Capital Markets Corporate

March 9, 2018

Our Weekly Newsletter


Across Instinctif Partners’ Financial Services team, we are always keeping an eye on the key developments taking place across the sector to evaluate their impact on the many businesses we work with. Here we share our picks of the week’s most interesting news, and our expert views.

Can Britain’s big banks’ apps catch up with fintechs? 

Britain’s big banks are trying to catch up with fintech start-ups by introducing new money management apps. HSBC, Lloyds and RBS are all at different stages of producing and launching “cutting-edge” apps that will enable customers to view all of their accounts – even those with other banks – with the aim of winning over younger generations. The timing of this also coincides with the new Open Banking regulations, requiring Britain’s nine biggest banks to share data so that customers can access their financial information across providers all in one place. (From Reuters, 26 February 2018)

Can the Wolf of Wall Street sell anything?

Jordan Belfort, the infamous Wolf of Wall Street, says success in selling is simply down to tonality. Belfort, whose rise and fall was famously portrayed by Leonardo DiCaprio in the Martin Scorsese box office hit, says there are 10 basic ‘tonalities’ to the way we communicate that everyone knows, but few consciously use. Belfort says that if one consciously adopts the right tone to suit what he or she needs to sell, then it’s sure-fire path to success. (From Quartz, 27 February 2018)

Luxembourg to become the next big major financial centre

Luxembourg has been working to becoming a major financial centre in Europe, according to Luxembourg for Finance (LFF). The finance centre’s claims are backed up by fact that over 20 international institutions have moved to Luxembourg to set up either part of all of their activity, as a result of Brexit. Reportedly, Blackstone, Carlyle, Henderson Global and others are locating or consolidating their activity in the tiny Grand Duchy. Should we expect more companies to follow suit? (From TheWealthNet, 5 February 2018)

Homeowners face Help to Buy double whammy

Next month the first beneficiaries of the UK government’s Help To Buy equity loan scheme will begin pay interest on those equity loans, in addition to their mortgage debts, as experts warn the mix of higher rates and additional loan servicing may hit borrowers hard and prompt some to look to remortgage. In April 2013 the first cohort of Help to Buy-ers took advantage of the public scheme that supplemented deposits as low as 5% with a government loan of up to 20% that was interest free for the first five years. The scheme has helped to revive the first-time buyer market, but payback is now due at the same time that interest rates are set to rise. A double whammy of Help to Buy repayment obligations and increased mortgage rates could cause debt woes for many homeowners. (From the Financial Times, 4 March, 2018)

Amazon to shake up the banking sector

Amazon is in the early stages of talks to with big banks such as JPMorgan Chase to create a checking-account-like product. Amazon’s talks with financial firms are part of its vision to create a product to attract younger consumers. While it is reported that this might not amount to anything, it will still come as a big wakeup call to some in the sector that the most successful retailer on Earth could be targeting the banking sector to shake it up. (From Reuters, 5 March 2018)

Instinctif Partners partners with AltFi for its fintech summit

We are delighted to be a partner at this year’s AltFi Summit, which will take place on Monday, 26 March. Now in its fifth year, the AltFi Summit is testament to the rapid growth of the UK fintech scene which, in recent years, has evolved from a nascent sector to become an increasingly crucial segment of the financial services ecosystem.

The event is set to bring together leading entrepreneurs, influencers and investors for an in-depth debate on a changing landscape and what the future holds for the financial services industry. Speakers at this year’s summit will include Samir Desai, the CEO and co-founder of Funding Circle, and Anne Boden, the CEO and founder of Starling Bank.

At a time when changes in the regulatory landscape such as Open Banking and PSD2 arrive in quick succession, the AltFi event will explore and address the opportunities this opens up for fintech and alternative finance platforms.

Additionally, themes such as the broader economic impact of alternative finance, the growth of digital-only banks and opportunities for institutional investors will also be in focus. Keep an eye out for more updates as we ramp up to the main event.
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