1.UK – FinTech
P2P Finance News reports the completion of BSides Music and £1 million-worth of litigation finance.
2. UK – FinTech
“London-based fintech startup Previse has secured $11m (£8.8m) in fresh funding as the invoice payment platform defied wider economic gloom sparked by the coronavirus crisis.
Previse, which was founded in 2016, uses artificial intelligence to help suppliers get invoices paid instantly when no manual intervention is needed.”
3. UK – AltFi
The Competition and Markets Authority (CMA) has ordered Metro Bank to repay £11.4m to customers it overcharged as a result of failing to notify them they had fallen into an unarranged overdraft and not providing adequate information to those affected, reports AltFi.
“Metro Bank breached the Retail Banking Market Investigation Order 2017, twice, by failing to inform customers by 10am of extra charges and also by incorrectly wording SMS alerts.
Following the mistakes in December 2019, nearly 130,000 customers were affected by the breach.”
4. UK – AltFi
This Friday tens of thousands of small businesses across the country will have to pay furloughed employees, despite cash from HMRC not expected to arrive until Monday at the earliest, according to AltFi.
“The looming SME cash crunch puts 1m+ furloughed employees at risk of either not being paid, or facing significant delays to their salaries while their employer waits for cash to arrive.
By some estimates the furlough cash owed to small businesses by HMRC is already well over £1bn and could be as high as £20bn depending on how many SMEs register each day.
In the face of this overwhelming challenge, fintech MarketFinance is stepping up by today repurposing its invoice-financing engine to solve the problem.”
5. US – FinTech
Brilliant, unintentional comedy from Crowdfundinsider – “somewhat shocking but not unexpected”… Meanwhile, more horrors reported from Lending Club.
“In a somewhat shocking but not unexpected move, LendingClub (NYSE:LC) has announced a round of layoffs and furloughs today as the COVID-19 pandemic has hit the Fintech hard. In brief, loan originations for the mainly consumer lender, have tanked requiring the Fintech to reposition itself to survive the economic struggle.
According to an 8K filed by LendingClub, the Board of Directors have approved a restructuring plan to address the impact of the Coronavirus on the Fintech’s business by repositioning its expense base to “better reflect current loan volume and better position the Company for profitability to achieve its strategic goals when the economy and business stabilizes.”
The plan includes workforce reductions affecting approximately 460 employees. As we understand it, LendingClub will be laying off and furloughing employees at all three locations (SF, Utah, & MS) and across all levels.
The 8K states that Steven Alloca, President of LendingClub, has seen his position terminated. His last day is scheduled for May 12th.”