This week in Fintech

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Daily Fintech brings fresh daily fintech insights from people just like you – senior executives, entrepreneurs & investors working in the fintech revolution. Our weekly summaries give you a look at what you will get by reading the whole article.

Bernard Lunn is a Fintech deal-maker, investor, entrepreneur and advisor. He is CEO of Daily Fintech and author of The Blockchain Economy.

Monday Ilias Hatzis @iliashatzis our Greece-based crypto entrepreneur, wrote Cryptocurrencies could be Revolut’s Trojan Horse to get 100 million customers

Ilias Louis Hatzis is the Founder & CEO at Mercato Blockchain Corporation AG and Weekly Columnist at Daily Fintech.

British-based Revolut is trying to raise $1.5 billion from investors on its quest to become the one bank for all your money. In the coming months, the startup is planning to raise $500 million in equity and $1 billion as convertible loan. This would bring its valuation anywhere between $5 billion to $10 billion. Since it was founded in 2015, Revolut initially launched a free app-based bank account and prepaid debit card, and has expanded its offerings to include premium accounts, insurance products, cryptocurrencies and stock trading, and business accounts, including loans.

Editor note: Revolut is a great Fintech success story that is giving banks a real run for their money. The valuation maybe a stretch as it is for most private unicorns if you do public market comparables. If they do Crypto well they could grow into this valuation. 

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Tuesday Efi Pylarinou @efipm our Swiss-based Fintech Adviser wrote Digital Securitization as a Service, for the Capital Markets Union

Efi Pylarinou is the founder of Efi Pylarinou Advisory and a Fintech/Blockchain influencer – No.3 influencer in the finance sector by Refinitiv Global Social Media 2019.

In this post, I take a pulse from the securitization markets and highlight one scalable innovation in Europe – The partnership of Crosslend & SolarisBank.

According to MSCI, the 2008 financial crisis was a Securitization crisis. I don`t disagree but this fact does not mean that it was the core cause of the crisis.

I categorize Securitization as a second layer factor that contributed to the crisis.

There were other core elements, at the protocol layer, that need to be called out[1]. This blockchain parlance makes it very clear how Ponzi effects, domino effects can occur. And how they can be followed by mainstream narratives that ignore the protocol layer factors on which applications (like SPV wrappers) were built on, as the EVIL apps that caused everything.

Editor note: Securitization is a useful innovation that can be used in a bad way to sell money burning junk dressed up as good investment as happened in the 2008 financial crisis. 

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Wednesday Jessica Ellerm @jessicaellerm, our Australia-based Fintech entrepreneur,  wrote Australia’s Trade Ledger Chalks Up Another European Win

Jessica Ellerm is a thought leader specializing in Small Business and the Gig Economy and is the CEO and Co-Founder of Zuper, a new superannuation startup in Australia.

Aussie trade finance startup Trade Ledger is one of a handful of Aussie fintechs chalking up success after success offshore, especially in Europe. Last year the company won Barclay’s Open Innovation Challenge, and just this week it was announced UK VC fund Hambro Perks had led a £1.5M investment into the lend-tech business. According to the company’s press release, the funds will be used to further accelerate revenue growth for the business.

Editor note: The strategy of partnering with a bank in a foreign market rather than one in the domestic market makes sense particularly in highly concentrated bank markets like Australia and UK.

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Thursday Patrick Kelahan @insuranceeleph1, our US based Insurtech expert, wrote Wildfires and disasters- terribly good opportunity to leverage InsurTech and innovation

Patrick Kelahan is a CX, engineering & insurance professional, working with Insurers, Attorneys & Owners. He also serves the insurance and Fintech world as the ‘Insurance Elephant’.

Take a US $8 billion dollar insurance business that serves more than 7 million customers annually regarding residential real estate assets valued at more than US $5 trillion, that’s working in a regulated, politically hyped environment and one might see opportunity for innovation.  Throw in significant exposure to regional wildfires and urban area earthquakes, and consider- where does InsurTech go next in the state of California?  Or any other disaster-prone area?

Editor note: A fascinating look behind the human tragedy headlines to see how the insurance industry is using technology to come to terms with the property damage from what we used to call “Acts of God”.

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Friday Arunkumar Krishnakumar @karunk, our London based Fintech investor, wrote China: The Age of BAT is over, as Pinduoduo taps into rural ecommerce

Arunkumar Krishnakumar is a Venture Capital investor at Green Shores Capital focusing on Inclusion and a podcast host.

It’s hard to get past a month without stumbling on some astounding facts about China. The country is just behind Sweden in going cashless, however, digital payment growth in China is certainly a bigger story than it is in the whole of Scandinavia.

The sheer volumes ($40 Trillion) of digital payments last year was unprecedented. The payment market giants Alibaba and Tencent have been instrumental in the rise of China Fintech.

We see similar trends across South East Asia, in some ways, fuelled by funding from these giants. However, in all this activity, Baidu has fallen behind.

Editor note: An insightful glimpse behind the scenes of China Fintech explaining the rapid rise of Pinduoduo and how that rise is eclipsing Baidu. BAT becomes PAT.

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