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Can’t Get a Bank Loan? The Alternatives Are Expanding - NYTimes.com
By AMY CORTESE MARCH 5, 2014

Alternative lending has filled a gap left by risk-averse banks: big banks approved less than a fifth of all requests for small-business loans they received in January, while small banks approved about half of such requests, according to a survey by Biz2Credit, an online platform that matches businesses and lenders. And that does not reflect the businesses that are too discouraged to apply. By embracing technology to make small-business lending more efficient and profitable, the alternative lenders have opened opportunities for businesses....The first wave of tech-based alternative lenders — companies like OnDeck and Kabbage, which opened in 2007 and 2011 — used innovative software and data metrics, including social media interactions and Yelp reviews, to assess the health of a business. OnDeck alone has underwritten more than $900 million in loans. And Kabbage, which targets online merchants, lent $200 million in 2013.
small_business  Freshbooks  alternative_lenders  midprime  Kabbage  Dealstruck  banks  banking  innovation  start_ups  fin-tech 
march 2014 by jerryking
Kabbage s Fresh Idea for Small Business Finance - American Banker Magazine Article
Glen Fest
JUN 1, 2013

For the past three years, Atlanta-based Kabbage has used social media analytics in part to quantify a borrower's propensity to repay. The underlying logic, says chairman and co-founder Marc Gorlin, is that a small business actively promoting itself or receiving customer attention through these channels is a better risk candidate than a less socially savvy merchant even with a similar credit score and product line....Whereas a bank would require extensive and audited financial data, says Scott Thompson, the former PayPal president and Yahoo! ex-CEO who was recently appointed to Kabbage's board, Kabbage "offers up this very simple signup flow," where the application and approval process can take less than seven minutes.

"What they've done is they've assembled a richer set of data, they have better technology, better science, better attributes, and are looking at better signals to try to attempt to get a current understanding of what your small business is," Thompson says.
massive_data_sets  data  data_driven  Kabbage  unstructured_data  social_media  social_data  online_banking  small_business  Facebook  Twitter 
february 2014 by jerryking
New takes on data spawn new businesses - FT.com
January 15, 2013 | FT | By Brian McKenna.

DataSift, based in San Francisco in the US and Reading in the UK. It aims to help organisations improve their understanding and use of social media.

Kabbage, is an online lender to small businesses;

Big data does not just mean a lot of information. It also refers to so-called unstructured data – sensor data, social media outpourings, video and images – that does not fit neatly into the rows and columns of most databases.....

“What if one of the large online marketplaces bought a credit company? What would they do with it? They’d give cash to the businesses that were generating their online revenue. That was the germ of Kabbage,” he says.

From application to cash in the bank for small, mostly online, companies takes seven minutes. Kabbage monitors its borrowers by linking to and watching their private data sources: bank accounts, Twitter feeds, eBay and Facebook accounts, among others. Interest rates are between 2-18 per cent. The company’s 90,000 accounts are mostly in the US, but it is planning a UK launch in February.
massive_data_sets  data  data_driven  new_businesses  Kabbage  unstructured_data  DataSift  online_banking  product_launches  social_data  alternative_lenders  alternative_lending 
april 2013 by jerryking
Push to exploit an ocean of information
Richard Waters Source: The Financial Times. (Dec. 10, 2012): News: p19

Like anticipating film demand and judging the effectiveness of window displays, much of the effort in the field of big data analytics is aimed at making existing companies more effective. Designing products, setting optimal prices and reaching the best prospects among potential customers are turning into data-driven exercises.

But it is also throwing up disruptive new businesses. Companies set up from scratch have the chance to draw on public streams of digital data to enter markets that were once closed to incumbents with long-established customer relationships and proprietary information. And such businesses come without the legacy technology platforms, entrenched business processes and cultural norms that make it hard for big groups to change.

"Even if you're not a bank or a healthcare company, you can play in banking or healthcare," says James Manyika, director at McKinsey's research arm.
massive_data_sets  Quantifind  Hollywood  Climate_Corporation  sensors  Euclid_Analytics  Kabbage  Factual  disruption  start_ups  McKinsey  data_driven  new_businesses  large_companies  open_data  legacy_players  digital_disruption  customer_relationships  legacy_tech  cultural_norms  Richard_Waters 
february 2013 by jerryking

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