- Today’s main news: CEO-less SoFi will have to wait to get a bank. Zopa partners with Saffron Building Society. Zopa updates credit risk model. Assetz Capital lowers commercial mortgage interest rate to 6.9%. RateSetter reports 56% of investors switch from cash. Beehive raises $5M. African billionaire invests in digital bank.
- Today’s main analysis: UK marketplace lenders struggle to find borrowers. Regtech startups on pace for record deals.
- Today’s thought-provoking articles: Square wants to be a bank, and the real banks are miffed. 3 million UK small businesses still don’t accept card payments. Chinese wealth management at a turning point. Indonesian P2P funding allocation grows 496.5% year-to-date.
- SoFi CEO hiatus stalls bank plans. AT: “Until now, it’s been speculation, but it makes sense that SoFi will have to wait to get their coveted bank “because regulators assess whether a company has a capable CEO before allowing it to accept deposits.” Square could be the first fintech to actually see it happen.”
- Square wants to a bank, and the real banks are pissed. AT: “The decision should not be based on how banks and their executives feel about it. Rather, the decision should be based on law, and whether or not there is a benefit to consumers and the financial marketplace.”
- Acting Comptroller of the Currency comments on fintech charter and online lending. AT: “A rehash of what’s already been reported, but with editorial comments (as usual) by PeerIQ. Always prescient, I particularly like this insight: ‘Our interpretation of the above is that, under the FinTech charter, commercial firms such as Walmart, Amazon, Google, and Facebook would have a path to offering banking services’.”
- Will they or won’t they: The OCC fintech charter?
- Lend Academy podcast interview with Plug and Play Fintech’s Scott Robinson.
- Man Group bets on artificial intelligence.
- Matic Insurance Services team up with LendingQB.
- Is Yahoo! a fintech company now?
- Zopa searches for new borrowers with brick-and-mortar partnership. AT: “In conjunction with banks offering digital lending products, through partnerships and otherwise, this is another path marketplace lenders can pursue to grow their business–partnerships with brick-and-mortar institutions to offer loans through traditional channels.”
- Zopa updates credit risk model.
- Marketplace lenders struggle to find borrowers. AT: “Institutional investors can and will save the industry.”
- Assetz Capital lowers commercial mortgage interest rate to 6.9%.
- 3 million small businesses don’t accept card payments.
- Wonga on course to profit this year.
- Wonga confirms 64.9M GBP loss.
- Nutmeg loss widens to 9.3M GBP.
- Wealthtech coming to High Street.
- Curve adds cloud-based accounting software to app.
- Hottest startups in London. AT: “Includes Monzo, Nested, Habito, and Ravelin.”
- P2P needs FSCS stamp of approval.
- LendInvest: Hull one of the most profitable cities for buy-to-let landlords.
- Wealth management industry at a turning point.
- Jack Ma bets on online insurance.
- HSBC: Mobile banking begins with your face.
- French real estate crowdfunding grows steadily.
- Funding Circle’s Desai wins Entrepreneur of the Year award in Europe.
- Klarna’s mermaid dog was total animation.
- Regtech startups on pace for record deals. AT: “I can’t wait for the first breakout regtech firm to lead the pack.”
- Investors switch from cash to RateSetter.
- New Zealand named APAC’s fintech champ.
- Study Loans and RateSetter.
- Indonesian P2P lenders record 496.5% year-to-date growth in funding allocation.
- Funding Societies the first southeast Asian company to win Global SME Excellence Award.
- PLDT unit disrupts businesses.
- How fintech uses technology to serve the unbanked.
