News Briefing - Crowdfunding, SME And Alternative Finance

two small test tubes

1. UK – FinTech 

   

Finextra reports: 

“The UK's Competition and Markets Authority has provisionally blocked FNZ's proposed takeover of rival retail investment platform GBST, concluding that it could lead to higher costs and lower quality services for Brits. 

FNZ purchased GBST in November 2019 for £150 million. Both firms have a significant presence in the UK, holding close to 50% of the market between them.

The CMA says that although there are differences in the business model that the companies use - with FNZ providing an integrated software and servicing solution and GBST being a software-only provider - they compete closely in a concentrated market in which there are few other significant suppliers.” 

 

2. UK – FinTech 

 

Crowdfundinsider reports: 

“Leeds-based Rebuildingsociety, a peer to peer (P2P) lending platform that’s focused on financing options for SMBs, has teamed up with Virtual Finance Director (VFD) so that Rebuildingsociety’s borrowers are able to get updated reports on their accounts. 

The P2P lender’s borrowers will also receive future cash flow projections and assistance with completing their loan applications. 

Rebuildingsociety has integrated with VFD, allowing the platform’s borrowers to get free access to accounting tools and software, so that they can fill out their loan applications. VFD’s software is like a finance director for companies and generates reports on their data. The reports may be used by borrowers to figure out if they might be at risk of experiencing future cashflow issues. The results from the reports may also be used to help borrowers with making future plans about how they will apply for loans.” 

 

3. UK – FinTech 

 

Nigel Morris, founder of credit card Capital One, steps down after three years as non-exec at Zopa. 

 

4. US – FinTech 

Lending Club saw loan originations of $325.8m in the second quarter of 2020, down 90 per cent year over-year. AltFi reports: 

“The marketplace lending giant, like many other lenders around the world has been deeply affected by the spread of the coronavirus and the subsequent lockdowns and uncertain economic environment.   

It says that in the period it took “decisive actions” to reduce cash expenses and preserve liquidity but that ultimately lending fell substantially, hitting revenues.  

Lending Club made a net loss for the quarter of $78.5m owing to the fall in originations but emphasised this was in line with our expectations. Net Revenue was $43.9m, down 77 per cent year-on-year.” 

5. International – FinTech 

 

Crowdfundinsider looks at a pivot by Neufund, “one of the first European platforms to issue security tokens, which announced its intent to move away from digital securities. The Berlin, Germany based Fintech issued the following surprising statement: 

“We’ve been active participants of the discussions held at the Bundestag, engaged BaFin in a dialogue about our platform and blockchain’s solutions since 2016. We’ve been patient to their months [of] delayed decisions, last-minute requests, and announcements that harm the businesses. But the last months showed that financial authorities are not just slow, they are paralyzed with the fear of new technologies and avoid any dialogues or decisions hoping that someone else, like global corporations or other countries, would deal with it. Together with our investors, we agreed that there is no reason to wait for the institutional changes. Today we have announced the freezing of all upcoming fundraising campaigns and start working on the new product, which will let us continue bringing value to our investors and community.”