Finteum is creating a interbank platform for financial institutions to borrow and lend for hours at a time (intraday borrowing) using distributed ledger technology (DLT).
Finteum is in discussion with 40 of the world’s largest banks to identify early adopters.
When banks trade bilaterally the trade data moves inefficiently before reconciliation. Finteum uses R3’s Corda DLT platform so market participants and regulators have a secure, shared transaction record pre-trade and post-trade, avoiding failed settlement and facilitating regulatory reporting.
Current interbank transactions are queued for payment by the lender, with no certainty on timing. To avoid settlement delays, Finteum uses DLT solutions for settlement at a pre-determined and specific time.
Finteum estimates that a global bank could reduce costs by £40m per year by borrowing and lending in an actively traded intraday market; which is about £2bn for the banking sector globally.
Finteum faces different forms of competition...
Finteum is creating a interbank platform for financial institutions to borrow and lend for hours at a time (intraday borrowing) using distributed ledger technology (DLT).
Finteum is in discussion with 40 of the world’s largest banks to identify early adopters.
When banks trade bilaterally the trade data moves inefficiently before reconciliation. Finteum uses R3’s Corda DLT platform so market participants and regulators have a secure, shared transaction record pre-trade and post-trade, avoiding failed settlement and facilitating regulatory reporting.
Current interbank transactions are queued for payment by the lender, with no certainty on timing. To avoid settlement delays, Finteum uses DLT solutions for settlement at a pre-determined and specific time.
Finteum estimates that a global bank could reduce costs by £40m per year by borrowing and lending in an actively traded intraday market; which is about £2bn for the banking sector globally.
Finteum faces different forms of competition. Many banks are using workaround solutions that frustrate treasurers and regulators, such as "throttling" (withholding outgoing payments).
Finteum has progressed significantly with technology development, especially during 2019. We have built a working full front end and back end application that was trialled with a group of 4 banks with a combined balance sheet of £1.5trn and received positive feedback. We are in negotiations now ahead of a longer pilot.
Finteum is an Entrepreneur in Residence (EIR) company at R3, a Distributed Ledger Technology (DLT) company, and working with Fnality, the new infrastructure company leading the Utility Settlement Coin (USC) initiative, and Baringa Partners, a consultancy with intraday expertise, to progress the concept.
Finteum is pre-revenue and we anticipate it will take approximately two years to get to production and generate revenue. Our model is low % transaction fees, similar to other inter-dealer platforms.
Finteum has an open dialogue with UK Finance (formerly BBA), the UK regulator (PRA) and financial market infrastructure providers that are potential partners.
Finteum is based in London and graduated from the F10 accelerator in Zurich in May 2019, one of 9 startups to graduate out of 15 startups that began in December 2018 and out of about 300 startups that applied. Most recently in October, we finished 2nd in the UBS Future of Finance competition in Zurich, despite being earlier stage than the other competitors.
More information

Investors

F10 Accelerator program "P2"
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F10 Accelerator program "P2" 6 month acceleration program "Prototype to Product" for Fintechs

Advisors

Scott Nelson
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Stirling Fielding
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Stirling Fielding

Employees

Brian Nolan
Admin
Brian Nolan I have expertise in bank treasury and intraday liquidity. I am ambitious and comfortable communicating with senior management or investors.

Recommendations

Mark Sayell Head, Liquidity managers Group at UK Finance

Finteum has recently come to my attention as the secretary of the Liquidity managers committee, a London based industry group within the UKFinance trade association focused on improving efficiency and management of liquidity for our members.
The management of intraday liquidity has become a significant part of the focus for banks, regulators and industry infrastuctures. As such a potential solution to the problem of intra day lending and borrowing could help the industry significantly in mitigating risks around intraday liquidity and is therefore the Finteum solution is worthy of consideration for this programme.

Scott Nelson

Finteum is an early stage start up energetically tackling the challenges of integrating innovative distributed ledger solutions into banking technology infrastructure. I've been working with Finteum in an advisory capacity for the past several months, and prior to that, I worked for Apple in a role heavily focused on the development and training of highly-skilled teams. I believe strongly in Finteum's capability to attract and connect highly talented individuals. One of the company's greatest assets is the internal and external network of individuals who work cohesively and have the skillsets and competence necessary to create a truly compelling product.

Bruce Laing Partner at Baringa Partners

Finteum is building a unique product that addresses a vital market for the Financial Services industry in the UK and then beyond. Finteum will provide the ability for banks to lend money in real time during the day to ensure they will be able to make all of their payment obligations and help avoid any crisis due to the recipient being short of funds unexpectedly. As a FinTech startup, Finteum will leverage distributed ledger technology (DLT) for the ability to move the funds in real time and the DLT based solution has the additional benefit of being able to provide greater transparency and monitoring ability to the regulator around borrowing between banks.

Finteum is an exciting new company that is looking to offer something new to the London-based Financial Services market so I am more than willing to recommend them.

zack kavanaugh

Finteum is an Entrepreneur in Residence company at R3. Within the intraday borrowing market, Finteum is pursuing an innovative and valuable idea which our financial services members are excited about. As the leading enterprise for blockchain company, R3 selectively supports ideas that have significant potential and technological feasibility, such as Finteum. We think the Mayor of London's TechInvest would be an ideal opportunity to showcase Finteum to the UKBAA and the expert judges.

Kaitlyn McCullough

Finteum is an innovative early stage Fintech startup seeking to create a market for intraday liquidity using blockchain technology. I have been an advisor to the team for the past few months and I believe in the overall capability and mission of the company. Finteum provides a Fintech solution which will positively impact the lives of London's populace. The company enables an improved and efficient way for banks to manage liquidity. Thus increasing a bank's ability to manage risk, create jobs and deploy capital. I believe Finteum's mission aligns with that of the Mayor of London's TechInvest and that would greatly benefit from the exposure to and guidance from the UKBAA.