- United States
- SoFi’s CEO Hiatus Stalls Its Big-Time Banking Ambitions (The New York Times), Rated: AAA
- Square Wants To Be A Bank, And Real Banks Are Pissed (BuzzFeed), Rated: AAA
- Acting OCC Head Noreika Comments on FinTech Charter and Online Lending (PeerIQ), Rated: A
- Will They or Won’t They: The OCC’s Fintech Charter (Payments Journal), Rated: A
- Scott Robinson of Plug and Play Fintech (Lend Academy), Rated: A
- The Massive Hedge Fund Betting on AI (Bloomberg), Rated: A
- Matic Insurance Services and LendingQB Team Up to Eliminate Stress, Mortgage Delays Related to Homeowner’s Insurance (PR Newswire), Rated: B
- Is Yahoo a fintech company now? (Quartz), Rated: B
- United Kingdom
- Zopa searches for new borrowers through Saffron Building Society loan partnership (City A.M.), Rated: AAA
- Zopa Announces Credit Risk Model Update (Crowdfund Insider), Rated: AAA
- Marketplace lenders struggle to find borrowers (Financial Times), Rated: AAA
- Assetz Capital Lowers Commercial Mortgage Interest Rate From 7.9% to 6.9% (Crowdfund Insider), Rated: AAA
- Three million small businesses still don’t accept cards, despite move away from cash (The Telegraph), Rated: AAA
- Wonga on course for profit this year after major changes (Express), Rated: A
- Wonga confirms £64.9m loss in year it ended Newcastle United sponsorship (ChronicleLive), Rated: A
- Nutmeg loss widens to £9.3m as it develops advice offer (Citywire), Rated: A
- Wealthtech is coming to the High Street (Banking Technology), Rated: A
- Fintech start-up Curve adds cloud-based accounting software to its app to simplify expenses (CNBC), Rated: A
- The hottest startups in London (Wired), Rated: A
- P2P needs the FSCS stamp of approval (Citywire), Rated: B
- Hull has fast become a profitable city for buy-to-let landlords (Mortgage Introducer), Rated: B
- Wealth-Management Industry at Turning Point (Caixin), Rated: AAA
- Alibaba’s Jack Ma places bet on China’s online insurance market (Asian Review), Rated: A
- HSBC: Mobile banking in China begins with your face (Enterprise Innovation), Rated: A
- European Union
- French Real Estate Crowdfunding Grows Steadily and Delivers (Crowdfund Insider), Rated: AAA
- WINNERS ANNOUNCED FOR INVESTOR ALLSTARS EVENT (BusinessCloud), Rated: A
- That viral ‘mermaid dog’ video was too good to be true (The Daily Dot), Rated: B
- Regtech Startups On Pace For Record Deals, Against Backdrop Of Shifting Regulatory Landscape (CCB Insights), Rated: AAA
- Australia/New Zealand
- Yield-hungry investors switch their cash to peer-to-peer lenders (The Sydney Morning Herald), Rated: AAA
- NZ named Asia Pacific’s fintech champ (NZ Adviser), Rated: A
- Appetise’s ASX listing; Study Loans & RateSetter close funding (Deal Street Asia), Rated: A
- Chqbook – Gurgaon Based Fintech Startup Raised Funds (Bizztor), Rated: B
- Indonesian P2P lending platforms recorded 496.5 per cent year-to-date growth of funding allocation (e27), Rated: AAA
- Funding Societies Dubbed First Southeast Asian Company to Win Global SME Excellence Award from United Nations’ ITU Telecom (Crowdfund Insider), Rated: A
- PLDT unit disrupts businesses (Manila Standard), Rated: A
- How FinTech uses technology to help the ‘unserved’ (Manila Bulletin), Rated: B
- Fintech Peer to Peer Lending Platform, Beehive, Raises $ 5m Investment (PR Newswire), Rated: AAA
- South Africa
- African Billionaire Patrice Motsepe Invests In Digital Bank (Forbes), Rated: AAA
SoFi’s CEO Hiatus Stalls Its Big-Time Banking Ambitions (The New York Times), Rated: AAA
One of the most valuable private financial technology startups in the United States, SoFi’s $4.3 billion valuation was based on expectations it could develop into a major lender but Cagney’s departure this month and the circumstances around his exit complicate efforts to create a new-generation bank that could compete against JPMorgan or Bank of America.
The company has hired headhunters over the past few days to help find his replacement, but an appointment is not expected to take place until the end of the year, a source familiar with the matter told Reuters.
The gap at the top is likely to stall SoFi’s application for a banking license, according to the source, because regulators assess whether a company has a capable CEO before allowing it to accept deposits.
A banking license was a key part of Cagney’s push to grow SoFi beyond its core business of student loans and unsecured personal loans.
But without Cagney at the helm, the emphasis is expected to shift.
The company will be more disciplined about testing new products before selling them widely, a source close to the company said.
Square Wants To Be A Bank, And Real Banks Are Pissed (BuzzFeed), Rated: AAA
Small businesses love Square because it charges them less than the bigger, bank-owned payment processors, and the little white card-swipes that plug into a smartphone are easier and more convenient than handheld credit card terminals. Square also — through a partnership with a tiny bank in Utah — makes loans to small companies and entrepreneurs banks would turn away.
As much as small merchants love Square, smaller banks distrust it, particularly now that the company, which is based in San Francisco, has applied to become an industrial loan company (ILC), a controversial type of banking license offered in Utah and a few other states.
