News Briefing - Crowdfunding, SME And Alternative Finance

crowd in the street, queueing

1. UK – FinTech 

  

Business credit card provider Cashplus is in the running for both the £25m and £35m grants available from the Banking Competition Remedies (BCR) Pool E fund. AltFi reports: 

“News of the bid comes a day after Tide and ClearBank revealed their joint bid for the same grants, and after the deadline for bids closed on Friday evening. 

“We feel confident in going up against larger, high street players for these £35 and £25m grants because we know we are uniquely qualified to deliver,” said Cashplus CEO Rich Wagner. 

“We’ve already proven that we can drive real competition by capturing 7% share of all new UK business accounts and forcing complacent incumbent banks to compete with fairer pricing and now we want to use our specialist expertise to deliver fast, practical solutions designed to help small businesses as they drive the UK’s economic recovery from the Covid-19 crisis.” 

 

2. UK – FinTech 

Finextra reports: 

“Sync., a multicurrency bank account aggregation and personal financial management service founded by Revolut's former head of product design and strategy, has closed a £5.5 million seed round as it prepares to launch in Europe. 

Billing itself as the 'World's First Smartbank', sync. offers an all-in-one hub that allows users to open a sync. account in minutes, and link all existing financial accounts and cards.

Users are able to exchange currencies between their accounts and transfer money worldwide, and tap into a range of smart budgeting and spending features and in-app marketplace of third party services.

The account comes with a Mastercard card which generates a unique CVC number via the app for secure shopping. ATM withdrawals, contactless, swipe, international or online payment functionalities can also be turned on and off via the app.” 

 

3. UK – FinTech 

P2P Finance news runs a piece arguing that unsecured consumer lending is a vanishing species of peer-to-peer lending. 

 

4. International – FinTech 

Finextra reports: 

“Germany's Commerzbank has written off €175 million in loans made to collapsed payment processor Wirecard, a figure which is likely to push the bank into the red for the full year. 

Commerzbank has so far set aside €469m in risk provisions since the start of the year. Reporting its second quarter results, the bank has included the €175 million loss made on Wirecard alongside €131 million attributed to Coronavirus effects.

Wirecard had a credit facility of 200 million euros with Commerzbank, of which about 90% was drawn at the time of its undoing, Bloomberg has reported. ING, ABN Amro Bank and Landesbank Baden-Wuerttemberg all had a similar exposures.”  

5. International – FinTech 

Spanish challenger banking service Bnext has extended its Series A even further, topping up the €22.5m round with an additional €11m, according to AltFi.  

“When the round was first announced back in October 2019, it was Spain’s biggest ever Series A fintech funding round.  

The total amount of funding raised by the neobank now sits at €33m, while the total amount of capital procured is €40m.  

The fresh capital was raised by existing investors DN Capital, which has invested in the likes of Raisin, Remitly and Seedcamp, Speedinvest, Founders Future, Redalpine, which has invested in fellow European challenger bank N26,  Enern and Digital Horizons to name but a few.”