The latest news from the world of Alternative Finance and FinTech
In the news this week
The major news from the alternative finance world this week was the collapse of Collateral UK. The Manchester-based peer-to-peer lender went into administration on Wednesday after trading without a licence, putting £21m of investors’ money at risk. In a letter to investors, administrator Refresh Recovery said: “The company was operating in the belief that it was authorised and regulated by the Financial Conduct Authority under interim permission. It has transpired that this is not the case and consequently the company has ceased lending.” Elsewhere, Open Banking is expected to contribute over £1bn annually to the UK economy and 17,000 new jobs, according to a study undertaken by the Centre for Economics and Business Research.
Will lenders on Collateral UK, the disgraced P2P site, get their money back?
Peer-to-peer lending website Collateral UK went out of business in February 2018. It was quickly alleged to be operating without the correct permission from the financial regulator. It now appears to have appointed administrators, who we can expect to wind down the website and existing P2P loans. (4thWay)
Open Banking expected to contribute over £1bn annually to UK economy
Trustpilot, the global leading online review platform, has found Open Banking can unlock over £1bn in additional UK GDP on an annual basis, supporting approximately 17,000 new jobs for the UK economy. The findings are the result of a study undertaken by the Centre for Economics and... (London Loves Business)
A new Innovative Finance ISA (IFISA) is offering up a rate of 4.05% as well as various shopping discounts to those who sign up. It's being offered by new financial brand easyMoney, which is owned by Sir Stelios Haji-Ioannou, the man behind easyJet, easyHotel, easyCoffee, easyGym and easyFoodstore. The company says the ISA is the first of many financial products in the pipeline. (BT)
Peer-to-peer funding network the next step for 1pm
Specialist, non-bank provider of SME finance facilities 1pm announced on Tuesday that it has entered into a cooperation agreement with AS Mintos Marketplace to be a loan originator on its online marketplace for loans. (Webfg)
Augmentum unites private and public markets in £100 million IPO
In a rare meeting of the public and private markets, crowdfunding platform Seedrs says private investors have responded enthusiastically to the opportunity to invest in fintech venture firm Augmentum, surpassing the initial £500,000 target that Seedrs set for its portion of the IPO in the first 24 hours. (Finextra)
Fintech Revolut Britain's first digital bank to break even
Financial technology firm Revolut has become the first of a new breed of digital banks in Britain to break even on a monthly basis after a swelling user base and a suite of new products helped it bolster revenues in December. (Reuters)
Natwest to launch new fintech accelerator in London in April
Natwest bank will launch new fintech accelerators in four cities across the UK in April, including one in the capital, it announced today. The bank will launch units in London, Manchester, Bristol and Edinburgh, supporting up to 80 fintech firms with a "technology team mentor" and access to government contacts. (City A.M.)
The Marketing Eye says
IFISA: 7 major marketing challenges and 7 opportunities
As the ISA season approaches for another time, many are calling it a watershed for the Innovative Finance ISA. Launched to some fanfare in April 2016, the early take-up has been muted. According to HMRC, the level of IFISA investment in 2016/17 was around £17m spread across 2000 accounts.
BBB small business finance markets report 2017-18
The 80+ pages of the British Business Bank report titled Small Business Markets 2017/18 contains a wealth of market information, including market segment statistics which are more up-to-date than those published by CCAF in December. For example, the UK’s SME population is now said to stand at 5.7m and...
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