1 00:00:03,630 --> 00:00:07,230 Sean Murray: Welcome to the deBanked top 10 things of 2019. 2 00:00:07,620 --> 00:00:11,160 What a year it was. Well, so much is happening in alternative 3 00:00:11,160 --> 00:00:14,850 finance. These are the top 10 things that our readers followed 4 00:00:15,030 --> 00:00:16,410 in 2019. 5 00:00:18,480 --> 00:00:19,470 Number 10 6 00:00:21,180 --> 00:00:25,110 The partnership between on deck and Chase Bank came to an end. 7 00:00:25,770 --> 00:00:27,960 The loan underwriting arrangement, which ran for three 8 00:00:27,960 --> 00:00:32,010 years was heralded as validation to online lenders everywhere. 9 00:00:32,460 --> 00:00:35,850 Earlier this year, the deal ended with a whimper with OnDeck 10 00:00:35,850 --> 00:00:39,450 offering little information as to why the deal ended, and 11 00:00:39,450 --> 00:00:42,780 revealing that the deal had never generated that much money 12 00:00:43,020 --> 00:00:43,800 to begin with. 13 00:00:45,840 --> 00:00:47,010 Number nine 14 00:00:49,040 --> 00:00:53,060 Knight Capital Funding was acquired for $27.8 million 15 00:00:53,060 --> 00:00:56,990 dollars by a multi-strategy real estate finance company called 16 00:00:56,990 --> 00:01:00,740 Ready Capital Corp. Ready Capital's CEO said on an 17 00:01:00,740 --> 00:01:06,170 earnings call that they expect Knight to finish 2019 with $250 18 00:01:06,170 --> 00:01:10,850 million worth of originations and do even more in 2020. 19 00:01:12,950 --> 00:01:13,910 Number eight 20 00:01:15,370 --> 00:01:18,940 Direct Lending Investments, once the leading online lending hedge 21 00:01:18,940 --> 00:01:22,990 fund, imploded after the CEO stepped down from the company. 22 00:01:23,200 --> 00:01:25,960 Direct Lending was sued by the Securities and Exchange 23 00:01:25,960 --> 00:01:29,230 Commission. The regulator accused the company of engaging 24 00:01:29,260 --> 00:01:33,160 in a multi year fraud that is alleged to have inflated the 25 00:01:33,160 --> 00:01:34,180 fund's returns. 26 00:01:36,160 --> 00:01:37,420 Number seven 27 00:01:39,010 --> 00:01:43,300 It's a gold rush. In a story authored by deBanked. Sources 28 00:01:43,300 --> 00:01:46,210 say the merchant cash advance industry is one of the top 29 00:01:46,210 --> 00:01:49,870 growth industries of all time. And while everybody and their 30 00:01:49,870 --> 00:01:53,950 mother seems to be getting into it, insiders agree you have to 31 00:01:53,950 --> 00:01:56,140 be prepared to do it the right way. 32 00:01:58,230 --> 00:01:59,190 Number six 33 00:02:01,160 --> 00:02:05,240 While 1 Global Capital filed for bankruptcy in 2018, stakes went 34 00:02:05,240 --> 00:02:09,590 up in 2019. Two individuals pled guilty to criminal securities 35 00:02:09,590 --> 00:02:13,220 charges earlier this year, including an attorney. That 36 00:02:13,220 --> 00:02:16,130 attorney's trouble stems from an opinion letter he provided to 1 37 00:02:16,130 --> 00:02:18,530 Global that he knew to be false. 38 00:02:20,450 --> 00:02:21,770 Number five 39 00:02:22,820 --> 00:02:27,050 Canada eh? Canada was one of the most talked about regions in 40 00:02:27,050 --> 00:02:31,250 online lending for 2019. In August, deBanked hosted its 41 00:02:31,250 --> 00:02:33,860 first ever conference in Toronto, and brought together 42 00:02:33,860 --> 00:02:37,310 more than 100 people from the small business finance industry. 