Connect with us

Fintech

Goldman Sachs says crypto is “not a suitable investment” on invite-only call

Avatar

Published

on

Goldman Sachs outlined reasons why the bank thinks cryptocurrency is “not an asset class” and “not a suitable investment” for its clients on an invite-only leaked presentation.

The call last week, titled ‘US Economic Outlook & Implications of Current Policies for Inflation, Gold and Bitcoin’, surmised that cryptocurrencies offer neither cash flow nor a hedge against inflation.

Goldman’s presentation involved Harvard professor and chair of the Council of Economic Advisers, Jason Furman, and Goldman Sachs’ chief economist, Jan Hatzius. The slides were put together by the bank’s chief investment officer, Sharmin Mossavar-Rahmani.

One slide highlighted bitcoin’s use as a “conduit for illegal activity,” citing Ponzi schemes and ransomware.

One slide highlighted bitcoin’s use as a “conduit for illegal activity”

“We believe that a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients,” the slide read.

It also drew parallels to the Dutch tulip bubble, a period in the ‘Dutch Golden Age’ where contract prices for some – then newly fashionable – tulip bulbs reached extraordinarily high levels from 1636, before dramatically collapsing in 1637.

The leaked slides drew criticism from a community of crypto enthusiasts who have long been battling to change the mindsets of incumbents like Goldman.

Co-founder of cryptocurrency exchange platform Gemini, Cameron Winklevoss, said in a tweet.”Hey Goldman Sachs, 2014 just called and asked for their talking points back.”

Chief operating and financial officer at US crypto exchange Bittrex Global, Stephen Stonberg, says the bank’s “dismissive and negative position” on bitcoin is simply down to the fact it cannot currently make a profit on it.

“Goldman makes money from charging management and performance fees on assets held at Goldman in either its in-house or third-party manager products,” says Stoberg.

“In the current crisis their AUM [assets under management] on traditional asset classes will be suffering with market declines. The last thing they need is for their clients to start allocating away from asset classes on which Goldman Sachs can charge fees.”

Stoberg adds that the bank’s report should have been called: ‘Goldman Sachs has no way to profit if its clients start allocating funds toward bitcoin and other crypto assets’.

Read more: India’s central bank says there are no curbs for banks to serve crypto traders

The bank’s position on crypto has been called “dismissive and negative”

But despite the bank’s dismissal of cryptocurrency as an area of legitimate investment, bitcoin enjoyed a slight rise last week before reclaiming its $10,000 territory on Monday.

After weeks of stalled momentum since 12 May, which saw bitcoin’s price dip as low as $4,200 in a historic sell-off, the cryptocurrency has managed to bounce back to five digits after being stuck in the low-to-mid $9,000s.
At time of writing, bitcoin was trading at $10,106, with its highest peak in the last 24 hours hitting $10,398.

Unlike Goldman Sachs, Swiss securities giant SIX Group has been more open to bitcoin, leading a $14 million Series A investment and taking a 12% stake in start-up Omniex, an enterprise infrastructure which SIX hopes will connect its customers to more digital asset investment opportunities.

And last month, JP Morgan became the first major US bank to serve bitcoin exchanges – Coinbase and Gemini – as banking clients. Though the bank will, like Goldman Sachs, be getting little business in fees associated with processing payments for these clients. A banker told The Block there are likely “other associated benefits” for JP Morgan, such as the bank’s own coin being offered on either platform.

Read next: JP Morgan first major US bank to serve crypto exchanges as banking clients

Source: https://www.fintechfutures.com/2020/06/goldman-sachs-says-crypto-is-not-a-suitable-investment-on-invite-only-call/

Fintech

NextGen.Net integration expertise gives Finsure strategic advantage

Avatar

Published

on

Finsure is on track to launch a new tech solution with NextGen.Net’s ApplyOnline that will halve processing times and stop document double handling.

Finsure’s cloud-based broker CRM platform Infynity currently requires brokers to first upload, then re-download documents before they can upload and attach them to an application in ApplyOnline.

