Tagged: risk

Interconnected Risks in the Global Financial Industry: DTCC Says Beware

Panic Sim Swap Hack iPhone Warning Fear Danger

The Depository Trust & Clearing Corporation (DTCC) is out with a report warning about the interconnected risks of the global financial industry. As if we didn’t need something else to cause concern, DTCC says the nature of these risks continues to evolve occurring with greater… Read More

Themis Finalizes $9M Seed Round to Accelerate Partnerships by Lowering Regulatory, Compliance Barriers

Money in Wallet 100

Themis, a collaborative governance, risk, and compliance platform, recently announced thatit has secured $9 million in seed investment “to solve compliance and risk challenges stemming from cross-sector and cross-border partnerships.” The investment round was led by TTV Capital along with contributions from Felicis and existing… Read More

No Surprise: Cyber Risk Biggest Threat to Financial Markets, Followed by Disease and Geopolitical Concerns

Panic Fear Eyes Angst Anxiety

Cyber risk is the biggest threat to financial markets in 2022, according to a statement by The Depository Trust and Clearing Corporation (DTCC). This pronouncement should come as no surprise as the news is replete with reports of hacks and breaches by all kinds of… Read More

Fitch Distributes Warning on Marketplace Loans Due to “Coronavirus Pressure”

Bumpy Road Danger

Fitch Ratings is out with a note on the impact of COVID-19 and US marketplace loan portfolios. According to Fitch, the Coronavirus and affiliated rise in unemployment will lead to “significant performance degradation in U.S. Marketplace Loan (MPL) portfolios.” Even more grim is that Fitch… Read More

Global Regtech Market was Valued at $2.45 Billion in 2017, Projected to Reach $12.43 Billion by 2026

Global Regtech

The global Regtech market was valued at $2.45 billion in 2017 and is projected to reach an estimated $12.43 billion by 2026, at a compounded annual growth rate (CAGR) of 22.51%. Regtech refers to set of tools developed to enhance the efficiency and effectiveness of… Read More

One Fifth of Respondents to DTCC Survey Concerned Blockchain / Fintech Adding Risk in Global Securities Settlement

Risk Crash Skateboard LA California

About 20% of respondents to the Depository Trust and Clearing Corporation’s (DTCC’s)  “Systemic Risk Barometer” survey this year identified “Fintech” (blockchain, AI, cloud computing) as a possible source of risk in global securities settlement in 2019. Only 15% expressed similar concern last year. Commenting on… Read More

Financial Stability Board: Crypto-Assets Do Not Pose Risks to Global Financial Stability at this Time

Mark Carney

The Financial Stability Board (FSB), the international body that monitors and makes recommendations about the global financial system, has published its assessment of risk in advance of the upcoming G20 meeting which will take place in Buenos Aires today and tomorrow. The FSB is chaired by… Read More

Bank of England Comment: Existing Crypto-Assets do not Currently Pose a Material Risk to UK Financial Stability

UK Pounds Money Coins Stack

The Bank of England, Financial Policy Committee (FPC), is out with their statement from the meeting on March 12th regarding the outlook for UK financial stability risks. Included within the statement is a comment on crypto-assets. The Bank states: The Committee recognises the potential benefits… Read More

Hong Kong’s Financial Services and Treasury Bureau & Investor Education Centre Launch Public Education Campaign on ICO & Crypto Risks

the chin family

Hong Kong’s Financial Services and the Treasury Bureau (FSTB) and the Investor Education Centre (IEC), a subsidiary of the Securities and Futures Commission (SFC), jointly launched a public education campaign today on the risks associated with ICOs and cryptocurrencies. The campaign aims to provide the… Read More

Perspective: Building a World-Class Risk Team

austin neill Unsplash Risk Jump Ocean Cliff California Dive Swim

What is a world-class risk team and how do you build one? I’m often asked that question as Chief Risk Officer of BlueVine. Like other Fintech lenders, we are intensely focused on risk. Building a world-class risk team has been and will always be a… Read More

Financial Stability Board Issues Report on Fintech: “Regulators Need to Understand the Impact”

Money Puzzle Global Question Coins

The Financial Stability Board (FSB) has weighed in on the burgeoning Fintech sector of finance. The FSB has been analyzing “financial stability implications” potentially created by Fintech innovation. The FSB says it is specifically seeking to identify “supervisory and regulatory issues that merit authorities’ attention”…. Read More

Minimizing Potential Litigation & Regulatory Risks for Crowdfunding Platforms

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Crowdfunding regulations were enacted with the goal of providing small businesses access to capital without imposing arduous registration and disclosure burdens.[i]  In that regard, the regulations have shown significant promise. Commentators have rightfully highlighted the substantial benefits to both issuers and investors based on their… Read More

Commercial for YayYo Reg A+ Crowdfunding “IPO” Offer May Push Promotion Too Far

YayYo TV Commercial

Earlier this month I was running CNBC in the background and a commercial came up that caused me to pause. On the screen was a besuited old white male pitching the next great investment. Coming off a bit like a used-car salesman, I learned later… Read More

Does Online Lending Create Less Systemic Risk than Traditional Credit? It Depends…

Risk Base Jumping Dive Fall

One of the frequently touted benefits of peer to peer/marketplace lending is the heightened transparency associated with loan originations processed online.  The financial crisis of the last decade was in part fueled by the disconnect between lender and borrower. As mortgages were securitized, sliced and… Read More

Neuroprofiler: Risk Profiling & Suitability Testing Based on Behavioral Finance

RIsk Profling

  Neuroprofiler is a French startup whose online application uses the latest advances in behavioral finance to help investors determine their psychological investment profile. The company’s ambition is to provide financial services with suitability testing tools that are not only fully compliant, but also add… Read More

PwC Studies German Risk Management, Utilizes Auxmoney to Determine Private Lending Market Potential

Fintech Germany

Credit marketplaces such as auxmoney ensure that up to 4.3 million more people get access to credit, as would be the case via conventional lenders like banks, according to a recent PricewaterhouseCoopers study. PwC investigated the effects of new forms of risk assessment with its complementary, digital… Read More

Weighing the Risks for the “Crowd” in Equity Crowdfunding

Risk Base Jumping Dive Fall

  Now that the long awaited and much anticipated federal crowdfunding rules under Title III of the JOBS Act have become effective, startup companies can raise seed capital from everyday, non-accredited retail investors through online equity crowdfunding platforms. Many of these investors are excited to… Read More

Fitch: Confidence in Marketplace Lending ABS Gets Hammered

Risk Money

The marketplace lending industry is getting hammered of late.  The after-shock reverberations following the resignation of Lending Club co-founder and CEO Renaud Laplanche continues to be a hot topic of conversation. Today, Fitch has come out with a report stating “investor confidence in marketplace lending… Read More

Singapore’s Silver Bullion Debuts One-Month Bullion Secured P2P Loans

Gregor gregersen

On Wednesday, Singapore-based bullion retailer, Silver Bullion Pte Ltd., announced the launch of its 1-month bullion secured peer-to-peer(P2P) loans. Silver Bullion previously offered loan durations of 6 months, 12 months and 24 months secured by physical gold and silver collateral stored in its vault, The Safe… Read More

Crowdfunding Platforms Must Be Conscientious In Disclosing Borrower Credit Information

Guard Safety

  In translating the JOBS Act into final regulations, the SEC sought to protect investors in myriads ways: limiting certain opportunities to accredited investors, implementing caps on the annual amount certain investors may invest, and requiring certain disclosures, among other things. Understandably, the bulk of… Read More

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