JPMorgan Chase and the Center for Financial Services Innovation (CFSI) announced their 4th annual Financial Solutions Challenge to help improve the financial health of underserved communities; for the first time the competition will focus on entrepreneurs of color, women and individuals with disabilities; "The FinLab believes that diversity among leaders and teams also leads to more inclusive products and services with the potential to scale to millions of customers,” explained the press release that accompanied the announcement. Source.
News Roundup
This page contains an archive of the Global Newsletter summaries and the weekly fintech news roundups.
Every day the Fintech Nexus news team scours the globe for the most important stories of the day to include in our daily newsletter.
Then every Saturday we bring you our weekly news roundup of the top 10 fintech stories of the week with commentary from Peter Renton.
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Tearsheet digs into how Revolut generates cash; the startup announced it broke even in December with 1.5 million customers and monthly transaction volume of $1.5 billion; this represents a 700% increase in 12 months; Dan Westgarth, head of Revolut USA stated, “Our revenue model globally is payments-centric. We receive renumeration every time our card is used; that’s what keeps our business afloat, and we’re wrapping around on top of that third-party services, and we have a business and corporate product.” Source
Online lending data and analytics platform PeerIQ announced their latest offering, a consumer credit suite backed by TransUnion data; the suite includes TransUnion’s depersonalized consumer credit data from the year 2000 to present day; users of the suite can see credit trends, vintage analysis, benchmarking analysis and more. Source.
In the transaction on the blockchain platform, Credit Suisse and ING swapped securities totaling €25 million using the HQLAx Corda collateral lending application; doing transactions in this way increases regulatory transparency, reduces systemic and operational risk and helps companies manage capital efficiently. Source
We are quickly approaching LendIt Fintech 2018 which will take place on April 9-11 in San Francisco. Lend Academy shares the three areas of fintech the agenda will focus on and some of the interesting speakers attendees will hear from. Source
- Quantifying Randomness and Adverse Selection in Loan Allocation Methodologies
- Marketplace Lending: A New Banking Paradigm? (Harvard Business School)
- Sancus draws £17.5m from new Honeycomb facility
- Former JP Morgan Executive Launches Fintech Startup Zoe Financial to Help Millennials & Gen Xers Find Financial Advisors
- Exclusive: Y Combinator Backed Online Lending Platform Credy Rakes In $1.4 Mn Funding
- Retail Banks Play Valuable Role as First Line of Financial Advice for Customers, J.D. Power Finds
The company is calling their strategy the digital everything model, which includes new mobile features and back office operations powered by the blockchain; “We’re not going to lose our financial discipline because we have to make an investment that we have to do or want to do,” CEO Jamie Dimon said when asked about their approach to the tech investment; branch expansions, investments in big data solutions and more were also discussed during the investor call as reported by American Banker. Source.
KPMG reports that fintech investment in Asia was $3.85bn in 2017, a significant drop from the more than $10bn invested in 2016; China was the biggest reason for the drop as the country saw only $1.3bn of investment in 2017; “Increasing government controls and regulations over fintech in China have kept many investors on the bench during 2017,” the report explained; one optimistic data point was corporate investment jumped in Q4 to 31 percent of overall deals. Source.
According to a new study by Accenture 7 out of 10 consumers would be reluctant to share their Information with third party providers; Citi recently published a study pointing to three main reasons that wide scale adoption will take longer; reasons include slow consumer adoption, fragmented market for new open banking services and the ability for payment providers to adapt to new rules; thus far open banking has been slow but big banks like Lloyds Banking Group and RBS have made big tech investments anticipating the change will happen over time. Source.
The WSJ reviews Goldman’s push into consumer finance; the company first started offering loans under the Marcus brand which is the new branding for their savings account; Goldman has higher aspirations though with more initiatives in point of sale, wealth management, budgeting tools, insurance, mortgages and car loans; the company is also working with Fortune 500 companies to offer bank accounts as an employee perk; beyond their internal efforts they have also been active in acquiring fintech companies. Source