Check out our curated Weekly Roundup of the breaking news and must-read – Airbnb releasing a new poll on sharing economy, Goldman Sachs offering online lending platform, Crowdcube planning a secondary market for equity crowdfunding and more …
Airbnb and Uber commissioned a new poll on the sharing economy
Airbnb and Uber commissioned David Binder Research to conduct a poll on US attitudes towards the sharing economy, comparing opinions of Millennials against those of the wider general public. Click here to see the results.
A recent survey conducted by David Binder Research shows that Americans nationwide support the sharing economy, support Airbnb, and want fair rules that support home sharing in their community. Americans understand the benefits of the sharing economy and want a President who embraces innovation.
Goldman Sachs comes with new online lending plans
Goldman Sachs Bank plans to offer its new online lending platform to consumers this fall
The bank is moving away from its traditional market and targeting retail customers. This is not Goldman’s only venture into the retail banking market — it began offering savings accounts with no minimum deposit in April. Goldman is likely looking to diversify its revenue streams — Goldman Sachs’ revenue has declined by more than a third since H1 2010, and it saw its worst quarter in four years in Q1 2016. Goldman Sachs has a plan to ensure it doesn’t suffer the same problems as startup online lenders. It has been surveying consumers about their borrowing priorities and what they want from a lender and incorporating those responses into the new platform design. Goldman says it’s taking its time to develop the product in order to ensure it is based on a robust business model. Harit Talwar is leading the initiative — Talwar was head of US cards at Discover before joining Goldman in June of last year.
ECrowd! Spanish crowdlending platform receives license by the CNMV
Debt-based crowdfunding platform ECrowd! is one of the first Spanish sites to receive a formal operating license from the Comision del Mercado de Valores (CNMV), the securities regulatory agency in Spain.
“This is obviously a very important step for us as it validates the thoroughness of the processes we have put in place within ECrowd! to fully comply with the regulation and being able to continue to operate as an authorised entity. However, at least as important as the stamp of approval given by the authorities, is the fact that we can now demonstrate to all our existing and future clients that we operate in a fully regulated environment. When it comes to investments, trust is paramount for all parties. In this aspect, the licensing process is absolutely essential to the healthy growth of our industry.”
Retail banks with potential to realize $405.3bn from digital transformation
Cisco Research carried out research titled “Roadmap to Digital Value in the Retail Banking Industry” where $405.3bn could be achieved from 2015 to 2017
“With the pressing realities of agile ‘fintech’ disruptors, digital consumer demands, and complex regulatory hurdles, the question of how retail banks can compete and capture the revenue opportunity at hand has come to the fore,” said Mike Weston, VP, Cisco Middle East. “As the largest segment of financial services, retail banks play a critical role in any economy. The ability for digital technologies to create and drive new revenue opportunities, combined with the ability to lower operational costs through digitized business processes, brings tremendous opportunity. But, too many banks are moving slowly or not at all. By waiting to digitize their businesses, or by delaying new technology initiatives, banks risk not only missing out on the potential Value at Stake, but are actually at risk for being put out of business altogether.”
The P2P Lending sector has embraced a level of transparency which is unrivaled in financial services
Due to growing concerns regarding the risk of P2P lending and the imminent crowdfunding review by the FCA, Christine Farnish, Chair of the P2PFA has responded
The UK Peer to Peer Finance Association has released a letter addressed to Andrew Bailey, Chief Executive of the FCA, buttressing their position regarding the recent dialogue with the House of Commons’ Treasury Select Committee. Farnish asserted that peer to peer lending platforms “exist solely because they create value to consumers on both sides of the platform: investors are able to earn fair predictable risk-adjusted net returns that can outperform other investment products, whilst borrowers can access fast and flexible finance.” Farnish asked that Bailey and the FCA “would start from first principles, based on risks and benefits to consumers.”
Crowdcube considers a secondary market for equity crowdfunding
Crowdcube rapidly raised £5m from pre-registered retail investors in four hours. Expressions of interest from would-be investors before the crowdfunding began reputedly reached £50m and there is a stretch target of £12m equity available that is being eaten in to. Will there be unsatisfied investor demand that could lead to a viable secondary market to trade Crowdcube shares, and how could that secondary market then be developed further?
The money is required for business development – including “creating an environment for shareholders of any private UK company to sell their stake”. That would represent a major step forward in the evolution of the equity crowdfunding industry. It’s not clear yet how Crowdcube might achieve its ambition. Nevertheless, Darren Westlake, the company’s chief executive, insists: “There is a real opportunity to provide early investors with returns through a secondary market on Crowdcube; a secondary offering of this nature will provide greater flexibility for equity investors, whilst further democratising investing by providing another avenue for anyone to invest in great British businesses.”
There are many fantastic stories out there. What else caught your eye this week? Did you come across some breaking news or a good thought piece? Do share them with us…