CommunityLend Announces a New Chief Compliance Officer and Three New Advisors
Toronto, Ontario (January 5th, 2010 ): CommunityLend Holdings Inc. the parent company of Toronto-based peer-to-peer lending company, CommunityLend Inc., today announced a new Chief Compliance Officer and three new additions to its Board of Advisors.
New Compliance Officer
Starting in January 2010, long time financial services professional, Tim Gleeson, will be joining CommunityLend Inc. as its new Chief Compliance Officer. “Tim comes to CommunityLend from a distinguished 30 year career in the financial services industry.” noted Michael Garrity, CEO of CommunityLend Holdings Inc. and Co-Founder and CEO of CommunityLend Inc. “and brings to our team considerable experience in capital markets and a sophisticated understanding of securities related compliance requirements.” Prior to joining CommunityLend, Tim was the founder and Chief Compliance Officer of investment management firm, FairLane Asset Management.
New Advisors
CommunityLend Holdings Inc. is also announcing three new Advisors. The Board of Advisors for CommunityLend Holdings Inc. is comprised of industry leaders who advise and guide the company on strategic decisions and business progress.
“All three of these new advisors to CommunityLend have achieved significant success in their respective industries and it is a great honour to have add their guidance, experience and passion to our team.” said Garrity. “They all represent for us significant professional experience immediately relevant to operating a successful peer-to-peer lending system for the Canadian financial services market.”
Executive Biographies
Tim Gleeson, Chief Compliance Officer
Tim comes to CommunityLend from a distinguished 30 year career in the financial services industry. Prior to joining our team, Tim was the founder of investment management firm, FairLane Asset Management. Tim’s financial services career started when he first joined Merrill Lynch in 1979. He worked subsequently in fixed income trading at Bay street firms Burns Fry Ltd. and Richardson Greenshields . In 1989 Tim switched gears and joined Mackenzie Financial where his role as Senior Vice President included portfolio management and contributing to Investment and Derivatives committee oversight. Fulfilling a lifelong ambition Tim recently earned his Private Pilot’s license and is working towards an instrument rating.
Giles Andrews, Advisor
Giles co-founded the world’s first online lending and borrowing marketplace, Zopa, in 2004. He led 4 fund raisings as CFO and then led the UK business as MD before taking over as CEO in January 2009. Giles spent the first ten years of his career in the motor industry pursuing his interest in all things automotive. This included co-founding Caverdale in 1992, a start-up taken to a £250m revenue motor retailer and sold in 1997. After an MBA at INSEAD he set up his own consultancy business whose clients included Tesco and Tesco Personal Finance and which also provided start up advice and early stage funding for new businesses.
Roger Couldrey, Advisor
Roger is the acting Vice President Administration at McMaster University. He was CommunityLend’s Chief Operating Officer until 2009 and is a long time banking professional. Roger joined the Bank of Montreal in 1971 and had a variety of executive responsibilities including his last position as Vice President of Electronic Financial Services. After leaving the bank in 1999, he was Executive Vice President of Operations with epost (www.epost.ca), was the General Manager of Corporate Services for Orlick Industries Ltd in Hamilton before returning to epost in 2004 as President and CEO. Roger has extensive experience serving on community boards, most noticeably McMaster University, where he is Chair of both the Finance and Audit Committees. He completed the Financial Studies Diploma, the senior qualification of the UK Institute of Bankers, in 1982 as the top candidate.
John Prato, Advisor
John Prato is a Managing Director in the Equity Capital Markets (ECM) group of TD Securities Inc., the investment banking division of The Toronto Dominion Bank Financial Group. He has been a member of the ECM group since 1998, and has worked on a variety of equity underwritings, including initial public offerings, common equity, convertible and exchangeable debentures, income trusts and private placements for companies in diverse sectors. From 1996 to 1998, Mr. Prato worked in merchant banking with TD Capital Group Limited on a variety of mandates including early-stage investments, private equity, mergers and acquisitions and leveraged buy-outs. Mr. Prato has served on the Board of Trustees of the Royal Ontario Museum, including the executive committee of the Board, and currently sits on the board of St. Michael’s Hospital Foundation, Toronto. Mr. Prato holds a Masters of Business Administration from Queen’s University in Kingston, Ontario and is a CFA charter holder.
Article on CommunityLend in todays Financial Post
John Greenwood wrote about us on the front page of the Financial Post (National Post) today.
CommunityLend Announces $1 Million Investment from Stone & Co. Limited
We a happy to welcome Stone & Co to the CommunityLend team.
Toronto, ON (December 18th, 2009): CommunityLend Holdings Inc., the parent company of Canadian Peer-to-Peer lending company, CommunityLend Inc., today announced a $1 Million investment through a convertible debenture from Stone & Co. Limited Flagship Stock Fund Canada (“Stone”). As part of their investment, Mr. Richard Stone, Founder and CEO of Stone, will join CommunityLend’s Board in an Observer role.
