- Today’s main news: PayPal invests in LendUp. KBRA upgrades SoFi Consumer Loan Program 2016-1. Revolut spent 7M GBP on incredible sales growth.
- Today’s main analysis: VCs may face cash crunch as more tech startups stay private longer.
- Today’s thought-provoking articles: FSB issues report on fintech. Inside Ping An’s massive expansion. Chinese players pursue $3.4T international digital payments opportunity. Auto manufacturers leverage fintech.
- PayPal invests in LendUp. GP:”An outstanding partner to have for LendUp. With a little luck maybe Paypal and LendUp can also partner on customer acquisition.”AT: “I wonder why PayPal isn’t in the top 25 largest Internet companies. They’ve always had such great potential, but they never make the lists. Perhaps they aren’t diversified enough.”
- KBRA upgrades SoFi Consumer Loan Program 2016-1. GP:”SoFi seems to go from high to even higher. “
- Venture capitalists may face cash crunch, tech startups stay private longer. GP:”This could also be a hint that the companies private VC-driven valuations are not in line with the general public’s perception of their value”AT: “Not specific to online lending or fintech companies, but there is certainly an application to the alternative lending space. I can’t help but wonder if this is a long-term or shorter-term trend, but it seems to have started in the middle of last year some time.”
- Global Debt Registry develops blockchain-based proof of concept for online lending. GP:”Slowly but surely we are starting to see the first blockchain applications that make sense.”AT: “There hasn’t been a single public ledger make a breakout, so these kinds of initiatives make me wonder if developments are based on demand or high hopes. I like this particular one, it’s interesting and innovative, but how many online lenders are asking for it?”
- Home Point Financial grows third-party origination channel.
- SEC’s robos handling is a big charade. GP:”The workings of a government are often obscure. I would call it politics. Perhaps one shoudl watch House of Cards TV series more often.”
- Better Mortgage empowers consumers with a better price guarantee. GP:”I am not sure if this was necessary in order to convince people that a simpler and faster application is needed. In fact I usually advise companies not to price cheapest but to price as expensive as they can get away with as long as they provide real value to the users. Cheap has many issues: low margins, no profits, perceived lack of value, etc.”
- Why Square is the ‘Tesla of payments’. GP:”I personally am not convinced that a Tesla car makes sense economically or practically over a gas or hybrid car at this time. There is a lot of hype and fashion into Tesla. I do have to recognize the Tesla cars look great though. I don’t think there is a hype behind Square, as it offers a really easy solution to accept credit card payments. Setting up credit card payments has always been a nightmare for all small businesses for no aparent reason. I am glad Square solved that.”
- Which payment app is best? AT: “A pros/cons look at Venmo, Apple, and Zelle.”
- Veem integrates with Intuit QuickBooks.
- Revolut spent 7M GBP last year to fuel growth. GP:”What one needs to look at is not how much money was spent but what was gained and built through that. I am happy with a company spending 100mil GBP if they build 200mil GBP in revenue per year. A ration of spending 7mil for a revenue of 2.3mil is not impressive, however lets see the impact of this spent the following year.”AT: “Customer acquisition costs money. Remember, it took Amazon 10 years to make a profit. Now they’re the largest Internet company on the planet. While Revolut’s sales went up more than 500% in one year, they spent over half of their equity capital to do it. I see another funding round on its way.”
- Financial Stability Board issues report on fintech.
- Are alt lenders ready to publish APRs? GP:”Many of them already are publishing APRs on their websites. I am not sure why this is a question. While it is not a requirement I think it’s good practice and the serious ones are publishing it.”
- Building a bank is not easy. GP:”Nobody ever said building a company , a startup , or a bank was easy. This is why often people with no experience and who don’t know what it takes are better position to take such a project. They are not afraid of what they don’t know and often they even find new solutions and innovate withotu being constrained of the existing established solutions to known problems. Many VCs, because of this reason, invest in inexperienced CEOs seeing it as a strenght. “
- Hargreaves scraps P2P lending plans.
- How to save cash, make more using P2P lending.
