The latest news from the world of Alternative Finance and FinTech
In the news this week
The Bank of England warns of the “dark side” of artificial intelligence and the possibility of mass unemployment at the hands of technological innovation. JP Morgan believes the retail investment and the wealth management sectors have huge potential for disruption and plans to make its move through its latest service, You Invest. Meanwhile the Britain’s big six have come under fire for their slow take-up of the Open Banking reforms.
Bank of England chief economist warns AI will kick us out of jobs
Artificially intelligent machines that have both cognitive and technical skills could cause massive and lengthy unemployment in the future. (Alphr)
Augmentum Fintech invests £7m in three European startups
Augmentum Fintech said it had made a combined £7m investment in three European fintech companies: Tide, Previse and DueDil. Tide, which received £3m, was an emerging SME challenger bank, and Previse, which got £2m, was an instant supplier payment company. (StockMarketWire)
Women are still less likely to invest in P2P, says Robo.cash
Women are still far less likely to invest in peer-to-peer loans, according to Latvian platform Robo.cash. Research from the P2P payday lender has found that just eight per cent of its investors are women. (P2P Finance News)
69% of the UK population bank online, almost double the numbers recorded 10 years ago
Why are more people turning to P2P lending?
P2P or ‘social’ lending allows individuals to lend and borrow money from one another, cutting out the financial ‘middlemen’ such as banks and credit unions. This type of lending was once thought of as more risky, but we feel the increase in trust in the industry over the last five years has seen this type of lending grow dramatically. (Bridging & Commercial)
Pensioners marching on the Square Mile – no thank you
News of China ordering a lockdown of Beijing’s financial district on Monday (6 Aug) to prevent organised demonstrations by investors that lost money with bankrupt P2P lenders is the stuff of nightmares for the FCA. The breakdown of more than 150 platforms in China since the beginning of the year is being blamed on regulatory failures, fraud, lending to weak borrowers and an overall decline in economic conditions.
Despite being discussed numerous times there still seems to be confusion over social media’s connection with search rankings and SEO. In 2010 Matt Cutts, the former head of Google’s webspam team said that Google did use links from Facebook and Twitter as ranking signals. But, just four years later he changed his mind, claiming these social media pages were treated like any other web page for search, but not as a ranking factor. It's been a while since then, and there's no...