Fintech is a wide-ranging, multi-sector, global industry, whose growth influences not only the banking world, but society at large. Our deep dives, interviews and coverage looking at the evolution of payments, finance and banking are fuelled by constant updates, news and commentary on deals, funding rounds, and partnerships.
The challenger banks are here to stay…
Atom Bank turns its first annual profit
For the first time, Atom reported a full-year underlying operating profit of £4m (FY22: £2m loss), following a year of strong and profitable balance sheet growth.
Its balance sheet grew to £7.8bn (FY22: £4.6bn) due to new lending at improved spreads and significant deposit inflows at efficient rates which drove a 62% increase in net interest income to £76m. That, combined with ongoing strong management of operating costs, has seen monthly profit to sustainable levels with a return on tangible equity of 11.2% delivered in the second half of FY23.
Meanwhile, Atom Bank joins Bankers for Net Zero
The bank is now a member of Bankers for Net Zero, the UK country chapter of the UN-convened Net Zero Banking Alliance (NZBA).
Atom Bank believes that taking this step will give it the opportunity to step up as a leader on climate change within the sector. This aligns with its signing of the UN’s Climate Neutral Now Pledge and the County Durham Climate Change Agreement.
Bankers for Net Zero is the UK’s country chapter of the NZBA, one of the main pillars of the Glasgow Financial Alliance for Net Zero.
Research highlights a market opportunity
Two in three UK immigrants are treated differently from UK-born contemporaries when applying for essential credit services
New research by Nova Credit shows immigrants into the UK consistently wait longer and are treated differently from UK-born applicants when applying for essential credit services as a result of their lack of available credit history.
The report, titled ‘10 million UK immigrants – a market opportunity hiding in plain sight’, draws on independent research commissioned by Nova Credit, the cross-border credit bureau, and was conducted among 1000 working age adults who immigrated to the UK within the last 10 years.
Delays and refusals stem from the lack of access financial services providers have to applicants’ credit histories “left behind” in previous countries.
More than half of UK immigrants will apply for more credit in next 12 months, with a fifth seeking mortgage finance. The UK’s 10 million-strong immigrant population is a creditworthy expansion opportunity hiding in plain sight of lenders.
Founders Factory adds Italian investment bank
Mediobanca and Founders Factory to invest in fintech start-ups
Mediobanca Group, Italy’s largest investment bank, has signed a partnership with Founders Factory, the London-based global company builder and early-stage investor, to launch a new fintech venture studio and accelerator.
This joint venture, underpinned by an overall €12m investment from Mediobanca, will facilitate innovation in financial services by supporting international early-stage fintech start-ups as well as further boost support for Italy’s thriving start-up ecosystem.
Crypto trading expands
In the first six months of 2023, Bitpanda Technology Solutions has closed agreements with companies like Coinbase, Visa, N26, French money app Lydia, and UK fintech Plum.
Bitpanda Tech’s recent expansion into the Nordics, through a partnership with Swedish neobank Personal Finance Company (PFC), provides trading to 150,000 Nordic users. Through its ownership of PFC, Svea Ekonomi will become the first Nordic Bank to offer crypto trading to its customers, reflecting rising investor demand across the Nordics for access to safe and simple crypto trading.
