Category Archives: Marketplace Lending/P2P, Online Lending

UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough?

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Crowdfund Insider | | Apr 20, 2020

UK government covid funding for startups - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough?In a widely anticipated move, HM Treasury announced a new package of bailout programs for early-stage ventures that did not qualify for programs initially set into place to support the COVID-19 battered economy. There have been profound concerns that younger, entrepreneurial firms that require ongoing funding would simply cease to exist – potentially eliminating an entire generation of startups.

The program includes a new £1.25 billion coronavirus package to aid innovative young firms including a £500 million investment fund for high-growth companies impacted by the crisis, made up of funding from government and the private sector.

An additional £750 million of grants and loans were targeted for SMEs focusing on research and development.

Launching in May, the £500 million “Future Fund” will be delivered in partnership with the British Business Bank. The fund will provide UK-based companies with between £125,000 and £5 million from the government, with private investors at least matching the government commitment.

These loans will automatically convert into equity on the company’s next qualifying funding round, or at the end of the loan if they are not repaid. To be eligible, a business must be an unlisted UK registered company that has previously raised at least £250,000 in equity investment from third-party investors in the last five years.

See:  Survey finds Canadian small businesses seeing 50 percent revenue decline amid COVID-19

Chancellor of the Exchequer Rishi Sunak commented on the new aid packages:

“Britain is a global leader when it comes to innovation. Our start-ups and businesses driving research and development are one of our great economic strengths, and will help power our growth out of the coronavirus crisis. This new, world-leading fund will mean they can access the capital they need at this difficult time, ensuring dynamic, fast-growing firms across all sectors will be able to continue to create new ideas and spread prosperity.”

Alok Sharma, Business Secretary, said that the packages will “protect some of the most dynamic sectors of our economy” while Secretary of State for Digital, Culture, Media and Sport, Oliver Dowden said that the UK is the tech and creative capital of Europe.

“It is crucial we maintain our place,” Dowden stated.

Charlotte Crosswell, CEO of Innovate Finance – the leading voice in the UK for Fintech innovation, welcomed the announcement from HM Treasury. Crosswell said this was about protecting the innovation in finance that will be vital for the UK’s recovery efforts.

“These new measures will help Fintech businesses to raise the funds needed to survive the crisis. It will support a sector full of early stage companies, which are more prone to struggle in these volatile times. The UK is already known globally as a leader in Fintech and we want to ensure companies have support and funding in place to continue their development at this crucial time.”

Luke Lang, co-founder of Crowdcube and Founding Partner of the Save Our Startups campaign, lauded the news of the new programs. Lang and many other prominent members of the UK entrepreneurial ecosystem published an Open Letter addressed to the UK government earlier this month calling on officials to address the looming startup crisis.

“The UK Government has finally stepped up and taken action against the looming crisis for Britain’s celebrated startup and scaleup community. The funding package outlined today will undoubtedly make a real difference to thousands of fast growth businesses.  It’s now vital we focus on getting this investment to the right businesses swiftly so we minimise any damage caused by Covid-19 and ensure Britain’s most ambitious businesses not only survive this crisis but are able to thrive again once the bounce back begins.”

See:  NCFA Open Letter: Government should collaborate with Fintechs

Lang explained that the new measures followed weeks of lobbying the UK government. The Save Our Startups program was endorsed by high profile names like; Baroness Lane-Fox, Co-founder of Lastminute.com; Alex Chesterman, Founder of Cazoo, LoveFilm and Zoopla; Arnaud Massenet, Co-founder of Net-a-porter; Mike Muller, Co-founder of ARM; Anthony Fletcher, CEO of Graze; Guillaume Pousaz – Founder & CEO, Checkout.com; Louise Hill, Co-founder & COO of gohenry, Will Butler-Adams, Founder and CEO, of Brompton Bicycle; Annabel Jack, Chief Commercial Officer of Made.com and Ines Ures, CMO of Deliveroo.

“Great Britain and London has long been seen as the startup capital of Europe and the envy of our European neighbours but that was under threat from Covid-19 and the subsequent weeks of inaction from the UK Government while other European countries raced to rescue its startup and tech communities with multi-billion Euro funding packages,” added Lang.

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NCFA Jan 2018 resize - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough? The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Lendio Facilitates More $5.5 Billion in Relief Funds to Over 50,000 Small Businesses Through the Paycheck Protection Program

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Crowdfund Insider |

Covid app - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough?Online lending platform Lendio announced on Friday it facilitated more than 50,000 small businesses across the U.S. through the Paycheck Protection Program (PPP). Lendio reported that PPP applications approved through its online marketplace and bank partnerships total more than $5.5 billion.

