News Briefing - Crowdfunding, SME And Alternative Finance

the silicon chip inside her head

1.UK – P2P

More shakeout in the P2P sector.

Plum, the AI-powered savings app, has ended its partnership with peer-to-peer lending platform Ratesetter ahead of new rules which are aimed at better protecting investors using peer-to-peer platforms.

The regulator, the Financial Conduct Authority (FCA), is introduding a raft of new rules including measures which mean P2P lenders will have to introduce appropriateness tests and can only market their products to sophisticated, high-net-worth individuals or those who commit only to investing a maximum of 10 percent of their assets.

The new rules are being introduced following the high-profile failure of Lendy, the peer-to-peer network which collapsed with £165m in outstanding loans, earlier this year.

The regulator has been criticised in some quarters for its crackdown on P2P lending which come into force on the 9th of December.” 


2. UK – P2P

Fintech pioneer Zopa has raised its largest funding round to date, with a £140m injection from IAG Capital, to safeguard its plans to launch a full consumer bank, according to AltFi. Full article here. 

“The new investment will allow Zopa’s new banking platform to fulfil regulatory capital requirements, a key requirement for the lifting of restrictions on its bank licence. The investment is subject to final approvals, including "regulatory change of control," according to a media statement. 

Zopa continues to hold its banking licence with restrictions and is working with the regulator to obtain its full licence.

Once approved, the investment will be provided by IAG Silverstripe, an investment arm of IAG Capital, the private investment group specialising in digital and technology-led businesses. IAG Silverstripe is an existing minority investor in Zopa, having invested in October 2018.”


3. US – FinTech

Crowdfundinsider runs a horizon-scanning piece on the role of FinTech from a senior executive at Citi Ventures.

4. US – FinTech

Crypto unicorn news from Crowdfundinsider.

Fintech unicorn SoFi announced on Tuesday the New York State Department of Financial Services has approved its bitlicense application, allowing SoFi Invest customers in New York to trade cryptocurrencies on its platform through SoFi Digital Assets, LLC. SoFi revealed that the bitlicense approval comes just a couple of months after it launched the ability to trade cryptocurrencies within its investment platform.”


5. US – AltFi

AltFi reports:

Monzo has beefed up its offensive on the US market with the appointment of its first dedicated CEO to oversee its operations across the Atlantic.

TS Anil is taking up the new role at Monzo joining from Visa, where he was latterly Global Head of Products and Platforms at the US financial services company.

He will join the digital bank in early 2020 and report to Monzo CEO Tom Blomfield.

Anil has over 25 years’ experience in payments, credit cards and banking, working globally across EMEA, APAC and Americas.

His focus will be on driving growth in the US as well as hiring across product, operations and technology and overseeing engagement with US regulators.”