UK Fintech Roundup: 2022’s company launches

Every Wednesday we delve into the latest fintech updates from across the UK. As we end 2022, Fintech Times takes a look back at some of the exciting companies that have recently launched in the sector.

Novus

Britain’s challenger bank NovusThe ‘impact’ banking app officially announced its launch in the fintech sector and began actively enrolling users across the UK in February 2022.

Novus closed the crowdfunding round after reaching a total of over $3 million, beating the original goal of $1.2 million.

Christian Nedyalkov, co-founder and CEO of Novus, commented on the launch. Nedyalkov said: “Since raising our first capital in late spring 2021, we have successfully built our own proprietary core banking infrastructure through various milestones, including cooperation with Visa and Railsbank (now Rail no), receives regulatory approval from Financial Conduct Authority (FCA) and welcomes over 150 sustainable brands to our marketplace in the app.

“We first launched our crowdfunding campaign in December 2021; nine months after securing the pre-seed investment. We aimed to attract like-minded investors and early adopters to join us on our journey to help shape the future.”

ID Card

In May 2022, identity verification provider ID Card officially launched in the UK. The Dublin-based company aims to support businesses of all sizes across Ireland, the US, the EU and the UK. ID-Pal looks to tackle rising levels of financial crime causing financial and reputational damage to companies.

ID-Pal explained that the increase in financial crime accelerated as many aspects of business moved online due to the covid-19 pandemic.

Colum Lyons, founder and CEO of ID-Pal, explained what the new firm could bring to the table. He said: “Our unique blend of ID checks, all powered by a fully technology-first process, means multi-layered verification takes place on any ID document in real-time. Using AI and machine learning provides greater accuracy in correctly classifying a document and reduces the margin for error and the need for manual intervention.”

Kuda

November 2022 then Kuda, a mobile remittance app for Africans, launched in the UK. After obtaining a banking license from Central Bank of Nigeria in 2019, the Nigerian startup chose to launch in the UK as part of its global expansion.

Babs Ogundeyi, CEO and co-founder of Kuda, discussed the UK launch. He explained: “Africans in the UK face barrier after barrier when it comes to financial services – from challenges setting up accounts to prohibitive and inconsistent fees on meaningful transfers. They are forced to limit each transfer to a few hundred pounds to avoid losing money or facing escalating exchange rates with larger transfers.

“Technology means the world is getting smaller, but the incredible transformation in financial services has not been inclusive. Kuda is changing that. Initially for Nigerians, then all Africans in the UK and around the world.”

Blue chain

Payment provider Blue chain officially launched in the UK in October 2022. with its first customer supplier of building materials, Aggregate industries.

The start-up’s original aim was to support its first customer, the building materials supplier Aggregate Industries. The start-up aimed to digitize Aggregate’s invoicing, collection and reconciliation process with their SME customers. Bluechain’s expansion into the UK followed a successful launch in Australia in 2020.

Stephen Bedggood, vice president of product at Bluechain, commented. He said: “Bluechain’s launch in Australia has been very successful. A significant number of small businesses and enterprises make or receive payments through our platform. The expansion to the UK is also a testament to the global success and impact we have had to date which strengthens businesses and customers in their payment journeys and I am delighted to see this replicated in the UK market.”

Channel’s Fintech Lending Fund

In October was also a UK-based asset manager Channel Capital Advisors LLP (Channel) launches its new Fintech Lending Fund. Fintech platforms for digital lending that require capital to finance loans to SMEs will use the fund.

Over the past 15 years, Channel has distributed over $20 billion in credit facilities, including loans, working capital facilities and securities.

Paul Wilson, chief investment officer at Channel, commented on what the loan fund aims to do. He said: “The investment in our Fintech Lending Fund is a significant step forward for Channel. It will see us work closely with other digital platforms to facilitate lending for SMEs that is faster, easier and also does not dilute their business . Indeed, the deployment of dedicated funds such as this is critical to supporting and stimulating the ongoing growth of the global SME sector.”

Step four

Birmingham-based digital fintech startup venture Step four had its official launch on the UK market in December 2022. The privately funded company develops a range of digital solutions for UK wealth managers, stockbrokers, consolidators and platform providers.

Stage four aims to provide new customer-facing technology that is much more affordable than existing options to support the wealth and investment market.

Stewart Foster, founder and CEO of Step Fourth, commented on the launch. He said: “We believe that the current digital offering to the UK market lacks innovation and does not deliver what the market really needs. Our vision is also to build an affordable range of award-winning solutions that will set the standard for the wider sector and I could not be more excited to embark on this new journey.”