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FinTech Daily News – Soft launch Edition #5, 26.05.2017

FinTech Daily News

by Florin Oprea

Edition #5, 26.05.2017

Deals, Investments & M&As

GMEX To Acquire 5% Stake In India’s Metropolitan Stock Exchange

Livemint

GMEX would also acquire 5% stake in Metropolitan Clearing Corporation of India, an arm of Metropolitan Stock Exchange.

MSE’s shareholders include India’s top public and private sector banks and domestic financial institutions, who together hold over 34% stake in the exchange. Besides ace market men Rakesh Jhunjhunwala, Radhakishan Damani and Nemish S. Shah also have shareholding in the bourse.

FAO: Congrats to Hirander Misra & co. This goes well alongside other investments in market structure entities in Africa and other places, if I remember well.

G2 Crowd Gets $30m From Accel

John Pletz – Crain’s Chicago Business

The four-year-old Chicago tech company has broken out, raising $30 million from Accel Partners, one of Silicon Valley’s top venture capital firms, along with LinkedIn, Pritzker Group Venture Capital and others.

India – Payments co Itzcash Sells 80% Stake For USD 124m As Early Investors Exit

Times of India

US-based software solutions provider Ebix has bought an 80% stake,

The transaction will give exits to venture capital investors Matrix Partners, Intel Capital and Lightspeed Venture Partners, which collectively owned around one-third of the company. They are likely to have clocked 3-5X return on their initial investments mopping up about $45 million among the three of them.

The rest of the stake was sold by the promoters, the Essel group, and the management. The promoters will now hold the remaining 20% stake after the new funding.

FAO: Looks like India is on the fintech move.

Payments

FinTechs Are Surpassing Banks On Cross-Border Payments

Tom Groenfeldt – Forbes

Six years after launching a cross-border money transfer business in Europe that was much less costly than banks, TransferWise has launched a platform that provides individuals and businesses with local currency in multiple countries.

FAO: More coverage on the Borderless Account TransferWise launched earlier this week.

Lending

LendingClub Celebrates Ten Years of Online Lending

JD Alois – Crowdfund Insider

LendingClub is celebrating its tenth anniversary. It is pretty hard to believe that LendingClub is now ten years old.

FAO: Happy Bday, LendingClub!

Insurance

Aviva On The Hunt For Acquisitions As CEO says: ‘We Want To Turn Aviva Into a Fintech’

Oscar Williams-Grut – Business Insider

CEO Mark Wilson declared at a press conference on Wednesday: “We want to turn Aviva into a fintech.”

Wealth & Personal Finance

Wealthfront Now Helps Users Save Up For Their Kids’ College Tuition

Ryan Lawler – TechCrunch

Robo-advisor Wealthfront originally came to market with a product to automate retirement savings, but over time has expanded to provide other financial tools. Today, the company is announcing a new product aimed at helping parents save for their children’s college education.

Retail banking

Banks Should Share Financial Data – To Avoid Being Forced To

Håkan Nordfjell – American Banker

In Europe, the open banking sea change has largely been brought about by the revised Payment Services Directive — known as PSD2 — which requires European banks to share data with financial technology companies if customers request they do so. The regulation aims to stimulate competition by giving fintech companies access to customer data that they have been collecting piecemeal for years (without banks’ authorization).

Cap Markets & Other

NEX Markets To Adhere To The FXCode Of Conduct

MondoVisione

NEX Markets, a NEX Group business which provides electronic trading technology services in the fixed income and foreign exchange (FX) markets, announces today that following the publication of the FX Code of Conduct, it plans to adopt the Code’s principles across its FX trading platforms.

Fintech Firm Redline Chooses Belfast For New Centre

Gordon Hunt – Silicon Republic

Boston-based Redline Trading Solutions has opened a new support centre in Belfast, with the promise of 20 new jobs to come.

FinTech People

NEX Group Senior Executives Receive $15m In Shares As Bonus Compensation

Leap Rate

The largest grant worth $5.4 million went to NEX Group CEO Michael Spencer.

FAO: Well, they deserve it.

How The Fintech Ecosystem Is Working To Reduce High Employee Turnover

Jason Lee (CEO of DailyPay) – Forbes

Accelerators & Hubs

Old Foes, New Friends: Nordic Banks & Startups Increase Collaboration

Eeva Haaramo – ComputerWeekly

First they were deemed a threat, now they are potential partners. According to a new report by Nordic accelerator Fintech Mundi, banks are increasingly turning to financial technology (fintech) startups in their hunt for new ideas and market opportunities.

FAO: Remember this week we reported about the Danish Fintech startup Clearhaus which recently acquired 33% (worth 10 mil EUR) of the Copenhagen Cooperative Bank.

Korea Opens Applications For 50 Startups To Join Global Accelerator

Venture Burn

The Korean government is seeking 50 high-potential startups from around the world to join the K-Startup Grand Challenge for four months of business acceleration in Korea.

Creative Destruction Lab Is Launching A Quantum Machine Learning Accelerator In Toronto

Ryan Lawler – TechCrunch

A new accelerator program being run by Canada’s Creative Destruction Lab (CDL) is hoping to find technologists in the quantum machine learning field who want to become founders and give them access to cutting-edge equipment to make their projects into companies. The program will be run out of the University of Toronto’s Rotman School of Management, and will include investment from venture funds Bloomberg Beta, Data Collective and Spectrum 28.

Financial Calendar & Results

RapidMiner Announces Record Revenue for Q1 2017

PRNewswire