Michael is the author of “The Fintech Financing and Performance Report” and expert on strategy and innovation in financial services. In this show we dive into the third edition of his report and dive into the critical and fascinating topics of how UK Fintechs have funded themselves, what their valuations have done over time and attempting to measure their performance.
We are all used to seeing big picture, top-down reports saying a gazillion dollars has flowed into Fintech since a week ago Tuesday and hence taking it all with a pinch of salt.
However Michael’s “Fintech Financing and Performance” report [available via Clarus Investments] is hardcore stuff being based on data held at UK Companies House (where in passing its essentially illegal to knowingly file incorrect data).
Once upon a time P2P was a simple thing. Now it’s more accurate to see it as online lending and borrowing. Models vary, regulation varies, the most successful platform was started by a bank, direct lenders have wholesale flows in funding retail or corporate outflows, others have just retail funds and others mixed.
Quite a complex state of affairs and in this episode Christian Faes joins us for a wide-ranging conversation about where this all came from, where it is and where it is going.
Lendinvest itself is no longer a P2P in the current definition but an online investment platform which is itself only one of their many channels.
An Insuretch insider said to me “if there is one firm that is doing something truly radical in insurance its Laka”. Aha. So here we are – Laka on the LFP. Laka are re-slicing and dicing the paradigm that led to so much in lending/borrowing but has never really got out of the hanger in insurance – P2P. This despite the fact that the historic roots of insurance – and its current core model – rely on pooling risks.
Toby joins us today to revisit P2P insurance ab initio and to tell us how Laka are reinterpreting the paradigm to come up with some notable twists – not least of which if there are no claims in your pool in a given month you pay nothing. Oh and you don’t pay up-front either. Nor will you pay more than conventional insurance. And there are more differences as we hear in the show.
Time flies when you are enjoying ourselves and for todays special celebration we have one taboo topic and one private topic so ideally suited to a solo act. For the main course we get a peep into my upcoming book on the Fintech Board – or more broadly the development of a SmallCo Board as it matures. A topic I have been researching for many months with over three dozen folks who are experts on this topic including over two dozen leading UK Fintech CEOs.
For the starter course we have a dive into a February attempt by a UK politician – largely successful to bully some UK Fintechs into having gender quotas for their boards. Without a law, a regulation, just pure PR pressure and bullying. A shocking incident that – unsurprisingly virtually every one of the dozen or so (pretty random) London Fintechs kept its head well below the parapet on and just went along with.
Since Anil and MarketInvoicewere last on the LFP, and no doubt as a direct result, they have gone from having done ~£1/2bn to ~£2bn and remain the Invoice Financing market leaders as well as having expanded their product range.
Anil joins us today to discuss all things cashflow re the vital financing of UK SMEs which account for 60% of employment in the UK and over 50% of GDP.
Many electrons have been agitated to produce patterns of light and dark on this topic. Which is probably more interesting aphenomenon than the average article on Open Banking. Ignore it we cannot however and uber-Fintech Guru (in the true sense, not self-penned LinkedIn encomium) Nigel Verdon, founder of Currency Cloud and now founder and CEO of Railsbank joins us to work out what is really going on and where challenges lie.
Nigel is no mere Fintecher with his own opinion. Way back in LFP024 Nigel shared his experience of 25yrs in Fintech – and hardcore fintech at that from doing the first online FX deal in 1992, through running digital markets at Dresdner Kleinworts to founding Currency Cloud. Since when he has VCed and now for some time been CEO and founder of Railsbank.
So someone with a very informed opinion. Open Banking is very much an evolving topic. So LFP060, an overview with Paul Thomalla at ACI Worldwide, is still #2 in the LFP all-time download charts. As recently as LFP087 Louise Beaumont argued that its not really about tech & reg but far more about strategy.
Which UK FIntech does $3trn of business per annum and are in 7 countries? Well I guess for readers on the website the pic above is a bit of a hint. David Mercer CEO LMAX Exchange joins us today to dive into the subject of marketplaces which have been a fundamental part of culture forever and a fundamental part of Fintech as a mechanism for connecting buyer and seller more efficiently.
LMAX Exchange’s claim is that they are leading the global FX industry transformation to transparent and fair execution. Sounds good but before we get around to that we look in depth at Marketplaces per se.
Which Fintech started in a basement in Stockwell, has done over £65bn of FX business, do over 1 million transfers a year with 600 staff in 7 offices, whose chairman is a former deputy Governor of the Bank of England and according to price comparison sites offer better prices than other Fintech FX players on virtually all sizes of deal?
Worldfirst as many of you might not have guessed (though those of you reading this online will have had a huge hint in terms of the banner above 😀
Jonathan Quin their co-founder and CEO for 14yrs joins us today to discuss the art and science of international expansion – a truly vital step if UK Fintechs are ever to move beyond a potential audience of 1% of the world’s population to far far more.
In this New Year Special I’ll survey the state of the art and present a report card for each of the main Fintech sectors – P2P, Bitcoin, Blockchain, Money, App-only banks, Insuretech, Digital I.M., Regtech, Payments and a deeper dive into the leading AI of 2017. We also examine the broader context for Fintech – namely US Tech Giants who had a seismic shift in 2017.
No awards as such this year but plenty of honourable mentions and a host of goodies for those of you in search of new ideas.
The best post-“post crisis” banks have leaped ahead and are well on the way to leveraging Fintech to make themselves even stronger. Alexander Ball Fintech Manager at ING talks to us about a bank which has over 100 partnerships with Fintechs, the best known of which perhaps is Kabbage whereby ING clients can borrow up to €100,000 online within minutes.
All incumbents, all banks are absolutely not the same. Whilst the slowest and least well organised of the incumbents aren’t doing a great job adapting to the digital world the best organised are.
When a firm with 50,000 staff and €50bn of equity start to leverage new digital ideas and innovations doesn’t this start to leave disruptive Fintech far behind?
How does Alex and his team of scouts and analysts organise this?
How do they date and mate with the right Fintechs?
What are the challenges?
What are the opportunities?
How have they had to change to make all this happen?