1.UK – FinTech
“Despite a tricky year that has seen its losses widen, US banking licence plans shelved and an investigation into its financial crime practices launched by the FCA, Monzo is said to be working on a fresh multi-million-pound funding round.
The cash would be raised at a valuation of £3bn, almost three times what it last raised funding at in June 2020, when the bank raised £125m at a £1.1bn valuation.
This so-called ‘down round was at a lower price tag than its 2019 funding when the bank was valued at £2bn, largely due to Monzo’s poor positioning at the start of the Covid pandemic with its overreliance on interchange fees from card payments.”
2. UK – FinTech
“Louise Beaumont, chair of techUK's Open Finance and Payments Working Group, has blasted Chancellor Rishi Sunak's plans to to slash the bank profit surcharge levied on the UK's biggest banks from eight percent to three percent, describing the action as an act of "self-flagellation" that would significantly damage the UK's fintech industry.
Under the plans, which are set to be revealed in Sunak's budget statement Wednesday, digital banks stand to pay six per cent more corporation tax and miss out on the surcharge reduction, as it is only levied on profits over twenty-five million pounds.
"High growth, high investment companies usually operate losses, hence they are missing out," states Beaumont, in an op/ed piece for CityAM. "This means that digital banks would seem to be facing a tax rise of six per cent compared to the one per cent facing the established banks."
She says the disparity casts a dark shadow on previous Government rhetoric on the importance of innovation, competition, and the continuing development of the UK’s fintech industry.”
3. US – FinTech
“Earlier this month, John Berlau, a Senior Fellow at the Competitive Enterprise Institute (CEI), wrote an article discussing the controversial $3.5 trillion social spending bill that is currently stuck in the US Senate due to intraparty disagreements. While initially pitched as “infrastructure” or “reconciliation” the legislation is more of an omnibus wish list derived from partisan politics. But buried in the language of the bill is a section that may impact investment crowdfunding as it seeks to effectively ban retirement accounts from investing in private securities.”
4. US – FinTech
“LendingClub (NYSE:LC) has easily topped analyst estimates reporting net income of $27.2 million or an EPS of $0.26. Top line revenue came in at $246.2 million with total sequential revenue growth of 20% outpacing origination growth of 14%, according to the digital bank.
Shares in LendingClub have been marching higher in recent weeks as optimism improved regarding its transition from a marketplace lending platform to a chartered digital bank. While shares dipped yesterday, in after-hours trading shares moved higher on the news.
LendingClub reported that deposits grew 12% sequentially to $2.8 billion, in line with the growth of their loans held for investment. New recurring stream of net interest income grew 42% sequentially to $65.3 million, as the bank’s loan portfolio grew 25% from June 30, 2021. Marketplace revenue grew 15% sequentially, reflecting higher origination fees associated with loan origination growth.
LendingClub reported over 3.8 million members stating that most are generally high income ($100K average) and have a high FICO score. LendingClub combines its consumer lending expertise with its digital banking ecosystem.”
5. International – FinTech
“Singapore-based SME financing player Validus has acquired KlearCard’s business payments and expense management technology platform. Financial terms were not disclosed.
Validus says the KlearCard platform, an established player with a proven product-market fit in the region, will accelerate its build-out of Southeast Asia’s first credit-led SME focused neobank.
KlearCard's platform enables businesses to issue virtual corporate cards instantly with built-in spend control features. This, says the firm, creates time and cost-saving benefits and addresses a pain point of many SME owners, who lack a single place to get an overview of their business.”