The face area of customer finance is changing

The face area of customer finance is changing

Our M&A forecast

High amounts of M&A activity as founded banks, economic sponsors and trade consolidators vie for market share amidst growing market need. If “no-deal” Brexit replays the market meltdown, specialty finance will end up an increasingly crucial way to obtain working and development funding for SMEs.

Bank cards / customer credit — Publicly reported discounts & circumstances

Healthier customer appetite

Deal highlight

White & Case encouraged among the bidders for Israel’s credit card business that is largest, Leumi Card, fundamentally obtained by Warburg Pincus.

Deal highlight

White & Case suggested SIA, a leader that is european the re re payments infrastructure area, on its €375 million purchase of First information Slovakia and First information Hellas Processing solutions

Trade consolidators:

  • Los angeles Banque Postale: Acquisition of 35% of Los angeles Banque Postale Financement
  • Agos Ducato: Acquisition of Profamily
  • BGL: Acquisition of Saverd
  • SIA: Acquisition of First information Corp’s CEE card processing organizations
  • Zmarta Group: Takeover offer for Insplanet

Strategic investors:

  • Bankinter: Acquisition of AvantCard
  • Warburg Pincus: Acquisition of Leumi Card *

brand brand New entrants that are fintech

  • Chetwood Financial: Liveland dynamic load JV with Clearscore
  • Marqeta: Payment cards and JV that is processing with
  • Klarna: publish of re payment card

Increasing risks that are operational

Litigation danger:

  • Future Finance: re re Payment of €2 million payment to clients for British credit Act breaches
  • Visa and MasterCard British Court of Appeal’s landmark judgment in preference of a team of Uk stores concerning swipe that is unlawful levels

Regulator intervention:

  • PayPal-iZettle: Phase 2 summary of PayPal’s purchase of iZettle by British CMA
  • Visa and Mastercard: Offer of limit on interchange costs charged on tourists’ card re re payments in reaction to European Commission probe

Wider market influence—new burdens that are regulatory

  • Norwegian Financial Services Authority: Proposal for stricter mandatory credit assessment guidelines for offer of customer loans and bank cards in Norway
  • British Payment techniques Regulator: publish of wide-ranging research into restricted competition inside the card that is UK’s, with a give attention to card-acquiring services

Payday lenders / High-cost credit—Publicly reported discounts & circumstances

Bullish PE support

  • Wonga: ВЈ10 million rescue by Accel Partners and Balderton Capital, in front of collapse into management

Increased risks that are operating

  • British FCA: Order on payday lenders to create forward consumer compensation for mis-sold loans, notwithstanding insolvency issues
  • CashEuroNet UK: Customer complaints increased by >200% in H1
  • QuickQuid: Consumer complaints increased threefold in H1

Specialty finance/ Marketplace lending—Publicly reported discounts & circumstances

Growing buyer/ investor/ partner interest

Personal equity/venture money:

  • Zopa: effective ВЈ60 million capital round (led by Augmentum, Northzone and Bessemer) and ВЈ44 million financing round (led by Wadhawan capital that is global
  • Divido: effective US$15 million show a money round, led by Capital and DN Capital dawn
  • Lendspend: effective US$40 million financing round, led by Atomico and online Cranford payday loans GP Bullhound
  • KKR: Dutch and SME that is german lending with NEOS and Schroders
  • Ares: Raise of €6.5 billion European lending fund that is direct

Governments:

  • UK British Business Bank: ВЈ150 million of money for Funding Circle

Management:

  • Crowdhouse: Partial MBO
  • Liberbank: Spanish business involvement JV with October
  • BAWAG: Acquisition of BFL Leasing
  • Bank of the latest Mellon: Investment of ВЈ300 million into ThinCats
  • PoЕЎtovГЎ banka: Acquisition of Amico Finance

Trade consolidators:

  • abcfinance: Acquisition of G.R.