“This new piece of technology will enable the documents to be sent concurrently – similar to email attachments – and appear automatically in ApplyOnline,” says Simon Bednar, General Manager of Finsure Finance & Insurance and LoanKit Aggregation.

The solution will also integrate with their new customer portal.

“That’s where NextGen.Net and Finsure work really well together,” says Bednar.

“Our customer portal will allow customers to upload their documents on behalf of the broker. The broker will immediately see the documents in Infynity, confirm they’re correct and hit a button to send them to ApplyOnline along with the application data.”

Bednar estimates a 50 percent time saving, explaining “as part of that process we have a tax file number and sensitive data reduction piece of technology”.

“NextGen.Net work collaboratively with Finsure to ensure our systems talk to each other in a highly sophisticated manner to eliminate double handling and streamline the process from Point of Sale all the way to the lender’s approval,” says NextGen.Net national Customer Account Executive Greg Phillips.

“NextGen.Net and Finsure share the same vision to digitise and streamline the entire mortgage lending process,” says Phillips.

He adds that the seamless integration of ApplyOnline with Infynity, is “a holistic solution for Finsure’s brokers”.

Keen to take advantage of what open banking and NextGen.Net’s acquisition of Frollo might mean for their business, Bednar is excited about brokers being able to access borrower’s data directly from banks to inform an application.

“That’s exactly what I’m looking for, to have as little third-party integration and interaction as possible. It was great to see that NextGen.Net had that breadth of knowledge outside of submissions,” he says.

Bednar relies on NextGen.Net’s ApplyOnline platform to cover off on ‘efficiencies and accuracy’.

“That’s a huge piece of work in itself,” he exclaims, adding “we keep our platform open to allow brokers to be a little bit more fluid in how they collect the data; and the idea of them sending it to NextGen.Net is great for me because they effectively become the quality insurer and checker that allows our system to be efficient and accurate – so when it goes to the lender the data is complete.

“From a strategic partnership perspective that’s powerful.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://australianfintech.com.au/nextgen-net-integration-expertise-gives-finsure-strategic-advantage/

Continue Reading

Fintech

TrueLayer raises US$70m to build the world’s most valuable Open Banking network

Avatar

Published

on

TrueLayer, Europe’s leading open banking platform, today announced it has secured a US$70m Series D investment round led by new investor Addition. The latest raise reflects the growing demand for its open banking-based services and marks another significant milestone for TrueLayer on its mission to open up finance, building an open banking network that brings together payments, financial data, and identity to redefine how people spend, save, and transact online.

Existing investors, including Anthemis Group, Connect Ventures, Mouro Capital, Northzone, and Temasek, also participated, with a significant increase to the company’s valuation. Additional investors in the round include Visionaries Club, Surojit Chatterjee (CPO Coinbase), Zack Kanter (CEO Stedi), Daniel Graf (ex-Uber, Google, Twitter) and David Avgi (ex-CEO SafeCharge, CEO UniPaaS). It brings the total investment to date in TrueLayer to US$142m.

The new funding will be used to fuel global expansion and accelerate the development of premium open banking-based services that will continue to drive innovation and revenue growth for clients. It will also be used to expand TrueLayer’s engineering, product and commercial teams to meet the increasing global demand for its open banking platform.

TrueLayer’s API-first platform accounts for more than half of all open banking traffic in the UK, Ireland and Spain, processing billions of pounds in payments. It powers services for some of Europe’s fastest-growing brands, including Revolut, Trading 212 and Payoneer.

TrueLayer has a market-leading payment conversion rate that is 22% higher than other providers, according to OpenBanking UK and other bank sources, and up to 40% higher than cards. Merchants offering TrueLayer as a payment method in their checkout have found that on average, 1 in 3 consumers chose to pay via TrueLayer. As a result, open banking is displacing other payment methods, such as cards, as the default payment option online.