And while Square insists it only wants to make small loans to the merchants it serves, banks see this as a backdoor way into their bread-and-butter business of taking deposits and making loans, both to businesses and consumers.
And Square, with its at least 2 million merchant customers, may look to today’s bankers a lot like Walmart did a decade ago. The company has been aggressively soliciting the merchants who use it as a payment processor, offering them small-dollar loans by email.
Take Courtney Foster, who runs a one-chair salon in the Murray Hill neighborhood of Manhattan and has used Square to accept payments for years. One day she got an email from Square Capital with an offer of a loan of $1,000 to $1,500, which would be paid back directly out of her payments processed through Square.
She has since borrowed about $3,000 in total from Square using the money (supplied by Celtic Bank) to start her own line of hair products.
The average loan approved by Square is about $6,000, and the company has either advanced or loaned almost $2 billion since 2014. The amount due back is typically 10% to 16% more than the amount loaned out — which is on the low end for similar types of small business finance — with payments coming out of a fixed percentage of the merchant’s receipts received through Square. The whole balance is due after 18 months, though Square customers can repay early.
Utah has 16 industrial banks, and most fall into the latter category, while some are retailers that issue their own loans, like BMW. Other companies that operate Utah industrial banks include American Express, USAA, UBS, and Sallie Mae.
Acting OCC Head Noreika Comments on FinTech Charter and Online Lending (PeerIQ), Rated: A
Also, in a major shift from prior OCC Head Tom Curry, Noreika affirmed that the proposed FinTech charter could be granted to commercial firms. Former Chair of the FDIC, William Isaac, was also constructive on the concept of enabling commercial firms to engage in banking to drive greater competition, customer choice, and expand access to credit to the 60% of Americans that cannot access a loan from a US bank. Historically, the separation of banking and commerce under the Bank Holding Company Act has prevented commercial firms (outside the ILC charter) from offering banking services. Our interpretation of the above is that, under the FinTech charter, commercial firms such as Walmart, Amazon, Google, and Facebook would have a path to offering banking services.
Cross River Bank CRO Adam Goller moderated a panel including PeerIQ (Ram Ahluwalia), Affirm (Alex Karram), Marlette Funding (Jeff Meiler), and former Massachusetts Commissioner of Banks, David Cotney. PeerIQ cited data and research from Columbia and Harvard Law concluding that the lack of regulatory clarity stemming from Madden-Midland has reduced the availability of credit in District 2.
On Timing for Issuing Charters:
“Interest also remains in the possibility of the OCC offering special purpose national bank charters to nondepository fintech companies engaged in the business of banking. … We have not, however, decided whether we will exercise that specific authority to issue special purpose national bank charters to nondepository fintech companies. We will keep you posted.”
PeerIQ Context: The Conference of State Bank Supervisors and NYS Dept of Financial Services have challenged the OCC’s authority to issue charters. Also, the OCC may be waiting for the nominee of Head of OCC Joseph Otting to be confirmed by the US Senate before introducing the FinTech Charter. Otting was approved by the Senate Banking Committee in early September.
Will They or Won’t They: The OCC’s Fintech Charter (Payments Journal), Rated: A
“The Fintech Charter Decision is an unlawful assertion of power that usurps New York consumer protection laws and would preempt plaintiff’s ability to regulate any number of the over 600 non- depository institutions she currently regulates,” wrote Matthew Levine, the executive deputy superintendent for enforcement at the department.”
“Acting U.S. Attorney Joon Kim, representing the defendants, argued that DFS lacks standing in the complaint because the OCC’s regulations addressing the special-purpose national bank charter have resulted in no injury-in-fact, because the office has not reached a final decision on whether it will offer the specific type of national bank charter that does not take deposits and conducts activities other than fiduciary activities. The U.S. Attorney’s Office also argues that the complaint should be dismissed for failure to state a claim.”
Scott Robinson of Plug and Play Fintech (Lend Academy), Rated: A
One of the leading accelerator programs today is Plug and Play, they claim to be the world’s largest startup accelerator. Lending Club and many other big names have gone through their program. In 2014 they started a dedicated fintech accelerator program, founded by Scott Robinson, who is our latest guest on the Lend Academy Podcast.
The Massive Hedge Fund Betting on AI (Bloomberg), Rated: A
Man Group, which has about $96 billion under management, typically takes its most promising ideas from testing to trading real money within weeks.
