fintech digest
Allianz Trade & Fasanara Partnership, Digital Lending & Bank Performance & More
Research Team
6 October 2023
Allianz Trade and Fasanara in $1bn boost to global fintechs
Fasanara Capital, the leading institutional asset manager, and Allianz Trade, the world’s leading trade credit insurer, are joining forces to provide up to a $1bn financing boost to the fast-growing global B2B e-commerce sector. Fintech investors are seeking out investment opportunities in and returns from businesses that are creating rapid growth in B2B e-commerce. Fasanara’s latest plan to invest new e-commerce funds of up to $1bn and purchase the receivables generated bridges the gap between investors and these fintech entrepreneurs.
Why digital lending is the future for banks and SMEs
Banks have never been so diverse in the range and scope of products and services they offer customers. Yet they must not lose sight that lending is central to their profitability and relevance, and is a foundation to attract and start deeper relationships with customers. Lending can then act as a springboard and allow a bank to offer a wider ecosystem of financial and non-financial services. Banks need to get the “basics” right before investing in non-core services.
Does alternative digital lending affect bank performance?
This paper examines the effect of alternative digital lending - by BigTech and FinTech firms - on bank performance. A negative relationship between alternative digital lending and banking industry performance. The effects are larger in developing countries, with less stringent bank regulation and with less solid banking sectors. The growth in alternative digital lending negatively affects banking credit.
Does Digital Lending Add Value to an Investor’s Asset Mix?
Digital lending is a hot topic. And as we commented in our last post, even a global pandemic has not mitigated the segment’s momentum. Quite the opposite in fact. However, further growth will only be sustained if institutional investors start entering the stage to fuel the supply side with bigger cheque sizes – and if some key questions about digital loan performance are addressed.
ESG ratings: whose interests do they serve?
ESG ratings now influence, and in some cases dictate, which stocks and bonds make it into the $2.8tn of investment funds that are, according to Morningstar, marketed as sustainable. Its products lend legitimacy to the companies and investors who claim to be helping hit the Paris Agreement goal of limiting global warming to well below 2C above pre-industrial levels.