FinTech Daily News – Edition 180, 29.03.2018
March 29, 2018
FinTech Daily News – Edition 182, 02.04.2018
April 2, 2018

FinTech Daily News – Edition 181, 30.03.2018

Deals & Investments

CME To Buy Britain’s NEX For $5.5 billion

Noor Zainab Hussain & Sinead Cruise – Reuters 

CME Lines Up £3.8bn Takeover Of Michael Spencer’s Nex

Philip Stafford – Financial Times (subscription) 

CME has agreed to pay £10 a share to buy Michael Spencer’s Nex Group, with the $56bn Chicago exchange ready to pay a premium for the UK fintech group to knock out potential counterbids from rivals.

FAO: CME doesn’t want to risk anything. In fact it’s ready to pay more to get this pearl. They moved quite fast this time.

Post-Trade Undergoes Generational Change

Markets Media

Mack Gill, COOr of Torstone Technology, which provides post-trade securities and derivatives processing, said financial firms are realising their legacy systems are not agile enough to support interoperability across new market infrastructures, including those that will use distributed ledger technology.

FAO: Aha! Remember my previous thoughts on the same deal and the same topic – check this March 22nd edition of FDN: FAO:  “Question: will CME’s try succeed? I think we will definitely see other exchanges jumping in the “fight” as Nex has everything a global player like CME (and its competitors) currently needs. Just another thought: last year Nex was considering building trading platforms for crypto assets, and revealed plans of incorporating blockchain in its systems. Last thought: guess which global exchange was among the first to launch bitcoin futures? You’ve guessed – CME. Read Blockchain Daily News, it might make your business days much easier.”

Ping An eyes $2bn Listing Of OneConnect Fintech Unit

Don Weinland – Financial Times (subscription) 

OneConnect, a subsidiary of China’s largest insurance company that sells technology platforms to smaller banks, is preparing an IPO in Hong Kong that could launch this year, say two people familiar with the matter. The timing of the deal for the Ping An company has not yet been determined, they said.

FAO: Sure it’s Hong Kong, not a mainland exchange? I repeat: are you sure? Why am I asking it’s because China has a plan to make their mainland markets more attractive for Chinese companies already listed elsewhere. But I am sure they have something for IPOs too…more here.

Fintech Investor Silver Lake Buys Stake In PFM Firm Credit Karma

IBS Intelligence

Credit Karma announced that Silver Lake will acquire a significant minority stake in the company worth approximately $500 million from existing equity holders through an organized secondary process. Founder and CEO Kenneth Lin will remain the largest shareholder, and together with co-founders Nichole Mustard and Ryan Graciano and the rest of the company’s existing management team will continue to drive its growth strategy and future expansion.

Future Stars?

Have an interesting project/company looking for more visibility? Why don’t you send us more details, and after our review your project might get listed it in this section! Contact us HERE!

Payments

Is Alibaba Losing To Tencent In China’s Trillion-Dollar Payment War?

Yue Wang – Forbes

Chinese web giants Alibaba and Tencent have been locked in a bruising race to dominate the country’s trillion-dollar mobile payment market — a contest that has now reached a tipping point with signs one side is starting to edge ahead. Tencent, which is several years behind Alibaba in terms of market entry, has been steadily chipping away at its rival’s lead.

FAO: And this “bruising race” has created two fascinating opponents which are currently taking more and more new territories in Asia, Europe and looking to Americas.

Artificial Intelligence

France Wants To Become An AI Hub

Romain Dillet – TechCrunch 

France To Spend $1.8 Billion On AI To Compete With U.S., China

Mathieu Rosemain & Michel Rose – Reuters 

French President Emmanuel Macron promised 1.5 billion euros ($1.85 billion) of public funding into artificial intelligence (AI) by 2022 in a bid to reverse a brain drain and catch up with the dominant U.S. and Chinese tech giants.

FAO: Finally somebody is moving something, in fintech too, in Europe.

DNT: On the same topic, you can read here, Artificial Intelligence section, more information.

