going Mainstream” and features:

  • Nov 27:  Pre-event networking on November 27 from 5:30 – 8:00pm at the Diamond Cocktail Lounge
  • Nov 28:  First ever BC ‘Regtech Sandbox Hackathon’ co-hosted by the BC Securities Commission, with $20,000 value of cash and prizes for winners on November 28
  • Nov 28:  Full-day interactive conference including keynotes, panel discussions, workshops and a facilitated Town Hall on November 28

VanFUNDING showcases an amazing lineup of speakers from leading blockchain, fintech and crytocurrency experts from Raymond James, Gowling WLG, Blockchain Intelligence Group, Launch Academy, Robocoder, Sweetbridge, Responsive.AI, Katipult, LendingLoop, Blocksale, NewsBTC, PrivacyShell, RightMesh, Digital Futures, Frontfundr, Venture Law, Grow VC Group, Pegasus Fintech and many more, with 40+ speakers / 30 sessions discussing ground-breaking topics such as:

  • 2017 Fintech Disruption and the Future of Money
  • The Explosive Nature of Bitcoin and Investing in Crypto Assets
  • The ICO Revolution and Global Token Economy
  • The Potential of Distributed Ledger Technologies to De-risk Unsecured Loans (for the masses)
  • GOING MAINSTREAM: Scaling Opportunities & Challenges of Global Finance: Blockchain, Regtech, AI, Crypto, P2P and Fintech
  • How to spot a fraudulent ICO
  • SAFTs do they protect investors or entrepreneurs?
  • Workshop:  Public Initial Blockchain Offering (PIBCO) - The process and benefits for your business
  • Best Practices of Raising Capital Online
  • Why the Benefits of Fintech Partnerships May Outweigh Competing
  • Regulatory Perspectives: Can Canada Unlock its Blockchain and Fintech Potential?
  • Regulation of Tokens Offerings and the Value of Self-regulating Code of Conduct
  • Transacting in a Global Digital World: What P2P Technology Can do for Humanity

#VF2017 is a not-to-be missed BLOCKCHAIN and FINTECH FUNDING conference that pushes boundaries to discuss the latest developments, educate, inspire, and connect leading innovators, entrepreneurs, investors, service providers, thought leaders and policy makers in the quickly emerging sectors of fintech, P2P, crowdfinance, blockchain ICOs, digital currencies and alternative finance.  Learn more at:  vanfundingconf.ca

 

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Register BEFORE NOV 8 and Save 30%:   Get a Discounted Ticket Now

Register today and get 10% off with promo code NCFA_COIN Link to apply deal

Chance to win a free pass to #VF2017:  Tweet 2 Win Contest

Sign-up and become a VanFUNDING affiliate partner

 

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both investment and social crowdfunding, blockchain ICO, alternative finance, fintech, P2P and online investing stakeholders across the country.  NCFA Canada provides education, research, leadership, support, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a vibrant and innovative online financing industry in Canada.  Learn more About Us or visit www.ncfacanada.org.

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NCFA Submission to Ontario Ministry of Finance: Urgent Need for Regulatory Change

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NCFA Canada About Us | Internal Working Committee | Nov 4, 2017

Ontario's Crowdfunding Requirements are Market Stifling

Nov 4, 2017 Toronto -- Canada’s crowdfunding regime must be competitive, in line with global trends, and ‘smarter’ to enable wider access to small amounts of capital (i.e. < $5 million) by early stage companies. There is a ‘funding gap’ in the market as many smaller companies find it extremely challenging to raise funding. This means fewer innovative start-ups, fewer opportunities for investors and constraints on economic growth (and jobs).

Since the regulatory regime came into force on Jan 25, 2016, the National Crowdfunding Association of Canada (NCFA) has conducted numerous stakeholder consultations which overwhelmingly tell us that the current requirements are overly prescriptive, complex and burdensome (costly).  They restrict crowdfunding to a limited number of investors and discourage smaller issuers and licensed dealers from participating.

As a result, Ontario and Canada are falling behind international comparators such as the United Kingdom (U.K.) and the United States (U.S.). Companies and investors are reluctant to participate due to the high costs (relative to the small financing size), unwarranted transactional and ongoing regulatory burdens, and educational gaps.  This pushes many talented entrepreneurs, investors and key stakeholders to overseas jurisdictions that understand (and support) innovation and the economic potential of start-ups and small businesses.

In its 2017 Ontario Exempt Market Report, the Ontario Securities Commission (OSC) confirmed that M1 45-108 had not been used at all in Ontario. A small number of issuers have used online platforms to raise capital under the Accredited Investor or Offering Memorandum exemptions. In the NCFA’s view, this warrants further analysis and changes to the existing regime.

The U.K. has a more innovative risk-based regulatory approach that is acknowledged to be world class and is highly adaptive to emerging technologies. NCFA strongly encourages Canadian regulators to study its approach.  The U.K. also has assumed a leadership role with incentives and funding to support early market traction and education.  In the U.K., crowdfunding activity continues to flourish, representing 25% of all equity deals announced in 2016.

The U.S. has also made significant progress with 134,000 small businesses benefiting from crowdfunding in 2016 (some of which are Canadian) versus only 7,450 in Canada.  In the U.S. there is an ongoing effort to fix bugs and improve regulation with a focus on protecting investors and providing improved opportunities for smaller entrepreneurs and investors to generate wealth (e.g. “H.R. 4855 Bill “Fix Crowdfunding Act” passed by the House on July 6th, 2016).

