00:03.630 --> 00:07.230 Sean Murray: Welcome to the deBanked top 10 things of 2019. 00:07.620 --> 00:11.160 What a year it was. Well, so much is happening in alternative 00:11.160 --> 00:14.850 finance. These are the top 10 things that our readers followed 00:15.030 --> 00:16.410 in 2019. 00:18.480 --> 00:19.470 Number 10 00:21.180 --> 00:25.110 The partnership between on deck and Chase Bank came to an end. 00:25.770 --> 00:27.960 The loan underwriting arrangement, which ran for three 00:27.960 --> 00:32.010 years was heralded as validation to online lenders everywhere. 00:32.460 --> 00:35.850 Earlier this year, the deal ended with a whimper with OnDeck 00:35.850 --> 00:39.450 offering little information as to why the deal ended, and 00:39.450 --> 00:42.780 revealing that the deal had never generated that much money 00:43.020 --> 00:43.800 to begin with. 00:45.840 --> 00:47.010 Number nine 00:49.040 --> 00:53.060 Knight Capital Funding was acquired for $27.8 million 00:53.060 --> 00:56.990 dollars by a multi-strategy real estate finance company called 00:56.990 --> 01:00.740 Ready Capital Corp. Ready Capital's CEO said on an 01:00.740 --> 01:06.170 earnings call that they expect Knight to finish 2019 with $250 01:06.170 --> 01:10.850 million worth of originations and do even more in 2020. 01:12.950 --> 01:13.910 Number eight 01:15.370 --> 01:18.940 Direct Lending Investments, once the leading online lending hedge 01:18.940 --> 01:22.990 fund, imploded after the CEO stepped down from the company. 01:23.200 --> 01:25.960 Direct Lending was sued by the Securities and Exchange 01:25.960 --> 01:29.230 Commission. The regulator accused the company of engaging 01:29.260 --> 01:33.160 in a multi year fraud that is alleged to have inflated the 01:33.160 --> 01:34.180 fund's returns. 01:36.160 --> 01:37.420 Number seven 01:39.010 --> 01:43.300 It's a gold rush. In a story authored by deBanked. Sources 01:43.300 --> 01:46.210 say the merchant cash advance industry is one of the top 01:46.210 --> 01:49.870 growth industries of all time. And while everybody and their 01:49.870 --> 01:53.950 mother seems to be getting into it, insiders agree you have to 01:53.950 --> 01:56.140 be prepared to do it the right way. 01:58.230 --> 01:59.190 Number six 02:01.160 --> 02:05.240 While 1 Global Capital filed for bankruptcy in 2018, stakes went 02:05.240 --> 02:09.590 up in 2019. Two individuals pled guilty to criminal securities 02:09.590 --> 02:13.220 charges earlier this year, including an attorney. That 02:13.220 --> 02:16.130 attorney's trouble stems from an opinion letter he provided to 1 02:16.130 --> 02:18.530 Global that he knew to be false. 02:20.450 --> 02:21.770 Number five 02:22.820 --> 02:27.050 Canada eh? Canada was one of the most talked about regions in 02:27.050 --> 02:31.250 online lending for 2019. In August, deBanked hosted its 02:31.250 --> 02:33.860 first ever conference in Toronto, and brought together 02:33.860 --> 02:37.310 more than 100 people from the small business finance industry. 02:45.430 --> 02:47.710 Attendees: I've been coming to deBanked's events for a while, 02:47.740 --> 02:50.560 they're always great, well put-on.,it's good way to meet 02:50.560 --> 02:52.780 and interact with a lot of different people. The Canada 02:52.780 --> 02:56.170 marketplace is in its infancy. Toronto is my hometown. 02:56.200 --> 02:59.650 Canadians are really warming up to alternative lending. Canada 02:59.680 --> 03:00.820 is number one. 03:00.940 --> 03:03.070 Rafael: You know really nice having deBanked bringing so many 03:03.070 --> 03:06.190 great people together to really help the Canadian market grow. 03:23.050 --> 03:23.920 Sean Murray: Number four, 03:25.640 --> 03:28.130 You're probably sick of hearing about them. But confessions of 03:28.130 --> 03:31.220 judgment are one of the most talked about topics of 2019. 03:32.060 --> 03:35.870 COJs as they're known, were greatly restricted in New York 03:35.960 --> 03:39.650 after a news story on Bloomberg News, greatly sensationalized 03:39.650 --> 03:42.110 how they could be used in commercial finance agreements. 03:42.680 --> 03:45.530 Meanwhile, the House of Representatives has introduced 03:45.530 --> 03:49.700 its own plan to restrict them at a national level. But until the 03:49.700 --> 03:52.730 impeachment frenzy dies down, it's unlikely to go anywhere 03:53.000 --> 03:53.900 anytime soon. 03:55.190 --> 03:56.510 Number three. 03:58.070 --> 04:02.570 deBanked events got red hot in 2019. Our most well known event, 04:02.750 --> 04:06.800 broker fair, experienced a 70% increase in attendance over 04:06.800 --> 04:13.100 2018. In 2020, we're expecting another 50% increase and as many 04:13.100 --> 04:18.500 as 1000 attendees, as we hosted in lower Manhattan on May 18. 04:19.670 --> 04:20.510 Brokerfair.org! 04:47.330 --> 04:48.980 Attendees: There's no fluff here. Whether or not you're a 04:48.980 --> 04:51.980 funder, you're a broker, you're a service provider, you're the 04:51.980 --> 04:54.950 media, it's really wonderful to be here. The energy overall is 04:54.950 --> 04:56.900 great compared to other events that I've been to. 05:21.950 --> 05:22.730 Sean Murray: Number two, 05:23.960 --> 05:27.470 Mirror mirror on the wall, who's the biggest online small 05:27.470 --> 05:31.970 business lender of them all? It's PayPal. After soaring past 05:32.000 --> 05:36.650 OnDeck in 2018, PayPal and other tech companies like Amazon, 05:36.770 --> 05:42.530 Shopify and Square have stolen the spotlight in 2019. Expect to 05:42.530 --> 05:46.010 read more about mainstream tech companies as they continue to 05:46.010 --> 05:48.680 intersect with online lending in 2020. 05:50.780 --> 05:56.480 And number one is... it's broker madness. The number one most 05:56.480 --> 06:00.440 read story series of 2019 was about small business finance 06:00.440 --> 06:04.250 brokers. While New York is the largest hub for brokers by far, 06:04.580 --> 06:08.420 we've featured brokers as local as California to as far away as 06:08.450 --> 06:13.130 Canada and Ireland. All of which means if you're a broker, 06:13.430 --> 06:17.270 congratulations, you're what people thought most about in 06:17.270 --> 06:18.470 2019.