As previously reported, the PPP is part of the $2 trillion CARES Act signed on March 27, 2020, aimed at getting small business owners back on their feet and millions of Americans back to work following the COVID-19 pandemic. Lendio launched its PPP loan application for small business owners on April 3rd and Small business owners were able to apply directly through the lender’s portal and were connected with one of the approved capital providers in Lendio’s extensive network of banks, credit unions, and fintech lenders.

See:  NCFA Open Letter: Government should collaborate with Fintechs

Lendio revealed that with only $349 billion in government funds set aside for the nation’s 30 million small businesses, the SBA announced on April 16th that the funds had been exhausted. Speaking about the process, Brock Blake, CEO and Co-Founder of Lendio, stated that the Lendio team worked tirelessly to ensure that their applications were meeting the Small Business Administration (SBA) requirements and guidelines for fully-completed applications, and they submitted every completed application to our funding lenders.

“We processed more applications in two weeks than we have in the last 12 months combined. We are devastated for the thousands of Lendio customers that didn’t receive a confirmation before the program hit its cap—we are already preparing their applications to make sure they are ready to be approved if Congress increases the fund size.”

Blake also revealed that Lendio’s average PPP loan size was just more than $110,000, with the national average being more than double that (just under $240,000).

With only 1.6 million of the 30 million U.S. small businesses approved, we are heartbroken for the applicants that weren’t approved by the SBA before the funds ran dry.”

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NCFA Jan 2018 resize - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough? The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Credit Science: the new discipline OakNorth created to redefine borrowing for the Missing Middle

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The Fintech Times | | Apr 18, 2020

oaknorth credit science - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough?

OakNorth credit science

When it comes to commercial lending, credit analysis is an essential part of the process. Banks use it to assesses the ability of a business to sustain a certain level of debt and repay its loan. A bank can only lend money if it understands the viability of the business and therefore the risk of potentially not being repaid.

This process involves a combination of skill and human judgement and has always encountered difficulty in comparing one business to another. A steakhouse on Wall Street catering to investment bankers, will be nothing like a vegan restaurant in Greenwich Village, even if the two happen to be in the same area. Their clientele, their offerings, their pricing model, and how they respond to different economic stresses, will vary significantly. This is compounded by the fact that veganism wasn’t a popular concept until very recently so there is very little comparable data on the sector available. This lack of data is ironic given that we are inundated on all fronts by data – much of which is difficult to digest and make sense of.

Credit analysis therefore faces three related challenges:

  1. how to find all the data required to answer a credit question
  2. how to make sense of this data – given both the volume of data that exists and the gaps in that data – and derive insights from it
  3. how to apply these insights to understand a business and answer specific credit questions about it

Unless these challenges are met head-on, credit analysts can end up spending the vast majority of their time trying to find data and massage it into a useable format, rather than actually doing analysis. They therefore risk missing crucial insights in the deluge of data points and producing analysis that is weak and not grounded in facts, or worse still, is hampered by their own biases and not applicable to a changing world.

See:  Just 1.4% of firms enquiring about UK coronavirus business loans successful

At OakNorth, we’ve created a framework to tackle these challenges, known as “credit science”:

The foundation of the pyramid is data. We are constantly looking for additional data sources to enhance our understanding and just as importantly, for ways to connect these data sources The foundation of the pyramid is data. We are constantly looking for additional data sources to enhance our understanding and just as importantly, for ways to join these data sources together to form an intelligible whole. We combine data from numerous sources into a common data platform which can be used to benefit the bank partners using our platform, whilst ensuring their data is fully confidential.

 

We build on this with the use of data science, which derives insights from this data in a robust and scientific manner:

–      We construct predictive models to forecast future performance of companies.

–      We use clustering to group companies and find outliers.

–      We look for drivers– leading indicators which might help us foresee when a particular company or even a whole sector may run into difficulties.

–      We use data science to join the dots between data sources, filling in the blind spots using inference and deduction so the picture of a business that emerges is much more focused and filtered than anything available in a single source.

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The fact is that commercial lending hasn’t changed for decades – banks are still using the same methods and data sources they used in the 80s, despite the fact that the world has moved on. The internet for example brought with it social media, online reviews, lower sales and distribution costs, new revenue streams, etc. As a result of climate change, consumers are becoming more conscious of purchasing goods and services from businesses that conduct themselves in an environmentally and socially-conscious way.

