Tag Archives: Consumer Loans (TRBC level 4)

UPDATE 1-buy-now-pay-later Australian Zip company to raise $ 307 million for expansion | Instant News


(Add details, background)

April 14 (Reuters) – Australia’s buy-now-pay-later (BNPL) Zip Co said Wednesday it will raise A $ 400 million ($ 307.48 million) through senior unsecured conversion notes to fund its growth and expansion plans.

On Tuesday, the company BNPL reported record quarterly earnings and announced plans to expand into Canada and Southeast Asia.

“The additional capital from this offering will support the active pursuit of core and international growth opportunities,” said Chief Operating Officer Peter Gray in a statement.

The company BNPL, which allows users to pay for their purchases in multiple installments, has seen an explosion in transaction volume and active customers as the pandemic drastically changed consumer behavior, moving more towards the online space.

Zip, which saw transaction volumes more than double in the March quarter, took a strategic stake in Philippine company TendoPay and carried out a soft launch in Canada during the quarter in a bid to better compete with bigger rivals such as Afterpay.

Senior banknotes are expected to be listed on the Singapore exchange, Zip added.

$ 1 = 1,3009 Australian dollars Report by Sameer Manekar in Bengaluru; Edited by Rashmi Aich

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The Zip Australia report noted Q3 earnings growth, eyeing expansion in Canada and Asia | Instant News


* Record revenue, transaction volume, customer growth

* Took stake in BNPL Philippines in the third quarter

* Made initial launch in Canada in the third quarter

April 13 (Reuters) – Australia’s buy-now-pay-later (BNPL) Zip Co Ltd on Tuesday posted record revenue, transaction volume and customer growth in the third quarter and announced plans to expand into Canada and Southeast Asia, shipping shares. jumped by more than 11%.

The strong performance was driven by growth at Quadpay, its US unit, where subscribers, volume and revenue grew in the triple digits as competition with bigger rivals Afterpay, Klarna and Affirm in the world’s top economies heated up.

Zip, which has strengthened its international presence to better compete, took a strategic stake in the Philippine company TendoPay and did a soft launch in Canada during the quarter.

In December, Zip raised A $ 150 million in capital to fund its expansion in the United States, United Kingdom, and took shares in companies in the Middle East and Eastern Europe.

In the third quarter ending March, transaction volume more than doubled from a year earlier to A $ 1.6 billion ($ 1.22 billion), while revenues totaled A $ 114.4 million, up 80%.

Active subscribers totaled 6.4 million, supported by a 19% increase in the US from late December, while the number of traders on its platform stood at 45,300.

“3Q was a weak quarter on a seasonal basis, but at the current pace of current US business in particular and the growing customer and trader base at ANZ, regional expansion bodes well for 4Q21,” wrote RBC Capital Markets in a client note.

In Australia, net bad debt fell to 1.78% from 1.93% three months earlier. Zip does not provide numbers for the United States.

“Our US business has come to prominence again, affirming our position as truly one of the fastest growing global BNPL leaders,” said Zip Chief Executive Officer Larry Diamond.

The stock jumped as much as 11.2% to A $ 9.25, before easing some of that gain to trade 9% higher after an hour of trading. ($ 1 = 1.3130 Australian dollars) (Reported by Nikhil Kurian Nainan in Bengaluru; Edited by Subhranshu Sahu)

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The Swiss watchdog asked Credit Suisse about the risk of Greensill -SonntagsZeitung | Instant News


FILE PHOTO: Swiss bank Credit Suisse logo seen at its headquarters in Zurich, Switzerland March 24, 2021. REUTERS / Arnd Wiegmann // Photo File / Photo File

ZURICH (Reuters) – Swiss chief financial regulator FINMA questioned Credit Suisse over the risks involved with now-bankrupt financial firm Greensill Capital “months” before the bank was forced to close $ 10 billion in funds such as for Greensill, Swiss newspaper SonntagsZeitung reported Sunday.

Alongside formal discussions at a technical level between the bank and FINMA, chief supervisor Mark Branson privately discussed the risks with Credit Suisse Chairman Urs Rohner and Chief Executive Thomas Gottstein who walked out during a meeting on an undetermined date, the newspaper reported, citing information in his possession. . obtained.

FINMA declined to comment. Credit Suisse also declined to comment.

Switzerland’s second largest bank has staggered from its exposure to the collapse first of Greensill Capital and then Archegos Capital Management within a month.

