Tag Archives: P2P

LFP098 – Financing UK Small Businesses with Anil Stocker CEO MarketInvoice

Since Anil and MarketInvoice were 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.

 

 

Topics discussed on the show include: Continue reading

LFP096 – A Deep Dive into Marketplaces in the Fintech Age with David Mercer CEO LMAX Exchange

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.

Topics discussed in the episode include:  Continue reading

LFP094 – 2018 New Year Special! Fintech Tour d’Horizon, Report Card & Its Context

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.

Topics discussed include:  Continue reading

LFP083 – Matchmaking Lending and Borrowing with Conrad Ford CEO Funding Options

Conrad was on the show back in LFP020 since when he has built Funding Options (strapline “your free marketplace for business finance”) into one of the most successful London Fintechs. They were chosen as one of three UK government mandated SME Referral Portals, are the largest of those by an order of magnitude, increased revenue fourfold last year, are on target to triple again this year as well as being on target to be the UK’s largest introducer of working capital finance.

Funding Options essential task/service is lining up all the many SME borrowers out there with relevant sources of Finance. A task made all the harder by the plethora of lenders and the many types of lending finance available.

How has this task evolved over the past 2.5yrs?

How is lending right now?

How is borrowing?

Topics discussed on the show include:  Continue reading

LFP069 – IFAs, Fintech & Roboadvisers with Dan Kiernan Research Director Intelligent Partnership

IP banner for London Fintech Podcast“Everyone” frets over financial advice in the Fintech Age. Regulators set out to “protect the consumer”, worthy bodies talk no end about the need to protect “people” (never themselves oddly – generally they imply (/mean) folks of lesser education/wealth) and the rest of us are just confused over the labyrinthine rules around tax, savings and investments.

Needless to say a myriad on rules and regulations and the implicit costs of this suprastructure all act together in a Kafkaesque way to produce the opposite result – known as “the advice gap”.

In Fintechland breathless media and PR firms high on sugar, caffeine and other stimulants promise us a golden era of so-called “roboadvice”.

Dan KiernanHow to make sense of all this?

I am delighted to be joined today by Dan Kiernan Research Director at Intelligent Partnership “the UK’s leading provider of research, training and events on Alternative Investments” to cut through all this and to give us insights into why advisers are not recommending eg P2P to their clients when it has outperformed bank deposits for more than a decade.

On the show today we discuss all of the above and: Continue reading

LFP068 – The London Fintech Podcast’s 2016 Highlights and 2017 Awards

Dilbert by Scott Adams - Fintech 2016 turns into Fintech 2017Happy New Year boys and girls 🙂 May 2017 be a great one for you and yours! This is the New Year Special where I look back at my 9 highlights from 2016, dish out 10 immensely prestigious awards  and take a peak at 2017.

So without futher ado lets kick off the awards… Continue reading

LFP064 – P2P in the US, China and UK with Peter Renton

Lendit US 2017After organising nearly 1,000 folks in the O2 for Europe’s largest P2P conference ever I managed to grab Peter long enough to have a fascinating tour of the globe and P2P sitrep in the three major hubs.

Peter Renton PhotoPeter Renton has perhaps has more of a broad and deep understanding of P2P worldwide than anyone.

When he first came on the show way back in LFP015 he shared with us the fascinating history of US P2P with its hugely up and down roller-coaster road.

Since then he has created the world’s go-to conferences on P2P in the US, China and Europe which gives him a unique insight into what’s what and where.

It’s a big world and P2P is a vast domain these days so there is plenty to discuss. Key topics are: Continue reading

LFP062 – “Hard Fail” Provision Funds Revisited with Rhydian Lewis CEO Ratesetter

Ratesetter LFPI am delighted to be joined on the show today once again by Rhydian Lewis CEO at Ratesetter to talk about the ultra-hot topic of provision funds in p2p/marketplace lending. Rhydian was on in the early days back in LFP019 in an episode talking about P2P beyond the metaphors. That’s a good theme for today on a narrower topic as all too often when one reads about provision funds its metaphorical.

Rhydian LewisIn practice as with most/all of FS one really needs to get the metaphorical whiteboard out and draw some diagrams and a bit of arithmetic to make it real.

Lets provide some context first. Ratesetter was formed 7 yrs ago and has accumulated an amazing 300,000 customers with an amazing 250,000 on the platform right now and have lent an amazing £1.5bn with no lender ever losing a penny of interest or capital along the way.

Those are phenomenal achievements that very very very few Fintechs will ever manage to better.

But like growing up there are growth pains along the way. Ratesetter has been somewhat the P2P of choice for taking pot-shots at this year for the FT Alphaville column and the impressive Kadhim Shubber who seems to do more research than most. What are euphemistically described perhaps as missteps around self-investment of provision funds, not publishing future loan losses and rebasing of how the provision fund excess is calculated came in something of a flurry and even generous if sceptical folks like I started to raise an eyebrow.

