FinTech
Digital payments alone could become a $100 trillion industry, according to PwC. And that’s just one component of the global Fintech industry. This channel tackles the lenders and buyers, the obstacles and achievements, and the trends and trend makers leading the ongoing technological evolution in global finance.
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Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers stand to receive up to 1 BTC as a reward when signing up and can earn an additional 1 BTC for each successful referral. The platform claims to be the sole custodial crypto platform in the EU offering customers a percentage of their trading volume back every month, paid in Bitcoin.
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FinTech: Digital Lending Platform LendUp Notches Up $2B in Loans
Ethical online lender LendUp announced Thursday its achievement of having disbursed aggregate loans worth $2 billion on its platform.
Founded in 2012, the company’s main goal is to help anyone improve their financial condition. Along the way, it has handed out 6.5 million loans at an average ticket size of $300.
FinTech: Founding Member Standard Chartered Boosts Investment in Contour, the Blockchain Trade Platform
Standard Chartered invests an undisclosed amount in Contour.
Contour is a global trade finance platform that runs on R3’s Corda blockchain. It specializes in digitally creating, exchanging, approving, and issuing Letters of Credit (LCs). Last week, Contour announced the success of a series of live pilot tests in 14 countries and a global trial with over 50 banks and corporates.
Venture Capital: CurrencyCloud Gets $80 Million From Top Notch Investors Including Visa
CurrencyCloud Gets $80 Million From Top Notch Investors Including Visa. London-based startup CurrencyCloud builds remittance APIs for money transfer businesses.
It’s software you are never likely to see. It works in the background when you make a money transfer across borders. CurrencyCloud builds these APIs (as the software is called), and more than 350 companies were using it as at end-2019.
FinTech ETF Hits 52-Week High
The Global X FinTech Thematic ETF (FINX) has rallied more than 32% over the last 12 months. Shares have climbed from a 52-week low of $24.49 per share to $32.40 this week. The fund aims to replicate the performance of the Indxx Global FinTech Thematic Index.
FinTech: Fintechs That Could be in Play After the Visa-Plaid Deal
There are too many fintechs out there, but many can’t survive on their own.
A Barron’s analysis of likely deal-making in the fintech sector after the landmark Visa-Plaid deal shows a mixed picture.
FinTech: Fundbox Hires Former Goldman Sachs Investment Banker as CFO
Fundbox, the fintech startup that finances SMEs, is planning a potential IPO. Fundbox has appointed Marten Abrahamsen as its CFO effective this January. Abrahamsen was previously a partner at The Chernin Group LLC, a Los-Angeles-based investment firm. Before that, he managed Coatue Management LLC’s investments in Grab Holdings Inc. and Jet.com Inc., an online retailer. He also worked as an investment banker at Goldman Sachs
Venture Capital: Northwestern Mutual’s VC Arm Makes Maiden Investment In a Female Founded Startup
Northwestern’s VC arm joined a $3.5 million funding round for U-Nest Inc., a California-based financial services mobile app.
U-Nest was founded by Ksenia Yudina, CFA, MBA. The U-Nest app facilitates saving for college and other educational expenses. It helps parents and families to find the right 529 college savings plan.
FinTech: Visa Snaps Up Fintech Network Plaid for $5.3 Billion
Visa Snaps Up Fintech Network Plaid for $5.3 Billion. Plaid allows people to connect their finances to apps.
Fintech applications need to connect up with a user’s financial accounts to deliver true benefits of immediate updation and convenience.
Fintech: Goldman Sachs Launches Its Marcus App
Online bank Marcus from Goldman Sachs Group has finally come to mobile devices. The Wall Street financial giant launched its long-awaited app for customers last week. The lack of an app has been an ongoing source of frustration for customers who could only see balance transfers, account information and make payments on loans with their phones and other devices.
Fintech: The Reserve Bank of Australia Sees Little Need for Libra Project
The Reserve Bank of Australia is the latest central bank to suggest that the Libra cryptocurrency project will not work. It also questioned the viability of central bank digital currencies (CBDCs), which have previously received support from central bankers like Mark Carney and Christine Lagarde.
Fintech: California Pushes New Fintech Regulations
The State of California could soon overhaul the regulatory oversight of financial technology companies. Governor Gavin Newsom released details of his 2020-2021 budget. Inside, the proposal includes a provision to make the California Department of Business Oversight as the regulator of fintech companies. The agency would also regulate debt collectors, credit reporting agencies, and other firms tied to consumer finance.
