Category Archives: Fintech International

Canadian Fintech Katipult Becomes Public Company, Trades on TSXV under Ticker FUND

Share

Crowdfund Insider | By |

Katipult, a Fintech company based in Vancouver, British Columbia, is now a public company. Katipult has listed its shares under ticker symbol FUND on the TSVX .

Katipult received approval on November 15th and netted CAD $1.6 million in the transaction to fund its growth plan. Additionally, Katipult will receive a cash inflow of $520,000 from the exercise of warrants issued in its April private placement. The holders of the warrants are contractually obligated to exercise the warrants within 6 months of the Listing.

See Katipult, CTO, Doug McLean @VanFUNDING 2017:  GOING MAINSTREAM BLOCKCHAIN FINTECH CONF & HACK

Katipult is a Fintech company offering a cloud-based crowdfunding software infrastructure that allows firms to operate their own branded investment platform offering debt, equity and other instruments to various types of investors. The white label platform automates many components of investor and investment management including components of financial transactions, investment marketing, and payments such as dividends or interest. Katipult is currently working on incorporating Blockchain technology into its platform to be able to provide services for the next generation of funding platforms.

Katipult has posted growing revenues and profitable operations in what management describes as its market validation period.

In a recent blog post, Katipult explained why it decided to list shares in a public offer. Katipult stated;

“While many startups may be viewing an IPO as an exit strategy, we believe accessing the public markets are part of a prudent growth strategy. We believe this approach will build on our competitive advantages and bring in a diverse investor base all looking to participate in our company successes going forward.”

Continue to the full article --> here


The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada.  For more information, please visit:  www.ncfacanada.org

Share

Banks face “Kodak moment” as fintech disruption builds

Share

Reuters UK | Steve Slater | Nov 14, 2017

LONDON, Nov 14 (IFR) - Banks are facing seismic changes from the impact of new technology that is likely to see many collapse - akin to the near-death of Kodak from its failure to move with the times, a former boss of Barclays has warned.

”Banks are structurally uneconomic in their current format,“ said Antony Jenkins, the former chief executive of Barclays. ”The only solution for banks is to massively automate themselves so they can succeed in this new world.

“But the problem with large financial institutions is they are like museums of technology,” Jenkins said, referring to the massive legacy systems firms are still running. “There is frankly no other industry like it in the world.”

Jenkins, now CEO of fintech group 10X Future Technologies, likened the challenges faced by banks to Kodak, the photo giant that helped invent the digital camera but was slow to embrace the technology and filed for bankruptcy protection in 2012, and Blockbuster, the video rental firm that went bankrupt in 2010.

“Will banks go out of business like Blockbuster? Some will, some will limp along delivering poor returns, and some will figure out how to grip this as an opportunity and rebuild themselves in a new way,” he said at an event discussing the impact of artificial intelligence.

Jenkins spent 29 years at Barclays and Citigroup and was CEO of the British bank for three years until he was ousted in July 2015. Last year he founded 10X, which advises clients on new digital platforms and in September raised £34m in funding from investors led by China’s Ping An.

Two years ago Jenkins warned banks could have to slash half their jobs and shut half their branches within a decade. “I think I might have underestimated,” he said on Monday.

He was not alone in warning that banks need to adapt.

“It’s a Kodak moment for most of them, but not all,” said Gael de Boissard, a former co-head of investment banking at Credit Suisse who now invests in and advises on fintech.

De Boissard said the winners will be at either end of the scale. “If you’re very big, like JP Morgan or Goldman Sachs, or very small, you will win. If you are in the middle, you will die,” he said at the same event.

De Boissard said the biggest firms can use their size and scale to invest in technology to stay ahead, while many small firms can stay nimble and make inroads, in contrast to those struggling in the middle ground.

STACKING TECHNOLOGY

Jenkins said there is “unprecedented technological innovation” across industries. “What makes it different today is the pace at which these technologies are moving independently, and the combination of these technologies stacking on top of each other.”

