Join the Agentic Group Thursday, June 9th at Reed Smith Law Firm for an enlighting discussion of Fintech, Second Markets and Venture Finance Innovation in the US.
The last quarter of 2015 saw a reduction in investments into the fintech sector, with a sensible decrease from the incredible numbers of the previous quarters. Market analysts started to become skeptical that the industry could continue to grow at the same pace, with a slowdown for the start of the year that was foregone. However, the reality turned out to be a different story, with another record quarter of backing for new innovation in the financial services sector.
It is no surprise that digital finance adoption has spread globally to provide more streamlined and efficient processes compared to its legacy counterparts. At Crowd Valley we often get asked the question, “What platforms are most successful” and “What verticals have had the best uptake”. For the former it relies on a well balanced matrix of experienced operations, quality deal flow and its community. Like any financial institution around the world, no amount of marketing can overcome poor investment prospectuses, higher than average defaults or general bad operational management.
Access to credit has always been crucial to achieve economic growth in the United States, a country where small businesses are responsible for two thirds of the new jobs created over the past twenty years. Today, advances in technology and availability of data allow online marketplace lenders to offer more efficient access to credit for small businesses and consumers, at historically low interest rates.
Markets always move toward greater efficiency, history has taught us that much. Technological advancements in computing power has been remarkable, but the growth and pace of development keeps on accelerating. Have you thought through the extent of the plausible impact of artificial intelligence (AI) and machine learning in the financial services market? Go ahead, try.
The US Treasury issued an extensive analysis and commentary of the state of affairs in the most established sector within fintech, marketplace lending. This comes the same week as the founder and CEO is ousted amidst internal reports of misconduct within the pioneer and leader in the sector Lending Club. The week in the digital lending space has not been uneventful to say the least.
The London Stock Exchange (LSE) organized an investment fund conference in late March, with alternative finance playing an important role at the event. Funds and wealth management business has especially need to find more uncorrelated assets in their operations.
When citing the growth of the fintech market, its common to see indicators such as VC investments in the market referenced. However accurate these numbers are, 2014 and 2015 have continued a dramatic increase in the pace of investment. Another factor that’s often harder to quantify, is the adoption among the incumbents and established market participants in the sector but arguably its at least as indicative of a larger trend.
Opening Access to Capital in California: Local Economies Securities Act and Crowdfunding Exemption5/5/2016
While more than a third of all US states have enacted laws allowing digital investing, California is still without an intrastate securities crowdfunding regulation. Investing in startups, family-businesses and more in general in SMEs, is not that easy yet. The good news is that things are likely to change shortly.
The Securities Commission Malaysia (SC), recently announced the regulatory framework for peer-to-peer (P2P) financing, setting out requirements for the registration of platform operators. Those interested to start a P2P financing platform can submit their application to the SC starting yesterday, May 2 2016.
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