UK Fintech News & Insights - FinTechUK.com

NEWS: UK fintech Monese to exceed £1bn value with latest fundraising

27/1/2020

Further announcements of investment in the thriving UK fintech sector this week with news that payments service provider Currencycloud has raised $80m (£61m) in funding to support the next round of its growth in this Series E round.

The new investment from global heavyweights including Visa, International Finance Corporation (a member of the World Bank Group), BNP Paribas, SBI Group and Siam Commercial Bank.

M ichael Cogley Tech Correspondent, Telegraph (who has a portfolio of articles on fintech) reported that the London-headquartered firm will use much of the additional funds to add an extra 100 staff this year, bringing total headcount to over 300 people.

Currencycloud is a global payments platform built on smart technology that takes the complexity out of moving money. Its tools for cross-border payments are used by some of the world’s biggest fintechs, including Monzo, Revolut, and Starling. It has also recently added Visa to its client list.

Sources:
Currencycloud - https://www.currencycloud.com/company/news/item/currencycloud-the-market-leader-in-embedded-cross-border-payments-secures-80-million/
Michael Cogley Tech Correspondent, Telegraph -
https://www.telegraph.co.uk/technology/2020/01/27/payments-firm-currencycloud-closes-61m-funding-round/?WT.mc_id=tmg_share_tw

Posted by Peter Oakes (www.peteroakes.com)
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See also www.UKFintech.com www.FintechIreland.com

NEWS: Christopher Woolard appointed Interim Chief Executive of the FCA (UK Financial Regulator)

24/1/2020

Very positive news for UK Fintech and financial services firms in the UK plus a strong signal to the international markets that the UK fully appreciates the importance of competition and innovation following news that HM Treasury, upon advice of the Board of the Financial Conduct Authority (FCA), has appointed Christopher Woolard as Interim Chief Executive.

Chris will take on the Chief Executive role following Andrew Bailey’s departure to become Governor of the Bank of England. Chris is currently the FCA’s Executive Director of Strategy and Competition and an Executive member of the FCA’s Board.

Charles Randell, the FCA’s chair, said: 'I’m looking forward to working with Chris in his Interim Chief Executive role. I’m confident that he and Executive Committee colleagues will continue to deliver our ambitious plans for change in 2020 and beyond, building on the foundations laid by Andrew Bailey.'
Chris Woolard, said: 'I’m delighted that I’ve been asked to take on this role. We have a huge job to do and I’m looking forward to working with the Board and colleagues across the FCA as we continue to deliver the FCA’s mission.'

Christopher Woolard’s CV:

As Executive Director of Strategy and Competition, Chris is responsible for the FCA’s policy output, its work on innovation, competition and economics and for helping direct the strategy for the financial regulator. Chris joined the Financial Services Authority in 2013, to help lead the creation of the FCA. Before that, Chris worked at Ofcom (2009-2012), the BBC (2005-2009) and in the civil service (1995-2005).
Chris is also currently a non-executive member of the Payment Systems Regulator Board.
The Chief Executive of FCA is a public appointment made by HM Treasury.
HM Treasury will be running an open competition for the permanent Chief Executive and further details will be announced in due course.

Source: https://www.fca.org.uk/news/press-releases/christopher-woolard-appointed-interim-chief-executive

Posted by Peter Oakes (www.peteroakes.com)
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See also www.UKFintech.com www.FintechIreland.com

NEWS: UK watchdog tells markets - be ready in case of no EU trade deal following Brexit

23/1/2020

Financial firms in Britain should be ready in case no trade agreement is struck with the European Union by December, a senior UK regulator said on Thursday.

Britain leaves the EU next week, followed by a “business as usual” transition that ends in December. Britain and the EU will formally begin trade talks in coming weeks.

“Firms still need to ensure they are prepared for a range of scenarios that may happen at the end of 2020– and this includes the scenario in which the activities they conduct might not be covered by agreements reached between the UK and the EU.,” said Nausicaa Delfas, executive director of international at the Financial Conduct Authority.

