Loot has no more loot

RBS-funded app Loot has gone into administration. An unfortunate casualty of the modern and very welcome disruption of the retail investing sector

The current and very interesting wave of challenger banks bringing some very modern initiatives into the rpersonal investing sector whilst traditional banks scale back their retail operations is of great significance.

The entire Square Mile is adorned with a litany of ultra-modern displays and mobile advertisements for extremely clever initiatives ranging from bonds with 8% return, crowdfunded by culinary experts rather than bankers, and offered via a Mexican restaurant chain to smart trading and banking applications such as Revolut.

As with any revolution, if the pun can be pardoned, there will always be casualties, as disrupting a traditional industry that is as well established as the high street banking sector is not an easy task, and on that basis, the challengers that have risen to significance this far must be congratulated for their resolve, innovative skills and foresight.

For Loot, however, the end of the road has been reached.

The company, which was an app-based financial platform for what it termed ‘digital current accounts’, literally banking for retail customers which does not have physical branches, was invested in by RBS to the tune of £5 million and had managed to onboard 212,000 customers in its relatively short life.

As is the current trend among modern FinTech startups in London, Loot resorted to crowdfunding initiatives to raise the capital to expand its offering to clients. The company started its operations by offering a current account and contactless Loot Mastercard card, and providing insights into its customers’ spending with personalised features to assist the management of money.

This week, however, the firm posted on its website:

“It is with regret that we are informing you that Henry Anthony Shinners and Adam Henry Stephens of Smith & Williamson LLP, 25 Moorgate, London, EC2R 6AY were appointed as joint administrators of the Company on 22 May 2019. Your e-money is protected and held by Wirecard Card Solutions Limited at a regulated credit institution.”

” Your funds will not be used by Loot or Wirecard Card Solutions Limited for any other purpose. You are still able to continue to use the account as normal. We are working with the administrators and we will announce further updates here in due course. In the meantime, if you have any questions please email us at [email protected]

“The affairs, business and property of the Company are being managed by the administrators Henry Anthony Shinners and Adam Henry Stephens who act as agents of the Company and without personal liability.”

“Henry Anthony Shinners and Adam Henry Stephens are licensed as insolvency practitioners in the UK by the Institute of Chartered Accountants in England and Wales. As such they are bound by the Insolvency Code of Ethics when carrying out all professional work relating to an insolvency appointment.”

Despite this setback by a well meaning firm which had begun its business with very good credentials and the backing of a due-diligence orientated Tier 1 bank, the future still, it appears, lies among these new participants for retail investment whilst the Tier 1 banks concentrate their efforts on their core business activities, those being FX dealing and order flow management.

Read this next

Opinion

Is the Bank of England facing another storm? Op-Ed by Stuart Cole, macro economist at Equiti Capital

An analysis and opinion editorial by Stuart Cole, macro economist at Equiti Capital, 3 October 2022 on what triggered the UK gilt market sell-off and is the Bank of England facing another storm?

Industry News

Kim Kardashian fined $1 million for touting EMAX tokens on social media

“Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information.”

Retail FX

INFINOX launches IX Exchange platform with +20,000 markets in UK

“The launch of IX Exchange is a statement of intent for our growth strategy and a game-changer for our clients’ trading potential.”

Retail FX

Saxo issues gloomy report for Q4 2022 and beyond

Globalisation was the biggest driver behind low inflation over the past 30 years and instrumental for emerging markets and their equity markets. Globalisation in reverse will cause turmoil for trade surplus countries, put upward pressure on inflation and threaten the USD as the reserve currency.

Executive Moves

ICE appoints Caterina Caramaschi to oversee interest rates and equity derivatives

“As the head of a product set covering some of the biggest interest rate and equity derivative benchmarks, at a time when investor’s priorities are firmly focused on interest rate changes and the outlook for global economies, Caterina’s two decades of financial market experience, and the relationships cultivated during that, will be invaluable in developing these products to the benefit of our customers.”

Retail FX

Plus500 sponsors Chicago Bulls ahead of trading platform launch in United States

Plus500 has signed a major multi-year sponsorship deal to become an official global partner of iconic NBA team Chicago Bulls. 

Technology

Polygon.io adds stock options APIs to market data platform that includes FX and Crypto

Polygon.io has launched a new set of stock options APIs to its entirely self-serve real-time data APIs, which includes stocks, crypto, forex, and options APIs free to use.

Market News

What’s in store for markets this week!

After The UK government unveiled their top tax rate cut, setting fire to GBP Cross pairs, prompting an intensive sell-off on the cable

Podcasts

FinanceFeeds Podcast Ep. #7: Exness’s Elena Krutova shares how to recruit the best talent in FX

FinanceFeeds is delighted to announce the release of the FinanceFeeds Podcast’s seventh episode featuring Elena Krutova, Chief People Officer of Exness, the renowned FX and CFD broker headquartered in Cyprus.

<