News Briefing - Crowdfunding, SME And Alternative Finance

crowdfunders to replace banks lending and savings

1.UK – P2P


Peer2Peer Finance News on the woes of Funding Circle’s investment trust.

“FUNDING Circle’s dedicated investment trust has seen its largest-ever decline in monthly net asset value (NAV) returns, partly due t  o an underperforming cohort of UK loans.

The Funding Circle SME Income Fund (FCIF) saw its NAV drop by 1.4 per cent in November, which was attributed to the adoption of new IFRS9 accounting standards – meaning expected bad debts are included in performance data – and lower projected returns for loans provided in 2016 and 2017.

FCIF said that the NAV reduction was largely attributable to the IFRS 9 changes causing an impairment on the revaluation of its deal with the European Investment Bank, which invests in UK loans via Funding Circle’s platform.

The fund also cited high hedging costs on US dollar assets and increased running costs as headwinds.

This follows a reduction in Funding Circle’s projected returns for some of its UK loans originated in 2016 and 2017.

It said that while market conditions are “generally favourable” across all the markets it operates in, higher consumer insolvencies in the UK had had a knock-on effect on some of its loans issued in those years.”



2. International – AltFi

 

The Adviser reports an Australian  deal:

 

“Following the announcement that the Australian Prudential Regulation Authority (APRA) granted a restricted ADI licence to fintech lender Xinja, co-founder and CEO Eric Wilson told The Adviser that the bank is committed to the broker channel as it progresses towards a full-scale launch of its home loan products.”


3. International – AltFi

 

Crowdfund Insider reports on Dubai initiatives in property crowdfunding

“The Dubai Financial Services Authority (DFSA) has initiated a consultation on property crowdfunding.

Released last week, the consultation addresses a proposal to add a new subcategory for property investment crowdfunding platforms.

The DFSA notes that like many financial services, crowdfunding has evolved. Originally designed to improve access to capital for SMEs and startups, crowdfunding is being used for other assets classes such as real estate.

The DFSA states that property crowdfunding “presents some different risks that are not addressed by their current “Investment Crowdfunding framework.”

4. International – FinTech

 

A release on the expansion of Sweden's FundedbyMe into the Middle East.

“Following the strategic growth of FundedByMe, aiming at becoming the most global crowdfunding platform, today the platform announces final steps to launch its operations in Dubai for the UAE and the MENA region. An in-principle license has been granted conditional to completing the setup of the local entity. Operations will commence early in 2019.

FundedByMe, founded in Sweden in 2011, is the fastest growing crowdfunding platform in Scandinavia with offices in Sweden, Finland, Poland, The Netherlands, Singapore and Malaysia. Now entering Dubai as the region’s first equity crowdfunding platform, fully incorporated at the DIFC and fully regulated by the DFSA.”


5. International – FinTech

Aithority runs an interview with the principal of Debitum Network.

 

“After some time, an idea of an advanced ecosystem for alternative business lending combined with our passion for the newest technologies allowed to create Debitum Network, a decentralized and global alternative lending/borrowing ecosystem.

How are blockchain investors different from the traditional ones?

Blockchain investors tend to be pioneers who are open to taking more risks. This is because they are looking to be on the frontline of a new technological revolution. Blockchain investors are ok with the fact that a company has to do a lot of research and development before actually launching their product. At the same time, the decentralized infrastructure of crypto allows many smaller investors to take part in Initial Coin Offerings (ICOs) and Security Token Offerings (STOs) and to contribute to and be part of a project.”