Category: Company News

British fintech start-up Bud said Monday that it had secured $20 million in a funding round co-led by HSBC and Goldman Sachs.

The London-based company’s platform lets banks update their apps to give users access to financial services products from rivals. Banks can also categorize a customer’s spending data using Bud’s technology to help them find more cost-efficient products.

Its offering is part of an emerging theme in the world of fintech known as “open banking,” which essentially means banks sharing their customer data with third-party providers to enable them to create new financial products.

Proponents of open banking say that it will increase competition in the industry and benefit consumers, giving them more choice over who they bank with.

Ed Maslaveckas, Bud’s co-founder and chief executive, said in an interview that the sector has seen a “massive shift” from a focus on competitive rates and services to a digital-oriented customer experience and a “marketplace” banking model.

“The market dynamic is such that open banking is a much bigger change for banks than I think people realize,” he told CNBC. “Open banking essentially allows the customer to get their banking data and make payments from any app or service of their choosing.”

Bud’s Series A funding round — an early-stage investment — also got backing from other big lenders including Australia’s ANZ, South Africa’s Investec and Spain’s Banco Sabadell. Investec invested through its venture fund INVC while Banco Sabadell participated via its venture arm InnoCells.

Nineyards Capital — which counts former U.K. Finance Minister George Osborne as an advisor — and former Man Group Chief Executive Lord Fink also invested in Bud’s Series A.

Part of the funding is subject to regulatory approval by the U.K.’s Financial Conduct Authority, Bud said.

Bud’s boss said an underlying theme of the bank-led investment was partnering with large lenders to provide them with its technology.

“Not that much has been done to deliver these types of services to the millions of customers that use their banking apps day-to-day,” Maslaveckas said.

“That’s really what we are all are about and that’s a testament to who we’re working with… we really want to be the company that helps them deliver this new wave of fintech to their existing customers.”

In 2017 the firm announced a partnership with HSBC aimed at providing the financial services giant’s direct bank First Direct with its financial management tools.

Another significant element of the round is the geography of the investors involved. The company said it would look to expand its product to new markets over the next 12 months.

Maslaveckas said international expansion was “a big part of” the funding, but added his firm wouldn’t be making any major global moves “until the end of this year.”

Bud currently employs 62 people in its London office and says it plans on doubling that headcount following the fundraising.

British fintech start-up Bud said Monday that it had secured $20 million in a funding round co-led by HSBC and Goldman Sachs.

The London-based company’s platform lets banks update their apps to give users access to financial services products from rivals. Banks can also categorize a customer’s spending data using Bud’s technology to help them find more cost-efficient products.

Its offering is part of an emerging theme in the world of fintech known as “open banking,” which essentially means banks sharing their customer data with third-party providers to enable them to create new financial products.

Proponents of open banking say that it will increase competition in the industry and benefit consumers, giving them more choice over who they bank with.

Ed Maslaveckas, Bud’s co-founder and chief executive, said in an interview that the sector has seen a “massive shift” from a focus on competitive rates and services to a digital-oriented customer experience and a “marketplace” banking model.

“The market dynamic is such that open banking is a much bigger change for banks than I think people realize,” he told CNBC. “Open banking essentially allows the customer to get their banking data and make payments from any app or service of their choosing.”

Bud’s Series A funding round — an early-stage investment — also got backing from other big lenders including Australia’s ANZ, South Africa’s Investec and Spain’s Banco Sabadell. Investec invested through its venture fund INVC while Banco Sabadell participated via its venture arm InnoCells.

Nineyards Capital — which counts former U.K. Finance Minister George Osborne as an advisor — and former Man Group Chief Executive Lord Fink also invested in Bud’s Series A.

Part of the funding is subject to regulatory approval by the U.K.’s Financial Conduct Authority, Bud said.

Bud’s boss said an underlying theme of the bank-led investment was partnering with large lenders to provide them with its technology.

“Not that much has been done to deliver these types of services to the millions of customers that use their banking apps day-to-day,” Maslaveckas said.

“That’s really what we are all are about and that’s a testament to who we’re working with… we really want to be the company that helps them deliver this new wave of fintech to their existing customers.”

In 2017 the firm announced a partnership with HSBC aimed at providing the financial services giant’s direct bank First Direct with its financial management tools.