What spooked him was an experiment at his firm, Man Group Plc.Engineers at the company’s technology-centric AHL unit had been dabbling with artificial intelligence—a buzzy, albeit not widely used, technology at the time. The system they built evolved autonomously, finding moneymaking strategies humans had missed. The results were startlingly good, and now Ellis and fellow executives needed to figure out their next move.
The program stayed in quarantine until 2014, when a senior portfolio manager with a Ph.D. in mathematical logic named Nick Granger decided it was time to take it out of testing. He gave the AI system a small amount of money from a portfolio he was managing—then more, then more again. At each step, the program was profitable.
Matic Insurance Services and LendingQB Team Up to Eliminate Stress, Mortgage Delays Related to Homeowner’s Insurance (PR Newswire), Rated: B
Matic Insurance Services (Matic), a digital insurance agency that enables borrowers to purchase homeowner’s insurance during the home-buying transaction, today announced a new partnership with LendingQB, a provider of “lean lending” loan origination technology. Matic announced the news as part of a live demonstration at San Francisco’s Digital Mortgage conference.
Matic’s integration with LendingQB’s flagship loan origination software (LOS) makes it easy for borrowers to upload or secure a homeowner’s insurance policy during the mortgage application process. The result is a less stressful experience for borrowers and the elimination of costly insurance-related delays for LendingQB’s lender clients.
Is Yahoo a fintech company now? (Quartz), Rated: B
Fintech generally refers to companies like SoFi, TransferWise, and Revolut, whose ambition is to use technology to challenge traditional banks. What Yahoo Finance is doing is a little different—its app will add online brokers like Fidelity and E-Trade to its platform, but it won’t make any money from the brokerage charges. Instead, Yahoo Finance (now part of Oath, a Verizon-owned company), which has about 41 million mobile users, is trying to boost usage of its app.
The platform is targeted at devoted investors and provides more financial data for free than you can get outside of a Bloomberg terminal, according to Michael La Guardia, Yahoo Finance’s head of product.
Alipay almost accidentally started the world’s biggest money market fund (paywall) when it gave users a way to park their money from mobile payments. Amazon, meanwhile, offers credit to its merchants and has made more than $3 billion of loans, according to the World Economic Forum (WEF). Facebook has ambitions for its app to do just about everything, including financial activities. Tencent’s WeChat in many ways already does.
Zopa searches for new borrowers through Saffron Building Society loan partnership (City A.M.), Rated: AAA
Zopa is partnering with a building society to offer its loans as it seeks to add more borrowers to the platform.
The online peer-to-peer lender will provide loans at 11 bricks-and-mortar branches of Saffron Building Society across Hertfordshire, Essex and Suffolk, as well as online.
Zopa Announces Credit Risk Model Update (Crowdfund Insider), Rated: AAA
On Friday, online lending platform Zopa announced the latest update of its credit risk model. This news comes just a few weeks after the lender announced updated on improving loan sale time progress, rebate period, and ISA transfer-in. Chief Product Officer at Zopa, Andrew Lawson, revealed he and his team are continuing to monitor leading macroeconomic indicators carefully alongside how Zopa’s loans are performing compared to expectation:
Marketplace lenders struggle to find borrowers (Financial Times), Rated: AAA
Zopa, the world’s first peer-to-peer lending company, hoped the partnership whereby drivers for the ride-hailing app were directed to its website for loans would mark its entry into a multibillion-pound market for secured loans in the UK.
But barely six months after the deal was struck it collapsed, with the partnership failing to attract as many drivers as expected.
Zopa’s experiment with Uber underlines the enormous difficulty faced by marketplace lenders attempting to find new borrowers. These borrowers are crucial for the platforms to grow at a time when there is strong interest from institutional investors to provide crowdfunded loans.
According to Mr Zhang, institutional investors such as hedge funds, asset managers, pension funds and family offices now account for between 30 and 40 per cent of peer-to-peer consumer and business lending, compared with less than 5 per cent before 2014. BlackRock, the world’s largest asset manager, made its first significant retail investment in peer-to-peer loans last year when it bought a stake in Funding Circle’s investment trust.
So far, however, they have struggled to attract borrowers to match this demand. Competition is increasing from traditional banks — Goldman Sachs has its own online lending platform — especially for prime and super-prime debt that is less likely to default.
Assetz Capital Lowers Commercial Mortgage Interest Rate From 7.9% to 6.9% (Crowdfund Insider), Rated: AAA
Assetz Capital, one of the UK’s fastest growing peer-to-peer finance platforms and the largest property backed peer-to-peer lender, announced on Friday it has lowered its entry interest rate for commercial mortgages from 7.9% to 6.9% in an unprecedented move to give access to even lower rates for lower-risk borrowers looking for commercial mortgages. This is one of the lowest rates available from any alternative finance providers.
