Category Archives: Fintech

Millions more in cash needed to fund UK’s open-banking watchdog

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Exclusive: £10m needed for regulator charged with developing tools to thwart financial crime and protect consumers

Banks are under pressure to stump up millions of pounds in interim funding for the organisation that polices open banking, with regulators saying the new money is needed to prevent financial crime and protect consumers if things “go wrong”.

Large banks including NatWest, HSBC, Lloyds and Santander UK were among more than 40 City firms summoned by the Financial Conduct Authority (FCA) last week to discuss a cash injection into Open Banking Limited (OPL), the body that oversees innovation in this area.

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Fintech firm Revolut hit by £25m loss after rise in staff wages

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Firm gave near 80% pay increase to founder despite uncertainty over approval of UK banking licence

Revolut swung to a £25m loss in 2022 after shelling out more on staff and a near 80% pay jump for its founder, despite uncertainty over the approval of the fintech firm’s UK banking licence.

The company, which became the UK’s most valuable fintech firm in 2021, detailed the loss in its delayed annual report on Friday, marking a return to the red after reporting its first-ever annual pre-tax profit – worth £39m – a year earlier.

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Buy now, pay later firm Klarna reports first quarterly profit in four years

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Swing to profit of £9.6m by Swedish firm improves its fortunes in run-up to possible £12bn flotation

The buy now, pay later company Klarna has logged its first quarterly profit in four years, improving its fortunes in the run-up to a potential $15bn (£12bn) stock market flotation and a regulatory crackdown under a possible Labour government.

The Swedish firm, which is the biggest BNPL provider in Britain and has about 150 million international customers, said on Monday that it had swung to a profit of 130m Swedish kronor (£9.6m) in the July to September quarter, marking a notable bounce from a 2bn kronor loss during the same period last year.

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Klarna sees its value slashed by 85% in latest round of fundraising

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‘Buy now, pay later’ firm, once Europe’s most valuable private tech company, valued at less than $7bn

Klarna, the “buy now, pay later” fintech darling that was once Europe’s most valuable private tech company, has seen its value slashed by 85% to less than $7bn in its latest round of fundraising.

The company, which enjoyed stellar growth while also being criticised for potentially leading shoppers into unsustainable debt, announced the valuation after the conclusion of a difficult $800m funding round as investors continued to question the true worth of many tech businesses.

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Buy now, pay later grocery schemes are a ‘debt trap’ for struggling families

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UK regulators say the latest surge in interest-free credit does not offer enough protection for those who are slipping into debit

Families hit by the cost-of-living crisis are being targeted by credit firms offering “buy now, pay later” deals on weekly groceries, pet food and hot drinks.

Shoppers are urged to spread their payments for staple foods and treats to help cope with “these difficult times”. One promotion states: “Regardless of your credit rating, we will offer you a tonne of credit to do your shopping with.”

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‘Super app’ Grab to go public in record $40bn Spac merger

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Singapore-headquartered firm offers one-stop shopstyle service, including ride hailing, banking and food delivery

South-east Asian “super app” Grab, which offers services from ride hailing and food delivery to online banking, is to float in the US in a record deal with a so-called Spac investment company that values the business at almost $40bn (£29bn).

Singapore-headquartered Grab, which intends to list on Nasdaq in the US, has struck a $39.5bn merger deal with US-based Altimeter Growth Corp. It is by far the biggest deal to date involving a special purpose acquisition company (Spac) – a so-called “blank cheque” shell company that raises money first and seeks businesses to buy later – which has become the latest trend in global finance over the last year.

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