UK Fintech News Roundup: The Latest Stories 15/03
Every Wednesday we delve into the latest fintech updates from across the UK. This week brings updates from Numeral, Paytrix, CMC Markets, Detected, iwoca, CRIF and Alba.
Figures address IBAN discrimination for UK fintechs
The platform for bank aggregation and payment automation Number has now officially launched in the UK. Numeral’s platform gives fintech companies quick access to SEPA, Bacs and FPS through their banking partners.
Numeral found that since Brexit, customers of UK fintech companies have faced renewed cases of IBAN discrimination – a form of financial inequality that occurs when companies or employers refuse to accept an IBAN for payment in euros because of the country’s code, which can lead to to customers who cannot access certain services. The platform aims to help UK fintechs solve this problem and thrive in the European market.
Édouard Mandonco-founder and CEO of Numeral, said: “Using Numeral, UK fintech companies can connect and send and receive SEPA payments with the EU banks of their choice, benefiting from the EU IBAN.”
Alba receives banking license and financing
Alba has obtained its British banking license from Financial Conduct Authority (FCA) and Prudential Regulatory authority (PRA). It also received significant investment in its latest funding round.
The license makes Alba Scotland’s first fully operational, digital-first SME-focused bank. Alba worked with the PRA as well as the FCA to develop the processes and systems.
Rod AshleyCEO of Alba, commented: “This is undoubtedly a landmark moment in our journey so far. Firstly, I am incredibly proud of the team who have believed strongly in our mission to launch a new SME-focused bank and have worked tirelessly for to build a comprehensive business plan that has enabled us to receive our AwR license from the regulators.”
Paytrix receives licenses
London-based fintech startup Paytrix got one License for payment institutionto deliver regulated payment services to UK businesses.
The license ensures that Paytrix is authorized to provide UK businesses with foreign exchange, remittance and local payment services.
Aran BrownCEO of Paytrix, said: “Achieving a gold standard in compliance and licensing across the entire business, from technology to banking partners, is at the heart of the Paytrix vision. Our compliance-first approach, combined with our team’s deep technical expertise, giving clients and potential clients the confidence they need when it comes to moving money around the world.
“Obtaining the payment institution license is also the first tick on our regulatory road map as we build out our global payments solution.”
UK financial capitals
British trading company CMC Markets have analyzed Office for National Statistics (ONS) data to find out which locations have the highest concentration of finance companies.
London ranked first, housing a total of 22,305 businesses, of which 3,400 are within the finance and insurance sphere, resulting in 15.42 percent. Salford took second 1,450 financial firms out of 10,910 (13.29 per cent). Carlisle comes third, with 5,180 businesses, of which 625 are finance and insurance, resulting in 12.07 per cent.
Borough of Waverley (9.84 per cent); Stevenage (8.63 per cent); Westminster (8.04 per cent); Leicester (7.91 per cent); Blaby (7.35 percent); Ashford (6.09 per cent) and Nottingham (5.87 per cent) rounded out the top 10.
Discovered move to USA
London-founded fintech Discovered has expanded its operations to the United States. The company, which offers a global end-to-end KYB platform, has established a US unit to better serve its US customers.
Detected’s approach will enable US businesses to navigate complex KYB processes both domestically and internationally. The company’s expansion aims to benefit US businesses in a range of industries with existing international customers, ranging from payments and supply chains to travel and online marketplaces.
Liam Chennell’sfounder and CEO of Detected, commented: “We’re delighted to be expanding our services to the US market. It’s notoriously difficult for UK businesses to ‘make it’ in the US, but we’re going to do what we always have have done, focus on the value the technology we have built provides for our customers.”
iwoca joins forces with CRIF
Fintech business lender iwoca has entered into cooperation with CRIFthe credit information provider, to offer instant decisions on loan applications.
The embedded finance partnership will see CRIF’s ‘Credit Passport’ service, which gives SMEs access to an open bank-powered credit profile, fully integrated into iwoca’s own services and lending platform. It will also enable instant decisions on business loans up to £25,000 and decisions within 24 hours for loans up to £500,000.
Sara Costantini, Regional Director for UK and Ireland at CRIF, said: “CRIF’s partnership with iwoca allows us to build funding into our Credit Passport offering to provide instant lending. We also reduce uncertainty for companies about financing decisions, while making the process smoother and faster. This way they can focus on what really matters – running and developing their business.”