Three million small businesses still don’t accept cards, despite move away from cash (The Telegraph), Rated: AAA
Around three million of Britain’s small businesses do not accept card payments, despite the UK rapidly becoming a nation of card-only shoppers.
One in six British shoppers now uses cards only to pay. A further 38pc would typically try to pay with a card first before they have to pay with cash, according to a study by Square, the payment company belonging to Twitter founder Jack Dorsey.
Small companies could be missing out on millions of pounds’ worth of business by not offering card payment facilities, Square warned.
Card payments overtook cash payments as the main method of purchases in the UK for the first time in July this year, according to the British Retail Consortium. The average Brit has just £32.54 in cash in their purse or wallet right now – not enough to cover more than one of the average transaction size of £18.42.
Wonga on course for profit this year after major changes (Express), Rated: A
The company, which has been overhauled under new management after being accused of targeting the vulnerable and being forced to compensate nearly 200,000 borrowers who overpaid owing to “system errors”, cut its annual pre-tax loss from £80.2million to £64.9million.
Revenue grew by 18 per cent to £76.7million as more products boosted customer numbers by 6 per cent.
Wonga confirms £64.9m loss in year it ended Newcastle United sponsorship (ChronicleLive), Rated: A
Britain’s biggest payday lender Wonga has revealed it remained deep in the red last year with losses of £64.9m, but confirmed plans to return to profit in 2017.
Nutmeg loss widens to £9.3m as it develops advice offer (Citywire), Rated: A
Nutmeg’s 2016 losses have widened £9.3 million as it continued to invest heavily, as it presses ahead with developing the ‘most approporate’ advice proposition for its customers.
The loss, revealed in its accounts published on Companies House, follows the £8.9 million loss it posted in 2015. Its operating expenses rose from £10.8 million to £11.9 million over the year.
At the end of the year Nutmeg managed around £600 million in assets under management on behalf of 25,000 clients.
Turnover rose by almost 50% from £1.72 million to £2.56 million.
Wealthtech is coming to the High Street (Banking Technology), Rated: A
One area of fintech that is of interest is wealthtech. This sub-sector is likely to become more visible over the next few months. Wealthtech has become defined as utilising technology to enhance wealth management and the retail investment process.
These developments will soon be more visible at branch level.
An offering of automated financial advice from the retail banks could go a long way towards alleviating this. Santander and HSBC have already launched product offerings in this space, RBS is trialling a service through its Coutts’ sub-brand and Lloyds (with a quarter of the UK market) are sitting on the sidelines awaiting the results of the regulator’s Financial Advice Market Review (FAMR).
Fintech start-up Curve adds cloud-based accounting software to its app to simplify expenses (CNBC), Rated: A
Fintech start-up Curve will now let users claim business expenses across multiple bank cards through its app.
The London-based firm’s app allows its users to link all of their bank cards to one contactless MasterCard. Curve said it hopes to automate the tedious process and remove any friction associated with business expenses. It is predominantly targeted at small business owners and the self-employed.
Curve said Monday it would add online accounting software developer Xero to the app, meaning users will now be able to claim business spending across all their accounts.
The hottest startups in London (Wired), Rated: A
As London’s startup community awaits the result of Brexit negotiations – and its impact on single-market access – one might think tech would have ground to a halt. But growth continues: the last 18 months have seen billion-dollar valuations for TransferWise, Funding Circle and Improbable, and a near-unicorn valuation for Deliveroo.
Monzo wants to make banking smarter. Founded in 2015 by Tom Blomfield, Jonas Huckestein, Jason Bates, Paul Rippon and Gary Dolman, it offers pre-paid cards connected to an app that tracks spending and lets its customers analyse their financial activity.
One of a growing number of UK property – or proptech – startups, Nested guarantees that it will sell your house within 90 days, or buy it themselves.
Habito scours more than 15,000 mortgage products to suggest the best option, and takes a commission from the eventual lender. In January 2017, the startup raised £5.5 million in a Series A round led by Ribbit Capital.
Founded in 2014, Ravelin analyses online behaviour in real time to reduce payment-related fraud. According to its clients – including Deliveroo, Karhoo, and Easy Taxi, its technology reduces fraud incidence by more than 50 per cent. The company has raised £4.3 million to date from backers including Passion Capital and Errol Damelin.