Amazon Tells Users to Uninstall Fintech Browser Honey Over Security Issues
The browser extension Honey just lost a huge source of opportunity. Just weeks after PayPal purchased the browser extension for $4 billion, Amazon has told customers to uninstall it. The e-commerce raised questions about consumer privacy and said that the extension represented a “security issue.”
Fintech: Bond Bot Creator Katana Labs, Incubated at ING, is Spun Off
ING announced Tuesday the spin-off of Katana Labs – an in-house start-up nurtured at its ING Lab incubator.
ING Ventures, the venture capital arm of ING, will invest £ 1.5 million along with other investors in a £ 3 million funding round that will take the startup forward in its life as an independent fintech. ING Ventures is a € 300 million venture fund that makes minority investments in early-stage companies having a strategic relevance to ING.
FinTech: Ripple Targets SWIFT in Brazil
Ripple targets SWIFT in Brazil and wants to make inroads into Brazil’s remittances market.
Vanguard Joins the Crowd and Eliminates Trading Commissions
Vanguard ETF commissions and stock commissions don’t exist anymore. The firm has expanded its commission-free online trading for stocks and options to all Vanguard Brokerage clients.
Fintech: Deutsche Bank Teams Up in Spain to Launch “Motion Code” Card
The Motion Code Card has hit Spain. Deutsche Bank launched the innovative credit card this week in a partnership with industry leaders. The card contains an advanced CVC code that alters every four hours. The German Bank has teamed up with Idemia and Mastercard to launch the “Motion Code” card. It will operate under the brand name “Tarjeta Calma.”
FinTech: Grab and Singtel in 60:40 JV to Launch a Digital Bank in Singapore
A ride-hailing service and leading telecom group will team up to launch a digital bank.
Grab and Singtel have jointly bid for a digital full bank license to be issued by the Monetary Authority of Singapore (MAS). The consortium (Grab 60%, Singtel 40%) will bring banking services to Singapore communities that are under- or unbanked. The proposed bank will be able to serve retail customers, lend money, and take deposits, along with other online banking functions.
FinTech: TransferWise Now Transfers $5.25 Billion Per Month
TransferWise Now Transfers $5.25 Billion Per Month. The upstart fintech claims it does so saving people and businesses $4.5 million per day.
What’s more, the TransferWise customer community is now 6 million strong. The fund transfer specialist aims to facilitate money transfers to foreign destinations at rates cheaper than banks.
The next agenda for TransferWise is to effect remittances instantly.
FinTech: ZestMoney, the Loan Startup for India’s Credit-challenged, Raises $20 Million
ZestMoney, the Loan Startup for India’s Credit-challenged, Raises $20 Million from Goldman Sachs and others
FinTech: As Investors Revolt, Fintech Lenders Get Picky on Borrower Quality
Easy lending to borrowers with sub-prime credit is winding down.
Peer-to-peer lenders, or fintech lender platforms, are back-pedaling on their early promise to provide loans to people with sub-par credit profiles, observes Bloomberg. Burned by loan losses, individual investors have revolted. As a result, the original marketplace-like model of P2P lending has long gone.
Ant Financial Looks to Inject $1 Billion into Asian Tech Startups
Ant Financial has started raising $1 billion for a fund focused on Southeast Asia and India. The fintech arm of Alibaba is looking to expand its presence across the growing region.
Robinhood Drops Plans to Become A Bank; Withdraws Application
Robinhood, the pioneering zero commission stockbroker, has put banking ambitions on the backburner.
Robinhood withdrew its bank charter application to launch a federally insured bank. It had filed an application with the Office of the Comptroller of the Currency on April 19, 2019.
London Stock Exchange and PrimaryBid To Democratize Public Equity Offerings
The London Stock Exchange (LSE) has tied-up with fintech PrimaryBid to give retail investors access to share offerings. PrimaryBid’s internet-based investment platform will allow retail investors to digitally access share offerings on the same terms (read: discounts) as institutions.
Now, Advisors and Qualified Clients Get Access to PIMCO Alternative Strategies
iCapital Network, which connects advisors and their high net worth investors to leading alternative investment managers, ties up with PIMCO.
iCapital Network said it will develop a customized technology platform for PIMCO, one of the world’s largest fixed-income asset managers. Financial advisors and qualified investors can use this platform to access PIMCO’s alternative investment strategies.