Credit Suisse’s asset management unit was forced last month to close $ 10 billion in supply chain financial funds invested in bonds issued by Greensill after the British company lost credit insurance coverage shortly before filing for bankruptcy. The bank has suspended the fund manager and replaced the head of its asset management unit.

The massive loss to US investment fund Archegos this month also prompted Credit Suisse to replace its head of investment and compliance and risk banking after saying it would book first-quarter expenses of $ 4.7 billion from its exposure to affected companies.

Reporting by Brenna Hughes Neghaiwi; Edited by Rachel Armstrong and Susan Fenton

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The pending Facebook messaging service nods Brazil to payment | Instant News


FILE PHOTOS: WhatsApp logo drawn on a T-shirt worn by WhatsApp-Reliance Jio representatives during a trip by the two companies to educate users, on the outskirts of Kolkata, India, October 9, 2018. REUTERS / Rupak De Chowdhuri

SAO PAULO (Reuters) – Brazil’s central bank on Tuesday paved the way for WhatsApp’s messaging service Facebook to allow its users to send funds to each other using the Visa Inc and Mastercard card networks, months after vetoing WhatsApp’s initial attempt.

When WhatsApp tried to launch a transfer service last June, the central bank said it could undermine Brazil’s existing payment system in terms of competition, efficiency and data privacy, adding that the service failed to obtain the necessary licenses.

Regulatory friction is the latest setback for Facebook’s efforts to use its social media platforms to compete with banks and fintechs in enabling fast electronic funds transfers.

The regulatory approval comes months after the central bank launched its own instant payment system in November, called Pix, which has since been widely adopted.

After initially trying to avoid becoming a financial services company in Brazil and seeking to support Visa and Mastercard’s existing central bank licenses, WhatsApp succumbed to regulatory pressure, obtaining official approval as the initiator of payments using Visa and Mastercard as processors.

The two card networks will also need to obtain new permits to operate with the Facebook messaging app, which the central bank will automatically regulate.

Even so, WhatsApp is only allowed to make peer-to-peer payments, does not involve merchants, unlike the free Pix service, which can be used to pay businesses and individuals. Facebook is still seeking approval to operate with merchants.

“(We) are making final preparations so that payments on WhatsApp are available in Brazil as quickly as possible,” a WhatsApp spokesperson said in a statement. The messaging platform, which has more than 120 million users in Brazil, did not say when it would start offering the service.

Reporting by Carolina Mandl; additional reporting by Isabel Versiani, in Brasilia, Editing by Christian Plumb and Richard Pullin

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Brazil’s credit conditions improved in February ahead of the COVID-19 surge | Instant News


BRASILIA (Reuters) – Credit conditions in Brazil improved in February, central bank figures showed on Monday, as the broad gauge of consumer and business default ratios remained stable at a decade’s low, bank loan spreads narrowed, and credit growth picked up.

FILE PHOTO: Overview of the Central Bank of Brazil during the coronavirus disease (COVID-19) outbreak in central Brasilia, Brazil, March 20, 2020. REUTERS / Adriano Machado / File Photo

These figures are linked to other indicators that show the full force of the second deadly wave of the COVID-19 pandemic now sweeping the country has not been felt by companies and households in the first few months of this year.

The 90-day default ratio covering households and businesses was 2.9% in February for the third month in a row, central bank figures showed. It is the lowest since the data series began in March 2011.

The default ratio for households, including loans such as car loans and overdrafts, was unchanged at a series low of 4.1%, while the default ratio for non-financial firms was also unchanged at 1.6%, only up from December’s low of 1.45 %.

The difference in borrowing narrowed to 22.9 percentage points in February from 23.5 points in January, the central bank said.

The central bank provided more than 1.2 trillion reais ($ 208 billion) of credit and liquidity to businesses, banks and financial markets last year to cushion the economic shocks from the pandemic.

Many of these measures expire on December 31, but monetary authorities say some will be extended.

Brazil’s outstanding loan stock rose 0.7% in February to 4 trillion reais, the central bank said. Personal loans rose 0.8% to 2.3 trillion reais, and business loans rose 0.6% to 1.8 trillion reais.

Total loan stock rose 16.1% in the 12 months to February, with personal loans up 11.3% and business loans up 22.9%, the central bank said.

($ 1 = 5.78 reais)

Reporting by Camila Moreira and Jamie McGeever; Edited by Alex Richardson and Paul Simao

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