SBFM Report 2021
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Government Support for Business
House of Commons Business, Innovation and Skills Committee Government Support for Business Eighth Report of Session 2014–15 Report, together with formal minutes relating to the report Ordered by the House of Commons to be printed 10 February 2015 HC 770 Published on 24 February 2015 by authority of the House of Commons London: The Stationery Office Limited £0.00 Business, Innovation and Skills Committee The Business, Innovation and Skills Committee is appointed by the House of Commons to examine the expenditure, administration, and policy of the Department for Business, Innovation and Skills. Current membership Mr Adrian Bailey MP (Labour, West Bromwich West) (Chair) Mr William Bain MP (Labour, Glasgow North East) Mr Brian Binley MP (Conservative, Northampton South) Paul Blomfield MP (Labour, Sheffield Central) Katy Clark MP (Labour, North Ayrshire and Arran) Mike Crockart MP (Liberal Democrat, Edinburgh West) Caroline Dinenage MP (Conservative, Gosport) Rebecca Harris MP (Conservative, Castle Point) Ann McKechin MP (Labour, Glasgow North) Mr Robin Walker MP (Conservative, Worcester) Nadhim Zahawi MP (Conservative, Stratford-upon-Avon) The following members were also members of the Committee during the Parliament. Luciana Berger MP (Labour, Liverpool, Wavertree) Jack Dromey MP (Labour, Birmingham, Erdington) Julie Elliott MP (Labour, Sunderland Central) Margot James MP (Conservative, Stourbridge) Dan Jarvis MP (Labour, Barnsley Central) Simon Kirby MP (Conservative, Brighton Kemptown) Gregg McClymont MP (Labour, Cumbernauld, Kilsyth and Kirkintilloch East) Ian Murray MP (Labour, Edinburgh South) Nicky Morgan MP (Conservative, Loughborough) Chi Onwurah MP (Labour, Newcastle upon Tyne Central) Rachel Reeves MP (Labour, Leeds West) Mr David Ward MP (Liberal Democrat, Bradford East) Powers The Committee is one of the departmental select committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No 152. -
February 2019
The definitive source of news and analysis of the global fintech sector | February 2019 www.bankingtech.com SUPERSTRUCTURES Fintech reaches new heights CASE STUDY: CITIZENS BANK US heavyweight pivots for digital era FOOD FOR THOUGHT: CAREER CHOICES The Venn diagram of doom FINTECH FUTURES IN THIS ISSUE THEM US Contents NEWS 04 The latest fintech news from around the globe: the good, the bad and the ugly. 18 Banking Technology Awards The glamour, the winners and the celebrations. 23 Focus: intraday liquidity Are banks ready to meet the ECB’s latest expectations? 24 Interview: Pavel Novak, Zonky P2P lender on a “mission possible”. 26 Focus: data How DNB uses data to reconnect with customers. 30 Analysis: openfunds Admirable data standardisation efforts for the funds industry. 32 Case study: Citizens Bank US’s 13th largest bank embraces digital era. 38 Food for thought Making career choices and the Venn diagram of doom. They struggle with Fintech complexity. We see straight to your goal. We leverage proprietary knowledge and technology to solve complex regulatory challenges, create new products 40 Comment What would a recession mean for fintech? and build businesses. Our unique “one fi rm” approach brings to bear best-in-class talent from our 32 offi ces worldwide—creating teams that blend global reach and local knowledge. Looking for a fi rm that can help keep 42 Interview: Javier Santamaría, EPC your business moving in the right direction? Visit BCLPlaw.com to learn more. Happy one year anniversary, SEPA Instant Credit Transfer! REGULARS 44 -
Small Business Equity Tracker 2019 2 British Business Bank
