FinTech Daily News – Edition 185, 05.04.2018
April 5, 2018
FinTech Daily News – Edition 187, 11.04.2018
April 11, 2018

FinTech Daily News – Edition 186, 10.04.2018

Deals & Investments

Chinese A.I. Start-Up SenseTime  Raises A Record $600 Million In Funding Round Led By Alibaba

Ryan Browne – CNBC

China’s SenseTime has raised $600 million in a round of funding led by e-commerce giant Alibaba. The company said that it had broken the record for the largest venture capital investment in the AI industry.

FAO: Don’t say we didn’t warn at the beginning of this year – this year is the year of AI…

Chinese Online Lender Weidai Plans $400 Million IPO

Crystal Tse – Bloomberg (subscription)

Chinese peer-to-peer lender Weidai Hangzhou Financial Information Service Co. is planning an IPO that could raise about $400 million, according to people with knowledge of the matter.

FAO: After all HKEx’s efforts to attract new Chinese (fin)tech listings and Weidai seems to choose US too, like so many others did last year.

The Chinese fintech companies listed in US markets in 2017:

China Rapid Finance – NYSE

Qudian – NYSE

Yirendai – NYSE

PPDAI Group – NYSE

Jianpu Technology – NYSE

Hexindai – Nasdaq

China Commercial Credit – Nasdaq

Dutch Payments Company Adyen Eyes June IPO: Sources

Toby Sterling, Dasha Afanasieva & Arno Schuetze – Reuters

Adyen is eyeing a stock market listing in June that could value it at 6-9 billion euros ($7-$11 billion), sources familiar with the matter said. Following Spotify’s IPO last week, Adyen’s listing would be one of the largest in Europe for a fintech company.

FAO: New rumours – new valuations? Better check these previous projections as Adyen is one of the most expected listings this year in Europe. Some recent reports signaled that Adyen is poised to pick JPMorgan and Morgan Stanley to advise on a potential IPO.

Fidessa Pushes Vote On Temenos Deal To Latest Possible Date

Cat Rutter Pooley – Financial Times (subscription)

Fidessa Delays Temenos Takeover Vote As Rivals Circle

Fareed Sahloul – Financial News (subscription)

Fidessa said that an April 5 meeting to vote on the Temenos offer would now take place on April 27. The decision was taken to allow the group to explore potential rival bids from ION Investment Group and SS&C Technologies.

FAO: They choose to wait and see if others “put their money where their mouths are”? We need to admit this will be a very hot year in fintech deals. All the signs suggest this, at least for now…More coverage related to Temenos’ bid – here.

General Atlantic In Talks On A Deal With Brazil’s Online Lender Geru

Carolina Mandl – Reuters

General Atlantic is in talks to buy a minority stake in closely held Brazilian online lending startup Geru Tecnologia e Serviços SA, according to two sources with knowledge of the matter.

FAO: GA planning an investment in one of the hottest places right now in the fintech world – LATAM.

Seismic Foundry FinTech Fund Completes Investments  For 2017-18 Tax Year

Mondovisione

Seismic Foundry Capital Markets FinTech Fund closed its final investment for the current tax year by acting as lead investor in RegTech start-up, Waymark Tech.

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

PayPal Makes A Move Toward Traditional Banking

Peter Rudegeair – The Wall Street Journal

PayPal To Roll Out Banking Products For The ‘Unbanked’ In The Weeks Ahead

Sarah Perez – TechCrunch

PayPal  is expanding into traditional banking through partnership with smaller banks to offer consumers debit cards connected to their PayPal accounts, along with direct deposit for paychecks and other services. The company says its new products are targeted specifically at the unbanked, and will launch in the first half of 2018, following consumer testing.

FAO: First – use a debit card. Second – credit card? Clearly these small banks will have to “win” something out of this “win-win” deal, right?

Stripe Launches A New Billing Tool To Tap Demand From Online Businesses

Matthew Lynley – TechCrunch

Stripe has made its name by providing developers with a simpler way to start charging customers and handling transactions, but today they hope to take another step by launching a billing product for online businesses. That’ll allow them to handle subscription recurring revenue, as well as invoicing, within the Stripe platform and get everything all in the same place.

China Central Bank Fines Ant Financial’s Alipay For Misleading Ads, Poor Data Protection

Yimian Wu – China Money Network

Alipay has been fined RMB180,000 (US$28,535) for inadequate customer rights protection, publishing misleading advertising and improper data protection, according to an administrative penalty notice from People’s Bank of China, Hangzhou branch. As China has increased its efforts to control financial risk, the central bank has strengthen oversight of online financial activities, especially by non-financial institutions.

Lending

Fintech Pioneer Renaud Laplanche Takes New Tilt At Credit Card Industry

Ben McLannahan – Financial Times

Renaud Laplanche, the fintech pioneer who took a bite out of big banks’ credit card balances through his online lending venture Lending Club, is opening up a new line of attack on the industry. Upgrade, the new consumer lending business he launched about a year ago, is to begin offering lines of credit that combine features from fixed-rate personal loans with the flexibility of credit card borrowing.