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NCFA Jan 2018 resize - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough? The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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The Intersection of Small Business, Tech and Our Financial Ecosystem is More Important Than Ever

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Techcrunch | Ann Marie Mehlum, Javier Saade | April 10, 2020

small businesses in the US - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough?The two of us oversaw the U.S. Small Business Administration’s capital, investment, loan and innovation programs serving America’s small businesses. The nation is rooting for our 30 million small businesses. They employ more than half of the country and create most net new jobs, and 80% of them have less than 60 days cash on hand.

The world has never experienced dislocation of labor and business activity at this scale and speed. We applaud Congress and the White House for stepping up with a $2 trillion relief package, of which, $350 billion is being injected into America’s small businesses. Another $250 billion is being contemplated and negotiated as we write this.

See:  First two fintechs added to coronavirus emergency loan scheme (UK)

Washington has been talking regularly with the financial sector, and for small business relief to be effective, banks of all sizes, fintechs, other tech companies, community banks and other capital conduits need to be involved in the solution. There is an urgent need to deploy the funds, and technology will be critical to that end.

Two encouraging developments occurred on Wednesday: 1) SBA launched a new AWS-powered gateway for a streamlined lender entry point and 2) an application for non-bank, non-insured (read: fintech) lenders was made available.

Good steps for sure, but retrofits always come with limitations at their root.

Looking back to move forward, the crisis of 2008 was in many ways a “dress rehearsal” of what we are experiencing now. While there are some similarities, the pandemic’s massive toll on virtually every sector of the economy is happening simultaneously, as evidenced by the fact that 17 million people have filed for jobless claims.

This 21st century problem requires 21st century solutions, and that requires fresh thinking, from policy-to-execution. The large part of our economy that lives at the intersection of small business and the financial system is expecting this thinking and execution.

See:  UK fintech community comes together to build Covid Credit and let sole traders self-certify lost income

It must be pointed out that some constraints and limitations of implementing the CARES Act are not regulatory in nature — they are born out of legacy technologies that slow banks down. The antiquated systems of our government agencies, such as SBA’s much talked about and clunky E-Tran system, do not help either.

Government agencies, let alone their systems, were not built to deal with anything of this magnitude and urgency. But the inherent scalability, penetration, infrastructure, algorithmic capability and plumbing of financial technology should be brought to bear, and now!

The financial system has significant tech adoption lags, organizational inertia and regulatory constraints — all contributing to the chaotic nature of the programs’ implementation. The design of a potential fourth phase of relief should take this into account. While pumping more money into small businesses is a good decision, the process and its underpinning needs to be improved.

Probably more important for people to understand is that when banks secure loan guarantees, that does not immediately translate to funded loans injecting cash into small businesses.

For cash to move, a few things would help smooth the glide path from CARES Act to small businesses:

1) finalizing definitive guidance on bank notes;

2) enhancing secondary market liquidity;

3) developing a 21st century digital interface for more streamlined touch points for all stakeholders; and

4) opening the pathway to new players, including fintech companies as service providers, rails or lenders themselves.

This is important because SBA has been tasked to increase its capacity by a factor of at least 50. All of its credit programs combined put out $25 billion a year. The task at hand: $350 billion in 8-12 weeks. We know SBA has been working 24×7 — along with Treasury, FRB and other agencies — on systems, technology and execution, but there are real friction points working against solving the problem at hand.

See:  Survey finds Canadian small businesses seeing 50 percent revenue decline amid COVID-19

The use of digital constructs and 21st century technology is highly needed due to the amount of dollars, number of loans and the short window we have to deploy them. We urge the SBA, other agencies and regulators to deploy energy and resources to leverage digital finance and financial technology.

Financial technology can help streamline applications, comply with know-your-customer and anti-money laundering rules and application automation. Technology also improves origination, underwriting, loan disbursement and loan servicing, and should be leveraged. Millions of small businesses, the most vulnerable ones in fact, don’t use bank credit. Yet many use Square to accept payments, for example. Fintech now has an open door to participate — good!

We encourage regulators to fully leverage the collective capabilities of technology.

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NCFA Jan 2018 resize - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough? The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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First two fintechs added to coronavirus UK emergency loan scheme

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Small Business UK | Timothy Adler | April 11, 2020

OakNorth Rishi Khosla - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough?OakNorth Bank and Starling Bank are first two fintechs added to the Coronavirus Business Interruption Loan Scheme to help spread out demand

The first two fintech banks have been added to the government’s coronavirus emergency business interruption loan scheme in an effort to break the logjam.