- Inside Ping An’s massive expansion. GP:”Earning $111.7 bil and 11.7% growth. Only in China.”
- Chinese players pursue $3.4T international digital payments opportunity.
- Hong Kong’s future is in learning new words. AT: “I’m surprised that Hong Kong has not been more innovative. Could their business leaders be resting on their laurels?”
- China’s central bank pushes for five-year blockchain plan.
- Hong Kong asserts fintech prowess.
- Fintonic closes 25M Euro funding round.
- Luxembourg, Singapore connect fintech hubs.
- Splendit links up with blockchain-based Lykke.
- Wills Tower Watson, Workinvoice agree to support commercial credit market companies.
- United States
- PayPal invests in online lender LendUp (Reuters), Rated: AAA
- KBRA Upgrades the Ratings on SoFi Consumer Loan Program 2016-1 (KBRA Email), Rated: AAA
- Venture capitalists may face a cash crunch as more technology startups stay private longer (Quartz), Rated: AAA
- Global Debt Registry Develops Blockchain-Based Proof Of Concept For Online Lending (Fin Alternatives), Rated: A
- Home Point Financial grows third-party origination channel (Housingwire), Rated: A
- ‘Big Charade’ Seen in SEC’s Handling of Robos (Financial Advisor IQ), Rated: A
- Better Mortgage Empowers Consumers with the Better Price Guarantee (BusinessWire), Rated: A
- Why This FinTech Firm Reminds One Analyst of Tesla (Barron’s Next), Rated: A
- Which Payment App Is Best for You: Venmo, Apple or ‘Zelle’? (WSJ), Rated: A
- Blockchain Payments Startup Veem Integrates with Intuit QuickBooks (Coindesk), Rated: B
- United Kingdom
- Hot foreign exchange app Revolut burned through £7 million fuelling its growth last year (Business Insider), Rated: AAA
- Financial Stability Board Issues Report on Fintech: “Regulators Need to Understand the Impact” (Crowdfund Insider), Rated: AAA
- Are the UK’s alternative lenders ready to publish APRs? (AltFi), Rated: A
- Building A Bank Is Not Easy (Forbes), Rated: A
- Hargreaves scraps peer-to-peer lending plans (Money Marketing), Rated: A
- How to save your cash and make some more using P2P lending (Born2Invest), Rated: B
- Inside Ping An’s Massive Expansion (Institutional Investor), Rated: AAA
- Chinese Players Pursue $ 3.4 Trillion International Digital Payments Opportunity (PR Newswire), Rated: AAA
- Hong Kong’s future is in learning new words: fintech, regtech, wealthtech (SCMP), Rated: A
- China’s Central Bank Vows to Push for Blockchain in Five-Year Plan (Coindesk), Rated: A
- Hong Kong Asserts Its FinTech Prowess (Financial Technologies Forum), Rated: B
- Automotive Manufacturers Leverage Fintech through Partners to Deliver a Differentiated In-vehicle Experience (Cision), Rated: AAA
- European Union
- Fintonic Closes €25M Funding Round (Finsmes), Rated: A
- Luxembourg and Singapore fintech hubs connect (Finextra), Rated: A
- Swiss Crowdlending Fintech Opts for Blockchain (Finews), Rated: A
- Agreement between Willis Towers Watson and Workinvoice to support companies on the commercial credit market (Intermedia Channel), Rated: A
- Rohan Tibrawalla Takes On Country Director-India Role for MPOWER Financing (PRWeb), Rated: B
- Challenge is to navigate global fintech regulations and scale: Finastra’s Nadeem Syed (Deal Street Asia), Rated: AAA
- Fujitsu Starts Sales of Cloud-based Lending and Leasing Services from Cloud Lending Solutions (Fujitsu), Rated: A
- WEALTHSIMPLE, TRULIOO AMONG CANADIAN COMPANIES IN CB INSIGHTS FINTECH 250 (Betakit), Rated: A
PayPal invests in online lender LendUp (Reuters), Rated: AAA
PayPal Holdings Inc has invested in LendUp, a San Francisco-based startup that offers loans online to consumers who have been traditionally overlooked by banks because they are considered too risky.