Another significant element of the round is the geography of the investors involved. The company said it would look to expand its product to new markets over the next 12 months.

Maslaveckas said international expansion was “a big part of” the funding, but added his firm wouldn’t be making any major global moves “until the end of this year.”

Bud currently employs 62 people in its London office and says it plans on doubling that headcount following the fundraising.

British fintech start-up Bud said Monday that it had secured $20 million in a funding round co-led by HSBC and Goldman Sachs.

The London-based company’s platform lets banks update their apps to give users access to financial services products from rivals. Banks can also categorize a customer’s spending data using Bud’s technology to help them find more cost-efficient products.

Its offering is part of an emerging theme in the world of fintech known as “open banking,” which essentially means banks sharing their customer data with third-party providers to enable them to create new financial products.

Proponents of open banking say that it will increase competition in the industry and benefit consumers, giving them more choice over who they bank with.

Ed Maslaveckas, Bud’s co-founder and chief executive, said in an interview that the sector has seen a “massive shift” from a focus on competitive rates and services to a digital-oriented customer experience and a “marketplace” banking model.

“The market dynamic is such that open banking is a much bigger change for banks than I think people realize,” he told CNBC. “Open banking essentially allows the customer to get their banking data and make payments from any app or service of their choosing.”

Bud’s Series A funding round — an early-stage investment — also got backing from other big lenders including Australia’s ANZ, South Africa’s Investec and Spain’s Banco Sabadell. Investec invested through its venture fund INVC while Banco Sabadell participated via its venture arm InnoCells.

Nineyards Capital — which counts former U.K. Finance Minister George Osborne as an advisor — and former Man Group Chief Executive Lord Fink also invested in Bud’s Series A.

Part of the funding is subject to regulatory approval by the U.K.’s Financial Conduct Authority, Bud said.

Bud’s boss said an underlying theme of the bank-led investment was partnering with large lenders to provide them with its technology.

“Not that much has been done to deliver these types of services to the millions of customers that use their banking apps day-to-day,” Maslaveckas said.

“That’s really what we are all are about and that’s a testament to who we’re working with… we really want to be the company that helps them deliver this new wave of fintech to their existing customers.”

In 2017 the firm announced a partnership with HSBC aimed at providing the financial services giant’s direct bank First Direct with its financial management tools.

Another significant element of the round is the geography of the investors involved. The company said it would look to expand its product to new markets over the next 12 months.

Maslaveckas said international expansion was “a big part of” the funding, but added his firm wouldn’t be making any major global moves “until the end of this year.”

Bud currently employs 62 people in its London office and says it plans on doubling that headcount following the fundraising.

Stocks in Australia traded lower during Monday morning trade ahead of the release of a landmark report surrounding the country’s beleaguered financial services sector.

The ASX 200 slipped 0.21 percent in early trade, with the sectors mixed. The heavily weighted financial subindex declined more than 0.5 percent as shares of the country’s Big Four banks declined.

The moves Down Under came ahead of the release of the final report by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The recommendations by the Royal Commission are expected to bring extensive changes to Australia’s banking sector, following series of systemic wrongdoings which were uncovered in 2018.

Meanwhile, futures pointed to a lower open for Japan’s Nikkei 225. The Nikkei futures contract in Chicago was at 20,770, as compared to the benchmark index’s last close at 20,788.39.

Stock markets in China and South Korea are closed today due to holidays.

The Dow Jones Industrial Average posted slight gains on Friday after the U.S. government released jobs growth data that easily beat expectations. The U.S. economy added 304,000 jobs in January, according to data released by the Bureau of Labor Statistics. Economists polled by Refinitiv expect the U.S. economy to have added 170,000 jobs in January.

The 30-stock Dow rose 64.22 points to 25,063.89, its sixth straight week of gains and its longest since November 2017. The S&P 500 closed 0.1 percent higher at 2,706.53 as gains in the energy and tech sectors offset losses in consumer discretionary. The Nasdaq Composite declined 0.25 percent to 7,263.87 as Amazon shares fell.

Asia markets were mixed on Monday morning, with shares in Japan rising while Australian markets traded lower.