P2P needs the FSCS stamp of approval (Citywire), Rated: B
Some commentators estimated nearly half a million new investors would try their hand at P2P lending when the Innovative Finance ISA brought eligible platforms into the ISA fold.
This is unsurprising given that, according to government statistics, British consumers have around £500 billion either saved or invested in ISAs.
However, the stampede has not arrived yet.
Plenty of people think the FSCS offers an insurance policy against poor investment performance. It does not. If a share portfolio tanks, for example, the scheme will not be there to save you. That is the risk you run by choosing to invest in the equity markets.
The FSCS is, however, on hand to compensate investors if a provider has been shown to mismanage its product, and has subsequently gone bust. Only then does it offer up to £50,000 (2017/18 tax year), not the larger amount doled out to savers.
Hull has fast become a profitable city for buy-to-let landlords (Mortgage Introducer), Rated: B
LendInvest’s buy-to-let index ranked the city as the fifth best buy-to-let postcode for landlords in the third quarter of 2017, up from 33rd in the second quarter.
“Cities such as Hull and Nottingham making significant gains in the Index (up #33 to #5 and #35 to #12 respectively) is encouraging, and points to competitive market conditions in those areas and higher than average levels of activity.
The top 10 areas for investors in order of ranking are Luton (#1), Colchester (#2), Manchester (#3), Rochester (#4), Hull (#5), Stevenage (#6), Romford (#7), Southend-on-Sea (#8), Ipswich (#9) and Ilford (#10).
Wealth-Management Industry at Turning Point (Caixin), Rated: AAA
China’s wealth-management industry is undergoing profound changes, shifting away from short-term, fixed-income products to longer-term, equity-based investment, said Tang Ning, chief executive of Beijing-based fintech conglomerate CreditEase.
Last year, the Forbes listed a record 400 billionaires from the Chinese mainland, compared to 335 a year ago. The listed members held a total of $947 billion assets, a 14% rise from the previous year. Meanwhile, China’s per-capita GDP exceeded $8,123 in 2016, up from $8,069 a year earlier, according to the World Bank.
Unlike investors in the U.S. and other developed market, Chinese investors have long favored most the fix-income products like bonds and bank bills, betting on governments’ implicit payment guarantee. But as China’s economy slows and its financial market liberalizes, the government has become increasingly hesitant to offer such sweeping guarantees.
A number of wealth management companies including CreditEase have launched private equity FOF over the past few years. In early September, the China Securities Regulatory Commission (CSRC) approved the first batch of six firms including China Asset Management, China Southern Fund Management and Manulife Teda Fund Management to set up publicly offered FOF products.
Tang estimated that there are 200 million active investors in China who do not have access to human advisers and asset managers because of their hefty fees.
Alibaba’s Jack Ma places bet on China’s online insurance market (Asian Review), Rated: A
When the heads of three of China’s most prominent companies join hands to launch a start-up, investors notice.
Jack Ma Yun of Alibaba Group Holding, Tencent Holdings‘ Pony Ma Huateng, and Peter Ma Mingzhe of Ping An Insurance Group — collectively known as the “three Ma’s” — did just that. Looking to turn Ping An into a full-blown financial technology company within ten years, Peter also enabled the growth of Lufax, which started as a peer-to-peer lending platform in 2011 and became one of the most valuable e-finance company worldwide as of September.
Four years ago they founded China’s first online-only insurer. It was a company with an untested business model and making no money, but it sparked an investor frenzy.
HSBC: Mobile banking in China begins with your face (Enterprise Innovation), Rated: A
Mobile banking continues to soar in China. According to China Internet Watch, total transactions of China mobile banking clients totaled 55.63 trillion yuan (US$44 trillion), up 5.1% quarter on quarter. China Construction Bank (26.1%) and Industrial and Commercial Bank of China (21%) have a combined market share of close to half of mobile banking in Q2 2017.
French Real Estate Crowdfunding Grows Steadily and Delivers (Crowdfund Insider), Rated: AAA
The French real estate crowdfunding market grew by 50% in 2016 and keeps growing at the same linear growth pace in 2017. While new platforms continue to join, first entrants strongly dominate the nascent market. With €160 million worth of real estate projects funded, the French platforms have a positive record of delivering expected returns.
It has since grown at a fast, but more linear pace of +53% to reach €68 million in 2016, and is expected to grow by 50% again in 2017.