LendUp said it had secured a strategic investment from the payments company on Wednesday. It did not disclose terms of the deal. PayPal confirmed in a statement that it had made an investment.
PayPal has been expanding partnerships and acquiring new services to gain advantage over rivals in a highly competitive digital payments market.
KBRA Upgrades the Ratings on SoFi Consumer Loan Program 2016-1 (KBRA Email), Rated: AAA
Kroll Bond Rating Agency (KBRA) upgrades the rating on the Class A notes issued under the SoFi Consumer Loan Program (SCLP 2016-1), a consumer loan ABS transaction which closed on June 27, 2016. The credit enhancement has built for the Class A notes since closing. While cumulative net losses are slightly above KBRA’s initial loss expectations, the transaction has breakeven loss multiples which are sufficient for an upgrade of the Class A rating.
The collateral in the SCLP 2016-1 deal currently includes $382.3 million of loans, as of May 31, 2017. The collateral in the transaction has amortized from the initial pool balance of $506.4 million at closing. The current credit enhancement levels are 31.66% for the Class A notes. Credit enhancement consists of overcollateralization, cash reserves, and excess spread.
Please click on the link below to access the report:
Venture capitalists may face a cash crunch as more technology startups stay private longer (Quartz), Rated: AAA
Private equity research firm Pitchbook reports startup exits—sales or mergers of companies delivering returns to shareholders—has fallen in recent years. The number and value of startup exits were down about 70% last year from their 2014 peak. Despite big IPOs of companies such as Snap, 2017 has yet to yield a bumper crop of new exits as companies stay private longer.
It’s not a new problem, says Scott Jordon, managing director at Glynn Capital, but it’s now more acute. The time it takes for technology firms time to IPO has stretched (pdf) from around five to eight years in 2000 to about 11 years today. Pitchbook’s Nizar Tarhuni says they’re seeing venture firms extend funds or negotiate longer periods than the standard 10 years to return money to their limited partners such as pension funds.
A resurgence in IPOs is still possible. Public investors extended a (mostly) warm welcome to the 11 or so tech companies that have gone public so far this year, including Appian, Carvana, Cloudera, Elevate Credit, Netshoes, Okta, Veritone, and Yext.
Global Debt Registry Develops Blockchain-Based Proof Of Concept For Online Lending (Fin Alternatives), Rated: A
Loan data specialist Global Debt Registry has completed a proof-of-concept that utilizes the blockchain to provide investors with an immutable audit trail and a single source of core loan data.
The firm’s inaugural blockchain proof-of-concept (POC) lays the groundwork for providing investors and senior lenders in the online lending space with a safe and secure way to confirm loan ownership and collateral interests across companies within the ecosystem, GDR said.
In developing the blockchain POC, GDR worked with three leading blockchain platforms – Hyperledger, Ethereum and Chain.
Home Point Financial grows third-party origination channel (Housingwire), Rated: A
Shortly after wrapping up its acquisition of Stonegate Mortgage Corp., Home Point Financial Corp. already announced it’s expanding its third-party origination channel.
The lender plans to increase its wholesale client base by expanding the geographic reach and number of third-party originators the channel will serve.
Home Point finalized its $211 million acquisition of Stonegate Mortgage back at the beginning of the month.
‘Big Charade’ Seen in SEC’s Handling of Robos (Financial Advisor IQ), Rated: A
The rising popularity of robo-advisors is bringing increased scrutiny by regulators. At the same time, industry lawyers say they don’t foresee any substantive changes coming in the form of new rules.
This year for the first time, the SEC put online advice-giving on its list of examination priorities, raising concerns about “heightened risk to investors and/or the integrity of the U.S. capital markets.”
A key issue securities lawyers like Fein raises is that if the SEC insists its current rules adequately apply to robos – yet there seem to be shortcomings in how some robos execute their fiduciary duty – then any perceived enforcement gap will only widen.
But MacKillop, whose startup indie RIA manages about $50 million, scoffs at notions that computer-based investing can live up to the same sort of “best interest” standards for individual clients as brick-and-mortar advisors.
