Crowdfunding: special focus
Euromoney's latest coverage of the sector's growth – and where it goes from here.
The industry needs a change in the macroeconomic environment.
The French bank hopes with one small acquisition to burnish its green credentials, meet government requirements on renewable energy and show its potential to adapt disruptive financial technology.
Beijing has spent years sitting back and encouraging its powerful fintech firms to create and innovate. But it is starting to crack down on parts of an industry that it feels may have grown too far too fast, starting with peer-to-peer lenders.
China has finally started to open up its financial sector, but international banks seem to be struggling to find a clear or coherent strategy for tackling the market. It may be time to start worrying.
Bloodbath at AMP and the crowdfunding of startup Xinja are signs of new era.
Most new challengers are attacking retail, but a few ingenious startups are moving into the more fragmented and poorly served small business market. It is here that concepts of open banking and banking as a platform may first become real.
The CFA Institute has suggested that the European Commission’s legislative proposal for an EU framework on crowd and peer-to-peer finance creates a precedent for exploring the possibility of creating an EU-wide sandbox and investigating the benefits and challenges such a regime.
CEO has broader ambitions as firm turns 10; impact investing still modest in Asia but growing.
If Australian banking needs a fundamental shake-up, it may come from insiders-turned-outsiders, and few fit that bill better than Jason Yetton at SocietyOne.
The bank has found a model that puts the local community first – feeding prosperity, not feeding off it as the big four do, says chief executive Mike Hirst.
It’s goodbye cash, hello mobile wallets and digital payments, as Egypt uses financial technology to streamline payroll, keep money in the financial system and improve tax collection.
The pace of change at Imperial FX during the past 10 months highlights the scale of the task of transitioning from high-street remittance to an online platform.
The region’s affluent classes are well served by traditional banks. But fintech firms hope to gain a foothold in financial services through customers that have been left behind.
Chinese fintechs have been redrawing the map of financial services for a while now, and Tencent has just added the latest amendment.
Recently emerged challenger banks are taking advantage of new regulations to team up with multiple third-party payment service providers (TPPs) to gain a slice of the customer’s business they would otherwise not have access to.
Taking payments off retail investors’ debit cards for new share placings has quickly changed the way AIM-listed companies place new equity and could have implications for bigger deals.
Beehive and Eureeca are using online crowdfunding to raise debt and equity for small businesses in the Middle East. Becoming regulated will allow them to grow rapidly. In time, they could eat the banks’ lunch, or the banks just might swallow them.
With increasing wealth and a desire to create sustainable social and environmental impacts, Asia is overtaking the US as the driver of innovation in philanthropy. It’s also creating a great opportunity for private banks and others.
It started out as one of 3,000 peer-to-peer lenders in China. In six years, it has become a broad wealth management platform that may raise as much as $5 billion in an international IPO this year. The pace of its growth has been every bit as breathtaking as Tencent’s WeChat or Alibaba’s Alipay, yet few outside China have heard of it. They will. CEO Gregory Gibb tells us why.
Lithuania has also passed laws this year regulating peer-to-peer lending and crowdfunding; legislation on remote identification is being prepared.
The application of fintech to wholesale banking is, to date, less clear than in retail financial services, where peer-to-peer lenders, start-up remittance companies, crowdfunders and robo-advisers are quickly picking up market share from the incumbents. It is more likely that fintech startups will collaborate with and sell to the incumbents in capital markets than disintermediate them. But they will still transform those markets and the business leaders.
Small corporates and not-for-profit organizations are increasingly looking at peer-to-peer FX as a way to lower costs. Euromoney speaks to four customers who have taken their business away from banks.
Start-ups fear a funding stop and loss of access to the single market, but are already making back-up plans that could point the way for their peers in the more established parts of UK finance.
Cheerleaders for marketplace lending took comfort from two events in late May that seemed to signal a potential recovery in a sector that had been rocked by the near failure of Lending Club, the leading listed specialist in online lending.
UBS oncology fund raises $471 million; banks turn to foundations to collaborate.
New Change FX is developing a peer-to-peer matching platform that will enable corporates to net down their portfolios and reduce their need to trade currencies with banks. But is this a stepping stone towards a full P2P FX exchange suitable for corporates, or is such a venue ultimately only of interest to retail traders?
Specialist small business lender grows fast; more banks seek to white label its offering.
Two large fund-raising rounds have equipped the property-focused marketplace lender to grow into a mainstream mortgage provider.
While credit conditions appear to be easing for medium-size borrowers, small companies face big hurdles in securing finance. Finpoint aims to help them over.
As worries mount that large volumes of student debt extended in developed markets will never be repaid, crowdfunding platform EdAid seeks a new model for student loans and new lenders.
