News Briefing - Crowdfunding, SME And Alternative Finance

three women and a man discuss reports

1. UK - P2P

P2P Finance News reports on moves by the FCA to tighten regulation of P2P promotional material:


“The Financial Conduct Authority (FCA) has signalled it may be concerned about inappropriate sales tactics in peer-to-peer lending.

The City watchdog’s 2019 sector review – which gives an indication of its business focus over the year – included P2P lending in a section warning about consumers falling into unsuitable investments.

“These products include contracts for difference, spreadbetting, structured products and investment-based crowdfunding and loan-based (‘peer-to- peer’) crowdfunding,” the regulator said.

“The complexity of these products means that consumers may find it difficult to assess the risks involved in investing in them.

“This means they frequently overestimate potential returns and underestimate the potential for capital loss.”

It highlighted “inappropriate sales tactics such as the use of headline grabbing return figures or mis-categorisation of retail investors as professional investors.”

2. International – FinTech


Retail News Asia reports:

“Indonesian peer-to-peer lending platform KoinWorks said in a statement that it has received an investment from US-based venture capital firm Quona Capital. “We’re very happy we could collaborate with Quona as one of our investors,” said Benedicto Haryono, chief executive and co-founder of KoinWorks. “With the inclusion of Quona among our line of investors, it will further help develop KoinWorks in becoming a responsible peer-to-peer lending firm and continue to innovate and provide a positive impact for society,” Benedicto added.

Quona Capital focuses on investment in financial technology companies it deems to have potential in facilitating access to financial products. The Washington-based company provides financial access in various regions, including Latin America, Africa, Britain and Asia. KoinWorks said in the statement that the collaboration between itself and Quona Capital is based on a mutual understanding that technology has a strong role in improving quality and access to financial access for those beyond the reach of traditional banks.”

3. International – FinTech

Crowdfund Insider reports:

“China-based X Financial (NYSE: FXE) announced on Thursday it has engaged Citic AIBank Corp. (AIBank) as its custodian bank. According to X Financial, the appointment is considered a significant step in the company’s strategy to strengthen trust and security in its platform.

As previously reported, X Financial is a profitable fintech that offers products beyond online lending including the Xiaoying Wealth Management platform. X Financial revealed that AIBank’s custodian services are now fully integrated within Xiaoying Wealth Management’s systems following two months of stringent testing which involved more than 30 teams of over 270 engineers.”


4. International – FinTech


The Asset reports on a Vietnamese investment from Japan.


“Ho Chi Minh City-based Money Forward Vietnam Co., Ltd., launched by its Japanese CEO Takayuki Tsuzuki on January 8, 2019, envisages a workforce with around 200 software engineers in the next two years.”

5. International – P2P


Telangana Today reports:


“P2P lending platform Cashkumar is focused on short term loans for salaried individuals. The Benguluru-headquartered company sees a fifth of the loan demand coming from Hyderabad and so far has disbursed about Rs 2 crore loans. Its co-founder and chief executive officer Dhiren Makhija summarises trends.”