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Credibly Financial News Roundup for the Week of January 11, 2016


Minyang Jiang

With the world of small business finance changing so quickly, who can stay on top of it all? Here at Credibly, we sift through hundreds of blogs, news alerts, and emerging Fintech trends every day, selecting the most important industry updates so you don’t have to. Here’s the financial news that caught our attention this week.

For the First Time, More Are Mobile-Banking Than Going to a Branch by Telis Demos, WSJ MoneyBeat
“Are you one of those people who think, ‘Why on earth does anyone go into a bank branch anymore,’ as you tap your mobile banking app? If so, you’re not alone.

For the first time ever, there are more of you than people who actually walked into a branch in 2015, according to a new survey by Javelin Strategy & Research, a unit of financial-industry research firm Greenwich Associates. Last year, roughly 30% of adults in the U.S. used a mobile banking service weekly, while just 24% availed themselves of a physical branch service as often, Javelin’s survey of 3,100 people found.”

Why Veterans Lending to Veterans May Be the Future of Small Business Lending by Marc Prosser, Forbes
“Veteran business owners represent a fairly large market. By some estimates, there are 2.4 million veteran-owned businesses in the United States. The large numbers of both potential veteran borrowers and veteran supporters provide the opportunity for StreetShares to become a robust marketplace.

The long-term question for StreetShares is this: what other groups have large enough numbers of both business owners and supporters and also share a strong sense of community? If StreetShares can harness multiple affinity groups, StreetShares could be the future of small business lending.”

Twenty-Seven Stunning Startup Facts Most People Don’t Know [Infographic] by LetsTalkPayments.com
“The FinTech industry has always been in the eyes of VCs and investors. The already established FinTech players have started taking major steps in order to engage with emerging technologies. Cloud technology and open-source software have lowered the entry level barriers, thereby causing a rapid increase in the establishment of new startups.

This revolution in technology and innovation is engaging investors with the FinTech Industry. In addition, the emerging and evergreen FinTech sectors like lending, bitcoin, mPOS and cloud-based financial services are majorly attracting investors.”

Why Small Business Owners Are Optimistic About 2016 by Larry Alton, HuffingtonPost
According to a survey conducted by small business lending platform Credibly, 73 percent of small business owners are optimistic about their success in 2016, reporting a ‘favorable’ outlook on the year ahead. The tech industry seems to be the most optimistic, with nearly 78 percent of technology company owners expecting their businesses to be successful this year, while even the least-optimistic industry — manufacturing — still reported favorable outlooks from over 61 percent of business owners. So, why are business owners so excited about 2016? What factors are making these entrepreneurs optimistic about their businesses’ performance?”

Measuring Who Prepays in Marketplace Lending: An Observation Based on Lending Club Loans by Christine Gariban, MonJa
“As an investor, it pays off to understand who prepays on personal loans. Prepayment is the early repayment of a loan by a borrower, often as the result of optional refinancing to take advantage of lower interest rates. Borrower prepayment means forgone interest income, and many peer-to-peer lending platforms don’t charge a prepayment penalty. Thus, the construction of an optimal portfolio must examine prepayment risk. How can we predict who will prepay on their loans?”

Why Small Business Failure Rates are Declining by Scott Shane, Entrepreneur
“Hidden in much of the gloomy news about small business in recent years is an important positive statistic: business failure rates are in a long-term decline. The rate at which American employers go under has fallen by 30 percent since 1977…

Economists are not sure why, but I think five factors are central: A shift of small business to more favorable sectors of the economy; less competition from new entrants; fewer marginal businesses being formed; smarter small business owners, and better business-management technology.”


Have you checked out our small business education blog, In.Credibly?

Over at In.Credibly we’re helping small businesses evaluate their working capital needs, source the right funding, and put those dollars to use more efficiently. This week, restaurant consultant Donald Burns explained why loyalty programs are more effective than coupons and discounts, and our HR/benefits expert Maria Costanzo discussed paid parental leave — and what your small business can offer instead if you can’t afford it.