Britain has already put all EU financial rules into UK law, which means it will have “the most equivalent framework to the EU of any country in the world,” Delfas told an event held by law firm BCLP.
Britain will also need to decide whether EU-based financial firms can have access to UK investors under the same equivalence system it has inherited by adopting the EU laws.

Ms Delfas clarified that “[w]ith the withdrawal agreement between the UK and the EU now likely to be passed, this will mean that:

A “no deal” exit will not happen at the end of January 2020 and we will enter an implementation period.
EU law will continue to apply throughout 2020, and passporting will continue as now during that time. Consumers’ rights and protections will also remain unchanged.

It also means that:

The UK and the EU will begin discussions on the future relationship including the Political Declaration commitments to conduct mutual equivalence assessments by mid-2020.
Firms still need to ensure they are prepared for a range of scenarios that may happen at the end of 2020 – and this includes the scenario in which the activities they conduct might not be covered by agreements reached between the UK and the EU."

Source: https://www.fca.org.uk/news/speeches/global-regulation-local-solutions
Source: https://uk.reuters.com/article/uk-britain-eu-markets/uk-watchdog-tells-markets-be-ready-in-case-of-no-deal-brexit-idUKKBN1ZM152

Posted by Peter Oakes (www.peteroakes.com)
- thanks to Quent Rickerby (Linkedin Post)
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See also www.UKFintech.com www.FintechIreland.com

NEWS: A thousand EU financial firms plan to open UK offices after Brexit

21/1/2020

Food for thought for those thinking Brexit is the end gong for UK financial services and fintech.

Reuters reports that a thousand EU financial firms plan to open UK offices after Brexit.

These banks, asset managers, payments companies & insurers in the European Union plan to open offices in post-Brexit Britain so they can continue serving UK clients, regulatory consultancy Bovill said on Monday, 20 January.

“In practical terms, these figures mean that European firms will be buying office space, hiring staff and engaging legal and professional advisers in the UK,” Bovill said.

Firms from France, Cyprus and Germany have applied for 170, 165 and 149 temporary permissions respectively, the consultancy said.

EY said banks will now have to decide whether having multiple hubs in the euro zone and Britain after Brexit makes economic and strategic sense or if some should be closed.

Source: https://www.reuters.com/article/us-britain-eu-banks-idUSKBN1ZJ00D

This follows news that Michael Spencer, one of the City’s best-known entrepreneurs, has become the cornerstone investor for a new UK fintech fund that aims to raise up to £100m. Mr Spencer is to contribute at least £25m, via his IPGL vehicle, to a fund called Element Ventures, which will focus on investments in technologies that streamline working practices in financial markets.

Posted by Peter Oakes (www.peteroakes.com)
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See also www.UKFintech.com www.FintechIreland.com

NEWS: ICAP founder gives backing to £100m fintech fund

20/1/2020

Michael Spencer, one of the City’s best-known entrepreneurs, has become the cornerstone investor for a new UK fintech fund that aims to raise up to £100m. Mr Spencer is to contribute at least £25m, via his IPGL vehicle, to a fund called Element Ventures, which will focus on investments in technologies that streamline working practices in financial markets.

Mr Spencer has built up a personal fortune of around £1bn since founding ICAP, the interdealer broker, in 1986. He sold £200m worth of ICAP shares in 2017 and the sale of the company, rebranded as Nex, to the CME earned him another £750m.

Source: https://www.ft.com/content/0b77234a-3ab7-11ea-a01a-bae547046735.

Posted by Peter Oakes (www.peteroakes.com)
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See also www.UKFintech.com www.FintechIreland.com

NEWS: Chancellor of the Exchequer says that the UK will not be in the single market and we will not be in the customs union - BREXIT

17/1/2020

"There will not be alignment, we will not be a ruletaker, we will not be in the single market and we will not be in the customs union — and we will do this by the end of the year,” says Sajid Javid, UK Chancellor of the Exchequer, as he urges companies to “adjust” to the new reality.

