Discover the online lending landscape and the opportunities for investors and entrepreneurs with Canaan Partners' GP Dan Ciporin.
Dan is a repeat online lending investor, Lending Club Board member, and an investor in Borro, the leading online asset-backed lending platform (also currently funding on OurCrowd). He will join OurCrowd's Principal David Stark and Head of Investment Community Zack Miller for a lively discussion and Q&A session.
Data on size of the total fin serve market
Financial Service & Insurance: $1.24 trillion (7.9% GDP)
Banking: As of the end of 2012, the U.S. banking system had $14.45 trillion in assets. It supports the world’s largest economy with the greatest diversity in banking institutions and concentration of private credit. In the second quarter of 2013, earnings grew by 23 percent to $42.3 billion, marking the 16th consecutive quarter of rising earnings.
Asset Management: The U.S. asset management subsector is unrivaled in its depth and diversity. U.S. asset managers are currently meeting the pension management needs of over 55 percent of the global retirement market. Total U.S. pension assets were $18.9 trillion at the end of 2012. Moreover, if insurance assets and mutual funds are included, U.S. asset managers held more than $39.6 trillion of long-term conventional assets under management in 2012, or 45% of the global total for these funds. Conventional funds were equivalent to 298 percent of U.S. GDP.
Consumer Credit: $3.1 trillion outstanding in 2013; fastest increase in April of $26.8B (seasonally adjusted) over three years. Monthly debt rose at a 10.2% annual rate in April, compared with a 7.5% rate in the prior month. This is the strongest rate since July 2011. Non-revolving category of debt, especially federal student loans, stayed strong, rising $18.0 billion or 9.5% in April following a 9.1% gain in March. The biggest surprise was credit-card debt, which surged $8.8 billion in April or 12.3%. This is the highest annual rate of credit-card debt since November 2001.
Trading: Asia now makes up 82% of global volumes traded, compared with 7% for the U.S., according to Avramovic. Still, the U.S. accounts for 52% of global trade value, versus 15% for Asia.
Deposits: $11.32T in 1Q2014; top 6 banks cover 30% of all deposits
US-based fintech startups raised $1.3 billion last quarter alone
http://selectusa.commerce.gov/industry-snapshots/financial-services-industry-united-states
http://nymag.com/daily/intelligencer/2014/05/is-silicon-valley-the-future-of-finance.html
Consumer Credit: http://www.marketwatch.com/story/us-consumer-credit-surges-in-april-2014-06-06; http://www.federalreserve.gov/releases/g19/current/
Deposit: http://www.bankregdata.com/allDP.asp; http://www.bloomberg.com/news/2013-09-30/u-s-bank-deposits-grow-as-largest-firms-take-a-bigger-share.html
Trading volume: http://blogs.wsj.com/moneybeat/2014/01/15/u-s-trading-volume-continues-to-shrink/
Lending: http://research.stlouisfed.org/fred2/series/CONSUMER; http://research.stlouisfed.org/fred2/series/BUSLOANS/
Net interest margin (NIM) is a measure of the difference between the interest income generated by banks or other financial institutions and the amount of interest paid out to their lenders (for example, deposits), relative to the amount of their (interest-earning) assets.
http://www.oliverwyman.com/insights/publications/2014/jan/the-challenges-ahead.html#.U5cUTZRdVQY
? Reserve requirements change
as a result, we see a financial services world that is
particularly divergent:
• North America Generally well capitalized firms with
low risk; regulatory demands continuing to be the
most challenging issue, including both safety and
soundness and micro-managing of business models;
moderate economic recovery starting to generate
modest demand for commercial and consumer
credit; low loan-to-deposit ratios putting high
pressure on margins; life insurers benefiting from
the demographic tailwinds with the Federal Reserve
tapering relieving the pressure on spreads
http://beta.fool.com/asiavalue/2013/07/15/this-companys-affordable-services-brings-a-smile-t/40157/
http://www.theglobeandmail.com/globe-investor/western-union-vs-xoom-betting-on-the-ultimate-cash-flow-machine/article10240120/
http://www.economist.com/node/21554740
Xoom:
Cost of new customer acquisition: $30/40s (http://www.sec.gov/Archives/edgar/data/1315657/000119312513010596/d364901ds1.htm)
WU
Cost of new customer acquisition: NA