Better Mortgage Empowers Consumers with the Better Price Guarantee (BusinessWire), Rated: A
Better Mortgage officially rolled out the Better Price Guarantee — a promise to all of its borrowers that it will beat any competitor’s loan estimate by $1,000. If not, Better will actually give the borrower $1,000.
Better’s mission is to embolden consumers to confidently shop around while also de-risking one of the largest financial transactions they’ll ever make. According to a report published by Oliver Wyman, 71% of customers only get a loan estimate from one lender, which could mean that many home buyers aren’t actually getting the best price on their mortgage.
How the Better Price Guarantee works:
- If the customer thinks another lender has a more competitive price, they can send Better the competitor’s Loan Estimate(LE) within three business days from the date on the loan estimate. If Better can’t beat the competitor’s LE by at least $1,000, Better will give the borrower $1,000 in cash when they fund with the other lender.
- An LE is a standard form that all lenders are required to provide a consumer.
- Better Mortgage may extend this guarantee to non-standard rate sheets.
Why This FinTech Firm Reminds One Analyst of Tesla (Barron’s Next), Rated: A
What do you call a financial-technology company whose stock is up 75% this year as investors bank on its ability to bring a disruptive product into the mainstream? The “ Tesla of Payments,” apparently.
That’s the way to describe Square, according to Mizuho analyst Thomas McCrohan, who began covering the company on Tuesday. The key question for Square is whether it can scale its business up to serve larger customers, and McCrohan is optimistic about the payment processor’s ability to do so while still making money.
Tesla happens to be up 74% this year. Tesla and Square are the top two performers in the Barron’s Next 50 index.
Which Payment App Is Best for You: Venmo, Apple or ‘Zelle’? (WSJ), Rated: A
Pros: Works across several types of mobile devices and bank accounts. Funds can immediately be used to shop with Venmo.
Pros: Service works with Apple’s iMessage, so users don’t need to download a separate app.
Pros: Will work within the apps of the biggest banks such as J.P. Morgan Chase, Bank of America and Wells Fargo. Funds are deposited directly into bank accounts within minutes.
Blockchain Payments Startup Veem Integrates with Intuit QuickBooks (Coindesk), Rated: B
Intuit QuickBooks customers can now send international payments via blockchain payment provider Veem as an alternative to traditional wire transfers.
Hot foreign exchange app Revolut burned through £7 million fuelling its growth last year (Business Insider), Rated: AAA
London-based Revolut, which offers a pre-paid international currency card, made a pre-tax loss of £7.1 million in 2016, its first full year of operations. Revenue was £2.3 million in the year to December 31, accounts filed with Companies House show.
The loss was largely down to “card scheme costs, acquiring costs, and user acquisition costs,” the company’s directors write in the accounts. In plain English, that means the cost of processing payments done on its cards, and the cost of getting people to sign up for the cards in the first place. The cost of sales jumped from £1.5 million to £7.8 million.
Staff numbers jumped from 7 in 2015 to 32, with staffing costs climbing from just under £300,000 to £1.5 million.
The startup has raised £12.1 million in equity capital to date.
Financial Stability Board Issues Report on Fintech: “Regulators Need to Understand the Impact” (Crowdfund Insider), Rated: AAA
The Financial Stability Board (FSB) has weighed in on the burgeoning Fintech sector of finance. The FSB has been analyzing “financial stability implications” potentially created by Fintech innovation. The FSB says it is specifically seeking to identify “supervisory and regulatory issues that merit authorities’ attention”.
The FSB stated there are currently no compelling financial stability risks from emerging Fintech innovations.
According to the FSB, ten areas of interest have been identified of which the following three are seen as priorities for international collaboration. These three priorities are viewed as “essential” to supporting financial stability “while fostering more inclusive and sustainable finance.” The three priorities are:
- The need to manage operational risk from third-party service providers;
- Mitigating cyber risks; and
- Monitoring macro financial risks that could emerge as Fintech activities increase.
The other areas that merit attention include:
- Cross-border legal issues and regulatory arrangements.
- Governance and disclosure frameworks for big data analytics.
