Fintech verified by regulators | Financial Time
Big tech companies aren’t the only ones facing regulation that could hold back growth – the FinTech sector is also under pressure in China and the UK.
As Ryan McMorrow and Yuan Yang report in Beijing Regulators appear to be trying to reverse the business model of Ant and its Alipay app, after realizing that the online payments and lending cluster has grown too big for the biggest public banks.
Starting next January, Ant will have to do more business with these big banks rather than the smaller regional banks that have taken out its loans at competitive rates, in exchange for access to the vast customer base and the national reach of Ant.
The other big change, according to our #techAsia newsletter, is this
banks will be required to manage the risks involved in joint loans. This effectively blocks a large part of Ant’s activities. The company receives loan applications via smartphones and forwards them, along with its candidate credit scores, to partner banks. It collects commissions from banks for providing information about consumers.
It’s a lesson in humility for billionaire Ant founder Jack Ma, who ridiculed state banks as having a ‘pawnshop’ mentality in a speech last October, then vanished from sight. like Ant’s $ 37 billion IPO stalled by the authorities in November due to the changing “financial technology regulatory environment”. Jamil Anderlini says interference in the private sector is expected to increase in frequency and intensity in this year of the centenary of the founding of the Chinese Communist Party.
In the UK, fintech regulators’ concerns are about consumer protection, not communism. The Financial Conduct Authority plans to enforce new rules that experts say will drive up costs in an already low-margin industry. It will be subject to stricter risk management standards, in particular, like banks, detailed liquidation plans, Nicholas Megaw reports.
It would help consumers if businesses collapsed, but would place a burden on small start-ups. “If I started a payments business today, I would look at e-money and think it wouldn’t be attractive. . . because the capital requirements are so much stricter, ”said Nik Storonsky, managing director of digital bank Revolut.
The Internet of (five) things
1. UK budget stimulates technology
The tech industry has welcomed British Chancellor’s measurements to bolster two key tax breaks for start-ups, as part of a broad package designed to make the UK a ‘science superpower’. Rishi Sunak said the Treasury would consult on the reform of R&D credits and relief from employee stock options. He also pledged “ambitious visa reforms” and launched a new £ 375million tech fund.
2. European laws on “already obsolete” data
Axel Voss, one of the fathers of the General Data Protection Regulation, told the Financial Times that he needed a “type of surgery” less than three years after its entry into force. “We need to be aware that GDPR is not made for blockchain, facial or voice recognition, text and data mining. [ . . . ] artificial intelligence, ”said the German MEP.
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3. Facebook lifts ban on political ads
Facebook will lift the post-US election ban on political advertising to curb the spread of disinformation, and undertook to investigate if its political ad systems need a further overhaul. Advertisers could resume running political ads on March 4, the social network said in a blog post on Wednesday.
4. Netflix bets big on India
The streaming service will roll out its largest roster of Indian movies and shows to date, releasing 40 local productions over the coming year as it fights for an edge over fast-growing rivals including Disney. and Amazon Prime. There will be a significant increase from the $ 400 million Netflix spent on entertainment in 2019 and 2020, said Monika Shergill, the company’s vice president for Indian content. “We are betting very, very big on India,” she said.
5. Nikola drops truck weight claims
Nikola’s first electric truck tractor to go into production will weigh more than diesel powered ones, contrary to previous claims on the company’s website. The Tre’s tractor weighs 29,800 pounds, according to enlarged images from a recent promotional video, compared to an average of 17,000 pounds for diesel machines towing the freight trailer.
Technical tools – DJI FPV Drone
DJI, the leading consumer drone maker, first launched a first-person view drone and The Verge saw it again. It feels like a VR-like experience – the DJI FPV Comes with both controller and goggles so you get “full in-flight immersion” and the drone’s camera is locked in the forward position. “Every FPV pilot will tell you that FPV drones are a lot more fun to fly. And they would be right. Drones are more responsive in the air and move at breakneck speeds. They can also be much more difficult to ride, ”says The Verge. They can also cost a lot more – this one costs $ 1,299 (£ 1,249) with all the equipment.