FinTech Daily News – Edition 62, 28.09.2017
September 28, 2017
FinTech Daily News – Edition 64, 03.10.2017
October 3, 2017

FinTech Daily News – Edition 63, 02.10.2017

FinTech Daily News

by Florin Oprea

Edition 63, 02.10.2017

Deals, Investments & M&As

PayPal’s Next Acquisition Target Could Be Square, Stripe, Or Adyen, Analyst Predicts

Eugene Kim – CNBC.com

PayPal could make a major acquisition worth billions of dollars in the “coming months,” Bernstein analyst Lisa Ellis wrote in a note. Ellis mentioned some of the largest payment companies as potential acquisition targets, including Square, Stripe, and Adyen.

FAO: Predictable move.

Square Strikes Payment-Processing Deal With Eventbrite

Selina Wang – Bloomberg

Square Inc. struck an agreement to process payments for ticketing service Eventbrite and made a strategic investment in the startup, part of the digital-payments company’s push into online commerce, an area dominated by larger players like PayPal Holdings Inc.

FAO: So then Square qualifies as PayPal’s main target?

Payments

Beehive Raises $5m Investment

PR Newswire

Beehive, MENA’s leading P2P platform, has secured $5m investment as part of a Series A round led by Riyad TAQNIA Fund and supported by the Mohammed Bin Rashid Fund (MBRF), the financial arm of Dubai SME, as well as several other regional investors. This latest fundraise brings the total raised by Beehive to $10.5m since its launch.

Insurance

ZhongAn Surges In HK Debut, Boding Well For Future Tech Listings

Reuters

ZhongAn Online Property & Casualty Insurance Co jumped 18% on debut on Thursday after the biggest ever IPO by a fintech firm in Asia, boosting Hong Kong’s hopes of luring future Chinese technology startups away from New York.

FAO: ZhongAn performed as expected.

More Chinese Fintech Firms To Eye Hong Kong IPOs, Says JP Morgan

Laura He – SCMP

More Chinese fintech firms vying to go public could choose Hong Kong as their listing venue, after the city’s first fintech IPO received a hot response from investors, and that Hong Kong has unique advantages compared with other global financial hubs, said Houston Huang, JP Morgan’s head of global investment banking in China.

FAO: I am sure they are, especially after ZhongAn’s success.

China Is Ready To Eclipse The Fintech Competitions

Jeffrey Kutler – Institutional Investor

Jeffrey Kutler, Editor in Chief, Global Association of Risk Professionals, Senior Contributing Editor, Institutional Investor:

“In a competitive marketplace, it is only natural to think in terms of who tops the league tables. The way KPMG and others score it, it is hard to deny a leadership spot for China. The country may be on its way to wider influence and even dominance in this still-maturing marketplace. However, as big a factor as China and its unicorns have become, there is more to fintech than what the likes of Alipay and Wechat do. And by Deloitte’s methodology (and simple observation), the Chinese fintech hubs are smaller, less diversified in output, and less-mature as ecosystems than are those of Singapore, London, New York, and several other places.

There is also the matter of cyclicality. Some of the fintech financings recorded last year in China, which moved Asia ahead of North America, were very large and one-off. Asian investment volume fell back relative to the U.S. in the first part of this year.

If this industry has the potency and staying power that so many believe it does, then league tables are a distraction – fun though they may be to follow and argue over. It is not a zero-sum game. If it were, and the ascendancy of one hub or country comes at the expense of another, then the market as a whole is not open and thriving. Certain locales may develop comparative advantages based on their market characteristics or specialties (China for mass-scale mobile payments, for example). But fintech, in its broadest definition, is a potentially vast playing field that will benefit from open competition and cross-pollination, rather than trade barriers and insularity. This is recognized by financial industry leaders like Bank of America, Fidelity, and Thomson Reuters. They distribute their fintech presence and innovation programs globally, so as to take in the big picture and not to miss out on what the various regions have to offer.”

Data and Analytics

Deutsche Boerse To Take Stake In Big Data Company Trifacta

Eyk Henning – Bloomberg

Deutsche Boerse is close to taking a minority stake in big data company Trifacta Inc.

FAO: Earlier this year DB1 bought RegTek Solutions, bringing in help on tackling Mifid II.

RapidMiner Announces New Integration With Microsoft Azure

PR Newswire

RapidMiner, the company that delivers real data science, fast and simple, announced at the Strata conference that RapidMiner Server is now available in the Microsoft Azure Marketplace, and RapidMiner Radoop now supports Microsoft Azure HDInsight.

Cap Markets & Other

Is Yahoo A Fintech Company Now?

John Detrixhe – Quartz

Fintech generally refers to companies like SoFi, TransferWise, and Revolut, whose ambition is to use technology to challenge traditional banks. What Yahoo Finance is doing is a little different – its app will add online brokers like Fidelity and E-Trade to its platform, but it won’t make any money from the brokerage charges. Instead, Yahoo Finance (now part of Oath, a Verizon-owned company), which has about 41 million mobile users, is trying to boost usage of its app.

FAO: Interesting analysis delivered by ex-Bloomberg John Detrixhe.

Pozible Founder Launches New Equity Crowdfunding Platform Birchal in Australia

JD Alois – Crowdfund Insider

Revealed several weeks back, Birchal is a spin-off of rewards based platform Pozible. Birchal will help SMEs raise up to $5 million from smaller investors. The platform enables unlisted public companies with annual turnover and gross assets up to $25 million to issue shares to the public, opening up new opportunities for individuals to take equity in small businesses.

FinTech People

Via Business Wire President of 3RAM, Rodney C. Adkins, appointed by PayPal Appoints  to its Board of Directors

DNT: Mr. Rodney C. Adkins also served 30 years at IBM, where his most recent position was Senior Vice President.

Regulation

Launch Of The Hong Kong Securities And Futures Commission Regulatory Sandbox

Mondovisione

SFC issued a circular announcing the launch of the SFC Regulatory Sandbox to provide a confined regulatory environment for qualified firms to conduct regulated activities utilising fintech.

Accelerators & Hubs

Copenhagen Joins Battle To lure Financial Firms From London After Brexit

Huw Jones – Reuters

Denmark’s business minister Brian Mikkelsen was meeting fintech firms in London on Friday as part of a two-day drive to lure them from Britain after Brexit.

FAO: Denmark has its advantages, of course, but I am sure fintech startups will find the country’s cost of living as one big disadvantage… btw, find below a powerful competitor in Europe’s future fintech sector, and find out why:

All Eyes East: The Rise Of Central And Eastern Europe’s Tech Scene

Conrad Egusa – The Next Web

FAO: Because the cost of living is far lower than in the West, because there is a vast brain pool here (have discussed this aspect earlier this year), because most of the CEE governments have tax incentives in this sector, and because it’s more fun… 😉

DNT: Interesting and useful overview on three of the growing ecosystems of Central and Eastern Europe: Estonia, Hungary and Czech Republic.

Analysis

Fintech: Is Banking For Wimps?

Euromoney

All those fintech partnerships are in vain, because in the end banks will lose to the tech giants, not the startups.

 

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

DNT: Decebal Nicolaie Todarita, Editor FinTech Daily News