Daily Fintech Newsletter | February 10th, 2021
Popular “buy now, pay later” shopping services like Klarna will face stricter regulation under proposals announced by the U.K. government.
Hi!
In case you missed it, please see below today's most relevant fintech news.
The UK Treasury said buy now, pay later (BNPL) firms would come under the supervision of theFinancial Conduct Authority (FCA), which regulates financial services firms and markets in Britain. Consumer groups have warned that some people — particularly younger people — could be lured into a debt trap. BNPL firms will be required to conduct affordability checks before lending to customers, the government said, while people will also be allowed to escalate complaints to the U.K.’s financial ombudsman. A review from the FCA’s Christopher Woolard found that the U.K. BNPL market is worth £2.7 billion ($3.7 billion), with 5 million Brits using such products since the start of the pandemic. Meanwhile, more than one in 10 customers of a major bank using BNPL services were already in arrears. Link here.
London-based mobile-first investing platform Wombat is the UK’s first thematic and curated fractional investment platform. Link here.
GajiGesa Indonesia, a fintech company that offers Earned Wage Access (EWA) and other services for workers in Indonesia, has raised $2.5 million in seed funding. Link here.
Vested Finance, a Silicon Valley-based online investment platform that enables Indians to buy and sell US stocks, has raised $3.6 million in a seed funding round. Link here.
Astia, the Silicon Valley-headquartered organization dedicated to leveling the investment playing field - and redefining the traditional venture capital landscape - has launched a $100M early-stage venture fund aimed at addressing the extraordinary disparity in funding for companies that include women in founding or executive roles. Link here.
The internationally renowned thought leader in Fintech, David Birch, has been appointed Fintech Ambassador for Jersey, which validates the strength of Jersey’s offering in this area, and will help ensure Jersey’s success as an internationally recognized Fintech hub. Link here.
This ends my Daily Fintech Newsletter. Let me know if there are any questions or news/insights worth mentioning in the next newsletter. Until the next!
Regards,
Marcel van Oost
marcelvanoost.com
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