PeerIQ provides insight on Cross River Bank and its $28 million investment from venture capitalists; the deal highlights Cross River Bank’s partnerships with marketplace lenders and provides a leading example for how banks can seek to gain from online lenders while also mitigating true lender risk; Cross River Bank likely to set a precedent for banking investment in MPL loans; success with marketplace lending partnerships has helped it to achieve a return on equity of 26.5% versus 9.8% for FDIC-insured institutions. Source
Tesco Bank publicized that modest amounts of funds had been stolen from 20,000 accounts this past weekend, with an additional 20,000 accounts being attacked by suspicious probes; the company manages nearly eight million accounts and they have been blocked from using debit cards since this weekend; Tesco's CEO says that they are confident they know the nature of the attack, but declined to explain at this time, and is asking UK regulators to allow them to make debit transactions allowable again as soon as possible; the UK's Financial Conduct Authority has called the attack "unprecedented in size and sophistication" but acknowledges limited IT expertise within the authority. Source
AltFi published their second installment of "Where They are Now?" - a report on the status of UK crowdfunded companies since 2011; 751 companies are listed; 73.60% of the companies remain active and 11% have closed; top platforms in the UK include: Crowdcube, Seedrs, SyndicateRoom, AngelsDen, Code Investing and Venture Founders. Source
A new fintech startup called Soldo aims to initially target families that may want to distribute money to children, split household bills or give a domestic worker an expense allowance; firm has larger vision in launching to businesses; company is not a bank but holds an electronic money license and is regulated by the FCA; Soldo has already partnered with Mastercard and aims to solve the problem of single user wallets and debit cards. Source
The financial technology industry has seen enhanced innovation and financial technology adoption over the past eight years; the industry's growth has accelerated as the US economy has emerged from a financial crisis; during Obama's presidency several innovative sub sectors have grown substantially with significant potential still ahead; Orchard notes the industry's expansion in mobile banking, online lending, retail investing, institutional investing and payments; all areas of the industry with significant growth potential and need for support from the country's next president. Source
Hong Kong Fintech Week began with an announcement from SuperCharger Fintech Accelerator of eight finalists; the companies provide a range of services including solutions for wealth management, regulatory technology, artificial intelligence, cybersecurity and blockchain; the eight companies will participate in a 12-week program which includes access to SuperChargers corporate partners and mentors. Source
Nine new startups spanning blockchain and digital currency are now a part of the FCA's regulatory sandbox; companies added are Billon, BitX, Epiphyte, Govcoin Limited, Otonomos, Nivaura, SETL, Tradle and Tramonex; FCA executive director of strategy and competition, Christopher Woolard, stated, "It has been an intense process for both firms and ourselves and we are grateful for their cooperation and hard work in getting us all to this position. We look forward to these businesses bringing new products and services to market whilst we ensure that appropriate consumer protection safeguards are in place." Source
Thomas Curry, Comptroller of the Currency, gave more insight on the Office of the Comptroller of the Currency's (OCC) plans for fintech regulation at a banking and innovation conference in London; Curry reported that regulation would be consistent with current banking standards, noting in his comments that, "if the OCC decides to grant a national charter in this area, the institution will be held to the same high standards of safety, soundness and fairness that other federally chartered institutions must meet"; the OCC is continuing with its plans for an Innovation Office and Curry said he would be releasing a white paper on fintech innovation. Source
The Chinese insurance market has doubled in size the last six years and according to China Insurance Regulatory Commission (CIRC) it will grow on average 13% for the next four years; these growth numbers will allow for technology disrupters to enter the space and for the insurance market to be transformed; the market is split into three different segments, which include online delivery of traditional insurance, technological upgrades to products and new ecosystem oriented products from insurtech startups; though there is tremendous opportunity, the key question will be, do the state-owned enterprises and traditional insurers create their own tech or partner and absorb these new firms. Source
Leading Chinese insurtech firm, ZhongAn, has announced the addition of a new fintech incubator; ZhongAn Information and Technology Services Co., Ltd. will be focused on technology development in the following four areas: artificial intelligence, blockchain, cloud computing and data; seeks to be a technology accelerator for insurtech. Source