Robinhood goes EU, Goldman picks Colombian wealthtech, and more — WealthTech Fusion, 22 Mar.
Welcome to our weekly newsletter. Here, key events from the WealthTech universe converge to meet your curiosity. Subscribe and enjoy!
What’s in:?
- Goldman Sachs invests in a Colombian WealthTech.
- P3 advances its trading platform.
- Robinhood makes the third attempt to conquer the UK market.
- nCino purchases provider for automating onboarding experiences.
- Bloomberg survey highlights challenges in ESG data management for European financial market participants.
Let’s start with the big comeback of the U.S. trading giant.
After a false start in 2020, Robinhood is back at it.?
The US investment app is launching in the UK, coming with an attention-grabbing eight-foot-tall Robin Hood statue in London's financial district.
To distinguish itself in the UK market, Robinhood plans to offer commission-free trading of US stocks and extended trading hours, features not yet available on competitors' platforms. However, plans for margin trading have been paused pending discussions with regulators.
The launch comes at a challenging time for the UK market due to different regulations and investor preferences. Despite economic challenges and changing attitudes toward stock investing, Robinhood aims to capitalize on its US success and tap into the UK market's potential for growth.
This attempt marks the third time Robinhood tried to tread the UK ground.?
?? Release, please
Privat 3 Money (P3), a leading UK Wealthtech innovator, has unveiled a significant update to its mobile trading platform, integrating a live news feature powered by AI-driven financial intelligence firm CityFALCON .
This enhancement aims to revolutionize how clients interact with global financial markets, offering comprehensive coverage, tailored news feeds, credibility assessment, and efficient content filtering. This update builds upon previous enhancements to the P3 trading app, solidifying its position as a frontrunner in the WealthTech space.
P3's CEO, Reda Bedjaoui , emphasizes the company's commitment to empowering clients with efficient and informed financial decisions.
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?? Funding & Investment Updates
Colombian fintech startup Addi secured $36 million in equity funding from investors such as 高盛 and Singapore's Sovereign Wealth Fund.?
The funding round included injections from known figures like Union Square Ventures and Andreessen Horowitz . Additionally, Addi obtained $50 million in debt financing from Goldman Sachs, totaling $86 million.?
Despite initially being valued at over $700 million in late 2021, Addi chose to decrease its valuation by half, aiming for a more sustainable growth trajectory. With a focus on expanding in Colombia, Addi has seen significant growth, with its client base increasing by 60% in 2023 and over 13,500 retailers using its payment-processing system.
?? Wealthtech Cahoots
North Carolina-based nCino, Inc. , Inc. has entered a definitive agreement to acquire DocFox USA , a prominent solution provider for automating onboarding experiences in commercial and business banking.?
DocFox's technology simplifies and automates the onboarding and account opening process, condensing timelines from weeks to hours. Integrating DocFox into nCino will enable financial institutions to manage the entire client lifecycle on a single platform, enhancing efficiency and client experiences.?
Pierre Naude , CEO and Chairman of the Board at nCino, emphasized the company's mission to enhance efficiency and client experiences in financial institutions. The acquisition of DocFox will expand nCino's capabilities, particularly in commercial and business banking, where complexity has hindered innovation. Naudé expressed excitement about extending their single platform vision and delivering a modern solution to optimize onboarding and account opening processes.
The acquisition is expected to close in March 2024.?
?? Bird’s Eye View
A recent å½åšèµ„讯 survey highlights challenges in ESG data management for European financial market participants.
Regulatory compliance is a top concern, followed by climate risk and net-zero targets. However, 63% of respondents cited concerns about the coverage and quality of ESG data. Managing the influx of data poses additional challenges, including content evolution, integration with existing databases, and meeting reporting requirements. Strategies for data management vary, with some firms opting for centralized solutions while others manage data individually or outsource to third-party vendors.
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Sources: Bloomberg, Crowdfund Insider, Sifted, FinTech Global, and nCino.