Millennials now account for the largest majority of the US population and research predicts they will grow to 81 million in 2036; a majority of millennials have been credit averse with minimal credit history which has caused credit providers to target them in slightly different ways; in a white paper from LexisNexis the company provides a profile of millennials for credit providers. Sponsored Blog Post
CB Insights shares the total number of startup investments by (re)insurers since 2012; (re)insurers have taken an increased interest in investing in insurtech companies with an estimated 135 investments in 2016; some of the most recent insurtech deals spanning many verticals of insurance are shared below. Source
The API platform will help support banks connectivity with fintech developers; it will provide easy access for new apps and services while also facilitating new innovative solutions for financial institutions; the platform is designed for universal access allowing developers to offer connectivity to multiple institutions through the TrueLayer API platform; the platform also provides for regulatory compliance; its release will significantly promote the development of fintech apps which now have a substantial market opportunity available in the UK due to PSD2 regulations which require financial institutions to allow third parties to access customer data; the private beta API platform is currently available in the UK and the company has plans for expansion to other countries in Europe in 2017. Source
Bank of America is testing three automated branches in Denver and Minneapolis in an effort to lower branch banking costs; the automated branches will focus their service around automated teller machines and video conferencing; the firm's CEO Brian Moynihan has been focused on reducing costs with a specific focus on lowering branch costs while increasing investment in mobile and digital technologies. Source
Laura Shin talks with Spencer Bogart, vice president of equity research at Needham and Company, and Daniel Masters, director at Global Advisors Bitcoin Investment (GABI), about the potential SEC approval of the Winklevoss Bitcoin Trust ETF; both Spencer and Daniel provide insight on the bitcoin market and current funds; Daniel Masters currently manages bitcoin funds at GABI in the UK; Spencer cites three outcomes that could occur on March 11: the SEC could approve or disapprove, the Gemini exchange could withdraw or no decision would automatically approve the ETF; one factor keeping the ETF from a decision is conflict of interest from the Fund's management and Gemini exchange which both would be operated by the Winklevoss brothers’ business; other factors include the structuring of the Fund and the represented value of the underlying cryptocurrency; the Bitcoin Trust ETF would be the first approved by the SEC in the US and its approval would have an effect on the bitcoin market overall; two other firms have also filed for SEC approval of bitcoin ETFs including SolidX and Grayscale Investments. Source
The insurtech forum will help to introduce the LendIt audience to one of the most innovative companies in property and casualty insurance, and a leading insurance association focused on this innovation trend; Lemonade CEO Daniel Schreiber and Adam Kerns of the American Insurance Association will be interviewed by Thalia Smith of Deloitte about innovation currently taking place and how new companies are affecting the traditional players in the insurance market; register today. Source
The Cambridge Center for Alternative Finance (CCAF) has released its first report on the alternative finance market, titled, "Africa & Middle East Alternative Finance Benchmarking Report"; the report was created with support from Energy4Impact, UKAid and CME Group Foundation; for 2015 the report cites growth of 59% and a total market of $242 million; Robert Wardrop, executive director at the CCAF says development trends in Africa and the Middle East had a different focus which was on equity crowdfunding and online micro finance as opposed to consumer and business P2P lending in other global markets. Source
Swedish startup Klarna has acquired BillPay in a transaction that's expected to strengthen its payments business throughout Europe; the estimated price is approximately 60 million British pounds ($75 million) and Klarna was last valued at $2.25 billion in 2015; both Klarna and BillPay have been closely compared to PayPal; with the new acquisition the majority of Klarna's business will now be focused in Germany; Klarna has been focusing on business in Germany, acquiring Cookies in October 2016 and Sofort in 2013, both German companies; the acquisition of BillPay will help increase cross-border payment transactions; according to Sebastian Siemiatkowski, co-founder and CEO of Klarna, "Germany is one of the largest e-commerce markets in the world, and we are delighted to have strengthened our position here with this acquisition." Source
Adyen reported an 80% increase in 2016 payment transactions with transaction volume of $90 billion; the growth was attributed to partnerships with Uber, Spotify, Airbnb, Booking.com, Facebook, Twitter and LinkedIn; growth is expected to continue in 2017 with contributions from new in-store payment services which it expects to grow to 50% of its business; the firm also says the European Commission's Payment Services Directive 2 (PSD2) will help improve business for Adyen. Source
MoneyLion provides customers with a range of services for managing their finances and also includes credit products; the platform incorporates a unique rewards program that can help customers receive loan discounts and rewards from endorsements and on-time payments; company is a featured applicant in the 2017 Benzinga Global Fintech Awards competition; led by co-founders Dee Choubey, Chee Mun Foong and Pratyush Tiwari, the company raised $650 million in debt financing in September 2016 and $22.5 million in a Series A equity funding round in December 2016. Source