French real estate crowdfunding attracts new platforms. In 2016, their number grew from 26 to 42, with 19 new entrants and 3 withdrawals. Indeed, more than 90% of real estate crowdfunds are raised by the top 10 platforms and 75% by the top 5. Between them, the two leaders, WiSeed and Anaxago, account for more than 50% of the market.
|Top 10 French real estate crowdfunding platforms|
Regulated Real estate since
|Source : , September 2017|
WINNERS ANNOUNCED FOR INVESTOR ALLSTARS EVENT (BusinessCloud), Rated: A
The winners of the 15th annual Investor Allstars awards were announced this week, with Funding Circle co-founder and CEO Samir Desai being crowned Entrepreneur of the Year and CoderDojo winning the Tech4Good award.
The Entrepreneur of the Year award went to Samir Desai of Funding Circle and online property lending and investment platform LendInvest was announced as Europe’s Allstar Company.
The full list of award winners is:
- Exit of the Year: Skyscanner (Scottish Equity Partners)
- Growth and Buyout Fund of the Year: Livingbridge
- Entrepreneur of the Year: Samir Desai (Funding Circle)
- VC Fund of the Year: Idinvest Partners
- Europe’s Allstar Company: LendInvest
- Corporate Development Team of the Year: Sage Group
- Investor of the Year: Benoist Grossmann (Idinvest Partners)
- VCT of the Year: Octopus Ventures Specialist
- Debt Provider of the Year: Kreos Capital
- Seed Fund of the Year: LocalGlobe
- Service Provider of the Year: Orrick
- Tech4Good Award: CoderDojo Foundation (part of Raspberry Pi Foundation)
- Digital Innovation in Art: Articheck
That viral ‘mermaid dog’ video was too good to be true (The Daily Dot), Rated: B
It seemed too good to be real. A hairy creature, which some people guessed was an afghan hound, effortlessly floats underwater and moves its arms with the grace of a ballet dancer. It’s pure euphoria, captured in a video that lasts only a few seconds.
When Klarna, a tech bank with a focus on online shopping, posted the video to its Instagram account on Sept. 17 with the caption, “When you’re swimming into the weekend like… #noworries,” many people assumed it was a video of a real animal swimming in a pool. Or maybe they just wanted to believe.
It’s an animation that is part of an ad campaign for Klarna, which is trying sell people on the company’s “smooth” payment system.
Regtech Startups On Pace For Record Deals, Against Backdrop Of Shifting Regulatory Landscape (CCB Insights), Rated: AAA
Deals to regtech startups have increased steadily (if at times slowly) over the past few years, from 83 deals in 2013 to 147 last year. At the current run rate, deals in 2017 are on track to hit a new high, while funding is on pace to grow 14% to nearly match record funding levels set in 2015.
In 2017 YTD, regtech startups have seen 103 deals worth $894M in disclosed equity funding. At the current run rate, deals in 2017 are on track to reach a new high of 148 (up slightly from 147 in 2016). Funding is also on pace to grow, potentially bringing total disclosed equity investment over the last 5 years to more than $5B.
Last quarter saw 34 deals, dipping 13% from Q1’17 to hit a 6-quarter low. Though deals were down, funding was up 14% from the previous quarter — and grew 64% year-over-year — to reach $326M.
H1’17 has seen 73 investments, up 3 deals from H1’16, while funding is up approximately 54% over the same period.
Yield-hungry investors switch their cash to peer-to-peer lenders (The Sydney Morning Herald), Rated: AAA
Peer-to-peer lender, RateSetter, says 56 per cent of money invested with it is from savers withdrawing their money from their bank savings accounts.
Yield-hungry investors are understandably frustrated with earning next-to-nothing on their cash held at their banks, with interest rates at historic lows and likely to stay that way for the foreseeable future.
With the the advent of peer-to-peer (P2P) lenders, online platforms that match investors and borrowers, investors can get up to three times the interest paid by term deposits.
NZ named Asia Pacific’s fintech champ (NZ Adviser), Rated: A
New Zealand has the highest per capita fintech lending volumes of any country in the Asia Pacific, and has embraced fintech faster than any other neighbouring Asia Pacific countries.
According to the research, peer-to-peer consumer lending forms the bulk of market activity in here. The second largest was donation-based crowdfunding, for which US$16.8 million was raised in 2016 – an increase of around 100% over the previous year. Equity-based crowdfunding was the third largest model in New Zealand with US$13.85 million across 2016 – up from US$11.86 million in 2015.
Appetise’s ASX listing; Study Loans & RateSetter close funding (Deal Street Asia), Rated: A
UK startup Appetise looks to list on the ASX, Study Loans has secured seed funding and P2P lender RateSetter Australia has closed additional funding from a private equity (PE) fund.