“We were very intrigued with the possibilities created for Canadian investors through direct participation in consumer lending, a model which has proven successful in foreign markets such as the United Kingdom and USA,” said Richard Stone, Founder and CEO of Stone.
“Consumer Loans have been one of the major drivers for the Canadian banking industry’s profitability for over 100 years,” noted Michael Garrity, Co-Founder and CEO of CommunityLend Inc, “and yet are virtually unavailable as a direct investment opportunity for private investors. When CommunityLend launches in the next few weeks, we intend to remove these obstacles through the introduction of Canada’s only peer-to-peer lending system, a new lending model which removes the middleman in lending transactions by allowing borrowers the ability to connect directly with lenders through a safe and secure online lending system.”
“We are very excited to have attracted a seasoned asset management organization as an investor in our company. Stone’s participation in our innovative Peer-to-Peer lending model is a great honour and we look forward to their partnership in the coming years.”
About Stone & Co. Limited
Stone & Co. Limited is an independent, 100% Canadian-owned fund company offering the Stone mutual funds, flow-through limited partnerships, and a TSX-listed fund to investors through financial advisors in all provinces and territories of Canada.
About CommunityLend Holdings Inc.
CommunityLend Holdings Inc. is a Canadian corporation based in Toronto, ON, which wholly owns CommunityLend Inc.
About CommunityLend Inc.
CommunityLend Inc. is Canada’s only peer–to-peer lending service, a unique financial services innovation which allows borrowers to cut out banks and credit card companies and to connect directly with lenders through open online loan auctions. Called “game changing” by financial industry analysts[1], this new lending model permits direct investment by eligible investors into the personal lending market, previously largely the preserve of financial institutions. CommunityLend Inc. is a wholly owned subsidiary of CommunityLend Holdings Incorporated, a Canadian corporation based in Toronto, ON. CommunityLend Inc. is registered as a Portfolio Manager in Ontario, and is a registered as an Exempt Market Dealer in the Province of Ontario.
All press inquiries can be made via email to Colin Henderson (CTO) at colin@communitylend.com.
For more information on Stone & Co. Limited, contact Brian Edelstein, Managing Director, Investor Relations
e. briane@stoneco.com | www.stoneco.com
[1] http://www.javelinstrategy.com/2008/01/07/at-last-a-bank-of-your-own/
The Next Milestone in the CommunityLend Journey begins Shortly
When we began the CommunityLend “journey” back in early 2007, there was a broad sense of optimism in the general economy and the potential in web based business. We started out by studying everything we could on peer-to-peer lending (also known as social lending) and focused on a way to design the right model for Canada. Primarily we saw the need to replace the rapid de-personalization of the financial services industry in Canada with the transparency, social openness and smart self service that came along with web 2.0. Peer-to-peer lending seemed an ideal model to achieve this.
Little did we know back then that the world’s financial system would come to the brink of collapse shortly after September 2008 and that out of the ashes of that calamity would come a call from all of the G20 governments for better financial systems built on transparency and more stringent risk management.
All of this talk though still seems lost on the “average” bank customer who just wants access to credit at a reasonable rate. Unfortunately, this is the opposite of what is happening internationally today. The outcome of tougher regulations and oversight of banking has in fact been a tightened supply of available capital and increased price of that capital in most markets, despite the fact that central bank rates in most industrialized countries have never been lower. So what’s the way out?
Our answer is simple (albeit with our own bias). When we look at what is being achieved by peer-to-peer lenders in other countries, it appears the potential exists that peer-to-peer lending can be one answer to both the need for more capital at a reasonable price as well as the need for more transparency in lending.
This quote from a recent piece at Contrarian Profits sums up the premise of peer-to-peer lending and contained a graphic depicting base loan rates at LendingClub and a sampling of US Banks:
“They call it “peer-to-peer (or P2P) lending,” and the premise is simple: I have money I am willing to lend; you would like to borrow some; these companies bring us together and facilitate the loan. Because their systems are automated and connect lenders and borrowers more directly, the companies can afford to take much smaller commissions on the loan than a traditional bank.”
The peer-to-peer lending model eliminates middle men, and also eliminates what can appear to be obtuse processes that sit between people and their money. Processes such as securitization of mortgages, whereby a mutual fund in France becomes the ultimate lender under a derivative contract with a series of US and Canadian banks. It is quite evident from the last two years that such contracts were bad for borrowers and investors alike, because of the trust factor.
The “spiders web” of connections that lies between borrowers and lenders in modern finance has become so commoditized and distant that the relationship which used to exist between them is much less than before. The processes that have evolved for borrowers in particular have little sense of participation in a process that offers little other than a loan at a cost that is seemingly driven by factors outside the borrower’s control.
Peer-to-peer lending is small potatoes in the grand scheme of things. But we can’t help but believe that somewhere between 19% ++ credit card rates and the 0.25% paid on savings accounts, there is some room to offer a better way for those who choose to be different.
