News Briefing - Crowdfunding, SME And Alternative Finance

crowd in nightclub, seen from a DJ point of view

1.UK – P2P

THE COLLAPSE of mini bonds provider London Capital & Finance (LCF) shows the dangers of chasing high interest rates while highlighting the relative stability of peer-to-peer lending, says Orca Money, as reported in Peer2Peer Finance News.

“The P2P investment aggregator’s chief executive Iain Niblock (pictured) said investors were “duped” by the promise of an eight per cent interest rate on LCF bonds. These bonds were used to make loans to corporate borrowers to provide capital for further investment, and turned out not to be ISA eligible.

The FCA estimates 14,000 people had invested £214m through the bonds. The firm went into administration in January after the regulator ordered it to halt its regulated activity and stop marketing products.

“The high-profile collapse of mini bonds provider London Capital & Finance (LCF) plc, highlights the perils of solely chasing an interest rate,” said Niblock.

“This is a horrible situation for the savers and investors who were duped into a highly attractive interest rate. The company cleverly used aggressive marketing campaigns and social networks to attract investors.

“Critics often focus on P2P lending being risky, but mini-bonds such as these seem to get an easier time, despite several high-profile failures in recent years such as Secured Energy Bonds and Providence Bonds, worth £7.5m and £8.15m respectively.”

Mini-bond provider collapse highlights safety of P2P, says Orca Money

2. UK – AltFi

 

Finance Magnates reports:

“At the fourth United Kingdom Financial Sevices Brexit Summit,Nausicaa Delfas, Executive Director of International at the Financial Conduct Authority (FCA) revealed that more than 1,000 European Union (EU) firms and fund managers have entered the Temporary Permissions Regime.

The more than 1,000 firms and fund managers represent many more thousands of funds, Delfas stated, with the deadline for notifications to be submitted just one week away on the 28th of March, 2019.”

 

3. International – FinTech

 

The Baltic Course  runs a feature on Lithuania.

 

In the ever-growing European alternative finance market, Lithuania - together with other Baltic countries - shows peculiarly favourable results among the crowdlending operators.

4. International – FinTech

JP Morgan, the only big bank to issue a crypto so far, downplays the importance of such devices in the payments space. Here’s Crowdfundinsider’s report.

 

“JP Morgan’s Global Head of eCommerce Solutions, Ron Karpovich, has told CNBCthat there is, “more partnership instead of competition,” in payments and that, “Ultimately behind the scenes, (payments disruptors) are going to have to use a bank to move funds.”

He also seemed to dismiss the likelihood that startup competitors would be able to significantly impact market share simply by offering cheaper fees for payments or money transmission:

“When it comes to margins and capabilities — payments is never something that grows in margin…nobody wants to pay for a payment…That’s one of the hardest parts of this process, so you have limited resources in the capability to sell, so you need highly efficient and large players. There’s so much consolidation in the payments space mainly because there’s a requirement to just have good efficiency in your ability to make payments.”

He also said that blockchain will make payments “faster or cheaper,” but will not be foregrounded in user experience.”

5. International – FinTech

 

Chinese cryptocurrency exchange CoinAll has announced the launch of a new user campaign which will last a month and features a 10,000 USDT bonus pool, according to Crowdfundinisider.

 

“It was revealed that users who complete the two-task mission will have a chance to share in the bonus. 

According to CoinAll, The campaign comprises two tasks. In task one, new users have to register on CoinAll and pass KYC1 verification. In the second task, new users need to deposit CoinAll-listed cryptocurrencies into their accounts. Upon completion of the two tasks, they will get the bonus. The campaign is also open to all digital asset traders from around the world.”