- Assessing the regulatory perimeter and updating it on a timely basis.
- Shared learning with a diverse set of private sector parties.
- Further developing open lines of communication across relevant authorities.
- Building staff capacity in new areas of required expertise.
- Studying alternative configurations of digital currencies.
Are the UK’s alternative lenders ready to publish APRs? (AltFi), Rated: A
In May of last year, the Competition & Markets Authority (CMA) published its rather hefty “Retail banking market investigation” report. Buried among its “proposed remedies” was a provisional decision to require lenders specialising in unsecured loans and overdrafts of up to £25k for SMEs to use annual percentage rates (APRs) to show the cost of these products. The proposed measure is set to become a reality in August, according to multiple sources. But are the UK’s alternative lenders ready?
The impending APR directive will not affect merchant cash advance firms, such as Liberis, because merchant cash advance is not technically considered lending. Nor will it affect asset-backed finance firms like MarketInvoice.
GrowthStreet is another business lending platform that would be affected by the directive, had it not taken the decision some time ago to publish APRs of its own accord.
One group that will presumably take a keen interest in the upcoming APR directive is the Association of Alternative Business Finance. The trade association, which launched in February, represents ten of the UK’s small business-focused direct lenders.
Building A Bank Is Not Easy (Forbes), Rated: A
But building a bank is not easy. Sophisticated and diverse product offerings, consumer trust, and security are three vital components. And in this regard, the incumbents often have a head start.
In our portfolio, we have seen AukaPay partnering with Sparebank1 in Norway to provide a white label payments app, MarketInvoice joining forces with BNI Europa to enable SMEs to access more working capital on its platform, Crosslend working with institutions to provide investment opportunities in consumer loans, and iZettle in successful partnership with Santander.
While P2P lending still represents a small proportion of total lending volumes, in the UK, origination grew 36% year on year in 2016.
Zopa is approaching bank building from a different base to the other challenger banks, and a case in point of collaboration with the incumbents.
Hargreaves scraps peer-to-peer lending plans (Money Marketing), Rated: A
Hargreaves Lansdown has dropped its plans to set up a peer-to-peer lending platform.
The company, which was expected to launch both a P2P lending platform and a cash management service to clients this year, has now decided it will solely focus on the cash management service.
Hargreaves Lansdown chief executive Chris Hill tells Money Marketing that despite P2P being “interesting”, the firm would rather focus on the new savings proposition because it is “a much bigger market”.
How to save your cash and make some more using P2P lending (Born2Invest), Rated: B
P2P lending seems to be a novel and definitely, profitable investment opportunity. It is becoming more and more popular and so there is a constant boost in the number of lenders who are getting profitable returns from this investment option. Here are a few essential steps for making money from the P2P investment.
Step No.1: P2P investment should be treated as an extra element in the overall financial portfolio
You must do ample research, deliberate and then come to a decision about what all should be included in your financial portfolio. You must possess a diversified and comprehensive financial portfolio. P2P lending seems to be a wonderful addition to this portfolio.
Step No. 2: Set a target and attain it
A profit of 2 percent over a 12-month deposit seems to be realistic. The two percent would be paying for the risk factors including investment in time.
Step No.3: Fortify your financial foundation
In order to make an impressive profit in your P2P investment, you must have a fantastic and truly solid financial foundation. This is certainly not a getting rich fast scheme but eventually, you could expect good returns.
Step No.4: Create a comprehensive system
Create a comprehensive system for investing in borrowers that is based on important information which is available, and is relating to the borrower.
Inside Ping An’s Massive Expansion (Institutional Investor), Rated: AAA
Almost 30 years after founding Ping An, Ma is ambitiously broadening his supermarket of financial products, much like U.S. financier Sandy Weill did as chief executive officer of Citigroup from 1998 to 2003.
Ma founded Ping An in 1988 in Shenzhen, the financial hub of southern China, which lies just north of Hong Kong’s border with the mainland. Over the past five years, the company has climbed onto the list of the world’s ten largest insurers, now ranking No. 4 behind France’s AXA, Germany’s Allianz, and U.S.-based MetLife in terms of assets, according to Relbanks.com. Though Ping An’s insurance assets rose 17 percent in 2016, to $802 billion, the company’s double-digit profit growth is benefiting in part from a diverse group of revenue streams, including banking, securities, asset management, wealth management, private equity, and, more recently, China’s booming arena of Internet finance.