While NCFA has participated in numerous key stakeholder fintech consultations with a wide range of regulatory and competition agencies such as the MoF, BCSC, OSC and the Competition Bureau there is:

"Urgent need for regulatory change that must be addressed from the top down to ensure these issues have a political champion with the mandate to reduce critical barriers that limit economic growth and Canada's ability for fintech innovations and peer to peer distributed technologies to be globally competitive.", said Craig Asano, CEO, NCFA Canada.

Thanks to the NCFA internal working committee on regulations and governance, lead by NCFA Advisor, Robin Ford and the numerous individuals and companies that participated to prepare the submission, and/or participate in various meetings with government agencies, such as the MoF, BCSC, OSC and Competition Bureau across the country to foster Canadian fintech competitiveness and help reduce barriers for both new entrants and operators looking to scale and remain competitive with international trends.

"The current regulatory approach to crowdfunding is not working. We are sending our innovators and entrepreneurs to the US for capital! Regulators, governments, and other stakeholders must collaborate on a more risk-based and flexible approach to this rapidly evolving sector while also recognizing that start-ups and scale-ups need a helping hand to unleash their economic potential" -- Robin Ford, NCFA Advisor and Regulations and Governance Committee Lead

 

Meeting with the Ontario Ministry of Finance

On October 20, NCFA met with with Ontario's MoF to discuss ways to enhance access to capital (esp. for small businesses), stimulate investment and improve competitiveness in line with international fintech trends & distributed technologies impacting Crowdfinance, P2P, Blockchain ICOs, Altfi and global digital marketplaces.

Call to Action:

  1. Work harder to harmonize and reduce unjustified regulatory burden:   We strongly encourage the Ontario government, and the OSC, to work smarter (and harder) to streamline regulation across the country, reduce undue burdens that undermine cost effective capital formation for young companies (and that bear no relation to the risks presented by crowdfunding), and provide the required resources and support to encourage the crowdfunding sector and to improve Ontario’s competitiveness.
  2. Canada (Ontario) Needs a political champion to promote regulatory change:   Industry needs to garnish support from the Ontario MoF to champion the proposed regulatory changes deemed the highest priorities for change based on data/evidence, consensus from wide stakeholder consultations and comparative analysis of Canadian markets with international jurisdictions such as the UK and the US.
  3. Address urgent pressing challenges and implement NCFA's proposed specific regulatory changes:  such as lack of harmonization and mutual recognition, overly prescriptive rules (vs. risk/principles based regulatory approach), full service Sandbox with cohorts etc (vs current concierge service) and educational/resource gaps. 


Download the Ontario MoF Submission --> PDF here

 

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both investment and social crowdfunding, blockchain ICO, alternative finance, fintech, P2P and online investing stakeholders across the country.  NCFA Canada provides education, research, leadership, support, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a vibrant and innovative online financing industry in Canada.  Join Us!  Learn more About Us or visit www.ncfacanada.org.

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FintruX P2P Lending Ecosystem – Making Unsecured Loans Secure

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Press release | FinTRUX | Oct 30, 2017

VANCOUVER, Oct. 30, 2017 /CNW/ - FintruX Network, a startup backed by tech experts Robocoder Corporation, plans to raise US$30 million selling digital tokens as it builds a global P2P lending highway based on blockchain technology.

FintruX aims to make unsecured loans highly secure. Harnessing over two decades of experience serving the securitization sector, this team from Canada applies cascading levels of credit enhancements to offer unprecedented risk reduction towards unsecured loans.

"Interest cost reduction is one of the most important motivations in securitization. It is often done via credit enhancement. We can apply the same principles to reduce the high interest rates normally associated with unsecured loans, making it attractive to both borrowers and lenders," explains Nelson Lin, the founder and CEO of FintruX. "Our goal at FintruX Network is to disrupt the way unsecured loans are being originated and administered".

This innovative concept solves three major issues for small businesses, especially startups, to borrow from accredited investors and financial institutions. By applying credit enhancements, FintruX Network seeks to neutralize the lender's credit risk and, in the case of a default, provide cascading levels of insurances to cover the loss – thereby increasing the overall credit rating and lowering interest rates simultaneously.

The four cascading levels of credit enhancement include over-collateralization as additional collateral, a local third-party guarantor, cross-collateralization as insurance, and FintruX ultimate protection reserve.

See:  Lending Loop Surpasses $10M in Loans to Small Businesses Across Canada

A unique smart contract is generated and deployed by FintruX Network for each individual borrowing at real time to provide unambiguous, immutable, and censorship resistant records where no arbitration is required. In addition to simplifying the loan application process via instant matching, FintruX Network also provides borrowers with post-funding self-serve administration options such as refinance and prepayment.

FintruX Network is a multi-sided marketplace and ecosystem that delivers value not just to borrowers and lenders, but also to third-party guarantors and specialized service agents. "This company is making borrowing and lending a no-brainer for both borrowers and investors," states Conrad Lin, co-founder and CMO of FintruX.

For additional information about FintruX Network, visit www.fintrux.com

About Robocoder

Founded in 1999, Robocoder Corporation is a global provider of mission-critical database applications, generated by its open-source, low-code development platform. Robocoder is a licensed Microsoft partner in developing mission-critical ISV solutions, including decentralized blockchain applications. For information, visit www.robocoder.com

SOURCE FintruX release


The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both investment and social crowdfunding, blockchain ICO, alternative finance, fintech, P2P and online investing stakeholders across the country.  NCFA Canada provides education, research, leadership, support, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a vibrant and innovative online financing industry in Canada.  Learn more About Us or visit www.ncfacanada.org.

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