SMALL BUSINESS EQUITY TRACKER 2019 2 BRITISH BUSINESS BANK CONTENTS 3 FOREWORD 4 EXECUTIVE SUMMARY 7 INTRODUCTION 10 CHAPTER 1: RECENT TRENDS IN SME EQUITY FINANCE 10 1.1 TOTAL INVESTMENT 14 1.2 BUSINESS STAGE 18 1.3 DEAL SIZES 24 1.4 INVESTORS 26 1.5 SECTORS AND TECHNOLOGY SUB-SECTORS 28 1.6 FOLLOW ON FUNDING ENVIRONMENT 30 1.7 VALUATIONS 32 1.8 OVERSEAS INVESTORS 33 1.9 FEMALE FOUNDERS 35 1.10 DEAL GEOGRAPHY 44 CHAPTER 2: BRITISH BUSINESS BANK ACTIVITY 44 2.1 INTRODUCTION 47 2.2 MARKET SHARE 48 2.3 BUSINESS STAGE 51 2.4 SECTOR 52 2.5 ENGLISH REGIONS AND DEVOLVED ADMINISTRATIONS 53 CHAPTER 3: PATIENT CAPITAL ECOSYSTEM 53 3.1 INTRODUCTION 54 3.2 HIGH GROWTH BUSINESSES 55 3.3 SIZE OF VC MARKETS 57 3.4 FOLLOW ON FUNDING 59 3.5 UNICORN BUSINESSES 60 3.6 EXITS 62 3.7 FUNDRAISING 65 CHAPTER 4: TALENT IN VENTURE CAPITAL 65 4.1 INTRODUCTION 66 4.2 ROLES AND DAY-TO-DAY ACTIVITIES 67 4.3 CAPABILITIES PERCEIVED TO BE MOST VALUABLE 68 4.4 PROFESSIONAL, ACADEMIC AND INTERNATIONAL EXPERIENCE 71 4.5 TALENT CHALLENGES FOR THE NEXT GENERATION OF SENIOR VCS 75 APPENDIX 77 BEAUHURST METHODOLOGY 78 ACKNOWLEDGMENTS AND ENDNOTES SMALL BUSINESS EQUITY TRACKER 2019 3 FOREWORD KEITH MORGAN, CEO OF BRITISH BUSINESS BANK A vibrant and healthy equity fnance market is key to enabling smaller ambitious businesses to fulfl their growth potential and help build a successful economy in the UK. For start-up businesses, or those planning to grow larger in the US, UK VC-backed companies now receive a quickly, equity funding remains an important option. -
Wealth Management: Investment Views
Investment views Challenging the challengers Issue 7 | Second quarter 2020 Who are the challengers? Revolut, Monzo, Starling and N26 are becoming household names across Europe. These businesses are part of a new wave of challenger banks that have disrupted retail banking services, divided critics and amassed millions of users. They have attracted global headlines in the last two years as they enjoy compound annual growth rates nearing 45%1. In a recent conversation with our financial William Haggard Head of Investment Insights analyst Willis Palermo, we explored three key issues for Europe’s fintech fighters: 1. What does the emergence of challenger banks mean for established banks? 2. How are banks responding to the Covid-19 crisis? 3. Where do we stand on investing in challenger banks today? The following is an edited transcript of the interview, which you can listen to in full by clicking here. Willis Palermo Financial Analyst In with the new, out with the old? A key ingredient of challenger banks’ success has been their user-friendly mobile interfaces. Talk us through the user experience. Download the online app on your phone, create your login details, send over a picture of your ID card and you are up and running with a bank account. Many of us have joined this new wave of quick and easy challenger banks that have sprung up to facilitate everyday payments and foreign exchange transactions. The ease and simplicity of joining these banks (see Figure 1) is particularly popular with younger generations. In the UK, Monzo boasts 68% of users aged between 18 and 34, while the same age group makes up more than 50% of Revolut and N26’s customers. -
(2019). Bank X, the New Banks
BANK X The New New Banks Citi GPS: Global Perspectives & Solutions March 2019 Citi is one of the world’s largest financial institutions, operating in all major established and emerging markets. Across these world markets, our employees conduct an ongoing multi-disciplinary conversation – accessing information, analyzing data, developing insights, and formulating advice. As our premier thought leadership product, Citi GPS is designed to help our readers navigate the global economy’s most demanding challenges and to anticipate future themes and trends in a fast-changing and interconnected world. Citi GPS accesses the best elements of our global conversation and harvests the thought leadership of a wide range of senior professionals across our firm. This is not a research report and does not constitute advice on investments or a solicitations to buy or sell any financial instruments. For more information on Citi GPS, please visit our website at www.citi.com/citigps. Citi Authors Ronit Ghose, CFA Kaiwan Master Rahul Bajaj, CFA Global Head of Banks Global Banks Team GCC Banks Research Research +44-20-7986-4028 +44-20-7986-0241 +966-112246450 [email protected] [email protected] [email protected] Charles Russell Robert P Kong, CFA Yafei Tian, CFA South Africa Banks Asia Banks, Specialty Finance Hong Kong & Taiwan Banks Research & Insurance Research & Insurance Research +27-11-944-0814 +65-6657-1165 +852-2501-2743 [email protected] [email protected] [email protected] Judy Zhang China Banks & Brokers Research +852-2501-2798 -
