The latest news from the world of Alternative Finance and FinTech
In the news this week
Nationwide, the world’s largest building society, joined the FinTech venture party this week after it put £50 million aside to invest in promising start-ups. The mutual will be focussed around seven main themes, including: house and home; personal data and identity; and financial wellness. The UK building society says that the fund is part of its efforts to stay at the forefront of innovation as it competes with a host of new digital-first challengers. In other news, the Bank of England says the UK has made positive progress on handling financial services risks around Brexit but there’s been a lack of similar action from the EU, while the Open Banking sector is set to quadruple in value by 2022.
Nationwide launches £50m fintech fund
UK building society Nationwide has joined the fintech venture fund party, putting aside £50 million to invest in promising startups. The mutual will be focussed around seven main themes: house and home; personal data and identity; financial wellness; community and society; banking-as-a-platform; operational efficiency; and new segments. (Finextra)
Bank’s red light warning for EU on lack of Brexit progress
The Bank of England says the UK has made positive "progress" on handling financial services risks around the UK's departure from the European Union. But it also says there has been a lack of similar action from the EU. It says that means "material risks remain" to trillions of pounds worth of financial contracts - which support the business... (BBC)
Open Banking sector set to quadruple in value, researchers predict
The Open Banking sector could quadruple in worth during the four years to 2022, according to new research from accountancy group PwC. The prediction follows the introduction of new rules in January which require UK banks to share current account holder data through an integrated technology called application programming interfaces (APIs). (insider.co.uk)
Investors are ditching their cash ISAs in favour of other forms of ISA accounts, according to new research from peer-to-peer platform Assetz Capital. In the first quarter of this year, 52 per cent of Assetz Capital’s investors had put money into cash ISAs, but this figure had dropped to 37 per cent by the end of the second quarter of the year. (P2P Finance News)
London may be about to lose its spot as the UK's tech capital
While London is seen as the UK's tech hub, a new research report from Vodafone's Perspectives Series sheds light on how a growing number of 'challenger regions' have emerged across the UK. Vodafone found that business growth is soaring outside the capital... (ITProPortal)
21% of millennials consider Bitcoin a better investment than buying their own home
Transferwise unveils partnership with UK challenger bank Monzo
Challenger bank Monzo has announced a partnership with fintech unicorn Transferwise on international payments. It marks the second big tie-up for Transferwise in recent weeks, after confirming it was working with France's second largest bank BPCE Groupe. (City A.M.)
Most business advisers would recommend alternative finance to fund growth
The vast majority of business advisers would recommend alternative finance to small- and medium-sized enterprises (SMEs) looking to grow, ThinCats research has found. The peer-to-peer business lender surveyed 300 advisory professionals during Spring 2018 and found that 89 per cent would recommend alternative finance... (P2P Finance News)
Social Media: the affordable introduction to marketing for SMEs
For SMEs looking to start a more serious digital marketing strategy, the options available can be a bit of a minefield to navigate. There are so many channels and options to choose from, so we understand why many small businesses don’t even get out of the starting blocks.
The game’s afoot. P2P’s ‘big three’ – Zopa, Funding Circle and, most recently, RateSetter – are all rumoured to be finalising plans to secure a listing on the London Stock Exchange, although each remains coy about specific intentions, exact sums of money involved and precise timings. Leading the race is Funding Circle which could come...