Since the start of the COVID-19 pandemic, struggling SMEs and SMBs have found it more difficult to find the capital they need to survive. At the same time, alternative lenders like fintechs have had to adapt their plans in order to continue being a reliable source of financing. Such creativity will still be needed in 2021 as more opportunities arise.
Xalles Capital, a wholly-owned subsidiary of Xalles Holdings, is creating a virtual growth center for fintech firms. Xalles Capital expects between 10 to 20 companies to be admitted to the program during its first year.
According to a report from Capgemini and Efma, 70% of fintech companies don’t culturally or organizationally see eye-to-eye with their bank partner, while only 6% of banks have achieved the desired ROI from collaboration.
FinTech company Green Dot appointed Dan Henry CEO and president. Henry will join the board of directors as well. Henry previously served as CEO of Netspend.
BB&T made a $5 million investment in Enigma, a DaaS company headquartered in New York City. This is the first outlay of BB&T’s previously announced $50 million fintech commitment.
The Wall Street Journal reported that banks are increasing offers of consumer loans to individuals with poor credit histories to complete with fintech lenders.
According to a KPMG report, investment in U.S.-based fintech companies surged to $14.2 billion across 427 deals during the first half of 2018.
The Office of the Comptroller of the Currency will begin accepting applications for national bank charters from non-depository fintech companies engaged in the business of banking.
The SEC charged Michael Liberty, founder of the fintech startup now known as Mozido, with a scheme to trick hundreds of investors into investing in his shell companies instead of Mozido.