Quite a sad little story really. With the best of intentions fintech fledgling Revolut, itself founded by a Russian and a Ukranian was offering introduction fees of up to £ 250 for introducing Ukranian citizens, fleeing Putin’s madness, to their services. In typical entrepreneurial fashion Revolut saw a requirement in the market for these refugees, many of whom through no fault of their own, do not have the required documentation, such as proof of residency, to open a bank account However it seems that a somewhat unscrupulous group of people saw an opportunity to make money by misusing the referral mechanism to their own ends. Additionally Revolut also provided a link to Ukranian Banks to allow their clients to access money and to boot waived the transfer fee. It all sounds like a good idea and very public spirited but they have been forced to withdraw the service thanks to the greed of a few. How pathetic that this should happen.
It seems that some Russian leasing companies emboldened by new laws created by Mad Vlad have quickly taken advantage of the laws passed by his government to re-register foreign owned airliners in their own names. Some 360 aircraft have been added to the Russian aircraft register since the start of March of which 171 are now in the names of Russian leasing companies. Some two thirds of the aircraft in question are in fact owned by leasing companies based in either Ireland or Bermuda. Insurance claims will surely follow much quicker than any payments will but it will be an interesting exercise to see how many of the offending assets will actually be discovered? Russia of course will have far less planes to worry about as flying more or less anywhere outside of Russia is not going to be easy. As for me following my consultancy to banks behind the old iron curtain countries after the fall of the Berlin wall I never want to travel in a clapped out old Tupolev ever again. Servicing and maintenance will also be on passengers minds?
I cannot help but think that HSBC are being a little too bullish on their increasing focus on China and the far East as the fount of all profits. The problem with China is of course that everything is done for the benefit of the Chinese Communist Party(CCP), which means its leader, and he has shown himself recently to be the ultimate autocrat. Western economies actually have to look after their populations or their Politicians become toast. No such mundane considerations will bother the CCP. People being free becoming better off, healthier, living well and aspiring are the feedstock for a profitable banking sector. Does any of this matter to Xi? I don’t think so. HSBC may become a hostage to fortune. Most international banks are taking a close look at where their asset portfolios are post Ukraine. HSBC may be looking n the wrong direction.
Howard Tolman is a well-known banker, technologist and entrepreneur in London,We have a self imposed constraint of 3 news stories per week because we serve busy senior Fintech leaders who just want succinct and important information. For context on Alt Lending please read the Interview with Howard Tolman about the future of Alt Lending and read articles tagged Alt Lending in our archives.