News Briefing - Crowdfunding, SME And Alternative Finance

a panel of crowdfunding experts at an Another Crowd event

1.UK – P2P

Peer 2 Peer Financial News reports:

"MONEY&CO founder Nicola Horlick has warned that a no-deal Brexit could hurt peer-to-peer lending platforms which rely on asset-backed investments.

Horlick, who earned the moniker ‘City superwoman’ while juggling a successful investment management career and family life, told Peer2Peer Finance News that she was “very anxious” about Brexit.

She expressed particular concerns about the impact that a no-deal EU exit could have on the UK’s growing property-backed and asset-backed lending market.

“Because we look for assets, we have a heavy weighting in our capital loans in the engineering sector,” Horlick said. “This manufacturing and engineering sectors make up something like 10-11 per cent of the UKs GDP, but around 40 per cent of our loans are in manufacturing because that’s where the assets are.”

Many P2P platforms offer asset-backed lending, with assets ranging from property, leaseholds and collectable assets, to machinery or warehouse stock.

Horlick added that uncertainty over the future of import and export duty could do further damage to those businesses that are in the manufacturing sector, placing a series of P2P loans at risk of default."



2. UK – AltFi

 

The faith-focused think-tank Ekklesia reports on an FCA debt-management sector review.

“The Financial Conduct Authority (FCA) has published its second thematic review of the debt management sector, looking at commercial and not-for-profit firms that provide debt advice and administer debt management plans to help customers deal with their debts.

The FCA’s first thematic review in 2015 found significant concerns with the quality of advice being given by commercial providers in particular. The review shows that most customers are getting better advice and outcomes today than was previously the case.

However, whilst firms’ identification and treatment of vulnerable consumers is generally better than at the time of the first review, two thirds of the firms that the FCA looked at still needed to make improvements in this area. The review also identified a general need for firms to provide better advice to couples, or others seeking help together. Some firms routinely failed to consider or discuss what debt solutions are available and suitable for each customer individually.”



3. UK – AltFi

 

The FT reports demands for change at Metro Bank. Critics cite “weak corporate governance”.

 

“Regulators are pressing for an overhaul of Metro Bank's board, amid mounting investor criticism of the troubled lender's weak corporate governance.”

 

4. UK – Real Estate

 

Propio, a UK-based property investment platform, has recently launched an equity crowdfunding campaign on Crowdcube to raise £300,000. Founded in 2016, and launched in 2017, Propio describes itself as a the home of the Property ISA.  Its platform notably combines decades of property expertise with data and tech to engineer stable, property-backed, ISA-eligible investments that aren’t exposed to the usual fluctuations of the property market.”



5. International – AltFi

 

Crowdfund Insider on events in Puerto Rico.

  

‘George Joyner has Puerto Rico in his blood. The Commissioner of the Office of Financial Institutions is a veteran player who has spent his whole career in the fast-growing banking and, latterly, FinTech industry in the US territory of Puerto Rico, with the exception of two years in Florida. Born on the mainland, he was brought to San Juan as a six-month-old baby. Bilingual in Spanish and English, Joyner is an American and a passionate Puerto Rican.

Puerto Rico’s tax-favored status has proved attractive to both mainstream finance and players from cryptoland. Joyner understands and shares the local passion for growth, but as the gatekeeper of Puerto Rican standards, he will only allow growth to occur in the fashion he considers prudent.

Crowdfund Insider caught up with him at the recent financial summit organised by one of Puerto Rico’s newest financial institutions, Kinetic International.”