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Global Fintech Investments are on the Rise

MATH

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, October 23, 2017 /PRNewswire/ --

According to KPMG's Q2 2017 Pulse of Fintech report, total global fintech investments more than doubled quarter over quarter in Q2'17 to US $8.4 billion, up from US$3.6 billion in Q1'17. Global M&A investment helped drive the fintech market rebound, with US$5.9 billion in deal value for M&A for the quarter. China recorded nine transactions (VC and M&A) for a total of US$282 million in deal value, a slight increase from the seven closed in Q1'17. The fintech industry has drastically evolved from startups that want to take on incumbents to a much wider ecosystem of financial services integrated with technology. A research report by PWC indicates that while fintech startups need capital and customers, financial services companies need new approaches to drive change and deliver innovation. Dragon Victory International Limited (NASDAQ: LYL), LendingTree, Inc. (NASDAQ: TREE), Ally Financial Inc. (NYSE: ALLY), First Data Corporation (NYSE: FDC), Discover Financial Services (NYSE: DFS).

"Financial Institutions are concentrating on updating their legacy systems with a strong focus on data analytics and mobile technology," PWC reports. Yet, many current companies are struggling to adapt and offer digital customer-service experience. As a result, "mainstream Financial Institutions are rapidly embracing the disruptive nature of FinTech and forging partnerships in efforts to sharpen operational efficiency and respond to customer demands for more innovative services," according to PWC. Among the disruptive innovations that have emerged as the result of the fintech uprising are: increase in digital solutions that firms can integrate to improve operations, proliferation of mobile wallets and new payment options, as well as crowdfunding, peer-to-peer lending, and cryptocurrencies.

Dragon Victory International Limited (NASDAQ: LYL) announced breaking news after the market close on Friday that, "a company that offers reward-based crowdfunding opportunities and quality incubation services to entrepreneurs in China, today commenced trading on The NASDAQ Capital Market under the ticker symbol 'LYL'." Shares climbed to $13.67 after opening at $7.39, rising as much as 128%, in its NASDAQ debut.

Boustead Securities, LLC ('Boustead') acted as the lead underwriter and Network 1 Financial Securities, Inc. acted as co-underwriter. The company completed its initial public offering ('IPO') of 1,421,394 of LYL's ordinary shares at a price of $6.00 per share for a total of $8,528,363 in gross proceeds to the Company before underwriting discounts, commissions and offering expenses, on September 15, 2017.

Dan McClory, Head of Equity Capital Markets at Boustead Securities, LLC, the Lead Underwriter in the LYL IPO, stated, "It truly is an exceptional milestone for Dragon Victory to become one of the first crowdfunding portals in the world to list on a national securities exchange such as NASDAQ. Boustead Securities congratulates Dragon Victory, Chairman Han, the entire LYL executive team and the Company's investors, for this pioneering achievement," McClory continued.

Mr. Yu Han, Chairman and Chief Executive Officer of Dragon Victory International Limited, commented, "We are very excited with our first trading performance. Our team has worked diligently to list on the NASDAQ Stock Exchange, which is an important milestone in the evolution of Dragon Victory. We believe that the combination of our differentiated, integrated crowdfunding model and strong balance sheet, coupled with trading on the well-regarded NASDAQ, will serve our current and future investors well."

LendingTree, Inc. (NASDAQ: TREE) operates the nation's leading online loan marketplace and provides consumers with an array of online tools and information to help them find the best loans for their needs. On September 19th, LendingTree announced that it has acquired certain assets of Snap Capital LLC, a tech-enabled online platform connecting business owners with lenders offering small business loans, lines of credit and merchant cash advance products through a concierge-based sales approach. SnapCap is leading a revolution in small business finance by reducing the complexities found in the traditional lending process. Committed to investing in small business, SnapCap offers a better way to borrow by focusing on performance-based financing. Personal service combined with real-time evaluation technology makes it easier to provide financing solutions with greater speed and accuracy to the small businesses that drive the American economy.

Ally Financial Inc. (NYSE: ALLY) announced on May 12th, the launch of Ally Invest, its brokerage and wealth management offering that now exists alongside its award-winning online banking products in a single, convenient customer experience. The launch of Ally Invest represents further progress in the company's mission to offer customers more choices in managing their financial lives through an exceptional, digitally-oriented experience at a compelling value. "On the heels of our Ally Cash Back Credit Card and competitive Ally Home loan products, Ally Invest is a continuation of our commitment to 'Do It Right' by our customers by providing more options to make their money work harder," said Diane Morais, president of Consumer & Commercial Banking Products at Ally Bank. "The convenience of these value-driven digital offerings all in one place presents the best possible alternative for busy consumers looking for simple, straightforward solutions to their financial needs."

First Data Corporation (NYSE: FDC), a global leader in commerce-enabling technology and solutions, today announced that it has entered into a definitive stock purchase agreement for First Data to acquire BluePay Holdings, Inc. from current owners, including TA Associates and BluePay management, for $760 million in cash, subject to adjustments. BluePay is a leading provider of technology-enabled payment processing for merchants in the United States and Canada. Through physical POS, online, and mobile interfaces, as well as CRM and ERP software integrations, BluePay processes business-to-consumer and business-to-business payments while providing real-time settlement, reporting, and reconciliation, along with robust security features such as tokenization and point-to-point encryption. "We believe First Data can accelerate our software-driven payments strategy and provide value to clients and partners through the combination of First Data's payment facilitation capabilities, global processing expertise, and an unparalleled distribution network," said BluePay CEO, Bala Janakiraman.

Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Earlier this year, Discover Financial Services and PayPal have signed an agreement making PayPal more widely available to Discover cardmembers, acquirers and merchants. "Discover is focused on making the payments experience seamless and secure for both cardmembers and our merchant partners," said Diane Offereins, President of Payment Services at Discover. "This agreement with PayPal helps expand consumer payment choices by providing additional ways to transact, and builds on the growing adoption of digital payments."

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