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 a source that is increasingly important of and development funding for SMEs.

Charge cards / customer credit — Publicly reported discounts & circumstances

Healthier customer appetite

Deal highlight

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

Deal highlight

White & Case encouraged SIA, a leader that is european the re re payments infrastructure room, 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 New entrants that are fintech

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

Increasing functional dangers

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 British stores associated with illegal swipe charge amounts

Regulator intervention:

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

Wider market influence—new regulatory burdens

  • 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 UK’s card industry, with a concentrate on card-acquiring solutions

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 carry forward client compensation for mis-sold loans https://titlemax.us/payday-loans-md/pasadena/, notwithstanding insolvency issues
  • CashEuroNet UK: Customer complaints increased by >200% in H1
  • QuickQuid: Consumer complaints increased threefold in H1

Specialty finance/ market lending—Publicly reported discounts & circumstances

Growing buyer/ investor/ partner interest

Personal equity/venture money:

  • Zopa: effective ВЈ60 million funding 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 GP Bullhound
  • KKR: Dutch and SME that is german lending with NEOS and Schroders
  • Ares: Raise of €6.5 billion European direct financing fund

Governments:

  • UK British company 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. Factoring
  • EC Financial Services: Acquisition of JET Cash
  • City of London Group: Acquisition of Acorn to Oaks
  • White Oaks: Acquisition of LDF
  • Paragon Banking Group: Acquisition of Titlestone Property Finance

Vertical integration

  • Waterfall resource Management: SME loan capital JV with Funding Circle
  • Anaxago: Release of Anaxago Capital

Market inflexion point

Deal highlight

White & Case recommended Amigo Holding PLC, the company that is leading great britain guarantor loan area, on its ВЈ1.3 billion IPO in the London stock market

  • Fellow Finance: Nasdaq First North IPO at €55 million valuation
  • Funding Circle: LSE Main Market IPO at ВЈ1.504 billion valuation
  • Amigo: LSE principal IPO at ВЈ1.504 market valuation

Expanding perspectives:

Zopa: effective grant for British banking licence

Regulators retract their sleeves

  • ECB: Proposal for stricter scrutiny of investment funds along with other businesses over the EU’s shadow-banking industry

Supply: *Non-EU deal. Included for example of possible future trends that are european

This book is given to your convenience and will not represent advice that is legal. This book is protected by copyright. White & Case LLP

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