The Exchequer has delivered a tough message to business leaders to end their campaign for Britain to stay in lock-step with Brussels rules after Brexit, telling them they have already had three years to prepare for a new trading relationship.

In an interview with the Financial Times, Mr Javid quashed any prospect of the Treasury lending its support to big manufacturing sectors — which include cars, aerospace, pharmaceuticals, and food and drink — that favour alignment with EU regulations.

Source: https://www.ft.com/content/18ddc610-3940-11ea-a6d3-9a26f8c3cba4

We have started a Brexit & Fintech page. Check it out to help answer some of your questions. And get in touch if you need more.

Posted by Peter Oakes (www.peteroakes.com)
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See also www.UKFintech.com www.FintechIreland.com

NEWS: Fintech tackling Money Laundering – New UK Rules

10/1/2020

Fintech UK take note. New money-laundering rules came into force on 10 January in the UK.

Firms need to take action as new rules aimed at tackling money-laundering came into force. These place increased importance on the acceptable use of electronic verification methods in confirming identity, without the need for passports or utility bills.

Consequently, all financial services firms, solicitors, accountants, estate agents and now also letting agents not currently using electronic verification, need to re-evaluate their customer due diligence processes. Electronic verification is a far more robust, cost-effective method of Know Your Customer (KYC).

The new regulations recognise the latest technological developments and clearly state that regulated businesses can use electronic verification instead of traditional methods of KYC such as passports, driving licenses and utility bills. Since 2004, firms have been able to use electronic verification, but the latest regs are explicit in that firms can use this method as their sole basis for client verification.

Read the full article at The Fintech Times here - https://thefintechtimes.com/tackling-money-laundering-new-uk-rules/

Posted by Peter Oakes (www.peteroakes.com)
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See also www.UKFintech.com www.FintechIreland.com

NEWS: Fintech UK & Brexit - What next for UK Fintech?

9/1/2020

Since the UK General Election on 12 December, the number of queries from UK Fintech companies contacting Fintech UK has rocketed as they try to strategise against a backdrop of a 31 January 2020 'Brexit' date, a 31 December 2020 'end of transition' date and toing & froing between UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen over deadlines and the likelihood of regulatory alignment on financial services between the UK and European Union.

In response, we have started a Brexit & Fintech page. Check it out to help answer some of your questions. And get in touch if you need more.

Posted by Peter Oakes (www.peteroakes.com)
#FintechUK #UKFintech
See also www.UKFintech.com www.FintechIreland.com

NEWS: Sifted's Choice Of The Nine Rising UK Fintech Apps to Watch

6/1/2020

Sifted’s choice of the nine rising UK fintech apps to watch

London's banking unicorns hog the limelight but perhaps not for long. Here is Sifted's pick of the nine rising and the UK's most promising fintech apps — from credit card providers to online will writers and real estate marketplaces. Read the article by Isabel Woodford here on why they pick the following 9 Fintech UK apps

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Posted by Peter Oakes (www.peteroakes.com)
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See also www.UKFintech.com www.FintechIreland.com

JPMorgan to ban fintech apps from using customer passwords

1/1/2020

JPMorgan Chase has vowed to ban fintech apps from using customer passwords to access their bank accounts, forcing tougher security standards some three years after chief executive Jamie Dimon first warned about the dangers of data-sharing.

Bill Wallace, Chase’s head of digital, told the Financial Times the lender was working towards getting customers’ passwords “out of the system” and instead issuing tokens that send third parties a narrow range of data in a secure form.

Aggregator Yodlee (which sponsors FintechUK.com events) recently became the first company to agree to use tokens for 100 per cent of its interactions with Chase while Goldman Sachs-backed aggregator Plaid has signed up to start using tokens to access data on behalf of the many budgeting, personal finance and other apps which use Plaid to connect to customers.

Source: https://www.ft.com/content/93dcfc52-210b-11ea-b8a1-584213ee7b2b

Posted by Peter Oakes (www.peteroakes.com)
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See also www.UKFintech.com www.FintechIreland.com www.us-fintech.com