HOW CHALLENGER BANKS CAN GROW PROFITABLY CONTENTS Introduction Challengers Everywhere
Challenge Accepted TOWARDS SUSTAINABILITY: HOW CHALLENGER BANKS CAN GROW PROFITABLY CONTENTS Introduction Challengers Everywhere Challenges Facing Challengers Data-Led Personalisation Products Challenger in Focus: tonik How Alternative Data Can Help Challengers Thrive Challenger Banking’s Future Many challengers made everyday banking as seamless Introduction and pain-free as posting on social media. And, from the middle part of the past decade, Challenger banks seemed to be on solid ground as the challenger banking took more and more accounts previous decade ended. away from traditional retail banks. The 2010s were an era where the adoption of digital Until the pandemic. channels skyrocketed, mobile networks vastly improved with the shift from 3G to 5G, and emerging middle classes grew across developing markets. By the middle of the decade, the shock of the GFC was beginning to wane, and innovators and consumers were implementing new practices that grew entire industries. Social media became a source of influence and impact across politics, economics, and cross- border commerce. And eCommerce grew in prominence and popularity, as Chinese manufacturing helped global retailers to reach shoppers in almost every corner of the globe. Challenger banking fitted nicely into this new era of speed, convenience, and aspirational commerce. It spoke to demographics who felt misunderstood by legacy banks. 1 There are over 200 challenger banks worldwide, who have raised $15 billion. — Singapore Fintech Association and Bain Consulting Group report popular challenger bank, with nearly 35 million CHALLENGERS customers on its books. Why have so many challenger banks emerged in such a short space of time? And what do consumers think EVERYWHERE about challenger banks? A recent Kearney survey of UK consumers offers some clues. -
RECOMMENDED ALL-SHARE OFFER for VIRGIN MONEY HOLDINGS (UK) PLC by CYBG PLC Summary
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY CYBG AND VIRGIN MONEY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION NO 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION THIS ANNOUNCEMENT IS AN ADVERTISEMENT AND NOT A PROSPECTUS OR PROSPECTUS EQUIVALENT DOCUMENT AND INVESTORS SHOULD NOT MAKE ANY INVESTMENT DECISION IN RELATION TO THE NEW CYBG SHARES EXCEPT ON THE BASIS OF INFORMATION IN THE PROSPECTUS AND THE SCHEME DOCUMENT WHICH ARE PROPOSED TO BE PUBLISHED IN DUE COURSE FOR IMMEDIATE RELEASE 18 JUNE 2018 RECOMMENDED ALL-SHARE OFFER FOR VIRGIN MONEY HOLDINGS (UK) PLC BY CYBG PLC Summary The Boards of CYBG PLC ("CYBG") and Virgin Money Holdings (UK) plc ("Virgin Money") are pleased to announce that they have agreed the terms of a recommended all-share offer to be made by CYBG for Virgin Money (the "Offer") to create the UK's first true national banking competitor to the status quo. Under the terms of the Offer, Virgin Money Shareholders will receive: 1.2125 New CYBG Shares in exchange for each Virgin Money Share Based on the Closing Price of 306 pence per CYBG Share on 15 June 2018 (being the last Business Day before the date of this Announcement), the Offer values each Virgin Money Share at 371 pence and Virgin Money's ordinary shares on a fully diluted basis at approximately £1.7 billion, representing a premium of: ‒ 19 per cent. -
Brandshow Challenger Brands Are Winning Against
