Leading Canadian point-of-sale (POS) platform Flexiti Financial raised an oversubscribed CAD$6.25 million (USD$5 million) convertible debt offering; they will use the capital to accelerate growth and improve technology; according to Flexiti Financial Founder and CEO Peter Kalen: "Retailers across Canada are looking for unique solutions to increase sales and maintain customer loyalty in a highly competitive and shifting market. Flexiti Financial's POS lending platform has become an important tool in their sales arsenal, and this investment will help us better serve our retail partners while managing our growth across Canada." Source
Fintech companies raised $2.7 billion from 226 deals in the first quarter of 2017; 22 fintech unicorns in the first quarter with a total value of $77 billion; top funding rounds included Atom and Funding Circle with $100 million each; fintech venture capital funding in Europe increased to $700 million from $200 million in the fourth quarter and is expected to increase from 2016 while the US is expected to report a decrease. Source
According to Kai-Fu Lee, founder of venture capital firm Sinovation Ventures, robots could replace 50% of all jobs in the next decade; artificial intelligence capabilities such as rapidly dispersing loans or recognizing millions of faces at the same time can make businesses much more efficient; while humans will still represent a significant portion of the labor market, specifically in service jobs, the efficiencies of artificial intelligence solutions make them hard to overlook. Source
The Conference of State Bank Supervisors (CSBS) is suing the OCC to challenge its plans for a fintech charter; central to the case is the OCC's authority to grant special purpose bank charters; CSBS President and CEO John Ryan says, "The OCC's proposed action ignores Congress, seeks to preempt state consumer protection laws, harms markets and innovation, and puts taxpayers at risk of inevitable fintech failures." Source
Franklin Tong, CEO of Astri, talks about Hong Kong's fintech industry influence on China; provides insight on how his company is using applied science to enhance Hong Kong's competitiveness in fintech; Astri was founded by the Hong Kong government and is focused on research and development for a range of solutions. Source
The Center for Financial Inclusion at Accion (CFI) and the Institute of International Finance (IIF) in collaboration with the MetLife Foundation have released a report on financial inclusion; the report focuses on how partnerships between mainstream financial institutions and fintechs are expanding financial inclusion; findings are based on 24 in-depth interviews with firms and experts from around the world with emphasis on the emerging markets; the report is part of a two-year financial inclusion project from CFI, IIF and the MetLife Foundation called "Mainstreaming Financial Inclusion: Best Practices." Source
The New York Business Journal reports on CB Insights' venture capital data by state noting that fintech investment in New York companies decreased by 35% from the previous quarter to $253 million while deals increased to 24 from 19; three New York City companies, Namely, Trumid and Payfone, were among the top 10 US fintech deals; Namely was second in top fundraisings with $50 million. Source
Patrick McHenry is working with a Senate Democrat on a bill for fintech beta testing; he introduced the Financial Innovation Act in the House of Representatives in 2016 which did not advance; the Financial Innovation Act included the creation of innovation offices with 12 regulatory agencies; he says the 2017 version of the act will include "significant changes and revisions"; he plans to introduce the new bill in two months. Source
American Banker reports on the increasing number of financial services companies and groups using the federal court system to oppose regulatory enforcement orders and new initiatives; the Conference of State Bank Supervisors is the most recent case as the group seeks to debate the OCC's fintech charter; the CFPB has also been a notable defendant with opposition from Ocwen Financial and PHH Corp.; other cases have included MetLife and the American Bankers Association; according to H. Rodgin Cohen, chairman of Sullivan & Cromwell, "There's an increased willingness to litigate," and it seems the trend is likely to continue with industry changes resulting in new challenges and consequences. Source
China's online brokerage market for retail investors is growing rapidly; Barron's suggests investment in China's Huatai Securities (6886.HK) which is one of the online brokerage market's best positioned companies; the firm is China's largest brokerage by trading volume and offers low commission rates; its business is also diversified with its wealth management unit increasing assets under management by 44% in 2016; Barron's cautions investors on the firm's earnings, with comparable net profit down 44% in the first three quarters however analysts are expecting an earnings increase of 21% in 2017. Source