News Briefing - Crowdfunding, SME And Alternative Finance

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1. UK – FinTech 

There’s been more change at the top for Monzo as the digital bank has hired former Tandem Bank chief growth officer, Kunal Malani, reports AltFi.  

“Malani will step into the new role of general manager for borrowing on 1 August, taking over responsibilities from Tim Trailor, Monzo’s former chief credit officer, who left the bank in May.  

The newest ‘Monzonaut’ previously spearheaded Tandem Bank’s growth for over a year and before that worked as the regional head of banking products for HSBC in Dubai and was the commercial director for global lending and liability products at Barclays for five years.” 

 

2. UK - FinTech 

But as Finextra reports, The changes could be prompted by some grim figures… 

 

“The fallout from the Covid-19 pandemic casts "significant doubt" on Monzo's ability to continue as a going concern, says the challenger bank in its annual report, which shows a £113.8 million loss for the year. 

Monzo has won over 4.4 million current account holders since its launch in 2015, taking on the UK high street giants with its app-based services and securing a valuation in the billions of pounds.

However, it has been battered by Covid-19, with new CEO TS Anil admitting in the annual report that the virus and its economic consequences are having a "significant impact" on the bank.

Anil - who recently took over from founder Tom Blomfield - insists that he is confident that the problems are short term and the bank stresses that it has a strong liquidity position and that things will operate as normal for customers.

However, the pandemic and associated social distancing and travel restrictions "create a significant risk to our revenue streams". 

  

3. UK – FinTech 

Business Leader offers a guide to launching a FinTech in the time of Covid. 

4. UK – AltFi 

11FS offers a primer on modern banking services. 

5. International – FinTech 

Crowdfundinsider runs a feature interview with the founder of OurCrowd. 

OurCrowd is one of the largest investment crowdfunding platforms in the world. Based in Israel but investing globally, OurCrowd reports over $1.5 billion in committed capital and a growing number of institutional investors. 

Since platform launch, OurCrowd has had over 35 exits including high profile IPOs like Insurtech Lemonade (NYSE:LMND) that doubled after listing on the NYSE. Beyond Meat (NASDAQ:BYNDis another standout IPO and OurCrowd portfolio company that went public at $25/share and today trades more than 4X that number. 

During this year’s annual Global Summit, OurCrowd was already talking about its Medtech portfolio companies that are well-positioned to aid in the looming health crisis. At that time, it was hard to imagine how COVID would impact the global economy and the forced digitization that businesses encountered.”