FinTech Daily News – Edition 160, 01.03.2018
March 1, 2018
FinTech Daily News – Edition 162, 05.03.2018
March 5, 2018

FinTech Daily News – Edition 161, 02.03.2018

FinTech Daily News

by Florin Oprea

Edition 161, 02.03.2018

Deals & Investments

Orix Invests $60m In Chinese Fintech Startup

Nikkei Asian Review (subscription)

Japanese financial services group Orix bought a 6.4 billion yen ($59.8 million) stake in Wecash, a Chinese startup that uses big data and artificial intelligence to rate consumer credit.

FAO: Total funds raised by Wecash reach almost $107m in four rounds since 2014.

Payments

Revolut Seeks Revolution In APAC Fintech

Tech Wire Asia

Revolut began its life as a no-fee foreign exchange bank card with a linked application on mobile, but has rapidly expanded to offer worldwide medical insurance, ATM cash withdrawals, unlimited transnational currency exchange and cryptic currency trading – the latter currently limited to LiteCoin, Bitcoin, and Ether.

FAO: Will the London-based firm stir up a revolution in US, Singapore and Australia, the markets said to be approached? We shall see. Pretty challenging but that’s the only rational direction, since other regions of Asia are already conquered or under siege of Chinese (fin)tech giants.

A Helicopter Bank Robbery Helps Explain Why Cash Is Dying In Sweden

John Detrixhe – Quartz

Swedes—on pace to become effectively “cashless” in five years—are giving up notes and coins faster than just about anyone else. The phenomena has roots in the country’s laws, technology, and culture. And a string of robberies also prompted questions about whether cash was worth the risk.

FAO: Check our edition yesterday – you can read even more about the phenomenon that is currently developing in the Nordics. Will Sweden become the first “cashless society” in the world? The entire region was, throughout its history, a source of innovation, and this only strengthens its position.

Lending

Keeping The Little Guys In The Loop: How Funding Circle Hopes To Fix The FInancial System

Katherine Denham – City A.M.

DNT: Have you ever felt uncomfortable when you entered in a financial institution, let’s say a bank? I bet you did. So, how can this be changed? Katherine Denham tells us how Funding Circle tries to build a new image.

Regtech

Hong Kong Can Be The Next RegTech Hub

Winnie Tang – Ejinsight

Based on average wages, RegTech could reduce labor costs by as much as 50%, representing US$1.2 billion annually for a single large bank. AI automation of KYC checks alone could reduce staff time required by 90%, generating time savings of 5.4 million hours annually by 2022 for the banking industry in the US.

FAO: Ahem, are you a bank employee and still making 5 years plans in the same organization? I hope you are aware you are living in 2018 and the majority of global banks are looking into fintech to cut their costs. Guess what kind of costs are they considering?

Cap Markets & Other

Stock Exchanges Cast Wary Eye At Threat From Big Tech

Philip Stafford – Financial Times

Do Not Ignore Fintech, Market Infrastructure Firms Told

Elizabeth Pfeuti – Financial News (subscription)

Large technology companies are expected to force change at exchanges and clearing houses, but a report warns them not to ignore the fintech startups targeting the sector.

Fintech Decoded, a report by consultant McKinsey & Co and trade body the World Federation of Exchanges, found that 41% of those working in market infrastructure thought giant tech firms such as Apple, Amazon and Google would be responsible for updating their sector.

FAO: WFE announcement here via MondoVisione. Of course, it’s not just banks that need to live in their times, but market structure firms too. Oh, if you want a glimpse of how the future can possibly look in a decentralized world of exchanges, better study the speech of Sean Neville, president of Circle. The company recently bought cryptocurrency exchange Poloniex (reported here in Blockchain Daily News) and has big plans!

FinTech People

In A Time Of Need, A Woman Rises To Disrupt Fintech In Puerto Rico

Alana Matos  – Forbes

DNT: Fintech can be a woman’s world too. Forbes gives us the portrait and the vision of Mariel Arraiza, Managing Director of the company Eloan, a financial-services startup, and Banco Popular’s fintech arm.

Accelerators & Hubs

Federal Budget Keeps Canada’s Fintech Sector In The ‘Valley Of Death’

Michael King  – The Globe And Mail

In the world of startups, the period when entrepreneurs are spending cash to build out a new product or service but have no revenues is known as “the valley of death.” Currently, Canada’s fintech industry is in the valley of death and is looking for mentoring, strategic advice and customers. The sector has been growing rapidly, investing in innovative products, but has yet to get traction.

Analysis

Square’s Cash App Killed It in 2017

Adam Levy – Motley Fool

Square released some interesting details about Cash App with its Q4 earnings results. The headline is that it now has 7 million monthly active users. For reference, PayPal’s Venmo — Cash App’s chief competitor — had about 10 million users last August, according to an estimate from Verto Analytics. Beyond that, CFO Sarah Friar told analysts that one-third of transactions on the app are already monetized.

PayPal’s Dan Schulman Has A Plan for Monetizing Venmo

Susie Gharib  – Fortune

PayPal CEO Dan Schulman says the decision to split from eBay was “kind of a no brainer for us.” He tells that the payment processor would be “financially better off” as an independent company.

Other news

Nasdaq Accuses IEX Of Copying Expensive Trading Technology

Liz Moyer – CNBC

Nasdaq is suing its relatively new exchange rival IEX Group, claiming it infringed on several patents for electronic trading technology that took millions of dollars to develop.

FAO: Not our first area of focus, but it’s trading tech, and this is big nevertheless!

 

FAO: Florin Adrian Oprea, Editor-in-chief FinTech Daily News

DNT: Decebal Nicolaie Todarita, Editor FinTech Daily News