The latest news from the world of Alternative Finance and FinTech
In the news this week
Peer-to-peer giant Zopa announced this week that they are back in the black. The company’s profit after tax for 2017 hit £1.5m, as it reported a revenue increase of 40 per cent to £46.5m in its annual report for last year. “2017 was a landmark for us. We’re proud to see the company’s efforts reflected in our record lending figures, profitability and strong customer growth,” Zopa chief executive Jaidev Jarardana said. Elsewhere, the European Union’s watchdog has said that banks saddled with bad loans risk falling behind their younger and nimbler rivals in the FinTech race, while city veteran Michael Spencer has led a $16.5m series B funding round into fintech startup Veridium.
Peer-to-Peer lender Zopa back in the black
Peer-to-peer lender Zopa is back in the black as the firm's profit after tax for 2017 hit £1.5m. The financial firm, which matches borrowers with people looking to invest, reported a revenue increase of 40 per cent to £46.5m in its annual report for last year. The amount of money paid out by the lender also rose by 43 per cent to £985m. (City A.M.)
EU watchdog says some banks too plodding to win fintech race
Banks saddled with bad loans risk being left behind by nimbler upstarts and Big Tech in the rapidly evolving fintech race, the European Union’s banking watchdog said on Tuesday. The European Banking Authority (EBA) looked at the risks and opportunities from fintech and its impact on the business models of long established lenders. (Reuters)
City veteran Michael Spencer invests millions into a biometric fintech startup
Founder of NEX Group and serial entrepreneur Michael Spencer has led a $16.5m series B fundraising round into a biometric fintech startup called Veridium. A leader in user authentication through biometric technology like fingerprint and face scanning, Veridium's round was accompanied by additional investment from Citrix Systems and financial services investor Michael Powell. (City A.M.)
Cambridge on radar as FinTech star raises $80m to boost UK expansion
Australian FinTech business Airwallex has Cambridge in its sights after raising US $80 million in a Series B round that will help underpin expansion across the UK and Europe. The international payments technology company has secured total fundraising to date of $102m. (Business Weekly)
Edinburgh-based wrap platform provider Nucleus Financial has unveiled plans to float on the Alternative Investment Market (Aim) in a move that could reportedly raise £25 million and value it at up to £150m. (The Scotsman)
40 per cent of customers willing to share their bank transaction data with a new lender would do so if it provided product recommendations which save them money
Float gives Amigo a £1.3bn market cap
The company behind guarantor lender Amigo Loans has floated on the London Stock Exchange with a market capitalisation of £1.3bn. Bournemouth-headquartered Amigo Holdings is majority-owned by Richmond Group which, together with certain directors, senior managers and employees, raised £326.8m selling shares in an initial public offering. (Insider Media)
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.
Google is having a clean up of its ad products. To simplify its offering, Google’s senior vice president, Sridhar Ramaswamy, announced that it will divide its ad products into three major brands. The decision follows feedback that through years of acquisitions of various ad products and brands, the line-up has become confusing for advertisers...