News Briefing - Crowdfunding, SME And Alternative Finance

Construction workers eat lunch 200 feet up in the air.

1. UK – FinTech 

 

UK TechNews reports: 

“ClearBank, the cloud-native clearing bank, in partnership with Tide, the business banking platform, have been awarded £25m to help UK SMEs turn recovery from the coronavirus crisis into a growth opportunity. 

The funding will be used to provide financial support and products to help SMEs address the challenges they will face in the post-coronavirus and post-Brexit economic environment and to seize on the opportunities that come out of it. 

ClearBank and Tide will provide support to SMEs in the current challenging environment and help them to capitalise on the Government’s ‘levelling up’ agenda. The pair will help SMEs meet the accelerated demand for digital services and enable them to become more sustainable. 

Building upon the market share gains ClearBank, in partnership with Tide have delivered over the last 18 months, the grant will enable both businesses to establish initiatives aimed at tackling barriers to competition in business banking and give SMEs the tools to turn crisis into opportunity. These include leveraging open banking to remove friction, improving funding opportunities with access to debt and equity, and helping SME to become more digital and support digital payments and business development.” 

 

 

2. UK – FinTech 

Silicon Canals reports: 

“London-based TrueLayer believes that open banking should be the default way to save money safely and instantly. Operating with this objective, the fintech startup makes it easy to integrate financial services such as open banking into any website or app. 

In a recent development, TrueLayer announced that it has secured an additional $25M (nearly €21.35M) investment, under its Series C funding from existing investors including Northzone, Anthemis Group, Tencent, and Temasek. This takes the overall funding raised by the company to $75M (nearly €64M) funding.” 

3. UK – FinTech

Crowdfundinsider reports: 

JustUs, a UK-based peer to peer (P2P) lender, has reportedly started taking applications for the Small Business Interruption Loan Service (SBILS) in order to offer funding for companies that might not have been able to acquire financial assistance via the Coronavirus Business Interruption Loan Scheme (CBILS). 

Businesses that are looking to borrow funds may apply for the scheme through the Moneybrain app, which is JustUs’ sister brand. After registering, companies can list their business and start acquiring capital via crowdfunding, which the company will begin repaying in about a year from today. 

This scheme is similar to what the CBILS had offered. It gave borrowers some breathing room, because no payments are due for the first year or 12 months. The UK government pays an upfront fee and also makes interest payments for the first year. 

Lee Birkett, founder at JustUs (who had recommended offering financing through SBILS in July 2020), had initially planned to introduce the scheme by the end of last month. He claims that his company has received many applications with companies requesting a substantial amount of financial assistance.” 

4. International – FinTech 

 

AltFi reports: 

"Financial API provider TrueLayer has further extended its partnership with open banking fintech sync.   

As part of the collaboration, TrueLayer will now help sync. expand into France and Ireland, just a month after the pair first announced their partnership to launch the fintech in Spain.  

The TrueLayer integrations will allow sync. customers to view all their bank accounts and manage other financial information in the sync. App.  

Francesco Simoneschi, CEO and co-founder of TrueLayer said: “sync. is a highly ambitious company using open banking to help consumers do more with their money. By offering insights and tailored recommendations delivered through a seamless experience, it is empowering users to make more informed decisions.”  

“We’ve already seen our collaboration broaden to include Spain and we’re happy to now support sync. On its European growth journey as it moves into France and Ireland,” he added.  

With TrueLayer, sync. users will be able to see personalised insights into spending across all accounts, credit cards and loans, with information being updated regularly to provide more accurate account information.   

 

 

5. International – FinTech 

Open banking platform Tink has today announced its latest open banking integration, according to AltFi.  

“The Swedish fintech has been chosen by Enel Group, Europe’s largest utility company, to power its open banking technology.  

Tink’s technology will allow Enel X Financial Services, the financial arm of the Enel Group, to develop financial solutions to target its clients across Europe, with the new services being offered to clients within the next few weeks.  

Giulio Carone, CEO of Enel X Financial Services, said: “This agreement is an important step in our ongoing commitment to become a leading player in the digital banking market, powered by the new possibilities created by open banking, integrated within the Enel ecosystem that embeds services like energy and e-mobility.”  

“Through the partnership with Tink we will be able to support our clients in the daily management of their finances, with an innovative and engaging solution that uses machine learning to provide tailored and personalised advice.”  

Founded in 2017, Enel X Financial Services was awarded its e-money institution licence by the Bank of Italy in December 2018 and provides payment solutions to consumers and corporations.  

Daniel Kjellén, co-founder and CEO of Tink, added: “We are extremely proud to team up with the financial services subsidiary of one of the world’s largest utility companies and become their open banking technology partner.”  

“By teaming up with Enel X Financial Services, we will together and over time make Tink’s open banking technology available to millions of Enel customers across the world. We look forward to supporting Enel X in their mission to become a leading player in the fintech domain.”  

Tink has been on a mission of European domination of late, just last week the open banking firm made its third acquisition of 2020.  

The fintech acquired the account aggregation platform of UK-based fintech OpenWrks as well as a strategic partnership which would see Tink onboard several prominent fintechs such as accounting software platform Xero, alternative lender Liberis Finance and financial management app Snoop.  

In July, the open banking giant acquired fellow Swedish fintech Instantor, a credit decisioning firm that makes over 5m credit decisions annually, further expanding Tink’s product offering.   

Earlier on this year, Tink bought Spanish account aggregator Eurobits Technologies, which processed over 50m transactions across Europe and South America and allowed Tink to expand into four new markets.”