UK millennial banking app, Loot, has raised $2.5 million from backers that include SpeedInvest and Global Founders Capital; Loot is an app for millennials to monitor spending and transactions; an account is setup using a photo, ID/passport and a UK address. 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
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
P2P property lending has been providing steady returns in the UK, according to a report from rating agency, 4thWay; since 2013, UK P2P property lenders have lent £1.6 billion with returns ranging from 2.25% to 12.7%; lenders in the category have achieved success through thorough underwriting processes with maximum loan to value ratios of 70% to 80% and most loans secured by the property. Source
Marketplace lender, Spotcap, is headquartered in Germany and first launched in Spain; it now has opened an office in London and has begun serving the UK lending market; uncertainties with Brexit crossed executives' minds but didn't deter the launch; UK Managing Director, Niels Turfboer, said, "a lot needs to happen in the world [for London] to lose its position, which is basically number one in the world after Silicon Valley [for fintech]"; in fact, he adds, "Historically a period of uncertainty will lead to more restricted activity from the more traditional finance companies like the High Street banks. That has its effect mostly on the SMEs as they're considered to be more risky. I definitely think it's going to be a turbulent and challenging time but alternative finance will have more influence in the coming years, in my opinion."; the company focuses on offering working capital lines of credit for small businesses. 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
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 startup will open up their new bank to 10,000 "co-founders" to begin using their banking services with hopes of a public release in 2017; the bank is looking to help people manage their money and not bombard them with product sales; founder and deputy CEO, Ricky Knox, says this is its "first step" and that it plans to "grow into a full-service bank" in 2017. Source
The British High Court ruled on Thursday that Parliament must give its approval for Brexit, creating uncertainty on whether or not the UK will leave the European Union; plans for exiting the EU were to begin in March; the government now has appealed the High Court's decision to the Supreme Court which will consider the appeal in December; if the ruling is upheld speculators believe Parliament would continue with the same sentiment that its voters reported in June. Source
RateSetter's Provision Fund is a capital reserve that helps ensure investors get paid principal and interest even if loans default; currently the fund is valued at £22 million; with the company projecting future losses via default of £18 million, the "Provision Fund coverage" ratio is roughly 120%; now, the firm has begun publishing a "capital coverage ratio" that combines the reserve funds with the expected interest payments on the loans, then divides by expected losses; with £30 million in interest payments expected, added to the £22 million reserves, the capital coverage ratio is nearly 3x; RateSetter said the newly published ratio is more fair when comparing RateSetter's assurances against other online lenders that don't hold a reserve fund but that still calculate coverage of potential losses. Source