News Briefing - Crowdfunding, SME And Alternative Finance

many hands in a circle

1.UK – P2P

The Sunday Times reports:

“One of the biggest peer-to-peer lenders could soon rejoin the industry’s trade association, two years after it left following a scandal over bad loans.

RateSetter resigned its membership of the Peer-to-Peer Finance Association (P2PFA) when it emerged that it had stepped in to bail out bad loans without disclosing its actions to investors — a breach of the body’s transparency rules.

Officials at the P2PFA are keen for RateSetter to become a member again, and hope to persuade the lender to rejoin by the end of the year, according to industry sources.

RateSetter, which along with Funding Circle and Zopa was one of the founding members of P2PFA, said it had not yet been approached.”


 

2. UK – P2P

 

Peer2Peer Finance News asks how useful FCA regulation is for distressed P2P investors.

 

 

“WHEN Collateral collapsed at the end of February 2018, it quickly emerged that the peer-to-peer lender had been operating without the correct regulatory permissions.

“The company was operating in the belief that it was authorised and regulated by the Financial Conduct Authority (FCA) under interim permission,” said a letter from then-administrator Refresh Recovery. “It has transpired that this is not the case and consequently the company has ceased lending.”

As Collateral was unregulated, it did not necessarily adhere to the FCA’s requirements, which naturally had an impact on the administration process when considering aspects such as wind-down plans.

 

3. UK – AltFi

 

More on LCF from Jim Armitage of the Evening Standard. This one has some actual news in it.


 

4. US – FinTech

Crowdfund Insider reports some whining from Goldman Sachs.

“Goldman Sachs (NYSE:GS) CEO David Salomon reportedly told an audience last week that his company is getting zero credit for its digital bank startup Marcus. “If we were out in Silicon Valley and made 20% of the progress that we’ve made, we would get a lot of credit and people would be throwing money at us to own a piece of this business,” said Salomon, according to CNBC.

Fintech Marcus is apparently capturing deposits at an accelerated rate of $1 billion a month – juiced by its comparatively high-interest rate (currently 2.25%) paid to savers.”

5. International – FinTech

Crowdfund Insider reports events in Hong Kong.

King Leung has been appointed Head of Fintech at InvestHK which took effect in early May.

Leung will lead a specialist Fintech team with the objective of attracting top innovativeFfintech companies, entrepreneurs, investors, accelerators and R&D institutions from Mainland China and overseas to Hong Kong.

Leung is said to have over 15 years of entrepreneurial experience. He founded a data analytics/CRM startup in Hong Kong, and invested in new ventures involving Conversational AI and Big Data Exchange based InsurTech business.”