public offering in $70 billion shadow banking sector. We are a USA based Global Alternative Financial Services company specializing in Structured Trade Finance (Shadow Banking) , Real Estate Securitization (Alternative Finance) powered by Technology (Artificial Intelligence and Machine Learning).

LongFin has been proven to be an ever evolving Global Non-Bank Alternative Finance company with locations from London to Singapore and India to Dubai, and we are expanding to the USA market as a Delaware based corporation with operations in New York City and Miami.

We boast a team of Quant and Technology professionals and are proud to be an innovative financial force impacting the world of Global Structured Trade Finance (Shadow Banking) and Real Estate Finance Securitization (Alternative Finance) through the empowerment of Artificial Intelligence (AI) and Machine Learning.

Our core infrastructure is made effective by way of Ultra Low-Latency & High Frequency Arbitrage Electronic Market Making for major global exchanges and international banks. The acute presence we hold in the world's leading markets offer clients access to nuances of the local markets while providing a gateway to global ones.

According to the Financial Stability Board (FSB),

the size of the Global Shadow Banking industry boasts an excess of $72 trillion,

while the United States alone is of $25 trillion in value.

What is Shadow Banking / Alternative Finance?

Shadow Banking is the activity of Non-Bank institutions emerged post financial crisis by creatively harnessing the technology and disrupting the traditional financial sector. Some of the key segments in Shadow Banking Sector include: Peer2peer lending, Consumer lending, Commodity trade finance, Small business lending, Leveraged lending, Mortgage backed lending, Educational loans, Commercial real estate, Digital wealth management, Alternative crypto currencies (Bit coin), Private equity/hedge funds.

The need for low-risk (secure), short-term lending between giant financial institutions gave rise to what is called the shadow banking system, also known as the parallel banking system. The pillar of the shadow banking system is the “Repo”. In the shadow banking system (aka securitized banking), banks both sell loans and retain loans. Banks also move their assets off the books to what are variously called off-balance sheet vehicles, special instrument vehicles (SIVs) special purpose vehicles (SPV), or special purpose entities (SPE).

The private Shadow Banking System - SBS is (slowly) filling the funding gap between lender and borrower needs at this particular yield and risk range. These are exciting and positive developments for the U.S. capital markets generally and for the prospects for U.S. SMEs.

It is these, small, private, well-structured financings (away from the exotic CDOs or “too big to fail” nonbanks) that may be the real heart of the recovery in the US financial system.

Shadow Banking: The Big Winner of the Financial Crisis

An eye-popping new study by researchers at Stanford, Columbia, and the University of Chicago finds that nonbank “shadow” lenders write 38% of all home loans — almost triple their share in 2007 — as well as originating a staggering 75% of all loans to low-income borrowers insured by the Federal Housing Administration.

The Shadow Banking Sector & Alternative Financing Driven by Technology

The pillar of the shadow banking system is the “Repo Market”. The “shadow banking sector” refers to the activities of non-banks that raise short-term funds in the money markets and use those funds to buy assets with longer-term maturities. A new generation of “shadow” actors emerged (or in some cases, re-emerged) out of the financial crisis and, by creatively harnessing technology and other trends, is working to disrupt the traditional financial sector.

The term “shadow bank” was coined in 2007 by Paul McCulley of PIMCO, a big bond fund, to describe risky off-balance-sheet vehicles hatched by banks to sell loans repackaged as bonds. Today, the term is used more loosely to cover all financial intermediaries that perform bank-like activity but are not regulated as one. These include mobile payment systems, pawnshops, peer-to-peer lending websites, hedge funds, and bond-trading platforms set up by technology firms. Among the biggest are asset management companies. In 2013 investment funds that make such loans raised a whopping $97 billion worldwide.

Shadow banking is a market-funded, credit intermediation system involving maturity and/or liquidity transformation through securitization and secured-funding mechanisms. It exists at least partly outside of the traditional banking system and does not have government guarantees in the form of insurance or access to the central bank.