Over in Japan, the Nikkei 225 advanced 0.43 percent while the Topix rose 0.94 percent. Shares of tech giant Sony, however, plunged more than 8 percent after the company cut its revenue outlook for the fiscal year on the back of weaker-than-expected sales of cameras and smartphones.

Stocks in Australia traded lower during Monday morning trade ahead of the release of a landmark report surrounding the country’s beleaguered financial services sector.

The ASX 200 gained about 0.4 percent in morning trade, with the sectors mostly higher. The heavily weighted financial subindex recovered from its earlier slip to rise more than 0.7 percent as shares of the country’s Big Four banks advanced.

The moves Down Under came ahead of the release of the final report by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The recommendations by the Royal Commission are expected to bring extensive changes to Australia’s banking sector, following a series of systemic wrongdoings which were uncovered in 2018.

Stock markets in China and South Korea are closed today due to holidays.

China’s services sector continued to see steady growth in January despite dipping slightly from December levels, according to a private survey which was released on Sunday.

The Caixin/Markit services purchasing managers’ index (PMI) fell slightly to 53.6 in January from 53.9 in December, but well above the 50.0 mark separating growth from contraction.

The Chinese services PMI numbers were “not nearly as grim” as their manufacturing counterparts, Ray Attrill, head of foreign exchange strategy at National Australia Bank, said in a morning note.

Nevertheless, Attrill said the slip of the composite manufacturing and services PMI number from 52.2 to 50.9 meant there was “no let up here as yet from China growth slowdown concerns.”

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 95.599 after seeing lows below 95.4 last week.

The Japanese yen traded at 109.50 against the dollar after touching highs below 108.8 in the previous trading week. The Australian dollar changed hands at $0.7250 after seeing lows below $0.715 last week.

— CNBC’s Reuters contributed to this report.

Asia markets were mixed on Monday morning, with shares in Japan and Australia rising while stocks in Hong Kong slipped.

Hong Kong’s Hang Seng index, which will close earlier at 12:00 p.m. HK/SIN today with the eve of the Lunar New Year holidays, slipped 0.1 percent in early trade.

Over in Japan, the Nikkei 225 advanced 0.2 percent while the Topix rose 0.77 percent. Shares of tech giant Sony, however, plunged more than 8 percent after the company cut its revenue outlook for the fiscal year, on the back of weaker-than-expected sales of cameras and smartphones.

Stocks in Australia traded higher ahead of the release of a landmark report surrounding the country’s beleaguered financial services sector. The ASX 200 gained 0.38 percent in afternoon trade, with the sectors mostly higher. The heavily weighted financial subindex recovered from its earlier slip to rise more than 0.5 percent as shares of the country’s Big Four banks advanced.

The moves Down Under came ahead of the release of the final report by the Royal Commission into misconduct in the country’s financial sector. The recommendations by the Royal Commission are expected to bring extensive changes to the sector, following a series of systemic wrongdoings which were uncovered in 2018.

Stock markets in China and South Korea are closed today due to holidays.

China’s services sector continued to see steady growth in January despite dipping slightly from December levels, according to a private survey which was released on Sunday.

The Caixin/Markit services purchasing managers’ index (PMI) fell slightly to 53.6 in January from 53.9 in December, but well above the 50.0 mark separating growth from contraction.

The Chinese services PMI numbers were “not nearly as grim” as their manufacturing counterparts, Ray Attrill, head of foreign exchange strategy at National Australia Bank, said in a morning note.

Nevertheless, Attrill said the slip of the composite manufacturing and services PMI number from 52.2 to 50.9 meant there was “no let up here as yet from China growth slowdown concerns.”

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 95.614 after seeing lows below 95.4 last week.

The Japanese yen traded at 109.48 against the dollar after touching highs below 108.8 in the previous trading week. The Australian dollar changed hands at $0.7236 after seeing lows below $0.715 last week.

— Reuters contributed to this report.

Asia markets were up on Monday afternoon, with shares in Japan, Hong Kong and Australia rising.

Hong Kong’s Hang Seng index, which closed earlier at 12:00 p.m. HK/SIN today with the eve of the Lunar New Year holidays, edged up 0.08 percent to close at 27,990.21.

Over in Japan, the Nikkei 225 advanced 0.35 percent while the Topix rose 0.92 percent. Shares of tech giant Sony, however, plunged more than 8 percent after the company cut its revenue outlook for the fiscal year, on the back of weaker-than-expected sales of cameras and smartphones.