Having attracted investment from Zoopla and with an Isa offering in the works, Landbay sees a big opportunity in marketplace lending for landlords.
Leading P2P providers are confident their FX products can rival leading banks, but tech bulls concede the shifting FX market-structure landscape will still see the top-tier financial institutions dominate.
In a possible further sign of disintermediation, corporates are deploying their excess cash in their self-funded supply chain finance programmes to assist their suppliers downstream.
Once the preserve of risk-taking individuals, P2P lending platforms are now no such thing.
P2P FX is rapidly gaining traction in the retail space, but even providers acknowledge it will take time to achieve significant volumes at the upper end of the corporate market.
Equity platform matches business angels with crowd investors – a sign that the venture capital industry is changing fast.
A host of new technology and new business models are aiming to transform the financial system. Many will fall by the wayside. But among them are potential winners that could be the Goldman Sachs or Nasdaq of the 21st century. Euromoney looks at the smart people and smart firms attempting to reshape finance.
London is strutting its stuff as a world centre for fintech innovation to rival Silicon Valley and New York. The first-stage disruptors, challengers and innovators are now established and growing. Government and regulators want to build a better financial system and see technology as the key.
Want to see improvements to your town or city? Don’t just rely on municipal budgets. New crowdfunding sources are springing up. The disruptors even have municipal bond markets in their sights.
Intercompany credit data suggests companies are more willing to borrow than banks claim. But what’s the point of banks if they won’t lend?
The world’s biggest banks have been slow to embrace the digital era. What can financial services CEOs learn from new, tech-based companies that have successfully disrupted other industries? What needs to change?
The foreign-exchange benchmark scandal looks set to be a boon for burgeoning peer-to-peer (P2P) currency-exchange platforms, as they capitalize on the demand for transparent and innovative solutions.
Most Austrian SMEs depend on banks for funding. And while lending by insurers is emerging, it will be limited to the top end of the borrower market.
UK companies offering peer-to-peer lending are following their US counterparts into the financial mainstream, with an hospitable regulatory climate, as well as new sources of demand and products.
P2P lending is coming of age, thanks to pent-up demand for credit, new technology and new innovative providers in the market, but the jury is out on whether the sector can become a long-term viable alternative to traditional bank finance.
Peer-to-peer lender in exploratory talks with banks, hedge funds and family offices; P2P ‘can be 20% of market within a decade’.
Some six million businesses were created in the US in 2012. The country is experiencing a start-up boom. What impact is the wave of entrepreneurs having, and how are the angel investor and venture capital industry adapting?
In July, the SEC voted four-to-one to implement Title II of the Jobs Act, lifting the ban on general solicitation of private offerings. That means issuers of non-public equity – namely small businesses – can now approach accredited investors directly and more easily raise capital in private markets.
Disintermediation (doggy-style)July 2013
BrewDog, probably the most ridiculous name for a beer-brewing company in the world, is retapping a particularly liquid source of funding.
The first crowdlending site specifically for small businesses launched this week in New York, with hopes to expand.
Lending campaigns have a 90% success rate and donations-based projects 50%, but equity-based platforms have been slow to take off.
FSA approves Crowdcube, appoints crowdfunding officer; US P2P lenders take off, endorsed by industry stalwarts.
Small banks reduce lending by $100 billion; crowdfunders join banks to source loans.
Paypal can make your payments. Google wants your wallet. Facebook sees what you like. Apple and Amazon know when you spend and what you spend it on. How far can the new, powerful technology companies threaten the traditional role of banks?
Romney and Obama support losing banks; US falling behind Europe in the ‘non-bank bank’ sector.
Impact investing – putting money to work both for profit and social impact – is in its infancy as an industry. But it has the potential to become part of the fabric of financial markets.
Impact investing – putting money to work both for profit and social impact – is in its infancy as an industry. But it has the potential to become part of the fabric of financial markets. A group of leading wealth managers, foundations and sector specialists discuss how impact investment will develop, and the challenges they face.
"The entire lending industry was so inefficient, and the way to make it efficient was to cut out the bank."
The first-ever survey to track the growth and trends in the burgeoning crowdfunding industry was released on Tuesday.
The crowd is taking over from traditional sources of finance and it is here to stay. It’s the start of the big bank disintermediation. Unless banks join the revolution, consumer lending may no longer be their sole domain.
Banks’ misgivings about the Jobs Act reflect their own failure to cater to the full spectrum of US enterprise.
Research rules resurrect conflicts of interest; cost savings ‘compromise safety’.
Former Morgan Stanley chairman John Mack is to be appointed to the board of Lending Club, a US crowdlending platform that has advanced more than $500 million in loans via its website since its inception.