News Briefing - Crowdfunding, SME And Alternative Finance

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1.UK – P2P

Following the recent changes on its marketplace lending platform, UK-based LendInvest announced the launch of an exclusive five-year fix product through the lender’s Buy to Let Club, according to Crowdfundinsider.


“The lender reported that the product is Designed for landlords who wish to utilize a higher fee, lower interest rate loan, and allows the borrower to leverage their cash flow.

According to LendInvest, the five year fixed rate of 2.75% is available up to 75% LTV through the distributor, with a product fee of 4.99% which can be added to the loan. Affordability is then calculated at an Interest Cover Ratio (ICR) of 140% for higher rate taxpayers; 125% for limited companies and basic rate taxpayers, at an assessment rate of 4.19% against the total gross loan amount. The mortgage is available on loans up to £500,000 for purchase and remortgages, and suitable for standard property types and HMO’s.”


2. UK – AltFi


Sharein looks at compensation for failed equity crowdfunding investments.



3. UK – FinTech


Love Money on robo advice and fees.


“Over a quarter of us don’t know what we pay for their investment platform or believe – mistakenly – that we don’t pay anything, according to the Financial Conduct Authority.

High platforms costs aren’t the only problem: there are hidden fees such as exit fees, which the FCA are considering banning.

The difference in fees charged by different platforms could be costing people hundreds of pounds – up to £650 on a £5,000 investment over five years, the FCA found.

In this article, we compare the costs of robo-investment platforms, otherwise known as assisted or digital investment platforms, where the platforms help pick the funds for you.”


4. US – FinTech/Regulation


FinExtra reports:


Hot on the heels of its decision to start accepting fintech charter applications, the Office of the Comptroller of the Currency (OCC) is reaching out to the industry, inviting interested parties to come in to its New York offices for a chat during 'innovation office hours'.

Firms can schedule hour-long one-on-one meetings with OCC officials to discuss financial technology, new products or services, partnering with a bank or fintech company, or "other matters related to responsible innovation in the federal banking system".

The offer is a short-term initiative, with firms having until 17 August to request a meeting, which will then take place between 25 and 27 September.

The office hours plan comes a week after the OCC confirmed that it is set to start accepting applications for national bank charters from non-depository fintech firms, opening up a new country-wide regulatory route for startups.”


5. International – FinTech


Crowdfundinsider reports:


ORCA Alliance is reporting that its initial coin offering (ICO) easily raised its $1.5 million target in just 50 hours. The Latvia based Fintech is building an “Open Banking” platform seeks to enable digital banking that is crypto friendly. In June, Orca reported it took just 6 seconds to transfer fiat to crypto using their test network.

Orca commented on the challenging crypto market that has become littered with zombie coins and believe that demand for their coins is indicative of the mission they have chosen. Orca says the second round of their token sale will commence on August 27th. For this round, ORCA is raising a total of 9,800,000 USD. This offering is not available to US and Canadian investors.

Natan Avidan, CEO of ORCA Alliance, said they were pleased to have finally launched their crowdsale;

“It took a large team and approximately 8 months to get here. We are even more happy with the early round results. In this bear market and with all the negativity surrounding ICOs, it is extremely hard to raise funds. I want to personally extend gratitude to everyone who has been with us from the beginning and showed us their support.”

ORCA Alliance is working on a digital marketplace for financial services where users can link their wallets, bank, cryptocurrency and payment accounts into one dashboard – all using bespoke APIs.”