RISE OF THE CHALLENGER HOW CHALLENGER BRANDS ARE WINNING BRANDS AGAINST INCUMBENTS. WITH A CASE STUDY ON THE RISE OF THE CHALLENGER BANKS Words: William Reynolds Photography: Adobe Stock/Creative Commons We are all aware of the challenges facing traditional institutions. From the constantly shifting digital landscape and powerful competitors like Amazon to increasing consumer demands and marketing saturation, traditional IN 2018 MONZO, brands are being squeezed out of the competition in every aspect. This is particularly the case within banking as startups attempt to ‘change banking REVOLUT AND N26 as we know it’ and strip market share from long- entrenched players. ALL PUBLISHED As a result, the rise of the challenger banks (such as Monzo, Starling, N26, Tide, and Revolut) VALUATIONS OF $2BN, is on the lips of the trillion dollar financial services industry. In the UK - home of the fintech startups $1.7BN, $2.7BN, WITH and the first challenger banks - churn in the financial sector has drastically increased, with 235,648[1] customers using the Bacs switching service in the CUSTOMER BASES IN last quarter of 2018 alone. EXCESS OF 2M, 3M, 2M Whilst this is in part due to anti-competitive pushes from UK watchdogs, the fallout of this churn for traditional financial brands can be seen clearly. USERS (RESPECTIVELY). It is telling that 15% of new current accounts created in the UK are purported to be with one challenger bank alone. INTROD UCTION Whilst these innovative challengers have surged accelerating while traditional institutions are ahead in customer acquisition and UK consumer still being viewed (at least by sections of the perception, traditional banks have started to roll technology community) as laggards with the out their own cutting edge next generation possibility of becoming obsolete. -
Candidate Brief Published British Business
Non-Executive Director | British Business Bank Candidate brief for the position of Non-Executive Director British Business Bank July 2021 Non-Executive Director | British Business Bank Contents About British Business Bank 3 Operating Model 4 The Board 5 The Role 6 The Individual 7 Search Process 9 Candidate Charter 10 How to Apply 11 Appendix 1 12 Appendix 2 17 odgersberndtson.com Non-Executive Director | British Business Bank About British Business Bank The UK Government established the British Business Bank (“the Bank”) in November 2014 as a long-term institution charged with ensuring the finance markets in the UK serve the needs of UK SMEs and mid-sized businesses. It has a single shareholder, the Secretary of State for Business, Energy and Industrial Strategy (“BEIS”). The mission of the Bank is to drive sustainable growth and prosperity across the UK by improving access to finance for small businesses, enabling them to succeed in the transition to a net zero economy, change the structure of the finance markets for smaller businesses and mid-caps so these markets work more effectively and dynamically. The Bank is charged with 7 objectives: 1 Increase the supply of finance available to smaller businesses where markets do not work well. 2 Help create a more diverse market for smaller business finance with greater choice of options and providers. 3 Identify and help reduce regional imbalances in access to finance in smaller businesses across the UK. 4 Encourage and enable SMEs to seek the finance best suited to their needs. 5 Be the centre of expertise on smaller business finance in the UK, providing advice and delivering on behalf of Government. -
Small Business Finance Markets 2018/19 2 British Business Bank
SMALL BUSINESS FINANCE MARKETS 2018/19 2 BRITISH BUSINESS BANK CONTENTS 3 FOREWORD 5 EXECUTIVE SUMMARY 8 INTRODUCTION 9 AGGREGATE FLOWS AND STOCK OF FINANCE TO SMALLER BUSINESSES 11 MACROECONOMIC DEVELOPMENTS 14 PART A: THEMES 15 1.1 ATTITUDES TO USING FINANCE 22 1.2 EQUITY FINANCE ENVIRONMENT FOR INNOVATIVE AND HIGH GROWTH FIRMS 38 1.3 SME FINANCE AT THE LOCAL LEVEL 48 PART B: MARKET DEVELOPMENTS SMALL BUSINESSES 49 2.1 SME BUSINESS POPULATION 54 2.2 USE OF EXTERNAL FINANCE FINANCE PRODUCTS 58 2.3 BANK LENDING AND CHALLENGER BANKS 68 2.4 EQUITY FINANCE 74 2.5 DEBT FUNDS 77 2.6 ASSET FINANCE AND INVOICE & ASSET-BASED LENDING 82 2.7 MARKETPLACE LENDING 86 GLOSSARY 90 ENDNOTES SMALL BUSINESS FINANCE MARKETS 2018/19 3 FOREWORD KEITH MORGAN, CEO, BRITISH BUSINESS BANK The British Business Bank, established in 2014, improves finance markets so they more effectively serve the needs of smaller UK businesses. Our fifth Small Business Finance Markets report The second theme is declining demand for finance. provides a timely, comprehensive and impartial As the latest data in this report shows, the stock of assessment of finance markets for smaller bank lending - which forms the largest part of the businesses at a moment of great significance for the market - has continued to decline in real terms UK and its economy. Combined with our experience although, encouragingly, alternatives to bank lending as an active market participant, the evidence, have continued to grow, albeit at a slower rate than research and insights in this and other reports previously. -
