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.