The Cambridge Center for Alternative Finance released their 3rd annual European Alternative Finance Industry Benchmarking Report showing the market grew by 41 percent in 2016; the report uses 344 financing platforms across 45 European countries; the UK’s market share dropped from 81 percent to 73 percent and the rest of Europe grew by 101 percent; consumer lending led the way with 34 percent, followed by business, invoice trading, equity crowdfunding and rewards crowdfunding; institutional funding comprised 45 percent of consumer lending and 29 percent of business lending. 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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- Brazilian Fintech EBANX Secures $30 Million Investment From FTV Capital
- PayPal powers BofA Merrill digital payments
- IdentityMind Global Introduces KYC and Anti-Money Laundering Plug-in for ICOs
- Amy Johnson Named as Chief Operating Officer at dv01
- Enova Reports Fourth Quarter and Full Year 2017 Results
Data courtesy of FedFis.com shares that Fiserv has more than 37% market share; Jack Henry has the second highest market share with 17.6%, followed closely by FIS. Source
Many of the top cryptocurrencies have fallen in price as of late; Coindesk shares a chart highlighting the percentage decline of the top 10 crypto assets; the biggest losers at time of writing are Cardano, Stellar and Ripple. Source
The new initiative will promote engagement with those involved in blockchain; it will also monitor new developments to help inform policy making; the European Commission allocated a budget last year and sought out bids for a services contract to set up the observatory; the contract was won by ConsenSys. Source
Ebay dropped PayPal and turned to Adyen to be its primary processing partner; Banking Technology reports that eBay users “do not need to take any action at this time” as the “transition to full payments intermediation will be a multi-year journey”.; the deal will begin with a move in North America in the second half of 2018 before expanding in 2019. Source.
BBVA Compass, Capital One, Silicon Valley Bank, Citi, CBW Bank are some of the early adopters of open APIs that are beginning to transform how banking operates; the big question is how open will banking become and will it be mandated by legislation or will banks work with only those they trust; the one thing all banks are starting to do is make bigger investments into digital products, whether through partnerships or development as they see that the old way of banking will not survive. Source.
The WSJ shares how the non-profit provides micro loans to women entrepreneurs and shares some success stories; the model is largely based on reputation and a support system instead of credit history; loans start at $500 with interest rates around 18% which fall over time as the balance is paid; entrepreneurs can receive larger loans after establishing a track record of repayment. Source
The digital push at BBVA has helped the company to a 20 percent rise in profits; the changes have helped the company to lower costs while boosting profits; “The strength of recurring revenues and the improvement in efficiency show that we are advancing decisively in our transformation strategy,” said Francisco González, the group’s executive group chairman to the Financial Times. “2017 was a good year and 2018 will be an even better one.” Source.
American Banker takes another look at 7 failed fintech ideas that might have been thought of too early; the ideas include Blippy’s social payments, Pay By Touch’s point of sale hardware, Cybercash by Beenz and Digicash by Flooz, the early days of mobile payments and more; with fintech being as fast paced as it is today new innovation is happening more now than it ever has been. Source.