Highlights from Global Capital

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Fintechs to rely heavily on ABS despite switch to banking By Jennifer Kang 07 Jan 2021 Online lenders have sought ways to transform themselves into banks to gain regulatory clarity and forge long term customer relationships [ ]of the status change, the securitization market will remain a vital funding source to the challenger banks, sources say “Fintechs are still going to see what type of private capital markets funding is needed, and I would anticipate that even chartered institutions are going to have a mix of different funding sources to ensure growth and find a sweet spot in deal flow ” [ ]regulators have shown they are still hesitant about granting money to fintechs given their short track record, making it even more necessary for these soon-to-be-banks to keep a steady stream of securitizations According to Deutsche Bank, 2020 issued deals eligible to refi and reset account for $40bn