SBFM 2019/20 Report
Small Business Finance Markets 2019/20 2 Contents CONTENTS FOREWORD 3 EXECUTIVE SUMMARY 5 INTRODUCTION 7 PART A: THEMES 1.1 FIVE YEARS ON– WHAT HAS CHANGED IN SMALL BUSINESS FINANCE MARKETS 8 1.2 IMPACTS OF MACROECONOMIC DEVELOPMENTS ON SME FINANCE MARKETS 19 1.3 FINANCE IN ENTREPRENEURIAL ECOSYSTEMS 27 PART B: MARKET DEVELOPMENTS SMALL BUSINESSES AND THEIR USE OF FINANCE 2.1 SME BUSINESS POPULATION 38 2.2 USE OF EXTERNAL FINANCE 43 2.3 SME FINANCE AT A LOCAL LEVEL 51 FINANCE PRODUCTS 2.4 BANK LENDING 58 2.5 CHALLENGER AND SPECIALIST BANKS 66 2.6 EQUITY FINANCE 73 2.7 DEBT FUNDS 84 2.8 ASSET FINANCE 87 2.9 INVOICE FINANCE & ASSET-BASED LENDING 91 2.10 MARKETPLACE LENDING 94 GLOSSARY 98 ENDNOTES 102 British Business Bank 3 Foreword FOREWORD KEITH MORGAN CBE, CEO, BRITISH BUSINESS BANK The British Business Bank, established in 2014, improves fnance markets for smaller businesses - wherever they are in the UK and wherever they are on their fnance journey – enabling them to prosper and grow. Our sixth Small Business Finance Markets report provides Looking forward, smaller businesses’ confdence is a timely, comprehensive and impartial assessment of showing signs of recovery following the economic and fnance markets for smaller businesses. Its insights and political uncertainty of 2019. The Bank has worked with analysis, combined with our market intelligence and other market participants and Government through the experience as an active market participant, enable the Business Finance Council to ensure smaller businesses Bank to act as a centre of expertise on fnance for smaller can continue to access the fnance they need to grow. -
British Business Bank
A picture of the National Audit Office logo Report by the Comptroller and Auditor General Department for Business, Energy & Industrial Strategy British Business Bank HC 21 SESSION 2019-20 5 FEBRUARY 2020 Our vision is to help the nation spend wisely. Our public audit perspective helps Parliament hold government to account and improve public services. The National Audit Office (NAO) helps Parliament hold government to account for the way it spends public money. It is independent of government and the civil service. The Comptroller and Auditor General (C&AG), Gareth Davies, is an Officer of the House of Commons and leads the NAO. The C&AG certifies the accounts of all government departments and many other public sector bodies. He has statutory authority to examine and report to Parliament on whether government is delivering value for money on behalf of the public, concluding on whether resources have been used efficiently, effectively and with economy. The NAO identifies ways that government can make better use of public money to improve people’s lives. It measures this impact annually. In 2018 the NAO’s work led to a positive financial impact through reduced costs, improved service delivery, or other benefits to citizens, of £539 million. Department for Business, Energy & Industrial Strategy British Business Bank Report by the Comptroller and Auditor General Ordered by the House of Commons to be printed on 5 February 2020 This report has been prepared under Section 6 of the National Audit Act 1983 for presentation to the House of Commons in accordance with Section 9 of the Act Gareth Davies Comptroller and Auditor General National Audit Office 10 January 2020 HC 21 | £10.00 This report examines whether the British Business Bank (the Bank) is improving access to finance for small and medium-sized enterprises (SMEs) and is well prepared to respond to future challenges.