So that brings it back to us. It has been a LONG journey. In many respects, too long. But there is good news. We are really close . We do have the usual last minute paperwork and technology stuff to smooth out prior to launch but we are nearly there. We will update you here on a regular basis with information related to our launch.
We hope that it has been worth the wait and that you will join us as we aim to change the rules of lending™ here in Canada.
Let’s start being different by telling you that questions and comments are welcome.
- CL Team
Activity on Prosper.com suggests an imminent launch
From this it appears Prosper.com relaunch is imminent.
Looks Like Prosper.com is On Its Way Back! | Prosper lending Review
I checked out Prosper, and sure enough, another one of those ominous "down for maintenance" pages like we saw the day before the Finovate Conference.
Paraphrasing Anthony’s email he says that the US SEC approved Prosper’s new securitized note trading platform at 3:30 PM on Friday, and that they pulled the site down over the weekend through Monday.
The new credit card rules – a guide | Globe & Mail
The Globe and Mail carry a useful guide to the new credit card rules, and it is useful reading to see just how it will help and also not help the average consumer. The focus appears very much to be on disclosure. Click through for details.
The new credit-card rules: a consumer’s guide | globe and mail
Canada’s credit-card industry would be required to improve disclosure to consumers and change some business practices under new regulations introduced yesterday by the federal government. But how exactly would the changes affect consumers once they come into force?
Thank You Prosper Community, Thank You California!
Our sincere congratulations to Prosper who re-opened today as noted in this letter from CEO Chris Larsen.
Thank You Prosper Community, Thank You California! | Letter from Chris Larsen
We are pleased to announce that Prosper is now open for business once again after a six month hiatus. At this time we are launching to borrowers nationwide and to individual and institutional lenders in California. We hope to be fully national soon.
Review of US p2p lenders and the state of regulatory regime in US
We have been quiet of late as we work through our own registration with Canadian regulators. In the meantime we actively watch the results of the existing lenders, including Lending Club in the US who are currently the only active and registered p2p lender with the US securities regime, the Securities and Exchange Commission (SEC).
This article contains references and photo’s of all the US sites and describes the current state of regulatory approvals in the US. The regulation in Canada is following a similar approach, and we still plan to be the first launched and approved p2p lender in Canada.
Where Credit Still Flows | Wall Street Journal
While still tiny, the social-lending business is gaining serious momentum. The dollar amount of outstanding loans jumped 41.7% in 2008 to $102 million, according to Jim Bruene, founder of Seattle-based NetBanker, which tracks the online finance world. Bruene figures that figure could hit $1 billion by 2013.
Thinking Eco-Logical to drive sustainability, efficiencies, and cost cutting measures in the data centre
I recently had the opportunity to participate in this survey and become part of their advisory board. The efforts of the group in simple terms are to further the cause of sustainable computer systems.
The general theme is one of overwhelming desire to reap the combined benefits of a smaller footprint along with the commensurate costs savings, but a general sense of not being quite sure where to begin.
The key is that there is a desire and a need, and this effort represents one small step towards ever more thoughtful growth in data centres and computer systems.
Colin
Report—IT Sustainability Imperatives in Internet and eCommerce Business
This study shows eCommerce companies are in need of green IT and efficiencies, but are failing to take appropriate action. They are more sensitized to going green in the datacenter, but lack the necessary leadership.
Report it-sustainability1
What is equitable for banks’ while they are receiving direct government assistance and during this recession?
This was an unprecedented week for the financial services industry in Canada, with a ground breaking $200bn made available to support Canadian Banks.
Budget 2009: Canada’s Economic Action Plan
Action to Improve Access to Financing and Strengthen Canada’s Financial System
Providing up to $200 billion through the Extraordinary Financing Framework to improve access to financing for consumers and allow businesses to obtain the financing they need to invest, grow and create new jobs.
These measures are available only to Schedule A Banks.
Federally regulated financial institutions are eligible to sell into the facility and provincially regulated financial institutions may be eligible on the approval of the Minister of Finance
These extraordinary support measures beg the question of what accountability Canadian taxpayers should expect from the recipients of this assistance.
Two questions to muse collectively:-
1. How will the financial institutions be held accountable for participating in these measures?
- Will the government set lending volume objectives on a quarterly basis?
- Will the government set rate caps by risk criteria, sectorial volume objectives etc?
2. How do we contextualise other recent announcements made by Canadian Banks?
- Personal Line of Credit interest rates increased by 1% or more
- Fees introduced to Line of Credit holders with zero balance
- Decreases in the central bank rate not passed on to reflect consumer and business lending rates
- Increase in credit card rates if late on a payment, and to cover expected higher default rates
- Increased merchant fees for credit card transactions
Bank names are withheld to keep the focus on the broader issue of raising prices while receiving assistance in a time of financial crisis.
Thoughts welcome.