Ping An saw 11.7 percent revenue growth, with gross earnings reaching a record high of 774 billion yuan ($112 billion), and a 15 percent growth in profits; net earnings rose to 62 billion yuan. About 56 percent of the group’s profits were derived from insurance, down from more than 80 percent a decade ago. The rest came from banking (20.6 percent), asset management (15.5 percent), and Internet finance (8.3 percent).
Among the company’s most touted technology successes is the 2011 founding of peer-to-peer lender Shanghai Lujiazui International Financial Asset Exchange Co. Lufax, as the company is known, has become an e-commerce giant for finance in China, the world’s second-largest economy. It’s the country’s biggest online marketplace for wealth management products: Last year more than 7.4 million individual and corporate investors used Lufax to purchase 6 trillion yuan worth of investment products from Ping An and thousands of other Chinese financial institutions.
Chinese Players Pursue $ 3.4 Trillion International Digital Payments Opportunity (PR Newswire), Rated: AAA
A new study from Juniper Research highlights the increasing dominance of Chinese companies in digital payments, with players such as Alibaba, Tencent and UnionPay seeking to bolster their revenues through international expansion.
According to the research, Strategies for Payment Providers: Opportunities, Risks & Competition 2017-2021, digital payment transaction values are expected to reach $5 trillion by 2021, up from $3.6 trillion this year, of which $3.4 trillion will come from sales outside mainland China.
The research includes the latest Juniper Leaderboards, highlighting best-in-class players in key payments arenas, including PayPal (for eWallets), Worldpay (for payment service providers) and Vodafone (for telco payments in emerging markets).
The complimentary whitepaper, Who will Own the Digital Payments Sector in 2021?, is available to download from the Juniper website together with further details of the full research and the attendant IFxl (Interactive Forecast Excel).
Hong Kong’s role as a global financial hub may be under threat unless the city can embrace technology and adapt quickly to the tectonic changes that have taken place in the financial landscape in the two decade since its return to Chinese rule, experts say.
Hong Kong’s greatest moment of innovation was in 1997 with the Octopus card, a smart-card payment system that is now a ubiquitous part of daily life. Two decades since, the city has not made further progress and has lagged mainland China in exploring new forms of electronic payment such as Tencent Holdings’ WePay or Alibaba Group Holding’s Alipay.
Hong Kong’s existing banking model would change dramatically with the rise of fintech, similar to how Amazon.com revolutionised America’s retail industry, he said.
For Hong Kong to succeed as a fintech hub, regulators should license more companies to handle clients’ money to accelerate innovations in fintech and wealthtech, or the use of technology for wealth management and investing, he said.
“More than 70 of the world’s largest 100 banks are in Hong Kong, and this gives the city a big advantage because in fintech, the majority of the customers are going to be banks,” he said.
As many as 82 per cent of incumbent banks and financial institutions plan to increase partnerships with fintech companies in the next three to five years, according to a fintech survey in Hong Kong by PwC this year.
China’s Central Bank Vows to Push for Blockchain in Five-Year Plan (Coindesk), Rated: A
The People’s Bank of China (PBoC) is releasing new details about a forthcoming five-year development plan focused on its strategy for advancing technology use in the country’s domestic financial industry.
According to the announcement by the central bank, the PBoC intends to actively push forward the development of new technologies such as blockchain and AI. It also plans to strengthen its research on applications of fintech in regulation, cloud computing and big data.
Hong Kong Asserts Its FinTech Prowess (Financial Technologies Forum), Rated: B
In fact, the FinTech Association of Hong Kong (FTAHK) had its official launch on June 28, underscoring the point that financial IT innovation is no longer restricted to New York City and its concrete canyons or Silicon Valley in Northern California.
There will be committees taking on key sectors such as:
- Artificial intelligence;
- Big data;
- Regulatory tech;
- and financial literacy.
