FinTech Daily News – Edition 207, 11.05.2018
May 11, 2018
FinTech Daily News – Edition 209, 15.05.2018
May 15, 2018

FinTech Daily News – Edition 208, 14.05.2018

We are proudly announcing that our sister publication, Blockchain Daily News, became a Media Partner of Crypto Startup School, a summer school jointly organized by The Frankfurt School Blockchain Center and the German Tech Entrepreneurship Center. The event will take place from 25th – 29th of June 2018 on the campus of the Frankfurt School of Finance and Management.

There are prizes too! Participants will be working in groups on their individual ICO projects during afternoon sessions. On the final day of the program, each group is given the opportunity to pitch their project in front of a group of judges. The total prize money of 10.000€, courtesy of Iconiqlab will be awarded to the three best projects as follows: Winner: 5.000 €, Runner-up: 3.000 €, Third: 2.000 €! I will also participate, so it this is the perfect occasion for anybody to meet me in person and also work with me on a demo ICO project.

Tickets can be purchased HERE and because you are a reader of our daily publications, you can use this voucher code NEWS-BCA-CSS2018 for a 10% discount.

Deals & Investments

How Commission-Free Trading App Robinhood Tries To Make Money

Evelyn Cheng – CNBC

The stock trading app makes revenue through its subscription Robinhood Gold product, which offers margin and extended-hours trading. Among online brokerages, Robinhood’s margin rates “tend to be on the low side, but not the lowest,” said Javier Paz, senior analyst, Aite Wealth Management Practice.

FAO: Useful analysis on Robinhood’s business model. The service has more than 4m accounts, more than online brokerage E-Trade, which has about 3.7m accounts. Robinhood recently raised $363m in a new investment round. The company’s value reached $5.6 billion.

Payments

Instagram Payments Could Be A Surprise Threat To PayPal

Adam Levy – The Motley Fool

Facebook quietly rolled out payments in Instagram to some users at the beginning of the month. The payments feature asks for users to input their credit or debit card information once, and then it can be used to pay for products or services advertised on Instagram. The feature currently only works for booking appointments, but it could quickly expand to more businesses.

FAO: New player in the US payments sector. The competition is getting tougher for PayPal. Of course, Amazon Pay may already be PayPal’s biggest threat – more here.

Wealth & Personal Finance

Goldman Sachs Eyes Germany For Expansion Of Marcus

Laura Noonan & Patrick Jenkins – Financial Times (subscription)

Goldman Sachs plans to extend its Marcus consumer bank across Europe and has picked Germany as the market to follow its imminent UK launch, the CEO of the bank’s London-based international arm, Richard Gnodde, said.  

FAO: Not surprising, since Goldman Sachs is preparing plans for when the UK leaves the EU. Its CEO, Lloyd Blankfein, tweeted last year that he will “be spending a lot more time” in Frankfurt…

Wealthfront Wants To Make Investing Complicated Again

Julie Verhage & Dani Burger – Bloomberg (subscription)

Customers loved Wealthfront’s passive investments. In February, however, the company added something new. The Wealthfront Risk Parity Fund is automatically included in accounts with more than $100,000 in taxable assets unless the client opts out. The fund is supposed to follow an approach taken by hedge fund manager Ray Dalio of Bridgewater Associates.

Retail banking

Britain’s HSBC Joins The Fintech Fray With Multi-Account App

Emma Rumney – Reuters

HSBC has set aside $2 billion for investments in technology globally and digital banking head Raman Bhatia said it will start a large advertising campaign at the weekend as it seeks to make the full breadth of its 13 million-strong UK customer base aware of Connected Money.

DNT: According to Bhatia, cited by Reuters, HSBC’s Connected Money app, providing a single platform for users to see their accounts with a range of providers, registered 13,000 downloads within a day of its launch.

FAO: Global banks have started the offensive into digital services. Check Goldman’s Marcus (above), BofA’s plans (discussed here), the plethora of acquisitions and partnerships of JPMorgan (check Archive), Barclays’ partnership with PayPal (more here) etc.

FinTech People

Fintech Is Now The Most Popular Sector Among High-Net-Worth Investors

Harry Banks – City A.M

Fintech has now become the most popular sector among high-net-worth investors, according to an analysis by the direct private investment platform Capitama. Nearly 70% of high-net-worth and professional investors said they were interested in putting money into fintech opportunities, while 67% said they were keen to see software and technology deals.

Via Crowdfund Insider – Funding Circle appointed Cath Keers as new Non-Executive Board Member

DNT: Cath Keers currently serves as NED for Sage Group and TalkTalk, the story also informs.

Regulation

Keeping Loan Sharks Away From Indonesia’s Fintech Archipelago

Fathiya Dahrul – Bloomberg (subscription)

Indonesia Set To Issue Stricter Regulations For Fintech Sector

Fathiya Dahrul – Deal Street Asia

Indonesia is planning to tighten regulation of its vibrant fintech sector.

Accelerators & Hubs

Dubai Most Efficient For Fintech Firms

Waheed Abbas – Khaleej Times

There are more than 45 fintech companies registered at the Dubai International Financial Centre. Starting a fintech business at the Dubai International Financial Centre is much easier and cost-efficient due to low costs, less red tape and better regulatory framework, according to industry players.

FAO: DIFC is at the forefront of Dubai’s strategy in attracting new finance and fintech business. Dubai, as you know, is currently the leader in the MENA region but competition is getting stronger. Abu Dhabi and Bahrain are Dubai’s main followers.  

Analysis

Royal Commission Reforms Boost Investor Opportunities In Fintech

Financial Review (subscription)

Three Disruptive Forces Driving Aussie Neobanks like Volt, Is Fintech Startups Get Serious

James Eyers – Financial Review

There are hundreds of fintechs offering financial services, from budgeting tools to financial advice to loans, but it wasn’t until last week that a start-up was authorised in Australia to offer the product sitting at the heart of banking – deposits.

FAO: Since we’re here, remember that PayPal is also expanding into traditional, targeting the unbanked. Through partnerships with small banks it wants to offer consumers debit cards connected to their PayPal accounts, along with direct deposit for paychecks. Read more here.

Opinion

Technology Not Size Is Key To Banking Success

Anthony Jenkins  – Financial Times (subscription)

At first glance, UK banking hardly seems to be an industry facing rapid change. The retail market is dominated by a handful of big players with vast customer bases. The customer receives a service that is at best mediocre, and the sector has become a byword for misconduct, from the £35bn payment protection insurance scandal to Libor rate-rigging. Consolidation has also failed to deliver for shareholders — a decade after the financial crisis, returns on equity remain poor.

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

DNT: Decebal Nicolaie Todarita, Editor FinTech Daily News