Over the past 12 months, TrueLayer has expanded its services across 12 European markets, growing payment volumes by 600x, and adding hundreds of new customers across digital banking, eCommerce, trading and investment, wealth management, crypto and iGaming. It has continued to innovate, for example, with the recent launch of PayDirect, combining instant pay-in capabilities with instant pay-outs, to deliver a higher converting, lower fraud method for online payments.

“When Luca and I started TrueLayer in 2016, we imagined open banking becoming a new digital channel for solving cost and complexities around payments, digital identity, credit data and much more. We wanted to open up this newly built infrastructure to many businesses and consumers. It is such a joy to see our vision coming alive and open banking based payments quickly becoming the new normal,” commented Francesco Simoneschi, CEO and Co-Founder at TrueLayer.

TrueLayer is rapidly expanding as demand for its open banking platform increases, largely driven by consumer demand for digital financial services that work better for them, and give them more control over their financial lives.

“We have achieved this milestone thanks to the hard work of our stellar team. Bringing radical new products into the hands of consumers and businesses is incredibly exciting,” explained Luca Martinetti, Co-Founder and CTO at TrueLayer. “This new financial network we are building on top of open architectures has massive long term implications for the whole fintech ecosystem and we won’t compromise our vision in any way.”

“That is why it is so important to select investors that can help you to plan for the next 15 years, not the next 15 months,” added Simoneschi. “The Addition team thinks very long term and it has been such a pleasure working together. They complement the incredibly strong group of experienced backers who align with our vision of how financial services are evolving.”

Lee Fixel, Founder of Addition, commented, “TrueLayer is ideally positioned to benefit from the trends shaping the future of financial services as more and more companies embed digitally native payments into their platforms. We look forward to supporting the TrueLayer team as they scale their offering and drive continued innovation.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://australianfintech.com.au/truelayer-raises-us70m-to-build-the-worlds-most-valuable-open-banking-network/

Continue Reading

Fintech

Novatti’s Ripple partnership live to The Philippines

Avatar

Published

on

Leading Australian digital banking and payments company Novatti, reports that its recently signed partnership with global payments disrupter Ripple, is now live with revenue-generating transactions taking place.

Ripple uses its decentralised, global financial network, RippleNet, to provide its partners with the ability to process global payments instantly, as well as providing access to emerging, high-growth capabilities, such as blockchain and the digital asset, XRP, a top five global cryptocurrency currently valued at more than USD$40 billion.

Novatti signed a new partnership with Ripple in December 2020 to provide Novatti’s fintech customers with access to these capabilities.

The initial focus of the partnership was to target cross-border transactions between Australia and the South- East Asia region, particularly the Philippines. This focus is delivering new customers, with Novatti now partnering with the Australian subsidiary of the Philippines’s largest non-bank, Filipino-owned, remittance service provider, iRemit, through RippleNet. This alone is expected to result in several thousand transactions a month being processed by Novatti through RippleNet. Revenue from this partnership is dependent on take-up of the services. Importantly, discussions are already underway to also expand this service to new financial services clients in South East Asia.

Managing Director of Novatti, Peter Cook, said, “We are delighted to see this partnership delivering for both Novatti and Ripple in such a short period of time. The partnership with Ripple not only provides Novatti’s customers with access to new, innovative payment solutions, it also highlights how Novatti’s partnerships translate into revenue.”

“Forming our partnership with Ripple was part of Novatti’s broader strategy to develop a banking and payments ecosystem that enables our existing platforms to scale quickly. In addition to Ripple, Novatti’s ecosystem now includes partnerships with world-leading payment and fintech companies including Visa, Apple Pay, Alipay, UnionPay International, Google Pay, Samsung Pay, Marqeta and Decta.”

