1.UK - FinTech
“Money&Co chief Nicola Horlick has said that the platform was lending with caution even before Covid-19, due to concerns of a Brexit-induced economic downturn.
The City superwoman said the peer-to-peer business lender had decided purely to offer secured loans even before the pandemic hit, focussing on music loans and litigation finance.
Money&Co’s music loans are secured on music rights. Its litigation loans are secured on the legal case, with an insurance policy to cover costs if the claimant does not win the case.
“We didn’t know there would be a pandemic, but we thought there would be a very sluggish economy and potentially a recession, so we were already prepared to an extent,” Horlick said.
“For the small- and medium-sized enterprises (SMEs) we’ve already lent to, we’ve extended their loans or made them interest-only. “We do everything we can to help our borrowers but at this moment we don’t want to take on new SME borrowers because of what could happen to their businesses.”
Horlick has argued that a V-shaped recovery will be impossible because many businesses will never reopen.
She said the government needs to be proactive to facilitate a recovery.”
2. UK - FinTech
“Property lending platform CrowdProperty yesterday revealed it’s now lent over £75m to developers since 2014.
The cash has helped fund the development of 1,000 homes worth £170m, with over £60m spent on labour, materials and services in the UK economy.
“CrowdProperty’s last 18 projects have been funded in 41 seconds on average, due to the 100% capital and interest payback track record and trusted brand we have built over 6 years of quality lending supported by deep property expertise, rigorous due diligence, first charge security, best-in-class operating practices and market-leading transparency,” said CEO Mike Bristow.
Bristow says the business has seen “record levels” of funding applications in the last few months, with many from developers who’ve had traditional lenders reject or refuse to lend.”
3. UK – FinTech
“Recognise, a subsidiary of the City of London Group, is currently building out its technology platform ahead of a launch planned for the third quarter of this year.
The startup applied for a banking licence at the end of 2019 and is hoping to have this granted by the end of 2020 according to its investor presentation.
4. UK – SMEs
"It’s going to take quite some time for small UK businesses to fully recover from the economic consequences of the Covid-19 pandemic, according to a new report from law firm Buckworths.
Based on a poll of 500 UK SME owners and decision-makers, the report states that a quarter of UK IT businesses believe it will take more than a year to recover from the effects of the pandemic. For another quarter (24 percent), this process may take up to two years.
Despite the UK government's job retention scheme, designed to prevent widespread redundancies, more than a third (36 percent) do not think it is enough to keep them afloat."
5. US – FinTech
More extraordinary claims from the world of blockchain. Crowdfundinsider reports:
“Quant, a platform that aims to connect the world’s networks to blockchain to distributed ledger technology (DLT) solutions with “just three lines of code,” has reportedly partnered with Oracle, a leading provider of database software.
The Quant team confirmed that it would be leveraging Oracle Cloud, a solution that aims to make cloud computing fully enterprise-grade while supporting public and private options.
Quant says it will use Oracle Cloud to run mission critical business applications on interoperable DLTs that will be powered by Overledger, which connects global networks to blockchain-based platforms.”