News Briefing - Crowdfunding, SME And Alternative Finance

Crowd of Asian people celebrating

1.UK  - FinTech

AltFi reports:

“The UK’s financial institutions have lent out over £34.9bn to SMEs under the government-backed coronavirus loan schemes.

The rate of lending has slowed for the second week in a row, with just under £3.6bn more being lent out than last week, compared to £4bn the week before.

Bounce Back Loans (BBLS) are still the most popular scheme, with over £23.7bn dished out by UK lenders, a jump of nearly £2.5bn from the week before.

Coronavirus Business Interruption Loans (CBILS) are trailing behind with just over £9.5bn lent out, a small increase of only £640m in the week beginning 1 June 2020.

The offering for larger businesses, the Coronavirus Large Business Interruption Loan Scheme (CLBILS) is still by far the least popular government-backed loan scheme, with only £1.57bn being given out in total.

Bounce Back Loan acceptance rate remains the highest of the loans on offer, sitting at just over 81 per cent.

CBILS has a 51 per cent acceptance rate, followed by CLBILS which has just under a 40 per cent acceptance rate, a marked increase from the previous week’s figure of just under 33 per cent.

As well as lending slowing, the number of applications pouring in has also dropped slightly.”

2. UK – AltFi

The Business desk reports a £1 million funding round for direct Lender Assetz Capital.

 

3. UK – AltFi

The Fintech Times reports:

“Funding Xchange announces the appointment of industry leaders to advise on the rollout of its Credit-as-a-Service proposition for banks and lenders.

The advisory board has been formed to provide strategic guidance and ensure the Credit-as-a-Service proposition supports lenders who are facing issues digitalising processes. The service ultimately aims to create a competitive advantage for lenders.

The advisory board comprises senior leaders from the finance sector with backgrounds from established banks, challenger banks and FinTechs:

  • Simon Featherstone, previously MD of LBG Commercial Finance, Bibby Financial Services and Shawbrook Bank brings a wealth of experience in the banking and lending sector. Simon also holds advisory and non-executive director roles across the financial services industry.
  • Philip George, previously CEO of First National Bank, and co-founder of Shawbrook Bank. Philip brings over 40 years’ experience in the banking sector to the board.
  • John Allbrook, previously MD GE Capital European Equipment Finance, Chairman of Syscap, is currently Chairman of IGF. John has broad financial services sector experience with specific knowledge of asset finance and asset-based lending.
  • Paul Hewitt, Paul is a non-executive chairman and one of the co-founders of Kintell. Following 25 years of experience in finance, Paul has been a non-executive director of 17 businesses and has backed several successful start-ups and early-stage ventures.”


4. International – FinTech

Germany’s leading public governance school offers a paper in the threat posed to European banks by the Covid-19 crisis.

5. International – FinTech

Researchers at the Leiden Law School have argued that there’s currently a lack of clarity regarding the legal proceedings and investor rights if digital asset custodians become insolvent. Crowdfundinsider reports:

Matthias HaentjensTycho de Graaf and Ilya Kokorin from Leiden Law School noted in a paper titled, “The Failed Hopes of Disintermediation: Crypto-custodian Insolvency, Legal Risks and How to Avoid Them,” that they looked at how customers’ Bitcoin (BTC) deposits are managed by leading US-based exchanges including Coinbase, Gemini, and Kraken.

The researchers found that the rights of clients, if an exchange becomes insolvent, largely depend on applicable insolvency and property laws. However, this may be “complicated by a lack of harmonized private international law rules” that would specifically apply to cryptocurrencies and the business relations between digital asset custodians and their clients.”