News Briefing - Crowdfunding, SME And Alternative Finance

speakers at an Another Crowd event

1. UK – FinTech 


Altfi reports: 

“JP Morgan has selected UK fintech Thought Machine to overhaul its core banking systems across the banking giant’s entire US retail network. 

The partnership will see JP Morgan’s Chase retail bank moved onto Thought Machine’s Vault platform in the US. 

AltFi understands Thought Machine is also doing some work for JP Morgan on the recent launch of Chase in the UK. 

It’s another big client win for Thought Machine, which in the last few months has provided the core banking for Standard Chartered launching its digital bank Mox in Hong Kong, and Sweden’s SEB launching UNQUO—a banking service for SMEs and entrepreneurs. 

“JPMorgan Chase represents one of the most ambitious, powerful financial institutions in the world—and our joint work signals to the finance industry that cloud native core banking technology is the future for financial services,” said Thought Machine CEO and founder Paul Taylor.” 


2. US – FinTech 


Crowdfundinsider reports: 


Fundify has officially announced its launch as a FINRA regulated funding portal offering securities under Reg CF (Regulation Crowdfunding). 

In a company release, Josh Chodniewicz, founder and CEO of Fundify, stated: 

“This is an incredible time in the equity crowdfunding market. It’s growing by triple-digit percentages year over year as everyday investors learn they can now invest in startups and founders see how technology is being infused into capital raising, simplifying the process.” 

Fundify currently has multiple securities offerings listed on its site. The company said that its first securities offering for Baby Barista finished successfully at 300 percent of the initial target amount. 

Chodniewicz previously founded and which was acquired by Walmart. 

Fundify charges 6% of the raise for any successful issuer along with 1.5% in equity. If the offering is not successful, Fundify receives nothing. 

Investors may participate in a securities offering for as little sa $10. 

Fundify hopes to benefit from recent improvements to the securities crowdfunding ecosystem. In March of 2021, the Securities and Exchange Commission incrased the funding cap for Reg CF to $5 million from $1.07 million. The initial response from both issuers and platforms has been encouraging as a higher limit makes the exemption more viable to a broader group of firms.” 


3. International – FinTech 

Finextra reports: 

“A group of trade associations have called on the Basel Committee on Banking Supervision to revise its proposed punitive rules on investments in crypto assets by financial institutions. 

In June, the committee set out plans to split cryptoassets into two broad groups: those eligible for treatment under the existing Basel Framework with some modifications; and others, such as bitcoin, which will be subject to a new "conservative prudential treatment".

Under the proposals, banks would need to set aside enough capital in reserve to cover any losses on bitcoin holdings in full, equivalent to existing banking capital rules on the most riskiest investments.

In a joint comment letter responding to the committee, the Global Financial Markets Association, Financial Services Forum, the Futures Industry Association, the Institution of International Finance, the International Swaps and Derivatives Association, and the Chamber of Digital Commerce call for a revision of the plans.

The associations argue that proposals would effectively preclude banks from getting involved in cryptoassets by making it economically prohibitive.” 



4. International - FinTech 


Altfi reports: 

“International expansion is always high on the cards for fintechs and, fresh off the back of a funding boost from FIS, Modulr is set to open its latest European office. 

The payments focused fintech is opening an office in the Netherlands, which it will use to springboard its EU-based expansion plans—launching in new countries throughout 2022 and 2023. 

Thanks to the undisclosed funding amount it received from FIS Ventures, part of the payments giant that owns WorldPay, Modulr is funnelling its attention into its EU operations and commercial teams. 

The new hub will also help the fintech gather pace for its application for an e-money institution (EMI) licence from the Dutch Central Bank, De Nederlandsche Bank (DNB), and help it utilise its Irish EMI licence across the EU. 

To help it get started, Modulr has appointed its first country manager for the Netherlands, Marca Wosoba, who was the former head of international development at international remittances firm World First.” 


5. International – FinTech 

Finextra reports: 

“Wiserfunding, a London-based provider of credit risk assessment for SME lenders, has secured a £3 million investment from BGF and signed up Revolut as a client. 

Founded in 2016 by Gabriele Sabato and Edward Altman, creator of the Altman Z-score, Wiserfunding has built a proprietary risk assessment platform that uses AI to provide accurate, reliable and unbiased credit risk assessment to ascertain the credit quality of SMEs and private firms.

The firm says its methodology has proven to be up to 30% more accurate than competitors, tapping into financial history as well as publicly available structured and unstructured data including corporate governance, management experience and macroeconomic indicators.

The startup is profitable, with more than 60 clients - bank and non-bank lenders, insurance firms, payment providers and asset managers - across three continents.”