FinTech Daily News – Edition 188, 12.04.2018
April 12, 2018
FinTech Daily News – Edition 190, 16.04.2018
April 16, 2018

FinTech Daily News – Edition 189, 13.04.2018

Deals & Investments

Warburg Pincus In Talks To Invest In Ant’s $8 Billion Funding Round: Sources

Julie Zhu & Kane Wu – Reuters

Warburg Pincus is in talks to invest in a fundraising round for Ant Financial expected to be worth at least $8 billion, people with knowledge of the matter said.

The New York-based private equity firm is one of several global and Chinese investors that the operator of China’s top online payment platform Alipay is talking to, they said, adding that Ant’s valuation may be as high as $150 billion after the round.

Kabbage To Acquire Startup Backed By Wall Street Titans

Julie Verhage – Bloomberg (subscription)

Orchard Platform Markets a provider of lending data and services backed by the former heads of Citigroup and Morgan Stanley, is set to be acquired by small-business lending platform Kabbage said people familiar with the deal. Kabbage plans to use Orchard’s technology, and some of the employees are also expected to move to Kabbage’s New York office, said the people, who asked not to be identified because the plans are private. It’s unclear how much Kabbage will pay, and the transaction could still fall through. Kabbage and Orchard declined to comment.

DNT: Lending data is crucial in these days…so Kabbage’s potential move is understandable. We will watch the subject.

FAO: Data is a sensible topic, especially these last few weeks 😉 BTW Kabbage & Citigroup formed a consortium on fintech cybersecurity last month. And to emphasize the sensibility on the topic, here are some of the natural reactions in the fintech universe, read below…

Permira To Buy Majority Stake In Cyber Security Firm Exclusive Group

Reuters Staff – Reuters

Private equity firm Permira PERM.UL said on Friday it had agreed to buy a majority stake in Exclusive Group, in a deal that secures substantial funding for the future development of the French cyber security group.

A source close to the matter said the deal was worth some 1.3 billion euros ($1.60 billion).

Cyber Security iFrm Avast Plans Watershed London Tech Listing

Reuters Emma Rumney & Eric Auchard – Reuters

Avast said it will apply to list its shares on the London Stock Exchange in what could be a blockbuster float expected to value the company at around $4 billion.The listing, which is anticipated in early May, will see a free float of at least 25% of Avast’s issued share capital with the aim of raising around $200 million in primary proceeds.

Dublin-Based Fintech Company Supply Finance Raises €4m In Funding

Ellie Donnelly  – Independent

Supply Finance has raised €4m in funding in Series A funding. The company received investment from, among others, European and Asian venture capital firm Finch Capital, and US venture capital firm Fenway Summer Ventures.

Da Vinci Capital Invests In Russia’s Global Fintech

Finextra

Global Fintech Solutions raised a new funding round from several funds under the management of Da Vinci Capital and from its the portfolio group, ITI Funds. Investment group Prytek was a co-investor in the investment round.

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

Afterpay Can Be An ‘Enduring’ Player In Global Retail: Anthony Eisen

James Eyers – Australian Financial Review

Afterpay Tightens ID Checks, Caps Late Fees As Regulator Eyes Sector

John Collett – The Sydney Morning Herald

“Buy now, pay later” app Afterpay will improve its identity checks and cap late fees as the sector comes in for closer regulatory scrutiny.Some critics have raised concern that buy now, pay later apps could be a potential debt trap for young users.

DNT: Read more about Afterpay battle for millennial shoppers here, Payments section.

South African Fintech Vio Digital Launches Blockchain-Based Money Transfer App

Samantha Hurst – Crowdfund Insider

Vio Digital, a South Africa-based fintech startup, announced it is launching a new blockchain-based money transfer app to make it easier for customers to transfer money from person to person anywhere in the world.

Lending

Online Lenders Adopt The Model They Sought To Disrupt

Kevin Wack – American Banker

It wasn’t long ago that Silicon Valley was striving to break the banking business into separate pieces, with venture capital flooding startups specializing in niches such as credit card refinancing, student loans and small-business finance. Now the race is on to put banking back together again.

Finnies: The Australian Fintech Startups Disrupting Home Loans

Chris Pash – Business Insider

A new type of fintech company is helping home buyer owners save on their home loans, using technology to drive competition and take business from the big banks.The differences between mortgage deals offered by the big four banks are hard to spot and even harder to work out when looking for a home loan deal, according to an investigation by the consumer watchdog, the Australian Competition and Consumer Commission.

