Fintech news review for the 8th November

By Jason Hulott | Fintech Marketing

Santander has bought a 50.1% stake in UK Fintech Ebury for £350m as part of its push for expansion into digital services. Ebury supplies foreign exchange services, trade finance and cash management to SMEs – services which previously Santander only offered to larger companies. FT

The blockchain mechanic provides for near-instant transactions that cannot be manipulated or altered after the fact. Fintech companies aren’t the only ones taking advantage of it, but according to a recent PCW study, 77% of them are planning to adopt blockchain technology by 2020. It renders multiple layers of verification and security redundant, making for a more seamless and efficient financial offering and customer experience. YourStory

Uber claims 100 million monthly users and already boasts a frictionless payment system so it’s not surprising they are expanding their Fintech offering. Opening with real-time earnings tracking in their account and promising at least 3% cashback on fuel, the firm promises to improve the experience of drivers and build an expanding Fintech platform that should aid their quest to turn a profit. TechCrunch

Singaporean banks have the wholesale banking market sewn up so the startup Nium (formerly InstaReM) have withdrawn from their bid for a digital banking licence in that territory. The Fintech company’s core business is international B2B payments, where it serves over 40 countries. Singapore leaves other options, and Nium is seeking financial licences in Mexico and Brazil. BusinessTimes

Outdated infrastructure and products have hampered traditional banks’ ability to adapt to the demands of a more connected customer base. Faced with the challenge of wholesale overhauls, many are turning to partnerships with Fintech startups to take advantage of their agility, platforms and technological savvy in an Open Banking environment. TheFinancialBrand

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The demise of major payday lenders need not drive vulnerable customers into the arms of loan sharks. Fintech firms are stepping up to serve the market in a less exploitative way. From taking incremental earned wages during a month to coupling small, managed loans with financial support and education, startups such as WageStream and Neyber are offering an alternative for the estimated 5 million payday loan customers in the UK. FinSMEs

The University of Strathclyde has launched a part-time Masters in Financial Technology in Bahrain. It’s hoped that this will strengthen ties between the UK and Bahrain Fintech companies, besides developing a pool of skilled workers for the industry. It’s thought this is the first course of its kind in the country, with the first intake starting the 2-year course in February 2020. Scotsman

47% of UK private sector turnover in the UK comes from SMEs but all too often they are limited to retail banking services, with expensive and slow transfers and payments. Fintech firms are offering a lower-cost alternative, sometimes as much as 75% less than high street transfer services, via smartphone apps. BusinessCloud

A report by Stripe and Tech.eu on the state of late-stage technology funding for European companies has identified that the surge in investment has been driven by Fintech providers. A positive regulatory environment in Europe has helped Fintech firms develop funding deals, with 52 coming in at >£86m (€100m) in 2019. With Revolut seeking €500m of funding this year, that’s a trend that seems set to continue. AltFi

GlobalData has put together a list of the Fintech companies which look set to continue to dominate or move to prominence in their sectors. Big brands such as Amazon and Apple Pay bring the weight of their core businesses in support and PayPal and TransferWise are no surprise. But names to also watch out for include Line Pay and SumUp, as they broaden their offerings and make funding deals. Verdict

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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.