News Briefing - Crowdfunding, SME And Alternative Finance

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 1. UK – FinTech

Crowdfund Insider reports:

LendInvest, a UK-based online marketplace for mortgages, announced on Monday it has securitized £259 million of UK prime Buy-to-Let mortgage loans in an oversubscribed RMBS transaction. LendInvest claims it is the UK’s first marketplace platform to securitise its own assets and the securitization received an AAA rating (for 83% of the securitization) from both Moody’s and Fitch, the global credit rating agencies.

“The securitization is part of a strategy being executed by LendInvest to continue to drive down its cost of capital, and continue its move towards the mainstream mortgage market. The senior tranche for the inaugural issue was priced at 130bps over SONIA. In addition to reducing the cost of funding, the process frees up LendInvest’s capacity to fund future Buy-to-Let mortgage loans as the company continues to win market share from traditional bank lenders.”

 

Christian Faes, Co-Founder and CEO of LendInvest, stated:

“This is a significant milestone for LendInvest. This securitisation provides us with funding that is cheaper than if we were a small deposit-taking bank, and proves out our business model and its scalability. We are building a new type of financial services business that can properly take on and challenge the banks in this market. The securitisation received strong support from the market, with new institutions coming into the fold, and buying loans originated through the LendInvest platform.”

 

2. UK – FinTech

 

Politico reports.

“ Amid the country’s stalemate over Brexit, politicians and industry are divided on how to tackle the digital economy.’

 

3. UK – FinTech

Peer2Peer Finance News reports.

“A NEW FINTECH community platform has been launched, with plans to become “go-to destination for people working in the industry to get access to funding, knowledge, and talent.”

The FinTech Alliance was formed through a partnership with the Department for International Trade (DIT), as a way to promote fintech growth across the country, and to build new fintech bridges.

More than 500 companies and individuals from across the UK have already joined, including property lender Landbay, and lending marketplace Funding Xchange.

Members can use the platform to access and share insights and news from the fintech sector, and it can also be used to connect with investors, receive updates on the latest policy and regulatory changes, and find new talent.

The platform intends to open up to international opportunities soon, with the  aim of attracting global investment into UK firms and strengthening the UK’s reputation as a global fintech leader.”

 

4. International – FinTech

Cryptocurrency Guide reports:

“A meeting of G20 Finance Ministers and Central Bank Governors has passed a resolution to apply recently amended FATF (Financial Action Task Force on Money Laundering) guidelines to cryptocurrencies.

“We reaffirm our commitment to applying the recently amended FATF standards to virtual assets and related providers for AML and CFT,” says the resolution, passed in the Japanese city of Fukuoka.

The Ministers and Governors said they look forward to the adoption of the FATF Interpretive Note and Guidance by the Task Force at its plenary meeting later this month.

“We welcome IOSCO’s work on crypto-asset trading platforms related to consumer and investor protection and market integrity. We welcome the FSB’s directory of crypto-asset regulators, and its report on work underway, regulatory approaches and potential gaps relating to crypto-assets,” the resolution says.

The high level meeting concluded that while cryptocurrencies don’t pose any threat to global financial stability, it called on the G20 member countries to be alert for potential risks they pose.

FATF is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.

France, the United States, the United Kingdom, Germany, Japan, Italy, Canada, the European Union, Argentina, Australia, Brazil, China, India, Indonesia, Mexico, South Korea, Russia, Saudi Arabia, South Africa and Turkey make up the G20.

During the meeting of G20 Finance Ministers and Central Bank Governors, Japan had offered to share its experience in cryptocurrency guidelines with regulators of other G20 member states.’

 

5. International – AltFi

Yahoo Finance carries a release:

“Deskera, Asia's leading Cloud-based platform, and Funding Societies, Southeast Asia's largest Peer-to-Peer (P2P) financing platform, is entering into a partnership with the aim to support underserved SMEs by providing alternative financing solutions. With the two organisations working together, SMEs will also be able to take a step into the digitisation of financing. In using such digital methods, businesses are able to apply for funds without the inconvenience of paperwork. This partnership will be the first of its kind, where one of the largest P2P financing platform (in the region), and Asia's leading cloud-based platform will come together to provide innovative financing solutions for small and medium enterprises (SMEs) in Singapore to optimise their cash flow.”