News Briefing - Crowdfunding, SME And Alternative Finance

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1.UK – FinTech        


AltFi reports: 


Martin Gilbert, the former CEO of Aberdeen Asset Management and chair of Revolut, believes the fintech’s entry into exchange-traded funds (ETF) is ‘inevitable’. 

Revolut will have to get into asset management. There are no plans at the moment but you cannot avoid it,” he told audiences at ETF Stream’s ‘ETF Ecosystem Unwrapped’ virtual conference last week. 

“ETFs would be an ideal product to offer, we'd have to go in with the low-cost option." 

To date, Revolut offers DIY stock trading through its partnership with DriveWealth, crypto trading, commodities like gold and silver, and savings accounts, but it has yet to offer ETFs, investment funds or wealth management services. 

"As the next generation inherit money, they will definitely not go to the incumbents. There will be a massive move to the Revoluts of this world. If we went into asset management, we would be a serious player in the market." 

When asked about why challenger wealth and asset managers like Nutmeg have yet failed to crack this largely traditional market, Gilbert said the issue came down to timing.” 



2. UK – FinTech 

Finextra reports: 

“Cash will account for just seven percent of in-store purchases in the UK by 2024, according to calculations from Worldpay. 

The study found that cash usage for in-store purchases in the country declined from 27 percent in 2019 to just 13 percent last year, with the Covid-19 pandemic fueling a shift in consumer payment preferences.

Across all countries studied, cash usage dropped by 10 percent in 2020 to 20 percent of transactions. The Worldpay report predicts that many European countries, including Denmark, Norway and Sweden, will be almost cashless by 2024, and that the growth of non-cash payment methods will be primarily split between cards and mobile payments, with mobile payments expected to comprise a third of the POS market in 2024.” 



3. International – FinTech 


The Fintech Times reports: 


“The financial services industry is in the midst of a significant transformation, which has only been accelerated by the Covid-19 pandemic. Given the key role digitisation plays in the financial lives of more and more of the world’s population, electronic payments are at the epicentre of this transformation. 

Payments are increasingly becoming cashless, and the industry’s role in fostering inclusion has become a significant priority. As digital money draws a stronger interest, the financial services industry must recognise the entire infrastructure of payments is being reshaped, with new business models emerging. 

PwC’s survey reveals how even before the pandemic, cashless payments like sending a text to pay for a bus ticket in Turkey, or using a QR code to buy groceries in China are evidence of a steady shift to a digital economy – a shift that might ultimately lead to a global cashless society. With global cashless payment volumes being predicted to increase by more than 80% from 2020 to 2025, from about 1tn transactions to almost 1.9tn, and to almost triple by 2030. 

According to the findings – Asia-Pacific will grow the fastest, with cashless transaction volume growing by 109% from 2020 to 2025, followed by Africa (78% from 64%), and Europe (64% from 39%), Latin America comes next (52% from 48%), and the US and Canada will have the least rapid growth (43% from 35%).” 



4. International – FinTech 


Crowdfundinisder reports: 


“Xcoins, a cryptocurrency exchange platform, announced on Monday it received its Class 3 Virtual Financial Asset (VFA) License issued by the Malta Financial Services Authority (MFSA). The company claims it was one of the first cryptocurrency exchanges to receive these permissions from MFSA. 

Founded in 2016, Xcoins claims to offer a quick and secure means of exchanging Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and Bitcoin Cash (BCH). The company has served more than 250,000 customers from more than 165 countries worldwide. 

“Allowing our users to be a part of investing in the future is only a small part of our mission. Cryptocurrencies allow our users to diversify their financial portfolio and be a part of, what we believe to be, a bright financial future.” 

Xcoins went on to explain that receiving its Class 3 VFA license from the MFSA means that its’ internal processes and policies are in line with the highest standards in the industry.” 


5. International – FinTech 


Berlin-based insurtech Wefox has closed the largest Series C to date for an insurtech globally, according to AltFi.  

“The fintech has raised $650m at a $3bn valuation, nearly double its last valuation of $1.65bn from back in December 2019. 

Target Global led the round, with participation from existing investors including OMERS Ventures, Gsquared, Merian, Horizons Ventures, Salesforce Ventures and Seedcamp. 

New investors on board include LGT, PArtners Group, Jupiter and FinTLV. 

“Our business has grown significantly over the past six years, and since the beginning, we have consistently delivered strong year-on-year growth,” Julian Teicke, Wefox CEO and co-founder, said. 

“This year we took several important steps, including unifying the business under one brand, expanding into Poland, and setting up a deep tech team in Paris. Within the next few years, we plan to expand our global footprint by increasing our presence in Europe and moving into both the US and Asian markets.” 

Wefox plans to use the fresh capital to expand across the US and Asia over the next two years, while also deepening its presence in Germany, Austria, Switzerland and Poland.”