Automotive Manufacturers Leverage Fintech through Partners to Deliver a Differentiated In-vehicle Experience (Cision), Rated: AAA
The thinning margins in the automotive industry are making a strong case for vehicle original equipment manufacturers (OEMs) to explore revenue streams beyond sales and periodic maintenance. As customers become accustomed to digital transactions, OEMs will look to tap the hitherto underutilised fintechservices segment to generate additional revenues. Active partnerships with fintech companies will enable OEMs to offer multiple use cases that enrich in-vehicle experience, which will ultimately influence customers’ purchase decisions.
Fintech in the Global Automotive Industry, Forecast to 2025 is part of Frost & Sullivan’s Automotive & TransportationGrowth Partnership Subscription. The study examines key application areas of fintech in the automotive industry: leasing and finance, insurance, digital retailing, digital payments, and automotive services. Europe, followed by North America, is anticipated to lead in digitising finance, and North America, followed by Europe, in automotive service investments. The average investment in fintech is estimated to grow from $16 million in 2016 to $230 million by 2025with the emergence of digital car retailing and new business models in insurance.
The synergies between automakers and technology companies will power next-generation financial service infrastructure. Even though fintech partnerships with big banks slow down transactions, it is important to note that banks manage almost 32% all new vehicle financing in North America. Besides:
- The competition for market share between banks and captives finance companies is expected to digitise new car sales and result in a $1 trillion auto financing market; and
- Fintech will monetise services based on subscription models and on-demand vehicle features.
Fintonic Closes €25M Funding Round (Finsmes), Rated: A
Fintonic, a Madrid, Spain-based provider of a mobile app to optimize personal finances, closed a €25m round of funding.
Backers included ING Group and insurance group PSN, amongst other investors.
The company intends to use the funds to drive its growth in Spain and LatAm and increase its value proposition.
Luxembourg and Singapore fintech hubs connect (Finextra), Rated: A
The LHoFT, Luxembourg House of Financial Technology, and LATTICE80, the world’s largest Fintech Hub located in Singapore, are excited to have signed a Memorandum of Understanding (“MOU”) at Money 2020 Europe, setting a foundation for collaboration between the two centres.
This Memorandum of Understanding provides a framework to intensify the cooperation between two leading financial centres with a specific focus on Fintech and driving digital transformation in financial services.
Swiss Crowdlending Fintech Opts for Blockchain (Finews), Rated: A
Splendit is a Swiss fintech firm dedicated to broker loans to students paid for by financiers.
The company has decided to link up with Blockchain-fintech Lykke, Splendit said in a statement today.
Thanks to the deal with Lykke, Splendit henceforth will be able to finance foreign students by sending them their loans via the Lykke Wallet. Florian Kuebler, the co-founder of Splendit, says that this will save transaction costs and enable crowdlending across the globe.
Agreement between Willis Towers Watson and Workinvoice to support companies on the commercial credit market (Intermedia Channel), Rated: A
Willis Towers Watson (WTW) and Workinvoice have signed a collaboration agreement exclusively with the aim of bringing more and more Italian companies on the commercial credit market run by the Italian Fintech company.
The Workinvoice activities enable companies ‘ access to a particular market to obtain immediate liquidity, and to protect themselves from payment risks through the sale of its trade receivables to Italian and international institutional investors “ .
MPOWER Financing (http://www.mpowerfinancing.com), an innovative fintech company and provider of educational loans to high-potential, international students, recently appointed Rohan Tibrawalla to the position of Country Director-India to oversee the company’s operations in the region from its soon-to-be-opened office in Bangalore.
In his new position, Tibrawalla is responsible for expanding and executing MPOWER Financing’s operations, marketing and business development strategies as well as for managing the loan portfolio and debt and equity capital sourcing.
MPOWER Financing is a public benefit corporation whose mission is to remove the financial barriers to higher education in the U.S. by providing loans and other resources necessary for students to complete their undergraduate or graduate studies.
