News Briefing - Crowdfunding, SME And Alternative Finance

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The essentials are here and will be regularly updated. If you want to be well-informed about the investment crowdfunding scene, and you're short of time, this is the place to visit.

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Today's Briefing

1. UK – P2P

 

P2P Finance News reports on MarketInvoice’s latest figures.

 

“MARKETINVOICE is celebrating yet another record quarter, as the peer-to-peer invoice finance platform edges closer to the £2bn funding milestone.

The London-headquartered company said on Monday that £196.2m of invoices were funded in the third quarter of 2017, a 67 per cent year-on-year increase. This brings the cumulative value of invoices funded since the platform’s 2011 launch to £1.55bn, of which £495m has been funded in 2017 alone.”

2. UK – FinTech

 

AltFi says that FinTech banking disruption is increasing.

 

“Big banks need to respond to rapidly changing customer preferences, digital interfaces and platform businesses to thrive post-crisis, according to a new report from Oliver Wyman.

 

While the performance of European banks has recovered from the lows of 2008, their average return on capital of 4.4 per cent remains well below the minimum expected rate of return, Beyond Restructuring: The New Agenda - European Banking 2017, found.

 

The report charts the progress European banks have made in responding to the commercial and regulatory consequences of the crisis in the last decade; noting that there are large geographic differences. Banks in some EU markets have completed this restructuring process, whilst other markets continue to struggle.

 

Whatever their progress on the restructuring agenda, all of Europe’s banks now find themselves having to deal with a rapidly changing environment. New customer preferences, digital interfaces and platform businesses are changing how customers bank – a trend that will be accelerated by regulators’ push for open banking. At the same time, automation and data tools are creating the opportunity and imperative to significantly cut cost bases.

 

Lindsey Naylor, partner at Oliver Wyman and lead author of the report, says: “Europe’s banks have spent the last nine years working hard to recover from the financial crisis, repairing their balance sheets, making the changes demanded by new regulations and exiting structurally unprofitable businesses, all in a low growth context.”

3. International – FinTech

 

Crowdfundinsider reports on the Swiss authorities’ take on ICOs.

“The Financial Market Supervisory Authority (FINMA) in Switzerland commented on the initial coin offerings (ICOs) market in Switzerland last month. FINMA issued Guidance 04/2017 on this topic just as it announced it was investigating a number of ICOs to determine if laws had been broken. During the same week of this announcement, FINMA shut down an ICO .

The cautionary statement by Swiss regulators was partnered with a statement that depending on how an ICO is structured, some parts of the procedure may already be covered by existing regulations. This indicated that Swiss Authorities were inclined to allow ICOs to continue. Just follow the existing rules. This is similar in approach as to what the US SEC has taken.

A few days ago, KPMG added their voice to the discussion explaining the posture by FINMA was of note for two reasons:

  • It’s an indirect declaration by a regulator that recognizes an ICO as a new means of financing – creating juridical certitude – which doesn’t exist in other countries.
  •  FINMA is providing a legal framework for ICOs and clarity regarding what ICO promoters must consider. FINMA has also declared that it will initiate enforcement procedures against an ICO if a breach is detected”

 


4. International – P2P

 

The Economic Times of India runs an opinion piece on the new regulatory system:

“The Reserve Bank of India’s (RBI) directions for peer-to-peer (P2P) lending platforms are welcome, warts and all. Less than a dozen of these exist now, to introduce lenders and borrowers online, complete with information on their credit history. P2P lenders became popular in America a few years ago: they mediated $5.5 billion in 2014 and $12 billion in 2015. Last year saw the market shrink to $9.8 billion. P2Ps facilitate loans in return for small commissions.”

 

5. International – Equity

 

The Market Mogul looks at successful equity exits around the world.

 

6. International – P2P

 

Moody’s Investor Service has upgraded 4Finance‘s credit ratings to B2 from B3. The upgrade comes as 4finance says it has passed € 5 billion in loan originations, reports Crowdfundinsider.

"The 4finance S.A. senior unsecured issuer rating was also upgraded to B2 from B3. The outlook on all ratings is stable.

The Latvia based lender claims the title of Europe’s largest online and mobile consumer lending group.

The Moody’s statement cited key drivers for the upgrade as “the moderating risk appetite and growth strategy relative to the aggressive growth strategy it pursued in its first years of existence, the predictive track record of its scoring and pricing models, and the benefits derived from 4finance’s acquisition of TBI Bank in 2016”.

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The Daily News Briefing is sponsored by Money&Co. and edited by Martin Baker, Director of Content and Communications at Money&Co and Editorial Director of Another Crowd.

It is provided as a free information service, based upon fair use. Nothing in the Daily Briefing is privileged, confidential or investment advice.

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