Banking will be shaken up by the combination of artificial intelligence, the internet and distributed ledger technology, such as blockchain, which will do away with the need for central counterparties on transactions, he said. And while banks hire tens of thousands in their technology arms, often they are mostly maintaining legacy systems.

Continue to the full article --> here


The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada.  For more information, please visit:  www.ncfacanada.org

Share

New matchmaking service for small businesses looking for finance

Share

Wired Gov UK Release | Nov 1, 2017

Small businesses struggling to access finance from big banks will be matched with alternative finance options, under a new government scheme

From today (1 November 2016) 9 of the UK’s biggest banks will pass on the details of small businesses they have rejected for finance to three finance platforms - Funding Xchange, Business Finance Compared and Funding Options.

Update: Alternative Business Funding Ltd. added to the list of designated finance platforms on 1 November 2017.

These platforms will then share these details with alternative finance providers and go on to facilitate a conversation between the business and any provider who expresses an interest in supplying finance to them.

These new rules make it easier for businesses to access finance when they have been turned down by traditional lenders.

RBS, Lloyds, HSBC, Barclays, Santander, Clydesdale and Yorkshire Bank, Bank of Ireland, Danske Bank and First Trust Bank, will all have to offer access to these finance platforms, with small business having to give their permission before their details are shared.

Research shows that 71% of businesses seeking finance only ask one lender and, if rejected for finance, many simply give up on investment rather than seek alternative options.

See:  Feds to consider expanded services from banks, fintechs

Last year 324,000 small and medium sized business sought a loan or overdraft, 26% of these were initially declined by their bank and only 3% of those declined were referred to other sources of help.

Chancellor of the Exchequer, Philip Hammond said:

Small- and medium-sized businesses are the backbone of Britain’s economy and it is right they have access to a wide range of sources of finance.

A refusal from a big bank should not be the end of the line for a small business and, thanks to the finance platforms being launched today, now it won’t be.

We are determined to maintain the prosperity of our business sector and to support an environment where small businesses can grow and thrive.

Keith Morgan, CEO of the British Business Bank said:

This new government initiative, supported by the British Business Bank, has the potential to make a real difference to smaller business finance markets in the UK. It gives businesses additional opportunities to secure funding, alternative providers access to a bigger market of potential clients, and major banks an extra service to offer their business clients when they cannot themselves provide finance.

Mike Cherry, National Chairman, Federation of Small Businesses, said:

Small firms struggling to access finance will now automatically have a new way to get the support they need to invest and grow. FSB pushed hard for these reforms, and today’s announcement is good news as the government delivers on them. This change will boost alternative lenders, bringing more competition and choice in the market beyond the big banks.

The alternative finance platforms scheme is the latest measure from the government designed to help small businesses access the finance they need to invest and grow.

In April, the government introduced the SME credit data sharing scheme which requires banks and credit reference agencies to share SME credit information equally with all providers. This increases competition in business lending by making it easier for challenger banks and other lenders to make good credit decisions on businesses to help them get the funding they need.

View source release:  here


The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada.  For more information, please visit:  www.ncfacanada.org

 

Share

How to Take Advantage of the New Trends in Blockchain, Cryptocurrency and Financial Technology

Share

VanFUNDING 2017 | November 6, 2017 | Morris Wosk Centre for Advanced Dialogue, Vancouver

In just 3 weeks timing, on Nov 28 the 3rd VanFUNDING 2017 (#VF2017) takes place in downtown Vancouver at the Morris Wosk Centre for Advanced Dialogue, an immersive financial innovation forum and premiere hackathon dedicated to connecting people looking for leading education, funding, investment opportunities and partnerships within the financial tech sector.