Challenge is to navigate global fintech regulations and scale: Finastra’s Nadeem Syed (Deal Street Asia), Rated: AAA
Nadeem Syed, who heads mega fintech firm Finastra, believes regulators worldwide will need to evolve guidelines for the emerging sector (fintech) but the challenge for many financial services firms would be to navigate the new environment and also scale services.
What are your plans in Asia Pacific in terms of expansion and growth after the merger and how has the journey been in Asia so far in terms of revenues and capturing markets?
We have long been committed to Asia Pacific and continue to see great opportunity across the region with double-digit growth rates. Developed and growth markets of Asia Pacific are successfully riding the digital wave especially with the tremendous opportunities that lie ahead of us in Indonesia, Myanmar, Thailand and China to name a few.
Misys has over 400 customers that cut across from Japan to Australia and we see tremendous opportunity to leverage our strength in the region to bring the D+H products to market, especially payments and cash.
Over the years, how have you seen Asia’s competitiveness in fintech being transformed? Has that been affected by the rivalry between region’s financial centres – Singapore and Hong Kong?
The financial services landscape, not just in Asia but globally, has seen a lot of regulators becoming more and more receptive to new technologies – distributed ledger technology, artificial intelligence, P2P lending and so on.
The challenge for all financial services companies is to navigate each jurisdiction’s new or upcoming regulations on fintech while translating their various innovations into services that can be scaled up and rolled out in a safe and reliable manner.
What kind of competition do you see from the internet giants like Baidu or Alibaba are fast emerging as fintech players worth noticing. What future do you see for Chinese fintech industry?
China’s internet giants are increasingly looking at fintech as it is a complementary sector that helps create a tighter online ecosystem for their customers. They are mostly focused on personal banking and payments solutions, which means traditional banks need to concentrate on evolving their own digital and online presence.
As the fastest growing region, do you see Asia emerging as a digital champion anytime soon. If yes, what will help to bring it and where are the major challenges?
Many countries in Asia are seeing exponential growth in the number of Internet and mobile device users – this has a direct correlation to the boom in digital or online banking, as well as other services being carried out online. Digital platforms mean that rural populations now have easy access to services previously unavailable to them, but the challenge is always how to ensure these platforms are safe and secure as cyber criminals get more sophisticated.
Fujitsu Starts Sales of Cloud-based Lending and Leasing Services from Cloud Lending Solutions (Fujitsu), Rated: A
Fujitsu today announced it is commencing sales in Japan of cloud-based solutions for lending and leasing businesses. Developed by US-based Cloud Lending Solutions and known as the CL Series, the solutions will be deployed and operated as Software as a Service (SaaS) with the support and operations services of Fujitsu technicians with expertise in financial systems. This is the first time services from Cloud Lending Solutions will be available in Japan.
ALT Corporation, a subsidiary of Yayoi Co., Ltd., Japan’s largest accounting software company, has decided to become the first Japanese customer for these solutions. ALT is using these solutions to set up a unique online lending business, with plans to begin trial lending in October 2017.
With the goal of offering solutions to transform business using Fintech to customers at financial institutions around the world, on July 12, 2016, Fujitsu signed a Memorandum of Understanding (MOU) with Cloud Lending Solutions for a strategic partnership.
The CL Series is a set of cutting-edge cloud services offered as SaaS, which digitize a suite of business processes for lending and leasing businesses, from applications to reviews, contracts and collections.
WEALTHSIMPLE, TRULIOO AMONG CANADIAN COMPANIES IN CB INSIGHTS FINTECH 250 (Betakit), Rated: A
Canadian FinTechs that made the list include Wealthsimple, which recently announced its UK expansion and raised a $50 million Series B; Montreal-based Blockstream, which raised a $55 millionSeries A in February 2016; and Toronto-based Wave, which raised $32 millionfinancing round from RBC, Portag3, and other investors in May.
The list also includes Vancouver-based Trulioo, which produces ID verification software for compliance and to fraud risk mitigation; Toronto-based Financeit, a cloud-based point-of-sale platform; and Toronto-based Street Contxt, which raised a fresh round of funding from 8VC, Point72 Ventures, Palm Drive Capital, and Portag3 Ventures in April.