The latest news from the world of Alternative Finance and FinTech
In the news this week
Should traditional banks be scared of Monzo? According to YouGov research, around two percent of Brits have a Monzo account, despite the bank only being founded in 2015. Monzo is preparing to launch its first major advertising campaign and despite 81% of its current customers being 39 or under, 23% of 40-59 year olds say they would consider using Monzo. Elsewhere, we learn that surveyors are avoiding working with P2P property lenders due to concerns that an issue with one loan could trigger multiple negligence claims from individual investors.
Should traditional banks be scared of Monzo?
As the digital-only bank Monzo prepares to launch its first major advertising campaign, should more established lenders be concerned about losing market share? Around two percent of Brits already have a Monzo account, according to YouGov research, despite the bank only being founded in 2015. Just over one in ten (11%) of the nation have heard of the company, but this may change soon as it prepares to launch it... (YouGov)
Surveyors eschew P2P property lenders on insurer concerns
Surveyors are avoiding working with peer-to-peer property lenders due to fears of multiple negligence claims. Peer2Peer Finance News understands that professional indemnity (PI) insurers are reticent to issue policies for surveyors working with P2P property lenders, due to concerns that an issue with one loan could trigger several claims from individual investors. (P2P Finance News)
Watchdog gives the green light to $2.2bn PayPal-iZettle merger
The UK's antitrust watchdog has provisionally cleared PayPal's $2.2bn (£1.7bn) takeover of Swedish start-up iZettle after an in-depth probe, saying competition had intensified in the payments sector in recent years. (The Telegraph)
Unbolted borrower seeks investor details for legal claim
A second case has emerged of a disgruntled peer-to-peer borrower threatening legal action against investors and the platform. P2P pawnbroking platform Unbolted has been embroiled in a legal dispute with a defaulted borrower, who has requested the names and contact details of all the individual investors funding his loan. (P2P Finance News)
70 per cent of 18-34 year olds said they would invest in SMEs, compared to 52 per cent of investors of all ages
UK venture capital in fintech nudges up 2pc in first quarter to £497m
UK fintech funding nudged up by 2.2pc year on year in the first quarter of 2019 to $645m (£497m). Venture capitalists invested across 42 deals, cementing Britain as the top fintech market in Europe. (Growth Business)
Proplend opens commercial mortgage range to personal borrowers
Proplend has opened up its product range to personal owners of commercial property. The peer-to-peer property lender – which specialises in secured commercial property mortgages and bridging loans for corporate borrowers – previously only lent to limited companies, partnerships and special purpose vehicles (SPVs). (P2P Finance News)
"Fintech is already a major asset for London and the UK, employing over 75,000 people – a figure expected to surge to well beyond 100,000 by 2030. It is vital that we ensure innovative UK fintech firms can access overseas markets to support their growth and share international best practice. DIT’s Fintech Bridge Pilot is a step in the right direction."
Lord Mayor of London, Peter Estlin
Snoop Dogg backed fintech firm Klarna now has 4.4m users in Britain as young shoppers flock to the 'buy now, pay later' model
Swedish fintech Klarna attracted 25,000 new UK users each week in the last three months of last year, as it celebrated a bumper 2018 that saw worldwide revenue increase 31 per cent to £445million. (This is Money)