Samsung, Fujitsu Give Macron’s AI Plan A Boost With Paris R&D Hubs

Reuters Staff – Reuters

South Korean electronics giant Samsung will make France its third global research and development hub in artificial intelligence after Korea and the United States and hire about one hundred experts in Paris, the French president’s office said.

Retail banking

Banks Must Beef Up Compliance Technology To Survive In The Era Of Digital Threats

Aliette Leleux – SCMP

As financial institutions navigate digital threats and an evolving regulatory landscape, management teams need to allocate funding and time to developing new operating models, bringing in new tools and technologies and equipping staff with new skills. Most financial institutions expect to increase their compliance investments during the next two years as they seek new approaches to strengthening their compliance capabilities, according to a new report by Accenture.

FAO: Compliance is just one area that financial institutions need to beef up in order to stay alive in this century.

Cap Markets & Other

Kazakhstan’s Central Bank Launches Securities Trading App

Reuters Staff – Reuters

Kazakhstan’s central bank has launched a blockchain-based mobile securities trading application which it hopes will allow locals to become more involved in the capital markets by simplifying access to it.

FAO: Meanwhile in Kazakhstan: TA DAAA! I think in the coming period we will witness an amazing increase in sales in all fintech related products and services in countries where large segments of the population weren’t touched by the “classic finance miracles”: bank accounts and related products, loans, trading services etc. There will be people joining the markets only after simply tasting the power and simplicity of DLT. A lot of them already entered this universe by starting trading digital assets in the last two years, and most of these newbies are probably already out after losing a lot of their money. But one thing is clear: they have already “touched” the cryptoverse. Now their standards are different…

FinTech People

Meet The Rising Fintech Duo Transforming How Sweden Invests

Ulf Skarin – Business Insider

Stop paying hefty administration fees and take control over your savings and investments.

That’s what is driving Sigmastocks, a fast-growing Swedish fintech firm and brainchild of former study mates Mai Thai and Nanna Stranne.

Andy Murray Invests In Two Fintech Start-ups

BQ Live

The British tennis champion has invested undisclosed amounts into Investly and Landbay as part of his strategic partnership with Seedrs. Andy Murray has invested in fintech start-ups Investly and Landbay, bringing the total number of companies he has invested in via Seedrs to 30.

DNT: Game, set and Start-up!

Latest Developments & Agreements

Lattice80 Launches Fintech Database

Finews Asia

Lattice80 is launching «FintechDB» an artificial intelligence-powered database of financial technology firms. The aim is to help investors cut through the hype on emerging fintech startups.The new fintech database, presently in an alpha version, is now active, providing raw data on over 11,000 startups in the fintech, blockchain and cryptocurrency sectors.

FAO: Yes, I know, I started salivating too when I first read this title…hold your horses, this is only in alpha version. We’ll keep an eye out.

Accelerators & Hubs

Halfway To Brexit, Is The Glass Half Full Or Half Empty? Both.

City A.M.

We are officially halfway out of the exit door. In exactly a year from now, the UK will formally leave the EU and enter a transition period lasting until 31 December 2020.

In case you had somehow forgotten what is at stake for London, the Centre for Economic and Business Research warned that the capital will be at “immediate risk” of a £22bn economic hit in the event of a hard Brexit.

FAO: This might be a classic “be careful what you wish for” situation…

Vizag Will Become Country’s Fintech Hub In Future: N Chandrababu Naidu

Economic Times

Andhra Pradesh Chief Minister N Chandrababu Naidu said Visakhapatnam will become a fintech hub in the country in future as information technology sector was gaining momentum in the state.

Events

Brazilian Fintech Nubank Reduces Losses With Client Base Growth

Reuters Staff – Reuters

Nubank reduced its loss amid rapid expansion of its credit cards users in 2017, according to a statement. Nubank’s clients more than doubled to 3 million late last year from 1.3 million at the end of 2016, Nubank’s chief financial officer, Gabriel Silva said. Total revenues tripled last year, to 567 million reais ($170.5 million), also helped by an increase in credit card usage.

FAO: Recently Nubank said it raised $150 million in a new financing round led by venture capital firm DST Global Investment Partners.

 

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

DNT: Decebal Nicolaie Todarita, Editor FinTech Daily News