Hosted by the National Crowdfunding Association of Canada in partnership with Raymond James, Gowling WLG and Blockchain Intelligence Group, VanFUNDING is back for a third year. This year’s theme is “Financing Infrastructure Eruption – Going Mainstream” and features:

  • Nov 27:  Pre-event networking on November 27 from 5:30 – 8:00pm at the Diamond Cocktail Lounge
  • Nov 28:  First ever BC ‘Regtech Sandbox Hackathon’ co-hosted by the BC Securities Commission, with $20,000 value of cash and prizes for winners on November 28
  • Nov 28:  Full-day interactive conference including keynotes, panel discussions, workshops and a facilitated Town Hall on November 28

VanFUNDING showcases an amazing lineup of speakers from leading blockchain, fintech and crytocurrency experts from Raymond James, Gowling WLG, Blockchain Intelligence Group, Launch Academy, Robocoder, Sweetbridge, Responsive.AI, Katipult, LendingLoop, Blocksale, NewsBTC, PrivacyShell, RightMesh, Digital Futures, Frontfundr, Venture Law, Grow VC Group, Pegasus Fintech and many more, with 40+ speakers / 30 sessions discussing ground-breaking topics such as:

  • 2017 Fintech Disruption and the Future of Money
  • The Explosive Nature of Bitcoin and Investing in Crypto Assets
  • The ICO Revolution and Global Token Economy
  • The Potential of Distributed Ledger Technologies to De-risk Unsecured Loans (for the masses)
  • GOING MAINSTREAM: Scaling Opportunities & Challenges of Global Finance: Blockchain, Regtech, AI, Crypto, P2P and Fintech
  • How to spot a fraudulent ICO
  • SAFTs do they protect investors or entrepreneurs?
  • Workshop:  Public Initial Blockchain Offering (PIBCO) - The process and benefits for your business
  • Best Practices of Raising Capital Online
  • Why the Benefits of Fintech Partnerships May Outweigh Competing
  • Regulatory Perspectives: Can Canada Unlock its Blockchain and Fintech Potential?
  • Regulation of Tokens Offerings and the Value of Self-regulating Code of Conduct
  • Transacting in a Global Digital World: What P2P Technology Can do for Humanity

#VF2017 is a not-to-be missed BLOCKCHAIN and FINTECH FUNDING conference that pushes boundaries to discuss the latest developments, educate, inspire, and connect leading innovators, entrepreneurs, investors, service providers, thought leaders and policy makers in the quickly emerging sectors of fintech, P2P, crowdfinance, blockchain ICOs, digital currencies and alternative finance.  Learn more at:  vanfundingconf.ca

 

###

Register BEFORE NOV 8 and Save 30%:   Get a Discounted Ticket Now

Register today and get 10% off with promo code NCFA_COIN Link to apply deal

Chance to win a free pass to #VF2017:  Tweet 2 Win Contest

Sign-up and become a VanFUNDING affiliate partner

 

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both investment and social crowdfunding, blockchain ICO, alternative finance, fintech, P2P and online investing stakeholders across the country.  NCFA Canada provides education, research, leadership, support, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a vibrant and innovative online financing industry in Canada.  Learn more About Us or visit www.ncfacanada.org.

Share

KPMG Report Commissioned by the City of London: Value of Fintech

Share

City of London, UK | October 2017

This research seeks to ‘unpack’ the term Fintech and its value, not only to financial services but also to other areas of the economy.

The report considers the position of SMEs, and whether they stand to benefit more from Fintech than they have through financial services conventionally delivered. It also aims to demonstrate how Fintech will continue to open access to financial services to individual consumers, particularly those hardest to reach.

See:  Revealed: the UK’s biggest crowdfunder

The key recommendation is for a sector deal for Fintech that reinforces and cements the UK as a leading global hub for Fintech as the number one destination for Fintech businesses. This will develop a single policy vision for Fintech, coordinate open standards, enhance regional engagement and support talent development and greater access to capital for Fintech businesses.

This report was commissioned by the City of London Corporation and produced by KPMG.

