Digesting the Digits – UK fintech to receive £1bn in investment

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Number crunching is a key component of the payment industry, with digits scattered across the sector’s key stories. 

Each week, Payment Expert digests these digits and brings an overview of the past payments week in numbers. This edition looks at the newly-launched UK Fintech Growth Hub and the recent Bank of Ireland money-gifting glitch.

Barclays, Mastercard to inject £1bn into the UK fintech economy 

Some of the biggest names in banking have unitedto launch the Fintech Growth Fund – a £1bn initiative aimed at maintaining the UK fintech scene’s powerhouse status. 

NatWest, Barclays, and Mastercard among others will gradually inject somewhere between £10m and £100m each year into the UK fintech industry so that innovation can be embraced to challenge some of its biggest global competitors such as Silicon Valley and Beijing. 

“This is a critical part of the 21st century economy for the UK and in helping to fill this growth capital gap we’re retaining a significant competitive advantage,” said Nicholas Lyons, Lord Mayor of London, as he welcomed the new project.

UK fintech to receive £1bn in funding 

Bank of Ireland glitch gifts €1,000 per customer

The Bank of Ireland has recently found itself at the end of a conundrum caused by its internal IT systems after a glitch allowed customers to withdraw up to €1,000 (£859) without actually possessing the funds. 

After the strange occurrence went viral on social media, videos posted online showed people queuing up in front of Bank of Ireland ATMs across the country trying to cash in on the opportunity. 

The glitch was resolved the following day, after which the bank issued a statement that all funds obtained through the error will be taken back by the financial institution, even if this means putting some accounts into overdraft.

Bank of Ireland addresses ‘daylight robbery’ as glitch gives customers up to €1,000 

TSB welcomes 20 new entries to annual fintech growth initiative

Up to 20 ambitious fintechs will compete for a place in the third edition of TSB Bank’s annual initiative ‘Innovation Labs’, as the bank looks to develop Scotland’s fintech industry and offer customers better financial services. 

Successful applicants will get the chance to build a market strategy for their business based on guidance provided by TSB’s Edinburgh network of industry leaders and experts. 

Nicola Anderson, Chief Executive, Fintech Scotland, said: “This initiative not only reinforces TSB’s commitment to fostering fintech collaboration but also its involvement in developing the fintech ecosystem in Scotland and across the UK.” 

TSB and Fintech Scotland to foster innovation with Labs programme

SumUp makes Australia its 36th international market 

The London-based fintech has flown its own leadership team into Queensland after eyeing the Australian market for some time now thanks to the country’s entrepreneurial drive of more than two million businesses making up 32% of the island’s total GDP. 

On SumUp’s successful 36th international expansion, Regional Managing Director to Australia Malcom Areington commented: “Ultimately, we’re here to make business simple for merchants and our bank of tools and products can demonstrably supercharge businesses of all sizes.”

SumUp lands Australian expansion 

Paymentology and Mastercard unite to address 21% of LatAm’s underbanked

Paymentology and Mastercard have revealed an expanded LatAm-focused collaboration on the back of a Mastercard study that revealed 21% of people in the South American region do not have access to basic financial products. 

The partnership will aim to improve the financial inclusion for people in Guatemala, Honduras and El Salvador by engaging with local financial institutions, fintechs and telcos to enable them to offer accessible services to the unbanked and underbanked.

Alejandro Del Rio, Regional Director for LatAm at Paymentology, commented: “Together, we are determined to serve the northern Central America region and tackle the substantial gaps in the financial inclusion agenda by implementing efficient go-to-market strategies.”

Paymentology and Mastercard to enhance financial inclusion