by Florin Oprea
Kif Leswing – Business Insider
WeWork announced that it had bought Meetup, a service that makes it easy for groups to start regular meetings in real life. The price for Meetup was about $200 million, Axios reported, although terms of the deal were not announced. Meetup had raised $18 million in venture funding from blue-chip firms including DFJ, Union Square Ventures, and Allen & Co.
FAO: Of course, they have the cash for a shopping spree…Recently SoftBank and Fund announced it is backing WeWork with a $4.4B investment.
Australian consumer lending fintech, MoneyMe, has finalised an AU$120 million asset-backed wholesale securitization facility led by $100 million from Fortress Investment Group, and joined with $20 million of bonds issued by corporate advisory, Evans & Partners.
Saritha Rai – Bloomberg (subscription)
Paytm Payments Bank aims to create the world’s largest digital bank with 500 million accounts, envisioning an online financial services provider of everything from wealth management to credit cards and stock market trading.
FAO: High ambitions for Paytm’s CEO Vijay Shekhar Sharma. They are fueled by the “big money” he managed to raise for his company from global investors…Earlier this year, in May (reported here), One97 Communications, Paytm’s parent company, raised $1.4B from Japan’s SoftBank. One97 is also backed by Jack Ma’s Ant Financial (bought a 25% stake in 2015 for $575 million).
Paytm Payments Bank is owned by Sharma (51%) and One97 Communications (49%).
Sharma aims to get to the hundreds of millions of under-banked people in India. His means to do it: a payment gateway, a digital wallet (which already counts more than 150 million (!) clients, a chat service (announced earlier this month) and now, a digital bank…
Karl Flinders – ComputerWeekly
More than half of banks in Europe expect an increase in operational risk to their organisation over the next 12 months, according to a major report from the European Banking Association.
DNT: It’s quite a sensitive topic considering that The European Commission approved new rules to increase competition and toughen up security – details here, Regulation Section. Banks are complaining that an increased access to accounts will affect security and fintechs are accusing banks for unfair competition…
Huw Jones – Reuters
Jasper Jolly – City A.M.
While Brexit dominates the headlines for obvious reasons the Bank of England was also right to point out that it’s really fintech that should make bankers sweat.
FAO: BoE governor Mark Carney is advising banks to come down to earth and finds their analysis too optimistic. Apparently UK banks told BoE that cost-to-income ratios can be cut easily from above 70% to below 55% within the next seven years – I read “job cuts” here.
Due to its “model”, fintech is already a real threat for traditional banks, especially in the UK, with London being a global leader in fintech…Not sure if simply dismissing this “ALARM” is going to be a winning strategy for banks…I am sure UK bankers are aware of the risks as Jes Staley was on the topic recently.
Oh, speaking of fintech making bankers sweat, read the story below. I can’t find a UK bank listed as one of the most prepared banks for the AI disruption…actually the UK is ranked seventh of the nine countries…that says a lot…
Lynsey Barber – City A.M
US banks are the most prepared to handle the potential disruption of artificial intelligence to their business, new research reveals. The US ranked highest out of nine countries in established markets, followed by Singapore and then Spain. And when it comes to specific institutions, JP Morgan, Bank of America and BBVA were found to be making the most “attractive” AI plays.
FAO: Want to know more about how AI is changing fintech? Read the story we’ve picked in “Analysis” Section.
Sam Shead – Business Insider
The “Rewarding Talent” study found that employees own 20% of late-stage startups in the US, compared to just 10% in Europe. The study also found that two thirds of stock options are reserved for executive level staff in Europe, while the reverse is true in the US.
FAO: You know what they say – “sharing is caring”.
Via Finance Magnates – Kx Systems adds former UBS Head of Global Risk Solutions, Richard Kiel, to drive its FX Solutions, Platforms business
JD Alois – Crowdfund Insider
Lattice80 has partnered with IOTA Foundation to open up a new innovation lab in Singapore.
IOTA Foundation, based in Germany, holds a mission to support the development and standardization of distributed ledger technologies and affiliated ecosystems. The two companies signed a MoU recently to cement the commitment.
John Rampton – Huffington Post
AI has taken the tech world by storm, allowing companies to cut costs, automate a variety of their processes, as well as boost their bottom line. AI-powered chatbots, specifically, are being used by companies big and small as virtual assistants, customer care representatives, marketing executives, and salespeople.
FAO: Actually this article is also suitable for the “People” section…if you are bank employee you better watch out!
Edward Robinson – Bloomberg (subscription)
With Prime Minister Theresa May struggling to seal a deal on how much the U.K. will pay to settle its bill with the EU by a looming deadline, uncertainty on issues including immigration remains.
FAO: Implications of Brexit – an original glimpse into the life of London’s foreign fintech people.
Mark Mulligan – Australian Financial Review
The City of London’s role as a global financial centre was safe despite doomsday scenarios around the impact of the United Kingdom’s vote to leave the European Union, according to Secretary of State for International Trade Liam Fox.
FAO: Florin Adrian Oprea, Editor-in-chief FinTech Daily News
DNT: Decebal Nicolaie Todarita, Editor FinTech Daily News