Factor 21 has done a management buyout with funding from Mobeus; the private equity firm provided a 9 million british pound funding line for the buyout; Jonathan Gregory of Mobeus will join Factor 21 as investor director; Factor 21 has been in business for over 15 years and has provided invoice funding of over 2 billion british pounds; the management buyout funding will help the firm grow business at its two regional offices. Source
The Ranger Direct Lending closed-end fund is seeking to raise £40 million through the sale of new shares; fund is currently at £236 million; company will offer new C shares in December; the fund's last two share offerings have been for Z shares with trading symbol ZDP; the Ranger Direct Lending Fund has been steadily leading returns for UK marketplace lending funds in 2016. Source
The agreement was signed by the Financial Conduct Authority (FCA) and the People's Bank of China, the intention of the deal is to strengthen regulatory cooperation and boost market access for fintech startups in both markets; the "Fintech Bridge" as it is being called will allow the countries to share information about financial services and help to spot emerging trends in each market. Source
UK Bond Network has received authorization from the Financial Conduct Authority (FCA); allows UK Bond Network to offer investors access via the innovative finance individual savings account (IFISA); the FCA is now authorizing both crowdfunded lenders and bond platforms. Source
Funding Circle's, Samir Desai discussed his platform's business model at this week's Web Summit; Desai provided details on how his platform categorizes small business loans and makes credit approval assessments, noting that approximately 80% of businesses funded would likely be approved by traditional banks; also highlights the benefits of diversification for investors who can invest in multiple loans through a single platform; says 90% of investors are earning over 5% a year. Source
Zopa has announced it plans to apply for banking licenses; company will be the first alternative finance platform to seek licensing as a bank; CEO Jaidev Janardana wrote to clients on Wednesday with details on the company's plans; Zopa will seek to offer deposit accounts and new lending products; requires Prudential Regulation Authority and Financial Conduct Authority licenses which the company expects to take 15 to 24 months. Source
The UK-based, wealth management company, raised £30 million to help expand their product offering across the UK; investors include Convoy, a Hong Kong-listed firm of independent financial advisers, as well as existing backers Schroders, Balderton Capital, Pentech, Armada Investment Group and Nigel Wray; the funding is subject to the approval of the Financial Conduct Authority. Source
As two new banking applications come to market this week, the question that comes to mind is can all of these startups survive and disrupt the banks?; there are questions surrounding business models and how each company intends to make money in a market that is becoming more crowded each day; each of these new startups has different challenges that lie ahead, some will need to be approved for a banking license and others will need to understand the regulatory framework behind PSD2. Source
FastPay is an online lender and credit provider for digital businesses in the US and UK; the company has partnered with Hitachi Capital America Corp. for a new FastPay for Enterprise product; the new product will provide working capital loans of $10 million or more to digital media enterprises. Source
Folk2Folk has announced it will be using Microsoft Azure to support its loan management system; use of Microsoft Azure follows recent plans to significantly increase the firm's branch offices over the next two years; firm's business facilitates peer-to-peer lending through branch office locations. Source