Stocks in Australia traded higher ahead of the release of a landmark report surrounding the country’s beleaguered financial services sector. The ASX 200 gained 0.39 percent in afternoon trade, with the sectors mostly higher.

The moves Down Under came ahead of the release of the final report by the Royal Commission into misconduct in the country’s financial sector. The recommendations by the Royal Commission are expected to bring extensive changes to the sector, following a series of systemic wrongdoings which were uncovered in 2018.

Stock markets in China and South Korea are closed today due to holidays.

China’s services sector continued to see steady growth in January despite dipping slightly from December levels, according to a private survey which was released on Sunday.

The Caixin/Markit services purchasing managers’ index (PMI) fell slightly to 53.6 in January from 53.9 in December, but well above the 50.0 mark separating growth from contraction.

The Chinese services PMI numbers were “not nearly as grim” as their manufacturing counterparts, Ray Attrill, head of foreign exchange strategy at National Australia Bank, said in a morning note.

Nevertheless, Attrill said the slip of the composite manufacturing and services PMI number from 52.2 to 50.9 meant there was “no let up here as yet from China growth slowdown concerns.”

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 95.659 after seeing lows below 95.4 last week.

The Japanese yen traded at 109.66 against the dollar after touching highs below 108.8 in the previous trading week. The Australian dollar changed hands at $0.7231 after seeing lows below $0.715 last week.

— Reuters contributed to this report.

The markets have surged into the new year with the S&P 500 Index posting its best January in more than three decades. Investor optimism of late has been fueled by a stronger-than-expected earnings season, and a Federal Reserve that is expected to pull back on plans to hike interest rates.

The S&P 500 is now up more than 15 percent from its December 24 closing low. Jason Hunter, technical strategist at JPMorgan, told CNBC recently that new highs could be on the way.

“It’s very clear anyone who looks at charts for a living or even casually, you had a very clear well-defined support that held through most of the year and then a fairly violent breakdown through December,” Hunter said Thursday on CNBC’s “Futures Now.”

Given the recent rebound, Hunter noted that the S&P 500 is “right back into the underside of what potentially is viewed as a distribution pattern,” which is giving him flashbacks to 2000 and 2007.

“The rebound we’ve had to-date…[is] consistent with 2000 and 2007…but I think it’s worth noting that you see that type of price action outside of bear market environments as well,” he explained. He noted that historically, when the market are as deeply oversold as they were in December, the following 6 to 12 months have a positive lean.

“But it’s worth noting that this is a bi-model distribution, so we’re left in the uncomfortable position to qualitatively decide is this a bear market rebound, or is this part of a sustained move where we’re going to get up to see a new high for the cycle before we move into let’s say a recession –driven environment,” the analyst said.

“And unfortunately….there’s no real difference between the price action in a bear market, or in a bull market in a volatile environment, and that’s where we have to move and look outside to other indices,” he added.

According to Hunter, one way to differentiate whether the market rally of late is a bull run revival, or just a bear market bounce, is to look at the chips.

The Philadelphia Semiconductor Index (SOX) — which tracks 30 public companies aligned with the manufacturing and distribution of chip stocks — has posted significant gains so far this year up more than 10 percent.

While the index also fell alongside the broader markets in December, Hunter’s chart reveals that on a relative basis “it actually bottomed in mid-November as the trade talks started to get underway.”

Hunter considered the SOX index a leading indicator for market direction due its correlative nature with PMI numbers. The Purchasing Managers Index is often regarded by investors as a key gauge of overall economic health.

“Even if semis continue to rally like they have that would suggest from a model correlation perspective that PMI data is not going to look that hot this month and even next month,” he explained. “[However] the outperformance gives us a positive lean that suggests the policy response we’ve seen out of the Fed, Chinese stimulus and the potential to get to a better spot where the trade negotiations are.”

Although trade tensions and looming slowdown fears have put pressure on global manufacturing numbers of late, Hunter’s theory suggests the semiconductor gauge tends to lead by about 1-2 months.

“The policy responses we’ve seen again out of the U.S. and China kind of fits with the technical story,” he said. “Where this is more of a sustained rally into at the very least in the third quarter when S&P can approach its highs again.”