Funding Circle is planning layoffs outside the UK amid increased losses

This story was delivered to Business Insider Intelligence Fintech Briefing subscribers earlier this morning.To get this story plus others to your inbox each day, hours before they’re published on Business Insider, click here.Throughout 2019, the UK-based marketplace lender lent out £1.6 billion ($2 billion) to small businesses via its platform, per Funding Circle’s annual results.…

Funding Circle is planning layoffs outside the UK amid increased losses

This story was delivered to Business Insider Intelligence Fintech Briefing subscribers earlier this morning.To get this story plus others to your inbox each day, hours before they’re published on Business Insider, click here.Throughout 2019, the UK-based marketplace lender lent out £1.6 billion ($2 billion) to small businesses via its platform, per Funding Circle’s annual results. In total, it had £2.6 billion ($3.3 billion) in loans under management by the end of the year. Funding Circle grew its revenue 18% to £167 million ($211 million) in 2019, but also reported losses that grew from £50 million ($63 million) in 2018 to £85 million ($107 million) last year, per AltFi. 

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The lender made some improvements to its platform last year, but it’s planning to reduce its operations outside of the UK amid these losses:Fewer loans from the alt lender were considered nonperforming in 2019. Funding Circle decided to “proactively tighten” lending as some higher-risk bands showed lower returns. And while this meant that the fintech accepted fewer applicants, it also allowed Funding Circle to decrease the percentage of loans that were more than 10 days late, 90 days from origination: In H2 2017, this percentage stood between 0.4% and 0.5%, and dropped below 0.3% during the first three quarters of 2019.Funding Circle introduced an instant-decision lending platform last year. The new platform leverages historical data from around 1 million loan appl
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