Zopa will reduce its high risk loan exposure following reports on the UK market's consumer credit outlook; data shows consumer defaults and insolvency levels are increasing; the firm says it will seek to target more low risk borrowers; the changes will allow it to offer higher returns in some of its leading products; the company plans to publish a monthly blog post with its perspective on the consumer credit market. Source
AltFi reports on recent developments affecting the marketplace lending industry; discusses challenges at RateSetter and platform changes at Zopa and Funding Circle; also notes that UK regulators may be seeking increased transparency through new regulations; argues against criticism that platforms are struggling for borrowers and shows origination volume growth since 2005. Source
CB Insights reports on two of Europe's top markets for fintech investment, the UK and Germany; the UK is reporting significant early-stage investment in personal banking platforms and insurtech with insurtech also a top investment in Germany; year-to-date, European fintech companies have raised approximately $2.6 billion with early stage fintech financing in the UK at $202 million and Germany reporting financing of $83 million. Source
UK-based personal finance management app Money Dashboard raises $1.7 million in an equity crowdfunding round; the company used crowdfunding platform Crowdcube and the 1,708 investors together acquired a 9.55% equity stake; they use bank statements to organize spending data, give insight on budgeting and help to build a financial forecast. Source
Level39 has launched Cyber39, a program focused on fighting cyberthreats in London; Cyber39 will initially involve the 22 cybersecurity companies associated with the Level39 startup accelerator and it hopes to add more companies; additionally Level39 has also opened the Cyber Demonstration Centre in Canary Wharf with the support of the Department for Digital, Culture, Media and Sport, and the Department of International Trade; the accelerator's efforts are aimed at building out cybersecurity solutions in the private sector and keeping London at the forefront of cybersecurity innovation. Source
AltFi takes a look into the future at what the new Payment Services Directive will mean when it takes effect in 2018; companies will learn a great deal by trial and error as this is a new market and new markets need time to grow; client on boarding using KYC and AML requirements will be a key test for global banks who need to comply with the directive; open banking might also allow for banks to come across new customers that they might not have had access to in the past; ultimately client value is the biggest takeaway and open banking has the ability to deliver more to the client. Source
PitchIt @ LendIt Europe is one of the industry's most popular startup competitions providing eight finalists with unparalleled access to industry expertise and funding opportunities as well as invaluable exposure, branding and more at the event; hosted in partnership with Startupbootcamp, the event also offers fast-track status to the finalist round for Startupbootcamp Fintech Accelerator as one of its prizes; interested startup companies must submit their application by September 4 and finalists will be announced on September 10; more details about the competition can be found here. Source
PitchIt @ LendIt Europe is one of the industry's most popular startup competitions providing eight finalists with unparalleled access to industry expertise and funding opportunities as well as invaluable exposure, branding and more at the event; hosted in partnership with Startupbootcamp, the event also offers fast-track status to the finalist round for Startupbootcamp Fintech Accelerator as one of its prizes; interested startup companies must submit their application by September 4 and finalists will be announced on September 10; more details about the competition can be found here. Source
Singapore's LATTICE80 fintech hub has announced it will expand to London; it has registered as an entity and is seeking a location with plans to open by 2018; the expansion builds on the "Fintech Bridge" agreement signed by the UK and Singapore in 2016 to promote cross border collaboration; LATTICE80 is owned and operated by Singapore-based private investment firm Marvelstone Group which is actively developing new fintech services and solutions for the Asian and UK markets. Source
Aaron Hughes, Managing Director of Equiniti Riskfactor, provides insight on the growth of the UK receivables market; the market now has 40,000 to 45,000 clients; with a growing number of clients the industry is focusing on new technologies for greater efficiency and processing; Aaron Hughes says Equiniti Riskfactor is also testing a blockchain prototype for receivables finance that can even further advance platform efficiency. Source