But behind all this is the need to change. Did Ratesetter – or for that matter you and I – get everything right in 2009 (or for that matter every year since) or do they and we all need to keep changing in the light of experience and further thought?

Let’s briefly mention provision funds.

So briefly a soft-fail provision fund to use my terms is like the platform having a piggy bank into which it puts a few pence on every deal. If lenders loans are impaired that piggy bank is raided to subsidise them. But when it runs out the platform says “sorry guys no more funds to subsidise your loss, over to you”.

A hard fail model in contrast (which off the top of my head Ratesetter is the only big user of) when it runs out pools all investors assets together (to share the losses out). This is a big phase change – like going from water to ice. Its always been a concern of mine – if only as 30+ yrs in FS has shown me time and time again in different markets the impossible is always happening. No amount of whiteboard ink will ever save everyone in all circumstances.

So lets dive into all of this. An annus trickyus for Rhydian and colleagues and this important point about hard provision funds.

Plenty discussed on the show including: Continue reading

LFP057 – Five Reasons Corporate Governance is Essential for Fintech with Geoff Miller CEO Afaafa

AFAAFA

Geoff Miller

I have the pleasure to be joined today by Geoff Miller, CEO of Afaafa and former CEO of GLI Finance which he built from having no presence in AltFi to having over two dozen share stakes and loan agreements.

If existing FS has gone far to far in the direction of endless PC box-ticking – the porridge is too hot, then for sure in Fintech the porridge is too cold. Fintech is a long way behind grown-up FS is on corporate governance – the average Fintech board being comprised of founders & VCs/angels – little independence there.

How can Fintech get the porridge “just right”?

What are the advantages for a Fintech of a well-composed board?

A quick count on LinkedIn shows that Geoff may have been on getting on for two dozen boards.  So who better to talk about the importance of corporate governance then Geoff. As Professor John Kay said in LFP055 corporate governance may sound like a dull box-ticking exercise but it is a vital function of FS. Just look at what has happened to senior executive pay in the UK when the FS industry (now the largest holder as most of our investments are indirect) hasn’t much to vote much at board meetings. If the cat is off busy making whoopee its hardly surprising if the mice steal most of the cheese.

If you are anywhere near the Fintech scene in London (or in some other countries) you will have heard of Geoff. Geoff has always been a rare soul in terms of brutal honesty. At AltFi Europe 2015, the general tone of which was “ra-ra aren’t we wonderful” Geoff spoke of “woeful underwriting standards and hopelessly naïve CEOs”.

Geoff is an ideal guest on the London Fintech Podcast as he doesn’t just have “views and opinions” which are so prevalent amongst the so-called “thought-leader” classes   Rather he has been at many coal faces with many miners. And as with coal mining its often painful work. In LFP037 John Regan gave an excellent account of managing ones way out of business model crisis at Platform Black. GLI Finance had its own internal shuffle before Xmas bringing in new management. More recently Funding Knight went into administration and there was plenty of work for the board there.

Topics discussed on the show include: Continue reading

LFP056 – “Everything You Wanted to Know About Fintech Venture Capital But Were Too Afraid To Ask” with Rob Moffat Partner at Balderton Capital

Balderton BannerI am  delighted to welcome Rob Moffat, Partner at Balderton Capital to dive into the topic of Venture Capital and Fintech.  As I aim to present London Fintech in the round I have been – for a long time – keeping my eye open for a friendly VC to have on the show. This has taken two years would you believe!

Viewed from Mars you might think this is curious given how the whole mainstream tech media is so focused on fund-raisings, so-called valuations (and fantasy animals with one horn), and the whole machismo around money.

Viewed not from Mars the VC sector globally is perhaps rather problematic. If this is a surprise to you then I recommend as an entry point Diane Mulcahy’s 2014 Harvard Business Review article Venture Capitalists get well paid to lose money. As a former VC she knows where to direct the fire – high fees, illiquidity and underperformance. As I recall in the greatest tech boom ever, in the US the aggregate stats are something like that the average VC hasn’t even returned to the investors the funds they raised, let alone got a carry cheque (the performance related fee).

Furthermore as we heard way back in LFP008 with Richard Goold the UK/European venture capital market was very thin indeed in most of the 20th Century (post-WW2 the UK basically had the (originally government) 3i as the only player for a long time) and returns were poor.

Set against this virtually every Fintech that scales needs VC money – without which there would be no boom at all.

Equally like in all industries there are always some good players with a reputation for adding value. It was such a lead that led me to Balderton Capital who are one of the real players in the London Fintech scene.

Rob MoffatRob also writes a lot on the industry – I recommend his blog – and is on the board of seven of Balderton’s investments, the best-known of which in UK Fintech are perhaps GoCardless and Nutmeg. Balderton invests around £20m per annum into Fintech.

Above and beyond this Rob is – finally – someone who is happy to talk on air about the reality of VC and Fintech. As he joined the firm in 2009 (from Google) he has experienced the Fintech world from roots through shoots and now into a rather varied garden.

There is more than plenty discussed on the show, key topics include: Continue reading