Continue to the article and Download the report --> here

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both investment and social crowdfunding, blockchain ICO, alternative finance, fintech, P2P and online investing stakeholders across the country.  NCFA Canada provides education, research, leadership, support, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a vibrant and innovative online financing industry in Canada.  Learn more About Us or visit www.ncfacanada.org.

Share

Revealed: the UK’s biggest crowdfunder

Share

Management Today | by Rebecca Burn-Callander | Oct 31, 2017

One company has today cemented its position as the UK's biggest crowdfunder.

Seedrs, which has been jostling for position against rival platform Crowdcube over the past five years, emerged the clear victor today.

Over the past three months, Seedrs claims that its completed deals – those that hit 100% of their target – totalled £29.4m. That's almost 70% higher than Crowdcube’s tally.

This compounds last year's data, which showed that Seedrs funded 134 deals during the whole of 2016, with Crowdcube behind on 124. That was Seedrs strongest ever year, with more than £85m invested; £20m more than in 2015.

Seedrs and Crowdcube are the most active investors in the country, responsible for 86% of all crowdfunding activity. They generate almost a quarter of all UK equity investments between them, according to data company Beauhurst.

Seedrs may have proved its mettle but it may also be passively benefiting from a wider trend: British start-ups are in vogue, attracting a wave of finance.

 See:Beauhurst Publishes Mid-year UK Deal Report: Equity Platforms Raise £48m across 71 Deals in Q2

Beauhurst’s latest issue of The Deal, which analyses deal activity in the UK, found a record number of start-up deals in the third quarter of 2017, up 58% on the previous peak.

Deals worth more than £10m accounted for 15.26% more transactions than ever before, with eight deals above £50m during the three-month period.

Start-ups, with their exponential growth potential, are proving hot investments during the longstanding low-interest-rate environment. These high-risk investments are one of the few ways that investors can massively outperform the market.

To capitalise on the strength of its position - and tap into this trend - Seedrs is now launching a new programme to widen its appeal.

See: 

It will now actively target financial intermediaries, such as accountants, brokers and financial consultants, encouraging them to introduce their wealthy clients to early stage equity deals on Seedrs.

'Equity crowdfunding has become increasingly interesting to accountants, brokers and financial consultants,' claims Thomas Davies, chief investment officer at Seedrs. 'The Seedrs nominee structure gives advisers the peace of mind that their clients are investing on the same terms as professional VC firms, receiving full voting rights, often pre-emption rights, consent rights and tag along provisions to protect minority shareholder rights.'

Seedrs has raised a total of £10m from the crowd via its own platform to achieve it growth goals. The business is now valued at £50m.

Continue to the full article --> here

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both investment and social crowdfunding, blockchain ICO, alternative finance, fintech, P2P and online investing stakeholders across the country.  NCFA Canada provides education, research, leadership, support, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a vibrant and innovative online financing industry in Canada.  Learn more About Us or visit www.ncfacanada.org.

Share

How platforms turned business on its head

Share

Management Today UK | by Stefan Stern | Oct 25, 2017

Product businesses will never win against platforms like Uber or Amazon.

What if much of what is being taught at business schools is out of date? What if business models fundamentally need to change, and soon? What if apparently well-established incumbents are even more vulnerable to new entrants than they realise?

Scary questions. Perhaps even scarier before nine o’clock in the morning, which is when they were asked at a recent Eden McCallum presentation I attended, held in the smart setting of the lecture theatre at the National Portrait Gallery in London.

The speaker was Marshall Van Alstyne, Professor of Information Economics and Everett Lord Scholar at the Questrom School of Business at Boston University. Prof Van Alstyne had flown over to give a presentation on the ‘platform revolution’ to a large invited audience.

You may like:

His central argument was clear, and dramatic. What he calls ‘platform ecosystems’ – businesses that build online networks and allow them to grow and flourish beyond the narrow confines of the corporation – have inverted the very nature of the firm. And the industrial model developed to near-perfection in the 20th century looks set to be replaced by 21st century platform businesses.