43 00:02:45,430 --> 00:02:47,710 Attendees: I've been coming to deBanked's events for a while, 44 00:02:47,740 --> 00:02:50,560 they're always great, well put-on.,it's good way to meet 45 00:02:50,560 --> 00:02:52,780 and interact with a lot of different people. The Canada 46 00:02:52,780 --> 00:02:56,170 marketplace is in its infancy. Toronto is my hometown. 47 00:02:56,200 --> 00:02:59,650 Canadians are really warming up to alternative lending. Canada 48 00:02:59,680 --> 00:03:00,820 is number one. 49 00:03:00,940 --> 00:03:03,070 Rafael: You know really nice having deBanked bringing so many 50 00:03:03,070 --> 00:03:06,190 great people together to really help the Canadian market grow. 51 00:03:23,050 --> 00:03:23,920 Sean Murray: Number four, 52 00:03:25,640 --> 00:03:28,130 You're probably sick of hearing about them. But confessions of 53 00:03:28,130 --> 00:03:31,220 judgment are one of the most talked about topics of 2019. 54 00:03:32,060 --> 00:03:35,870 COJs as they're known, were greatly restricted in New York 55 00:03:35,960 --> 00:03:39,650 after a news story on Bloomberg News, greatly sensationalized 56 00:03:39,650 --> 00:03:42,110 how they could be used in commercial finance agreements. 57 00:03:42,680 --> 00:03:45,530 Meanwhile, the House of Representatives has introduced 58 00:03:45,530 --> 00:03:49,700 its own plan to restrict them at a national level. But until the 59 00:03:49,700 --> 00:03:52,730 impeachment frenzy dies down, it's unlikely to go anywhere 60 00:03:53,000 --> 00:03:53,900 anytime soon. 61 00:03:55,190 --> 00:03:56,510 Number three. 62 00:03:58,070 --> 00:04:02,570 deBanked events got red hot in 2019. Our most well known event, 63 00:04:02,750 --> 00:04:06,800 broker fair, experienced a 70% increase in attendance over 64 00:04:06,800 --> 00:04:13,100 2018. In 2020, we're expecting another 50% increase and as many 65 00:04:13,100 --> 00:04:18,500 as 1000 attendees, as we hosted in lower Manhattan on May 18. 66 00:04:19,670 --> 00:04:20,510 Brokerfair.org! 67 00:04:47,330 --> 00:04:48,980 Attendees: There's no fluff here. Whether or not you're a 68 00:04:48,980 --> 00:04:51,980 funder, you're a broker, you're a service provider, you're the 69 00:04:51,980 --> 00:04:54,950 media, it's really wonderful to be here. The energy overall is 70 00:04:54,950 --> 00:04:56,900 great compared to other events that I've been to. 71 00:05:21,950 --> 00:05:22,730 Sean Murray: Number two, 72 00:05:23,960 --> 00:05:27,470 Mirror mirror on the wall, who's the biggest online small 73 00:05:27,470 --> 00:05:31,970 business lender of them all? It's PayPal. After soaring past 74 00:05:32,000 --> 00:05:36,650 OnDeck in 2018, PayPal and other tech companies like Amazon, 75 00:05:36,770 --> 00:05:42,530 Shopify and Square have stolen the spotlight in 2019. Expect to 76 00:05:42,530 --> 00:05:46,010 read more about mainstream tech companies as they continue to 77 00:05:46,010 --> 00:05:48,680 intersect with online lending in 2020. 78 00:05:50,780 --> 00:05:56,480 And number one is... it's broker madness. The number one most 79 00:05:56,480 --> 00:06:00,440 read story series of 2019 was about small business finance 80 00:06:00,440 --> 00:06:04,250 brokers. While New York is the largest hub for brokers by far, 81 00:06:04,580 --> 00:06:08,420 we've featured brokers as local as California to as far away as 82 00:06:08,450 --> 00:06:13,130 Canada and Ireland. All of which means if you're a broker, 83 00:06:13,430 --> 00:06:17,270 congratulations, you're what people thought most about in 84 00:06:17,270 --> 00:06:18,470 2019.