Top five stories of the week – August 12, 2022
Here’s our pick of five of the best news stories from the world of finance and technology this week.
Neobank Nuri files for insolvency due to “challenging” market conditions
Nuri files for insolvency
German neobank Nuri has filed for insolvency due to “significant macroeconomic headwinds and cooling of public and private capital markets” putting a strain on the firm’s liquidity.
Referring to the effect of “challenging market developments” on Nuri’s business, the bank says that the insolvency application was “necessary to ensure the safest way forward for all our customers”.
The Berlin-based neobank said in a statement on its website that the action does not affect its services, customer funds or investments. The firm adds: “All funds in your Nuri accounts are safe due to our partnership with Solarisbank AG.”
“You have guaranteed access and will be able to deposit and withdraw all funds freely at any time.”
read more here
Tax automation fintech Avalara acquired by Vista for $8.4 billion
Tax automation fintech Avalara is to be acquired by global investment firm Vista Equity Partners in an all-cash deal worth $8.4 billion.
Vista will purchase all outstanding shares of Avalara for $93.50 per share, representing a 27% premium over the company’s closing price as of July 6, 2022. The transaction value includes Avalara’s net debt.
Avalara CEO Scott McFarlane says the firm will benefit from Vista’s “enterprise software expertise as we build and enhance our cloud compliance platform”.
read more here
The new Fintech Growth Fund is set to close the £2 billion fintech funding gap in the UK
Sky News reports that Philip Hammond will sit on the fund’s advisory board
A new fintech-focused growth fund, designed to plug a £2bn funding gap in the UK’s fintech sector highlighted in the Kalifa report, is currently in the works with former chancellor Philip Hammond reportedly set to sit on its advisory board.
The provisionally named Fintech Growth Fund, Sky News reports, will be independent of government, raise capital from institutional investors to pump money into UK fintechs beyond the Series B stage and look to scale. An official announcement may come as early as autumn.
The Fintech Growth Fund was one of many proposals proposed by Ron Kalifa in his comprehensive report on the UK fintech industry published in February 2021.
The former Worldpay chairman recommended the £1bn fund in a bid to tackle “a £2bn fintech growth capital funding gap” which is resulting in many entrepreneurs selling up rather than continuing to build their companies.
read more here
Reserve Bank of Australia to explore CBDC use cases with DFCRC
The Reserve Bank of Australia (RBA) is working with the Digital Finance Cooperative Research Center (DFCRC) to explore use cases for a central bank digital currency (CBDC) in the country.
The DFCRC is a digital asset research program funded by the financial services industry, including the RBA, universities and the Australian Government and Treasury.
RBA Deputy Governor Michele Bullock says the project is an opportunity to engage with “a wide range of industry participants” to better understand the potential benefits a CBDC could bring to Australia.
read more here
British challenger Dozens is to close by the end of the month
London-based challenger Dozens, which launched in early 2019, has decided to close up shop and will wind down operations by the end of the month.
Dozens are closing their doors on August 31
Customers were notified of the decision to close in June and asked to transfer their money to an alternative account.
Dozens claims to have around 60,000 customers using its app and has raised £28m from institutional sponsors, as well as £1m each from Seedr’s and HMT’s Future Fund.
In a statement, Dozens cited different reasons behind the decision, including the “domino effect” of Covid that has led to “less money in the system” and less funding going to the consumer side of fintech.
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