“The early success of Novatti’s partnership with Ripple also highlights the benefits of our broader overseas expansion since the start of this year, with new licences obtained for the New Zealand market and Emersion now up and running in the US. As shown through Ripple, this expansion opens Novatti up to new revenue opportunities, and provides us with greater exposure to the global demand for digital payments that we expect to accelerate going forward.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://australianfintech.com.au/novattis-ripple-partnership-live-to-the-philippines/

Continue Reading

Fintech

Cape awarded MVP Grant to kickstart new wave of Open Banking powered business finance tools

Avatar

Published

on

Cape, the Corporate Card helping small to medium business (SMBs) take control of their cash-flow, has been awarded a prestigious Minimum Viable Product (MVP) grant by the NSW Government.

The Cape team is improving the operating efficiency and long-term success of growing businesses by automating accounting and helping lower their bills, enabling business owners to get their spend management under control. Cape’s solution utilises Open Banking to help businesses unlock capital to invest in growth, whilst optimising cash flow to save on unnecessary expenditure.

The grant was awarded thanks to Cape’s proposition to build a cash management platform to remove vendor, expense and spend management roadblocks, saving thousands of dollars in the process for business owners.

Cape’s founders said that the grant would go towards securing early-stage growth opportunities for the company, particularly in product development and sales initiatives, as the company seeks to transition out of the pre-revenue stage.

Ryan Edwards-Pritchard, CEO of Cape, commented, “We’re excited to have the support of the NSW government in our mission to help business owners stay on top of their cash and keep their companies healthy. The grant shows how invested the government is in developing the local economy and continuing New South Wales reputation as an active fintech hub.”

Stuart Ayers, Minister for Jobs, Investment, Tourism and Western Sydney Stuart Ayres commented, “It is fantastic to see promising startups such as Cape tap into the NSW Government’s Minimum Viable Product (MVP) grant. The MVP grant is designed to support promising startups like Cape progress from product development to first sales.

Cape is currently gearing up for their launch and will initially go to market with a Rewards platform, before delivering Machine Learning capabilities to streamline receipt and business expense management across supplies, third party services, SAAS subscriptions & payments.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://australianfintech.com.au/cape-awarded-mvp-grant-to-kickstart-new-wave-of-open-banking-powered-business-finance-tools/

Continue Reading
Esports3 days ago

Dota 2 Patch 7.29 Will Reveal a New Hero

Esports5 days ago

Pokemon GO announces details for Rivals Week

Esports5 days ago

Drift0r Opens Up About Harassment By Eight Thoughts

Esports4 days ago

Valorant Redeem Codes: How to redeem?

Blockchain4 days ago

MicroStrategy kauft weitere 253 BTC für 15 Millionen US-Dollar

Blockchain5 days ago

Bitcoin Miner hodln ihre BTC anstatt sie zu verkaufen

Esports5 days ago

Reports suggest G2 Esports is reviewing its Valorant roster

Esports5 days ago

Call of Duty streamer and host TeePee joins Envy Gaming

Esports4 days ago

How to watch the TFT Fates Championship

Esports3 days ago

Best Warzone guns: the weapons you need to use in Black Ops Cold War Season 2

Esports5 days ago

The top three weapons in Black Ops Cold War Season 2 Reloaded

Esports4 days ago

Ludwig passes 200,000 Twitch subscribers, closes in on Ninja’s record

Esports4 days ago

W33 Removed From Team Nigma’s Active Roster

Esports5 days ago

Team Mahi’s owner Sentinel’s Nirbhaya Rape reference demands severe course correction

Blockchain4 days ago

Playa del Carmen: Krypto-Hotspot mit HODLversity

Esports4 days ago

“Lost control,” TM Sentinel issues apology; seeks forgiveness for ‘disgraceful’ comments

Esports5 days ago

Hexagrams and Wolf No Longer Casting the Overwatch League 2021

Fintech4 days ago

Leading SME finance provider Capify breaking new ground with the launch of their exclusive solution for finance brokers

Esports5 days ago

Code S RO16: Bunny & Hurricane advance, TY & DRG eliminated

Esports4 days ago

Tournament platform Epulze secures £4.7m investment

Trending