It’s a big claim, but there is evidence to support it. Uber, for example, with a tenth the number of employees as BMW, is valued more highly by its private equity investors than the stock market values the German carmaker. Airbnb, with its 5,000 employees and zero properties, is almost as valuable as Marriott with its global network of hotels and over 200,000 employees. Facebook is more than twice as valuable as Disney, with a tenth of its employees, and so on.

Van Alstyne pointed to the remarkable speed of value creation which platform companies can demonstrate. They also seem to need vastly fewer staff to do it. ‘These platform business models beat product business models every time,’ he said.

Based on Interbrand 2017 data, 12 out of the 30 most valuable global brands were platform companies such as Apple, Microsoft, eBay and Amazon. The top five companies in the world by market capitalisation are platform companies.

‘The product business model is broken,’ Van Alstyne asserted. Consider BlackBerry. In 2009 the company had a 50% market share in the US, down to 2% four years later. ‘That’s hard to do!’, Van Alstyne said. Its conquerors, of course, were Apple and Google. But Apple itself had been beaten in earlier decades by Microsoft, whose open software ecosystem had been preferred to Apple’s closed one.

But you don’t have to be a tech firm to build an ecosystem. Nike has built a community of loyal customers using apps and sensors in their shoes to supply data to runners hungry for stats on their performance levels. The spice company McCormick also exploits network effects to build community. Recipes are shared between customers, product advice feeds back to consumer packaged goods producers, and local restaurants can offer special menus to customers based on their taste preferences. Valuable information is shared. ‘Users are adding value to users,’ Van Alstyne said. This is a network effect. Products become more valuable through use.

Successful networks are two-sided – in other words, users and providers interact and reinforce each other. ‘Each side attracts the other, they’re both outside the core of the business, and they interact,’ Van Alstyne said. Examples are Uber drivers and riders, Android developers and users, YouTube video makers and viewers, Airbnb room providers and renters. Users create value for users and build value in the ecosystem.

See:  Where is technology taking the economy?

This is an inversion of the industrial era firm. Then corporate giants achieved supply side economies of scale. They grew big, unit costs fell, they reduced prices, and beat the competition. Platform companies with network ecosystems achieve demand side economies of scale – bigger networks create more value, which attracts users to the network, which creates more value. They innovate faster because their open systems attract ideas from users to serve other users. And these can be winner takes all marketplaces. The rewards for success can be huge. This can be seen most clearly in the homophone (i.e., one main language spoken) markets of the US and China where the largest platforms have emerged; development of platform businesses in polylingual Europe has been slower.

The focus for business leaders wanting to build networks of this kind has to be outside the firm, Van Alstyne said. ‘You cannot scale network effects inside the firm as easily as outside the firm. There are simply more users outside the firm,’ he added. ‘To orchestrate that value, maybe business schools need to invert everything we teach.’

Marketing messages cannot simply be corporate push but must also be consumer pull. HR management also has to change: the emphasis shifts from employees to affiliates, and from internal experts to external crowds. Firms can access ‘cloud labour’ at individual and team level. Expert gatekeepers like travel agents and lawyers are replaced by crowds – e.g., TripAdvisor and LegalZoom.

Platform businesses are different in other ways. Uber owns no taxis, Facebook creates no content, Alibaba has no inventory, Airbnb owns no property. They have virtually a zero marginal cost of production. This makes platform companies hard to value with traditional measures. Network effects are harder to quantify, and their strategies differ from so-called ‘product firms’ in almost every dimension.

Continue to the full article --> here


The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both investment and social crowdfunding, blockchain ICO, alternative finance, fintech, P2P and online investing stakeholders across the country.  NCFA Canada provides education, research, leadership, support, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a vibrant and innovative online financing industry in Canada.  Learn more About Us or visit www.ncfacanada.org.

Share