Melbourne-based fintech Study Loans, which offers a credit engine targeted at the student loans sector, has raised A$2 million ($1.56 million) in seed funding from investors that include the Simonds family and RMY Corp, as well as A$5 million ($3.9 million) in debt equity.
RateSetter Australia, a peer-to-peer (P2P) lending platform, has secured A$8.5 million ($6.65 million) from private equity fund Five V Capital. The deal values the company in excess of A$100 million. Existing equity investors in RateSetter are RateSetter UK, Carsales and Strattons.
Chqbook – Gurgaon Based Fintech Startup Raised Funds (Bizztor), Rated: B
Chqbook – a fintech startup that allows customers to explore, compare, book and get personal finance products like home loans, personal loans and credit cards, raises undisclosed funds from Youwecan backed Startup Buddy, Apurva Chamaria, global head of corporate marketing, HCL, Sachin Arora, ex-CTO Myntra, Bharat Gupta, Founder of Net Asset Consulting LLP, Amit Manocha, Private equity professional based out of Singapore, and others.
Indonesian P2P lending platforms recorded 496.5 per cent year-to-date growth of funding allocation (e27), Rated: AAA
Indonesian Financial Services Authority (OJK) revealed that peer-to-peer (P2P) lending platforms in Indonesia in total has channeled up to IDR1.4 trillion (US$106 million) in funding for small and medium enterprises (SMEs) in the country. The number is a 496.5 per cent year-to-date (YTD) growth from December 2016’s number of IDR242.48 billion (US$17.9 million).
Funding Societies Dubbed First Southeast Asian Company to Win Global SME Excellence Award from United Nations’ ITU Telecom (Crowdfund Insider), Rated: A
Singapore’s and Southeast Asia’s SME crowdfunding platform Funding Societies announced on Friday it was named the first southeast Asia company to win the Global SME Excellence Award from United Nations’ ITU Telecom, which was held this year in Busan, South Korea.
PLDT unit disrupts businesses (Manila Standard), Rated: A
Vea, 67, now heads Voyager Innovations Inc., the digital arm of PLDT and the one behind digital platforms such as Smart Padala (mobile remittances), PayMaya Philippines Inc. (formerly Smart e-Money), Freenet (free sponsored data platform), VYGR (digital performance-based marketing), Tackthis! (electronic commerce platform), Hatch, (marketing technology and innovations platform), Lendr (digital consumer loan platform), FINTQ (financial technology unit) and Voyager DX (digital transformation). Voyager, which has 600 employees, introduces solutions that allow customers to participate in the digital economy such as by using digital money.
Marzan presented data showing that 60 million or 58 percent of the Philippines’ 103 million people are Internet users. Active social medial users are 60 million as well.
“In the Asia-Pacific region with 4.2 billion population, 46 percent are already Internet users and active social media users are 1.5 billion or 36 percent. Mobile connection is 3.99 billion and active mobile social users are 1.44 billion. This is exponentially growing and we have to prepare for it,” Marzan said.
How FinTech uses technology to help the ‘unserved’ (Manila Bulletin), Rated: B
TrueMoney, a new financial technology player, seeks to have one TrueMoney center in each of the country’s more than 42,000 barangays to serve those who need a remittance network but have no bank accounts.
To meet that goal, TrueMoney teams up with cooperatives and groups in different regions. Its latest partnership is with Cebu People’s Multi-Purpose Cooperative (CPMPC), a community-based savings and credit cooperative with over 55,000 members to-date.
At this point, TrueMoney has over 5,000 centers in the Philippines.
Fintech Peer to Peer Lending Platform, Beehive, Raises $ 5m Investment (PR Newswire), Rated: AAA
Beehive, MENA’s leading peer to peer lending (P2P) platform, has secured $5m investment as part of a Series A round led by Riyad TAQNIA Fund and supported by the Mohammed Bin Rashid Fund (MBRF), the financial arm of Dubai SME, as well as several other regional investors. This latest fundraise brings the total raised by Beehive to $10.5m since its launch.
To date, Beehive has successfully facilitated finance over $35 million (AED 130 million) to more than 200 business funding requests and registered more than 5000 international investors.
African Billionaire Patrice Motsepe Invests In Digital Bank (Forbes), Rated: AAA
African Rainbow Capital (ARC), an investment firm founded by Patrice Motsepe, recently acquired a 10% stake in TymeDigital, which is a subsidiary of the Commonwealth Bank of Australia, one of the world’s largest banks.