Thomson Reuter’s Practical Law division published an article that provides a comprehensive review of the 60 crowdfunding offerings that were filed within the first two months of Regulation Crowdfunding becoming effective on May 16, 2016. This publication contains highlights and a more detailed analysis of a nascent, but promising sector.
A ‘Fintech Sandbox’ is a technology environment where companies/firms would work in close partnership with regulators to develop their ideas and technology without the red tape that may inhibit their potential growth. In the UK, France, Singapore, Hong Kong and Australia, regulators have already or are currently laying the groundwork for a such a Sandbox environment that gives the firms the ability to test a new product or business model with a limited launch, without going through the full regulatory process.
According to the World Bank’s Global Financial Inclusion Database, only 51% of the population in Latin America and the Caribbean has a bank account. This figure varies greatly between countries, with more than 80% of the adult population remaining ‘unbanked’ in Nicaragua for less than 35% in Brazil and Costa Rica.
The US House of Representatives passed a new bill on securities law, the “National Securities Exchange Regulatory Parity Act of 2016” (H.R. 5421) , on Tuesday 12th of July, just a week after successfully passing other two bills related to investing, the “Supporting America's Innovators Act” and the “Fix Crowdfunding Act”.
The US House of Representatives passed two bills on Tuesday 5th of July, aiming to make it easier for entrepreneurs to raise money and to improve conditions for SME and startup investing.
According to a report published by Accenture Strategy and the Partnership Fund for New York City, Q1 2016 was the first quarter ever that New York passed Silicon Valley in fintech venture financing.
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.
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.
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.