Biz Builder Mike

You can't sail Today's boat on Yesterdays wind - Michael Noel

Overfunding: Spanish Fintech Challenger bnc10’s Crowdcube Campaign Quickly Secures £300,000 Funding Target

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bnc10, a new fintech challenger based in Barcelona, Spain, has successfully secured its initial £300,000 equity crowdfunding target through its Crowdcube campaign, which has attracted more than 225 Crowdcube investors.

Founded in 2018 and launching earlier this year, bnc10 stated it has grown rapidly, hitting 40,000 active customers not only in the home market of Barcelona and Spain, but also in more than 20 countries across Europe.

“The combination of Apple & Google Pay, instant top-up, Spanish IBAN, P2P payments and shared accounts make it a strong alternative to traditional banks. An account can be opened, topped up and first payment made in the time it takes to have a coffee.”

bnc10 also reported its shared accounts service enables the platform to target users from 25 to 50 years old who share a flat, are young parents, or in a relationship allowing maximum flexibility to share their everyday expenses.

“bnc10 has developed its entire platform internally enabling fast development and products, leveraging Fintech partners like Mastercard, PFS and Mitek.”

bnc10 further noted that it plans to keep growing in the home market of Spain, with expansion throughout Europe and Latin America, obtain its own EMI license and boost monetization through pay-per-use premium products. The company is planning to use the Crowdcube funds for this expansion.

bnc10 is now offering 2.55% in equity at a £13,416,815 pre-money valuation through the funding round, which is set to close at the end of October.

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UK based P2P Lender RateSetter Wins Award for “Best Loan Provider,” After it Struggled to Maintain Operations and was Acquired by Metro Bank

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blankRateSetter, a leading UK based peer to peer (P2P) lender that was recently acquired by Metro Bank, has confirmed that it won the award for “Best Loan Provider” for loans of £2,500 or more at the Consumer Credit Awards for 2020.

The Consumer Credit Awards “help to put customers at the heart of the industry and to find the best credit providers in the UK.” More than 27,000 customers voted last year. As noted by the Consumer Credit Awards team, their awards are “decided by customers, not ‘industry experts’.”

RateSetter stated that it was also shortlisted in several other categories, including Best Car Finance Provider, Treating Customers Fairly, Innovation of the Year and Firm of the Year.

As explained by the RateSetter team:

“The awards are run by financial services review platform Smart Money People and identify the financial services industry’s best credit products and providers.  Importantly, the awards are based on direct feedback and votes from more than 19,000 customers.”

Rhydian Lewis, founder and CEO at RateSetter, noted (earlier this year):

“P2P lenders have historically focused on both new customers and existing customers, as they have been growing their businesses.”

He had also mentioned in June 2020:

“The pandemic is the P2P lending industry’s first major crisis and the focus is entirely on existing customers, so you actually improve their experience and learn something.”

As covered in early August 2020, Metro Bank had agreed to acquire RateSetter for initial consideration of £2.5 million, with additional consideration of up to £0.5 million payable 12 months after completion subject to certain criteria and further consideration of up to £9 million payable on the third anniversary of the completion of the transaction. The transaction must receive the blessing of the UK Financial Conduct Authority.

Over the years, RateSetter has experienced several setbacks regarding loan losses. Most recently, COVID-19 has challenged the online lending platform – just like it has impacted all businesses and Fintechs.

In May 2020, RateSetter announced that investors would receive only 50% of their interest with the other 50% going to the Provision Fund as a concerned rose regarding defaults.

Overall, the P2P lending industry continues to iterate and evolve. Earlier this year, 36H Group was launched as a replacement association to the UK Peer to Peer Finance Association (P2PFA) – once a top advocate for the P2P sector. 36H is described as a “united voice for lending platforms that accept retail investments.” P2P lending was said to be “one of the fastest-growing areas in the UK’s Fintech ecosystem.” RateSetter was a founding member of the group.

Updated rules have, in certain respects, made it more difficult for the industry to compete. One competitor, Zopa, has decided to become a digital bank and thus provide a broader portfolio of financial services – an emerging popular path for established online lenders.

RateSetter said that Metro Bank’s goal is to be the UK’s best community bank and RateSetter is proud to be part of this mission.

In August 2020, RateSetter rebranded its Australian P2P lending platform to Plenti. Head of Marketing at Plenti, Sebastian Paulin, shared more details about the rebranding, by stating:

“As Plenti, we want to help our customers make the most of their money. We believe that what you do today can transform your tomorrow. That’s why we’ve built a new world of lending and investing that makes the experience faster and simpler for all. Powered by technology so smart you can’t even see it.”

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Online P2P Lender Robo.cash Claims it’s Still Profitable, Despite COVID-19 related Issues, and Is Preparing for IPO in Dec 2020 in Australia

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Online peer to peer (P2P) lender Robo.cash is reportedly getting ready to conduct its initial public offering (IPO) in Australia in December of this year.

Robocash Group, which is the parent company of Europe based P2P lender Robo.cash, will be the next Fintech service provider after Plenti that will pursue a listing on the Australian Securities Exchange (ASX).

blankSergey Sedov, CEO at the Robocash Group, stated that the firm will be moving “full speed ahead” with its IPO in Australia.

Sedov confirmed during a recent webinar that the IPO will take place in December 2020. He also mentioned that Robocash is planning to secure AUD 60 million (appr. $43.7 million) in capital.

Sedov added that most of the funds will be directed towards developing Robocash’s existing line of products and also to expand further by offering new products. The P2P lender will also be entering new markets in 2021, Sedov said.

The funds raised from the planned IPO will also be used to establish a virtual bank in the Philippines.

Sedov noted that the lending platform’s business is recovering, as it’s returning to pre-COVID levels in terms of total volume and the number of active investors. He claims that the company has managed to remain profitable.

Sedov acknowledged that the first half of 2020 had been challenging. But he emphasized that Robocash had remained profitable, as the company reportedly secured over $10 million during H1 2020. Now, the lender is planning to double this amount by the end of this year, Sedov stated.

Robocash’s annual report reveals that the firm’s profits increased from $11.6 million in 2018 to $15.8 million in 2019. The P2P lender is open to Europe based investors and it issues loans to borrowers based in Russia, Spain, Vietnam, Indonesia, and the Philippines.

The Robocash team noted:

“August was a busy but productive month for us. As it passed, we now have 11,469 registered investors, over €175 mln worth of loans, and €1.96 mln of income for our investors. “

In July 2020, Robo.cash claimed that alternative investing platforms have improved their investment offering during COVID-19.

Robo.cash’s management had noted:

“During the pandemic, P2P lending platforms had the opportunity to prove their reliability and gain the trust of both existing and new investors. Since the start of the outbreak, many alternative lending platforms improved their investment offers and introduced additional bonuses for users.”

They added:

“P2P investors who retain confidence in this segment seek to seize the opportunity and take advantage of attractive conditions on time.”

In June 2020, Robo.cash initiated a pre-IPO funding round to help launch a digital bank in the Philippines. It also confirmed at that time that it was preparing for its $100 million IPO in December 2020 (so now it seems Robo.cash is aiming to not raise as much capital with its new $43.7 million target).

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