News Briefing - Crowdfunding, SME And Alternative Finance

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1.UK – FinTech

Altfi reports: 


“Having captured seven per cent of all UK SMEs at the start of the year, Tide is now partnering with Sage to bring accounting services to its 400,000 members. 

The banking service is introducing Tide Accounting for UK members which will offer an end-to-end accounting and tax solution for small businesses. 

Embedded within users’ accounts, the service will enable small businesses to take control of their business accounting, staying compliant and avoiding penalties, Tide says. 

The automated accounting and bookkeeping services will provide real-time insights for users and will connect banking data and Tide’s existing finance and admin tools with Sage’s accounting and compliance services. 

“Most business owners find accounting a daunting task and struggle with being compliant, they need a solution that simplifies it for them,” Tide CEO Oliver Prill said. 

“Sage's long and impressive record in accounting and compliance and their strategic alignment with Tide brings us a step closer towards our mission to make life easier for people who work for themselves, saving them time (and money) on their financial admin.” 

Tide’s new ‘simple and affordable accounting tool’ will combine banking and accounting to streamline financial and compliance processes including self-assessment and year-end accounts.” 

 

2. UK – FinTech 

 

The Fintech Times reports: 

 

As the pivot to financial apps accelerated during the pandemic, the number of over 55s turning to them has been no different. The financial app Revolut has reported an increase of over 215 per cent in the number of UK users aged between 55 and 74 over the past two years. 

Eighty-five per cent of the UK population owns a smartphone, according to Ofcom, and as consumers increasingly discover apps that make their lives easier, financial apps have continued to proliferate: but these are not just the preserve of the young. 

New data from Revolut shows that older consumers are also embracing the financial super app in significant numbers, and for myriad different uses in addition to day-to-day spending. The number of transactions by UK users aged between 55 and 74 using Revolut has quadrupled, and an increase of around 470 per cent in the amount spent over the past two years. 

The data shows that older customers are finding fintech accessible, purchasing items and services online and in-store, with the most popular merchants including post offices, cafes, and supermarkets. 

As retirees take to the skies once again they’re turning to financial apps in droves, proving these fintechs aren’t exclusively appropriate for younger audiences. As travel restrictions relax, the 55 to 64 UK age group has seen a tenfold increase in the amount spent in foreign countries over the past two years, and the 64 to 75 age group isn’t far behind with an 840 per cent increase.” 

3. International – FinTech 

Finextra reports: 


“Credit building startup Altro has raised $18 million with support from Jay-Z and Citi Ventures. 

The Series A funding was led by Pendulum, with participation from Jay-Z’s Marcy Ventures, as well as Citi Ventures, Black Capital Fund, and Concrete Rose Fund, and individual investors.

Formerly known as Perch, Altro allows users to build credit through recurring payments for digital subscriptions such as Netflix and Spotify.

“With all the other available data to demonstrate a person’s fiscal responsibility, there’s no excuse to continue to rely on outdated methods like credit cards and loan payments, which are predatory and exclusionary at best,“ says Altro co-founder and CEO Michael Broughton. ”Perch has proven the demand for more accessible forms of credit building, and now as Altro, we’re creating a movement, bringing financial empowerment to all." 

 

4. International – FinTech 


Altfi reports: 


“Elucidate, a financial crime risk management platform based in Berlin, has raised $8m. 

The company says the pandemic has sparked a dramatic increase in financial crime, which has been further exacerbated by growing instability in Eastern Europe from the Russian invasion of Ukraine. 

"The Ukraine-Russia conflict and the complexity banks have faced implementing the most recent sanctions has, once again, revealed the sheer scale of financial crime risk banks can find themselves exposed to when they lack the proper tools,” said Shane Riedel, co-founder and CEO of Elucidate. 

A global “reset” in how banks manage financial crime is needed, he says.  

“This funding validates the vital work we are doing, strengthens our position in the market and shows that especially in this current era of geopolitical instability, the financial community is calling for innovative tech solutions to overcome systemic challenges," he added.  

In total, the company has raised $14m in funding and its team has grown to more than 40 people.” 

  

5. International – FinTech 


Crowdfundinsider reports: 


“European lender Bondora says it’s pleased to announce their platform’s 5th consecutive year of profitability. 

With their solid foundation, Bondora continues to “offer intuitive products that empower [their] customers to spend, grow and save their money.” 

Over the past 14 years, the Bondora community of 200,000 customers “have invested over €590M and received €66M+ in earnings.” Their financial success “enables [them] to grow, and [they] have exciting projects planned for the future.”