Fintech News Review for the 6th December

By Jason Hulott | Fintech News

Fintechs are raising huge amounts of capital but the number of individual startups annually has dropped since 2015, from 390 to 71, according to The Disruption House. Meanwhile, traditional banks are taking steps to create their own Fintech-style services such as Bo, the latest digital-only offering from RBS. FT Alphaville

60% of SMEs wish to avoid growth, according to a recent survey, at least in part due to cash-flow issues with getting prompt payment from their larger business partners. Fintechs are offering ways to smooth SMEs paths, to cut out the more time-consuming tasks. The Accountancy Cloud automates many back-office tasks while offering confidential client data storage. Prosperchain lets SMEs build a transparent credit profile and provides information on whether suppliers have a history of prompt or late payments. Forbes

An ex-Aviva director has launched Brisk, an Insurtech that helps businesses customise their cover to avoid over and under-insurance. Pulling data from multiple sources, the service gives warnings of events that could impact the businesses’ cash flow, giving them time to take precautions. Post Online

Zego has been awarded an insurance licence, the first UK Insurtech to do so. Although this doesn’t mean discarding their current partnerships, it will let them produce their own policies. Their innovative method of charging by usage, down to minute by minute, is ideal for the gig economy. The new licence will allow them to utilise their customer data to analyse driver behaviour, enabling custom-priced policies based on an individual’s risk. The Fintech Times

Allianz has announced they are partnering with Insurtech Dinghy to provide coverage to freelancers. Dinghy’s data shows that the freelance market is expanding, and the demographic is becoming more diverse. The number of women in the field has increased by 63% in the last decade and the number of over-50s by 200%. More workers are dabbling in freelancing and Dinghy services those needing intermittent coverage for their in-work periods. Crowdfund Insider

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Cuvva has raised £15m in funding to expand into long-term car insurance. With over 250,000 customers, Cuvva says they now sell 3% of all car insurance policies in the UK. So far they have specialised in short-term policies, offering coverage from an hour, and they will use the funding to double their headcount as they push into the more traditional annual market. City AM

The success of Fintechs and challenger banks has prompted tech giants to bring their weight to bear in the field. Apple has partnered with Goldman Sachs to offer a credit card, while Google’s “Smart” checking account sees them working with Citibank. The deep pockets of the giants mean they can afford customer incentives, but some Fintechs welcome the challenge as the market expands. Fortune

Hastee, a UK startup which provides advances on earned wages, has secured $270m worth of funding. The company says that the UK has a dependency on payday loans and high-cost debt; their model allows workers to draw up to 50% of their earned wages as an advance, the first £100 being fee-free. There’s no chance of going into debt as it covers the withdrawal in the normal pay packet. Hastee is working with 400 employers and will use most of this funding to cover withdrawals and expand their app. Crunchbase

Oslo-based payment and digital banking services provider EedenBull has made a deal with the Norwegian Eika Group, one of the country’s biggest financial services providers. Eika Group banks will gain access to EedenBull’s payment expertise in return for an undisclosed investment in the startup which has seen 6,000 businesses sign up in the 8 weeks since its launch. EedenBull is also opening a tech hub in Edinburgh, creating 20 new jobs for the city. Scotsman

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Historically, credit has been difficult to access in Nigeria and as a result Fintech startups offering small loans have sprung up. Their ad hoc methods of checking credit scores lean heavily on smartphones; bank messages, calls and GPS are all looked at in assessing credit-worthiness. Now Migo, a US-based firm that already operates the Kwickmoney consumer loans service, is to offer its credit score as a service model to larger companies in Nigeria, allowing them to offer consumer loans of their own. QZ


About the Author

Jason Hulott is Business Development Director at Digital Marketing Specialists, Speedie Consultants. He is Google Partner certified. His role is to identify and implement traffic generating and revenue increasing ideas for our client base.