Retail banking

French Banks Stem Flow Of Clients To Fintech Rivals Survey Shows

Reuters Staff – Reuters

French bank customers have become less inclined to switch to a financial technology firm over the past year, a Deloitte survey showed, as lenders move to fend off new entrants.

French banks such as BNP Paribas and Societe Generale, have sped up investments in so-called fintech, either by buying start-ups, known as “neobanks”, or by offering clients new payment methods or online options.

DNT: The survey showed that only 22% of French bank customers would leave their core bank for a fintech, a drop of 4 percentage points over the year, as the story informs.

Pretty interesting phenomenon, but quite expected as long as banks have “unleashed” strategies to temper fintech competition. On the other hand, i’m pretty sure that fintech companies can still compete.

The Cold War Thaws: Why Fintech And Banks Are No Longer Mortal Enemies

Colm Gorey – Siliconrepublic

The idea that traditional powerhouse banks and innovative fintech start-ups are facing off against each other is an old one, and it’s time that changed.The major powers of the financial worlds have been in place for centuries. However, the past decade and the advent of internet in the palms of our hands has shaken things up in such a way that if it were to happen to many other sectors, it would spell their demise.

FinTech People

Via Crowdfund Insider – LendingClub Hires Bahman Koohestani as CTO

DNT: Most recently, Bahman Koohestani served as CTO at Clarivate Analytics.

Via Business Insider – Dropbox VP of product Todd Jackson has left the company to join First Round Capital as a founder in residence.

Via TechCrunch – Former Google CFO Patrick Pichette joined the Canadian venture firm iNovia Capital

Latest Developments & Agreements

Alpine Bank Selects Fintech Avoka To Build Customized Account-Opening Experience

Samantha Hurst – Crowdfund Insider

Fintech startup Avoka announced that Colorado-based Alphine Bank has selected the Avoka Transact Platform to enhance its digital presence.Avoka reported that it will deliver completely digital account openings that include ID verification, funding, and immediate establishment of the account.

Sequoia Capital’s Raanan Launches Cyber- Focused Fund

Reuters Staff – Reuters

Gili Raanan, general partner at Sequoia Capital Israel, has raised $50 million for a new venture capital fund called Cyberstarts.

Regulation

Finastra Launches Sandbox For Fintech Companies In Hong Kong

Global Trade Review

Fintech company Finastra has launched an innovation lab in Hong Kong, designed to enable collaboration between banks and other fintech companies, using Finastra’s platforms.

Accelerators & Hubs

Growth In London’s Finance Centre To Stall Because Of Brexit, Says Santander Boss

Reuters Staff – Reuters

The chairwoman of Spain’s biggest bank Banco Santander Ana Botin warned that growth in London’s financial centre was set to stall due to the turmoil triggered by Brexit.

“I don’t think so many companies or people are going to leave the UK, it is the people that are not coming that we should worry about because the UK was on a huge upward trend and that is not as strong now,” Botin said.

DNT: Definitely a good point. Because the development is brought by novelty, by those who come in a good environment to develop ideas, not by those  who are leaving. So, Brexit threats this status.

Ohh,  read also bello some strong support for London, from nobody else than Bundesbank leader Andreas Dombret.

Bundesbank Boss ADMITS London will remain financial centre of Europe

Matt Drake – The Express

Brexit has received yet another boost as the boss of Germany’s national bank admitted London will remain Europe’s financial hub after the UK leaves the EU, despite attempts by Germany, France, Ireland and Holland to poach bankers.

Bundesbank leader Andreas Dombret said there is “reluctance” among bankers about leaving London to move abroad. He said the Square Mile will remain Europe’s “eminent financial centre” after the UK leaves the EU.

Opinion

The UK Could Be Fully Cashless In 10 years, Says Fintech Start-Up Revolut

Amelia Heathman – Evening Standard

Revolut says it wants to be at the forefront of the cashless revolution.

 

The company’s co-founder and CTO, Vlad Yatsenko, said  “Businesses, especially financial institutions, are having to adapt as we move towards a cashless society. With the rise of contactless and mobile payments, I hope and believe that it will be possible for the UK to be fully cashless within the next 10 years.”

 

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

DNT: Decebal Nicolaie Todarita, Editor FinTech Daily News