News Briefing - Crowdfunding, SME And Alternative Finance

Young woman whispers in friend's ear

1.UK – FinTech

Altfi reports: 


“Digital wealth manager and neo-broker Scalable Capital is moving into financial derivatives, including leveraged products.  

Derivatives are complex 'synthetic' investment products relating to an underlying asset such as a share or an index that allow gains and losses to be multiplied.  

Scalable, which recently become one of Europe’s newest fintech unicorns, says clients are now able to trade certificates, warrants or other leveraged products via partners HSBC and HypoVereinsbank onemarkets. Goldman Sachs will join as a third partner soon.  

In addition to the existing investment universe of the Scalable Broker of around 10,000 shares, ETFs, Crypto-ETPs and funds, there are now around 300,000 new derivate products.” 



2. UK – FinTech 


Sky News reports: 


“Martin Gilbert, the City veteran, will accelerate his bid to create a new fund management empire this week when he taps shareholders for the funds to buy a company in the fast-growing exchange-traded funds (ETFs) sector. 

Sky News has learnt that AssetCo, Mr Gilbert's new corporate vehicle, plans to raise approximately £25m of new equity from investors. 

The cash call, which could be announced as early as Wednesday morning, will be partly used to finance the acquisition of a majority stake in Rize, which bills itself as Europe's first thematic issuer of ETFs, according to insiders. 

People close to the situation cautioned that key details of the fundraising and acquisition had yet to be finalised.” 


3. International – FinTech 


Finextra reports: 


“Australian buy now, pay later firm Afterpay is diversifying through the launch of a 'money and lifestyle' app. 

The Money app is the fruit of a partnership inked last year with Westpac that lets Afterpay operate on the bank's new banking-as-a-service platform.

The app - which is being piloted with staff ahead of an October rollout - will let Afterpay's BNPL customers see their BNPL balance, upcoming orders and instalments alongside their daily spending account and savings accounts.

In addition, users will be able to get up to a one per cent interest rate on up to 15 different savings accounts. Meanwhile, the firm is also offering a fee-free daily account with a physical debit card.” 



4. International – FinTech 


Finextra reports: 


“Fidelity International has picked technology from Finbourne to drive its data strategy in a deal that also sees the asset manager make a strategic investment in the London-based startup. 

Fidelity made the investment through its VC arm as part of a recent funding round for Finbourne. The size of the round and other participants were not disclosed.

Established in 2016 by a team of senior ex-UBS and Nomura bankers and investors, Finbourne's objective is to simplify and supersede the way investment data is traditionally stored, accessed and analysed.

The firm's Lusid platform is a cloud-native, API-centric architecture, specialising in simplifying complex data hierarchies. The firm claims the technology enables asset managers to not only ingest, aggregate and distribute data to their entire organisation, but allows for extensible calculations across functions such as risk and performance.” 

5. International – FinTech 


Crowdfundinsider reports: 

“As embedded finance continues to transform the financial services sector, Currencycloud questions how banks will shape that future. 

The cross-border payments Fintech notes that this is the question “on the minds of industry insiders — and with the rise of embedded finance, it’s never been more pertinent.” 

Currencycloud adds that embedded finance “continues to cement itself as the next step for the sector.” In the payments space alone, Barclays has predicted that embedded finance revenues should expand from around $16.1 billion last year to approximately $140.8 billion in 2025, Currencycloud writes in a blog post. It also mentions that by 2030, embedded finance will have “changed market structures and business models dramatically.” 

At present, banking platforms are “varied in their response,” the company reveals while pointing out that some are “playing catch-up, digitizing traditional services; many provide the infrastructure and rails for embedded services; others try to compete with specialized Fintech providers.” 

Currencycloud also mentions that the argument usually goes that these are the “only options” for banks: “they are an outdated model, soon to be outpaced by new trends. But we see a different future.” As noted by the cross-border payments firm, banks are “facing a key opportunity to shape the evolution of embedded finance — provided they engage.”