by Florin Oprea
Ingrid Lunden – TechCrunch
Richard Milne – Financial Times (sub)
Visa is taking a stake in Klarna in a sign of the Swedish fintech’s growing presence in online payments.
FAO: Looks like somebody did his/her homework…no need to say more.
TP ICAP has invested in FinTech start-up LiquidityChain, a new web-based application which has been created to unlock liquidity in the global credit markets.
South China Morning Post
It seems clear FinTech will continue to drive radical change in the market for banking services. But one unanswered question is: will the application of these advances in digital technology open up a myriad of new opportunities for the established giants, or will it fundamentally disrupt the business model that has made traditional banks so profitable in the past?
FAO: Aaaaand I choose door number 2: fundamentally disrupt the business model that has made traditional banks so profitable in the past.
AvidXchange announced it has added three new board members from Mastercard, CDPQ, and Temasek as part of closing $300 million in Series F (reported here) financing with contributions from Caisse de dépôt et placement du Québec (CDPQ), Mastercard, Temasek, and Peter Thiel.
FAO: Colleen Taylor (Mastercard), and Nicolas Westphal (CDPQ), will join AvidXchange’s board, and Jane Atherton (Temasek) will join as a board advisor.
Saheli Roy Choudhury, Geoff Cutmore – CNBC
London’s status as a global financial technology hub could be undermined if Brexit complicates the ability of companies to operate across Europe and access to talent becomes difficult, the co-founder of an international online money transfer platform warned Tuesday.
Priyanka Pani – The Hindu Businessline
A recent report by job search portal Naukri said that in overall new job creation, the IT-software industry was hit the most during May ’17 with 17 per cent decline in hiring compared with May ’16
Wassim Bendella – The Cointelegraph
Europe is seeking to drive innovation in financial services, while at the same time it is strongly committed to safeguarding the safety of the financial market infrastructure. The EU is actively looking to embrace the digital transformation occurring in our society and deliver efficient and meaningful services to participants in its economy.
South China Morning Post
Across the globe, FinTech promises to not only drive the creation of a wide range of new and more accessible financial services, but also promote more competition, improve customer experience and lower costs. All, potentially, very good news for consumers, but can Hong Kong claim a role as an international powerhouse when it comes to the development and deployment of FinTech?
DNT: Hong Kong is, undoubtedly, a leading international financial centre and the services provided are characterized by low taxes and free trade. In this environment, the use of new technology can comple traditional financial institutions…So I think the answer is yes!
Ryan Lawler – TechCrunch
Plaid wants to make it easier for financial services companies to serve consumers and businesses, but it also sees significant holes in the fintech ecosystem. As a result, the company has issued a Y Combinator-like “request for startups” to tackle particular issues where it believes significant innovation is lacking.
Helen Bartholomew – Reuters
National authorities and international bodies should consider the impact of fintech on financial stability when undertaking regulatory risk assessments and developing regulatory frameworks, the Financial Stability Board has warned.
Huw Jones – Reuters
The rise of fintech does not pose any compelling risks to financial stability, according to a review by global regulators, but this may change as the sector grows.
FAO: To pose or not to pose – that is the question.
What is the future of banking? Is it a giant menu from which customers (individuals and businesses) choose who is to provide what contingent upon well-informed choice and best value.
The evidence from a sample of 20 fintech startups in the UK is that there are substantial profitability challenges that still need to be overcome. As of June 2017, the total equity investment in the sample companies I have looked at has been £852m. The total valuation of the sample at the last valuation round for each company was £2.6bn, but none are profitable and cumulative losses have been £211m.
FAO: Again, interesting figures.
FAO: Florin Adrian Oprea, Editor-in-chief FinTech Daily News
DNT: Decebal Nicolaie Todarita, Editor FinTech Daily News