U.S. Regulator To Publish Fintech Charter Position In Next Few Months

Katanga Johnson – Reuters

The fintech community has been watching closely to see if Joseph Otting, appointed U.S. Comptroller of the Currency in November, would push ahead with a charter to allow fintech firms to do business nationwide that was first announced in 2016 by his predecessor Thomas Curry.

FAO: Quite a sensible topic. What do you think will be his position? Share your thoughts via our LINKEDIN GROUP or TELEGRAM GROUP!

SoFi Plans to Start Rolling Out Deposit Accounts Next Month

Selina Wang & Julie Verhage – Bloomberg (subscription)

Social Finance said it will start offering deposit accounts and debit cards to some customers next month, the first major new product under Chief Executive Officer Anthony Noto.

FAO: Noto is moving fast with SoFi’s reconstruction.

Fintech Lenders Will Struggle To Regain Mojo Alone

Antony Currie – Reuters

Fintech lenders will struggle to regain their mojo all by themselves. As industry executives head to a major industry confab in San Francisco, their loan books, and earnings, still look small. And the banks they once dared to threaten have been catching up on tech prowess.

Wealth & Personal Finance

Wealthsimple Launches Smart Savings Accounts

PR Newswire

Wealthsimple has launched Wealthsimple Smart Savings to help savers reach their short- and medium-term goals. It offers a host of advantages: a 1% interest rate that doesn’t expire, unlimited and free transaction, and zero additional fees. Smart Savings is now available to new and existing clients through Wealthsimple’s website or app.

Socially Responsible Investing Is Gaining In Popularity. And It May Help You Make More Money

Kellie Ell – CNBC

Socially responsible investing is gaining popularity, especially among millennials, says Michael Katchen, founder of WealthSimple.

Regtech

Regtech Ocrolus Receives $4 Million Series A Funding, Bullpen Capital Leads Round

JD Alois – Crowdfund Insider

Ocrolus has announced a $4 million Series A investment led by Bullpen Capital. Additional investors include QED Investors, Laconia Capital Group, ValueStream Ventures, and RiverPark Ventures.

Retail banking

Fintech Could Flop Without Big Banks

Matt Levine – Bloomberg (subscription)

An amazing product is nothing without access to money.

FAO: Agree.

HSBC Adopts Fintech To Fight Money Laundering

Karl Flinders – Computer Weekly

HSBC is using software from fintech startup Quantexa to help it automate the fight against money laundering. This follows a pilot of the software by the bank in 2017.The software will analyse billions of data records including internal and external sources to spot potential money-laundering activity. This will help HSBC meet regulatory compliance and reduce risk for its business.

FinTech People

Via SCMP  – Ant Financial executive chairman Lucy Peng steps down to focus on Lazada

Via American Banker  – SoFi names longtime Goldman Sachs exec Michelle Gill as next CFO

CME Group’s Terry Duffy: ‘French Wine And Short Ribs Go A Long Way In Putting Big Deals Together’

Lucy Burton –  The Telegraph (subscription)

When the former Tory party treasurer Michael Spencer arrived at the Mandarin Oriental in New York on February 2, he came armed with two precious gifts for his dinner companion Terry Duffy. One was a bottle of expensive red wine for Duffy’s wife, whose birthday it was that day. The other was a present that had been on the 59-year-old’s wish-list for at least a year – the chance to buy Spencer’s bond trading business Nex Group.

FAO: Behind the scenes of this year’s most interesting deal in global capital markets. Check previous coverage using our FREE ARCHIVE.

Latest Developments & Agreements

Fintech Firms MyBucks, Naga Strike Africa Alliance

Eyk Henning – Bloomberg (subscription)

Fintech firms MyBucks and Naga Group are poised to enter into a strategic partnership that would pair Naga’s cryptocurrency with the Luxembourg company’s mobile payment solutions for the African market.

Accelerators & Hubs

LATTICE80 Pivots From Fintech To Blockchain In Singapore

Lea Nonninger – Business Insider

LATTICE80, which claims to be the world’s biggest fintech hub, has announced the closure of its post in Singapore. In its place, it will establish a Crypto Hub, which will focus only on blockchain and crypto startups in the city-state. Its fintech hubs in other countries will remain active.

FAO: In line with the city-state’s vision and actions sustaining financial innovation through blockchain related projects.

Analysis

Mena Fintech Market To Grow To $2.5bn By 2022

Gulf Digital News

The current Mena fintech market is estimated at $2 billion and expected to witness an annual growth of $125 million until 2022, according to Mena Research Partners.

Other news

Yes, These Chickens Are On the Blockchain

Luzi-Ann Javier – Bloomberg

Did the chicken you just buy at the supermarket have a nice life, roam free, and eat healthy grains? If you’re the kind of person who cares, Carrefour SA, the big France-based grocery chain, has the bird for you. Every chicken it sells under its house brand comes complete with its very own life story, thanks to the wonders of blockchain software. All you need to do is scan the label with your smartphone to get all the details.

Opinion

China May Be Leading In Payments, But It Is Set For Further Growth In Fintech, Says Entrepreneur David Ye

Yen Nee Lee – CNBC

The growth in China’s fintech industry may look like it’s peaking given the wide usage of internet payments, but the sector has yet to reach its full potential, David Ye, co-founder and chairman of Rong360 said.

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

DNT: Decebal Nicolaie Todarita, Editor FinTech Daily News