News Briefing - Crowdfunding, SME And Alternative Finance

Crowd on a railway platform, waiting for a train.

1.UK – P2P

AltFi reports a development that may be long overdue.

Funding Circle is piloting a scheme that involves it referring borrowers wanting large, unsecured loans away from its peer-to-peer lending platform to rivals.

Funding Circle is referring potential new customers to fintech rivals, small business lenders Iwoca and MarketInvoice, as well as the French bank BNP Paribas.

Instead of turning down the customers, the peer-to-peer lender is advising borrowers wanting unsecured loans above £500,000 to sign up with its rivals, which it receives a referral fee for.”

 2. UK – FinTech

 

From Friday’s Financial News:

“Money&Co, the loss-making peer-to-peer lending platform set up in 2013 by City fund manager Nicola Horlick, plans to apply for a UK banking licence next year to allow it to begin taking deposits from retail investors.”

  

3. US – FinTech

San Francisco-based Fintech firm Ripple announced recently that it has surpassed 300 customers, according to Crowdfundinsider.

 

4. International – FinTech

 

CityA.M. reports:

“Fast-growing fintech firm Revolut will confirm today the worst kept secret in the City; Martin Gilbert, the asset management titan, is to become its new non-executive chairman. 

The move – unsurprising though it may be – is a stark reminder of the startup company’s ambitions to become a global bank.

In the last six months alone, chief executive Nikolay Storonsky has lured in some of the banking industry’s biggest names.”

 

5. International – FinTech

 

London-based venture capital fund Balderton Capital has announced a new $400m fund to invest in European Series A startups, according to AltFi.

“Partner Suranga Chandratillake told AltFi that 20% of Balderton’s last fund went into fintech, and that a similar percentage would be invested this time.

“We are bullish, there is still a huge amount of opportunity in that space. We are looking for people who have a unique take on the market,” he said.

Balderton’s existing portfolio includes some of the industry’s leading names like Revolut, GoCardless, ComplyAdvantage, Crowdcube, Nutmeg and more.

Chandratillake said going forward there were three things the VC will be looking for when investing in fintech companies: “multi-million dollar markets, an interesting founder who has a particular personal element to their mission, and people who want to make a lasting impact”. “