Fintech

Banks have new reasons to fear digital disruption

24 Jan 2018

Wannabe fintech disruptors are out in force at Davos. Regulation and poor returns helped protect big lenders up to now. Renewed interest in financial services from the likes of Amazon and Apple poses a bigger threat. Banks will need to either join forces or partner with Big Tech.

Lufax flotation offers a safer bet on China debt

16 Jan 2018

The peer-to-peer lender wants to raise as much as $5 billion from a Hong Kong IPO, says IFR. Lufax is better hedged than rivals, with the financial backing and risk acumen of insurance giant Ping An behind it. But this growing sector is volatile due to a shadow banking crackdown.

Software stickiness provides SS&C with rollup glue

11 Jan 2018

The U.S. tech group’s $5.4 bln acquisition of rival DST added well over $1 bln to the market value of each company. Investors are betting possible cost savings are twice as high as the buyer has said. That happens rarely, but in software it’s just about possible.

Chancellor: Bitcoin will never be real money

9 Jan 2018

The leading crypto-currency has monetary characteristics. But without state backing and a means for circulating credit in the capitalist economy it lacks the nature of money and is destined to fail. That’s why some more modest bitcoin alternatives, like ripple, look more promising.

Ant’s MoneyGram fail becomes America First symbol

2 Jan 2018

Jack Ma’s financial offshoot has scrapped its $1.2 bln purchase of the U.S. cash-transfer company. The Alibaba boss made nice with Donald Trump early on, but his pledge to spark 1 mln American jobs wasn’t enough to get the deal past a new, and bipartisan, prickliness with China.

Once-stodgy banks will gain upper hand in fintech

27 Dec 2017

Scandals hit SoFi and Lending Club. Earnest’s down-round sale showed building scale is hard. Such ill fortune is a boon for traditional players as they start cranking out more of their own tech-enabled tools to improve customer service and cut costs. It’s their battle to lose.

Bitcoin insider trading lends veneer of normality

20 Dec 2017

Coinbase is investigating possible insider trading after the price of bitcoin cash surged just hours before the digital-wallet provider added the crypto-currency to its platform. Wealth always attracts fraudsters. And that, in turn, strengthens the case for regulation.

Chancellor: Bitcoin speculators face total wipeout

13 Dec 2017

Bubbles - in tulips, railroads or the Mississippi Co - aren’t just about the madness of crowds - nor are they simply manifestations of excess money. And they always offer a premonition of the future. Whatever the future for crypto-currencies, it’s clear that bitcoin has none.

Crude-backed crypto-coin is mostly snake oil

8 Dec 2017

An ex-CFTC commissioner is launching a digital currency backed by the commodity. His promise of stable value sits oddly against bitcoin’s wild ride. While it offers a tax edge over oil-backed ETFs, it’s hard to imagine this coin existing if not for the wider crypto craze.

Bitcoin looks like speeded-up unicorn hype

7 Dec 2017

A sheen of futurism, fear of missing out, a lack of fundamental value, and an inability of big backers to sell without crashing the market are factors pumping up the digital currency’s price. It’s like accelerated startup funding rounds. The danger is a Theranos-like bloodbath.

ICO bust heralds U.S. crypto-currency rules chaos

4 Dec 2017

The SEC has taken its first action against a coin offering, alleging the perpetrators fraudulently raised $15 mln. The CFTC, though, just gave the green light to bitcoin futures. The growing regulatory discord on virtual currencies increases the risks to investors.

Chinese fintech Qudian dangerously reverses IPO

5 Dec 2017

The $4.1 bln micro-lender backed by Alibaba's Ant Financial intends to buy back a big slug of the stock it just debuted in October. The plan follows China's crackdown on the industry. With the full implications unclear and a share-lockup expiry looming, Qudian's move is risky.

Wall St poised to stop worrying and love bitcoin

1 Dec 2017

Crypto-currencies are set to take center stage. Mike Novogratz is launching a hedge fund, exchanges are teeing up futures contracts, big banks are likely to enter the fray and even the Fed is taking notice. It may end in tears, but the industry won’t ignore a $300 bln market.

Guest view: Bitcoin bubble obscures real worth

30 Nov 2017

Crypto-currencies are like South Sea Company shares: unanalyzable, but here to stay. For one thing, they offer a government-proof store of wealth. For another, real technological advances exist along with the scams. More stable prices are, however, needed for long-term value.

Chinese micro-lender has big problems

22 Nov 2017

Beijing is clamping down on online outfits that issue small-ticket loans to Chinese consumers. The regulatory uncertainty has spooked investors in the rapidly growing industry. It is another reason why New York listing hopeful LexinFintech may have a tough ride.

The Exchange: Mike Novogratz

15 Nov 2017

From Goldman Sachs partner to Fortress founder and now bitcoin trader, the chief executive of Galaxy Investment Partners has something of a Midas touch. He swings by Times Square to talk about how he's making a killing with a new hedge fund betting on crypto-currencies.

PayPal’s future rests on striking quadruple whammy

19 Oct 2017

The $80 bln payments firm is worth as much as Amex and has a higher multiple than Visa or MasterCard. Justifying that means renewing its deal with ex-owner eBay, nailing lending and expanding its popular Venmo app to merchants. For now, PayPal looks well-positioned to succeed.

Qudian IPO feeds debt-hungry Chinese millennials

18 Oct 2017

The online lender backed by e-commerce giant Alibaba’s financial arm has priced its U.S. listing above expectations, says Reuters. It boasts fast growth, low defaults and - shockingly for tech - profitability. As young Chinese shoppers rack up debt, Qudian will keep earning.

Review: Ellen Pao cracked door for women in tech

29 Sep 2017

In "Reset," the venture capitalist recounts her decision to fight Kleiner Perkins in court over sexism, rather than settling. She lost, but several women have since publicly confronted the bro-culture of Silicon Valley at Uber, SoFi and beyond, yielding more promising results.

Crypto-currencies’ strength becomes their weakness

29 Sep 2017

Freedom from regulation was the big draw of bitcoin, ether and the like. But exchanges established to trade them often lack basic controls on identity, fraud, tech and even volume. Without fixes, digital currencies will stay on the financial fringe, prone to crime and bubbles.