Other fintechs, including Funding Circle, Iwoca and Market Finance, which together have provided loans worth billions of pounds to small businesses, are also hoping to get approval to join the emergency loan scheme next week.

Only 2,500 loans worth £450m, have been agreed so far through the Coronavirus Business Interruption Loan Scheme (CBILS) out of a small business population of 5.9m.

See:  Canadian small businesses are facing extinction amid lockdowns

Bankers say they have been overwhelmed with applications through the CBILS, with an estimated 300,000 enquiries.

Plus they complain that their loan book must be scrutinised by the British Business Bank, which itself is overwhelmed by the volume of loan applications.

Yesterday, former Treasury secretary Baroness Morgan called for the CBILS to be opened up to fintechs, which, she said were more agile and more nimble than traditional lenders.

OakNorth Bank and Starling Bank have been added to the dozens of existing accredited lenders, alongside Cynergy Bank and The Co-Operative Bank.

Keith Morgan, CEO, British Business Bank, said: “Our accredited lenders have seen an incredible demand for CBILS in the past few weeks, so we are helping to meet that demand and provide even more choice for smaller businesses by approving additional lenders for accreditation to the scheme. These new lenders will be able to deploy vital funding and get additional finance flowing to smaller businesses across the UK as quickly as possible.”

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NCFA Jan 2018 resize - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough? The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Fintech in coronatimes: Why some sub-sectors are especially vulnerable in a downturn

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Sifted | Isabel Woodford | March 25, 3020

Covid impact on fintech - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough?

This graphic was created in collaboration with Finch Capital.

A sector-by-sector analysis of what might happen to European fintechs during a downturn. Which are most at risk and which might profit?

During the past five years, financial technology startups have been some of the most hyped, fastest-growing and best-funded in Europe.

But as the coronavirus pandemic begins to weigh on the economy, fears are growing that financial startups will be hit hard, as investors invest less and consumer spending slows.

Yet fintech is a broad sector, making it hard to generalise about the impact of coronavirus. So we’ve analysed how the different sub-sectors within fintech might fare in the short to mid-term amid virus shock and a potential recession.

An overview: Fintech during coronavirus

The graphic above summarises how each sub-sector will be affected by the coronavirus outbreak, according to an analysis by Sifted in collaboration with Finch Capital. Those marked in red are predicted to see a downturn, yellow indicates it’s a mixed bag and green means it will likely see a boost.

Finch Capital Report:  Future of Disruptive and Enabling Financial Technology post covid-19

Our thesis is that digital banks, foreign exchange (FX) companies, wealth manager apps and small and medium-sized enterprise (SME) lenders will struggle the most in the next six months and are likely to see a decline in revenue and users.

It’s worth noting that, of course, these sub-categories aren’t everything; the fate of companies will also depend hugely on the stage they’re at, their market fit and their cash reserves. For some, the crisis will also breed opportunity; particularly cash-rich, lean startups.

Nonetheless, by explaining the logic behind our core conclusions, we hope to help you make sense of how the next six months might play out.

Challenger banks

Such as: Monzo (UK), Monese (UK), Bunq (Holland), N26 (Germany)

Digital banks are still plagued by a trust gap, demonstrated by the fact most users still use them as secondary accounts. A financial crash could amplify that trust gap, leading to fewer users moving their salaries into their challenger accounts, or even causing existing users to withdraw the bulk of their deposits into ‘brick and mortar’ accounts. This could have an impact beyond the immediate crisis, worsened by reduced-interest rates, further reducing the margins they make on their remaining deposits.

Meanwhile, in the short term, payments are declining as consumer spending falls due to the global lockdown. Given the likes of Monzo make a portion of their money on interchange fees, this is a problem.

See:  Coronavirus: New Challenges and Opportunities for Fintech

Digital banks that charge for their accounts, like Monese, N26 and Revolut, are also likely to see a dip in subscription openings, especially amid a crackdown in travel.

N26 cofounder Maximilian Tayenthal confirmed that the Berlin-based bank has already seen this. “Our customers’ card sales in March have so far declined. In certain markets we’re seeing a 10% drop in account openings,” he told Bloomberg.

Moreover, if the crisis spills into a recession, investors expect business-to-consumer (B2C) challenger banks to be an obvious target for opportunistic M&A, assuming valuations dip to a more affordable level.

“[A recession] will especially hurt challenger banks,” concluded Rosenblatt Securities, a US brokerage company, in an analyst note, highlighting these companies’ high burn rate, reliance on marketing and incumbent players’ advantages in a crisis.

