Fintech

Review: A premature declaration of fintech victory

20 Nov 2020

In “Banking on It” Anne Boden, founder of digital lender Starling, sketches a plausible theory of why her business model will triumph. Score-settling with arch-rival Monzo disrupts the story. And until Starling turns a meaningful profit, Boden’s argument lacks evidence.

Nexi bulks up for next round of payments M&A

16 Nov 2020

The Italian group’s 7.8 bln euro swoop on rival Nets, following its takeover of Sia, turns it from prey into predator. With a likely market value of around 22 bln euros, Nexi will compete with French rival Worldline for future deals. Bank-owned payment assets are the next target.

Weak bank CEO benches will be hard to strengthen

12 Nov 2020

Headhunter Heidrick & Struggles reckons top bankers lack experience in other sectors, like tech, and few have run full business units. The latter problem is solvable. But wooing digitally savvy talent from elsewhere is tricky given lenders’ miserable financial prospects.

Tencent’s super status can survive antitrust dig

12 Nov 2020

Dominance in gaming and messaging boosted quarterly sales 29%. Compared to e-commerce giant Alibaba, Tencent’s ubiquitous WeChat app depends less on subsidies and other practices singled out by regulators. The $681 bln tech giant benefits from boss Pony Ma’s low profile too.

India crudely tries to prevent payments dominance

11 Nov 2020

To ward off a China-style duopoly, caps are being imposed on Google, WhatsApp and others. It tilts the playing field in favour of local operators. Keeping a digital infrastructure designed as a public good from turning into an anticompetitive market is a tough balancing act.

Foxconn hitches bumpy ride with electric vehicles

9 Nov 2020

The $39 bln iPhone-assembler wants to supply parts for 10% of the world’s green cars by 2027. The stakes are high as the company weans itself from a dependency on Apple. Founder Terry Gou’s electronics expertise and deep pockets, though, puts it in a strong starting position.

Alibaba will feel the Ant sting

6 Nov 2020

The e-commerce giant’s close ties with the fintech company are now weighing on its $780 bln valuation. Ant’s yanked IPO and Beijing’s new credit rules come as growth at Alibaba’s core shopping business slows. Boss Daniel Zhang will have to start pulling harder on other levers.

Chinese regulators add Ant to cursed mega-IPOs

3 Nov 2020

The fintech group suspended its record-breaking $37 bln share sale after watchdogs met founder Jack Ma. Other big offerings like Saudi Aramco and Facebook also hit temporary snags. Whatever happens next, the delay reflects badly on Shanghai as a venue for corporate fundraising.

Beijing puts Ant on a shorter leash

3 Nov 2020

Days ahead of the company’s record-setting $34 bln IPO, founder Jack Ma was hauled in by regulators for a chat. Newly unveiled rules also would treat tech middlemen more like banks. It's the clearest sign yet that China wants to tame a wild market that’s helping fuel Ant mania.

Double deal keeps payments M&A bandwagon rolling

2 Nov 2020

Weeks after agreeing a merger with domestic peer Sia, Italian group Nexi is seeking to buy Nordic operator Nets for around 7 bln euros. A quick deal brings cost savings and geographical diversification when rivals are tied up. But swallowing another large target adds complexity.

Lufax slips softly priced IPO past Ant hullaballoo

30 Oct 2020

The Ping An-backed Chinese fintech outfit has garnered less hype than Jack Ma’s record-shattering rival. It isn’t growing as fast, but its online lending unit is profitable and established. A $33 bln valuation, at 13 times forecast 2021 earnings, makes for a compelling option.

Ant’s $312 bln valuation puts faith in fast growth

27 Oct 2020

Both the Hong Kong and Shanghai shares priced with a lucky number eight. To achieve the symbolised prosperity, the Chinese fintech giant’s profit would have to double by 2022 based on the conservative 24 times multiple. Much rides on winning over customers and regulators alike.

Corona Capital: Greenwich, CT real estate

16 Oct 2020

Concise views on the pandemic’s corporate and financial fallout: Home sales in the swank New York City suburb preferred by bankers have soared while Manhattan apartment sales crater.

Ant’s IPO delay flags a recurring headache

14 Oct 2020

The Chinese fintech behemoth is being probed for using its Alipay app to collect subscriptions for mutual funds set up for its $35 bln listing. That’s unlikely to derail the process, but it’s a reminder of the risks Ant runs by constantly testing regulatory grey areas.

Breakdown: The scramble to secure super-app status

13 Oct 2020

The buzzword is closely associated with China’s internet giants and emerging market upstarts. As rivals like Facebook’s WhatsApp and old-world businesses like India’s Tata and AirAsia seek to burnish their all-in-one app credentials, Breakingviews unpicks how they might prosper.

JD Digits IPO sells mutant Ant

12 Oct 2020

E-commerce giant JD.com’s fintech arm plans to raise $3 bln to fund credit businesses, plus ventures into pig farm AI and smart cities. It’s smaller than Jack Ma’s rival operation, and executives keep leaving. The listing will test investors’ ability to discriminate between species.

Kazakhs jump the gun with $6.5 bln fintech IPO

8 Oct 2020

CEO Mikheil Lomtadze is having a second go at floating Kaspi.kz, after pulling a listing last year. Uncertainty over bad debt and the economic effects of Covid-19 may scupper an otherwise reasonable valuation. Selling shareholders might get a better price in a year.

Ant IPO offers rose-tinted view of Chinese finance

28 Sep 2020

Alibaba’s payments offshoot has grown into a $200 bln-plus digital middleman for loans, funds and insurance. That’s allowed it to avoid the dodgy credit and opaque transactions which weigh down China’s financial system. New investors are betting regulators will let that continue.

Big Tech eases Ant’s march into public markets

15 Sep 2020

A long who’s who list, including Thailand’s richest man and China’s national pension fund, stand to clean up from Jack Ma’s fintech titan. Not long ago, a $200 bln IPO might have made public investors look like suckers. This number is less scary thanks to Apple and others.

What is Ant really worth?

9 Sep 2020

Key to the Chinese fintech giant’s success is its cut from lining up credit, insurance and wealth customers. Rivals could eat into those take rates and regulators loom large. For now, though, a Breakingviews calculator suggests a reasonable starting point would be about $275 bln.