Nonetheless, Angelique Schouten, chief commercial officer of cloud-banking platform Ohpen, argued that incumbent banks will face greater pressure during the lockdown because of “the number of processes that are still human and/or paper-driven and initiated“. Indeed, digital banks at least have the benefit of digital onboarding and an existing infrastructure for mobile-only banking.

To this point, Speedinvest partner Stefan Klestil told German media Finance Forward that the lockdown will highlight the benefits of digital banking and could trigger a “growth-spurt” in future. He also argued that “existing investors will continue to support their good companies [like N26]”, countering theories that digital banks will see down-rounds if the turmoil exists.

This may well help N26 and Revolut’s early efforts in the US; however, bank branches have already seen a gradual decline in footfall in Europe, so a better digital interface alone is unlikely to sway local users.

Payments

Such as: Checkout.com (UK), SumUp (Germany), Modulr (UK)

In the payments sector, we are unlikely to see startups crash and burn because of coronavirus. Payments has proven itself it be a fairly resilient industry during past crises, leading the Mercator research group to predict “lower growth…rather than negative growth.” Yet how hard individual firms get hit depends on a couple of key differentiators.

Those will a big online exposure should be ok. There has been a surge in e-commerce payments in the lockdown as people order online, which should help mitigate for the general downturn in consumption, transactions and cross-border payments.

See:  How payments can adjust to the coronavirus pandemic—and help the world adapt

Business-to-business (B2B) payment companies which automate invoices, for instance, are also better insulated because they enjoy long term contracts.

However, Visa and MasterCard have warned that sales will fall short this quarter by 2-4%, which will also trickle down to merchant acquirers (like Worldpay, which process your card details).

Purely offline payment services, like German startup SumUp, will be worst hit during the lockdown.

Trading

Such as: Bux (Amsterdam), Freetrade (UK), Trade Republic (Germany)

Uncertainty breeds volatility and volatility is gold dust for trading companies, as each trade executed provides a small revenue cut.

Digital trading startups like FreeTrade and Bux have reported a boom in volumes in recent weeks as traders attempt to “buy-the-dip”, so for now, it’s good news for the sector, which has taken on incumbent players with cheaper fees. Indeed, Germany’s Trade Republic has extended its Series A this week to attract new investors hoping to profit from the uptick.

Having said that, the likes of US-based Robinhood may have seen too much trading, given their system has collapsed several times in recent weeks due to technical overload.

See:  FintechBeat Podcast: Save the Money

And the biggest gains will come if Europe’s “zero-commission” startups can retain new users and sell them more lucrative products than basic single-stock UK trading. It remains to be seen if they will be able to convert customers in this way.

The other short-term winners will be fintechs providing trading infrastructure.

Wealth managers/ Robo advisors

Such as: tickr (UK), Liqid (Germany), Wealthify (UK)

A wave of digital wealth managers have emerged in recent years to attract Europe’s millennial traders (notoriously reticent retail investors). Wealth managers differ from trading apps in that they do not encourage “buy-and-sell” behaviour, but rather long-term investing. With their friendly interfaces, pre-packaged stocks and low fees, they’ve managed to gently lure in a new audience.

However, a financial downturn could be damaging for wealth managers, as investors get scared and withdraw their deposits.

“Severe volatility and the lack of recovery in public stocks may scare away investors, especially millennials… Investors using robo advisors… may gravitate away towards established wealth management shops (Charles Schwab, Fidelity Investments, Morgan Stanley) who have matched the ‘zero commission’ model of e-brokers and also offer the comfort of human advice,” the Rosenblatt report highlighted.

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This is bad news as robo-advisors largely make money from fees on their assets under management. That means the smaller the uptick in assets, the less money they make. Nonetheless, the economic effects of coronavirus are still under debate, so many users are reportedly holding their nerve.

‘We are still growing positively despite the worst financial market in over 30 years. User behaviour has held up despite the environment,” the cofounder of ethical trading platform tickr, Tom McGillycuddy, told Sifted.

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NCFA Jan 2018 resize - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough? The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Roll Call | Chris Brummer | April 7, 2020

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Fintech Beat sits down with Linda Jeng and Dan Gorfine to talk about how online lending, open banking and a digital dollar — with the right policies — could immediately improve the plight of those affected by the coronavirus.

 


NCFA Jan 2018 resize - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough? The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough?FF Logo 400 v3 - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough?community social impact - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough?
NCFA COVID 19 letter to government to support Fintechs and SMEs - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough?

Coronavirus resources 800 1 - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough?

NCFA Newsletter subscribe600 - UK Government Adds COVID-19 Program to Support Early State Ventures. Is it Enough?

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