30 May 2017
register for the webinar

Former Visa president Morris launches fintech venture fund

27 March 2014  |  6525 views  |  0 golden egg

Financial services veteran and former Visa president Hans Morris has set up a fintech-focused venture capital and advisory firm.

Nyca Partners plans to invest between $10 million and $15 million a year, backing as many as 10 startups every 12 months, Morris told Reuters. Money has already been put into Affirm, Lending Club, CardWorks and Global Analytics.

In a message on its Web site, the firm - whose name marries New York and California - says it will focus on three areas: merchant payment services, alternative credit models, and "new approaches to improve on financial services infrastructure".

Nyca says that technology - big data, smartphones, cloud computing, digital currencies - promises to transform the way financial services are provided. But the promise hasn't yet been realised and "the truth is most of what we do and how we do it is basically the same as in 1994".

VC firms invested $551 million in financial services last year, just 1.9% of all investments. Meanwhile, despite high-profile successes like Lending Club and Square, many ideas fail to get off the ground.

This is because the stakes are higher in financial services than other industries thanks to the regulatory frameworks, high risk of fraud and sticky customers, who are hard to poach.

"Worse, a new company can't disrupt the whole system; every innovation still needs to tie into existing networks with their own strict requirements and hurdles," says Nyca.

The firm argues that this is where it comes into its own, tapping industry knowledge and experience, as well as money, to help firms crack the market.

Morris is currently putting his own money into the fund and has secured three partners who have committed to investing. Former Visa director David Sica has joined Nyca as vice president and ex US treasury department man Ian Samuels is on board as an advisor.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

London enjoys fintech investment boom

London enjoys fintech investment boom

26 March 2014  |  7812 views  |  0 comments | 20 tweets | 16 linkedin
Payments start-ups raise $1.2 billion across 193 deals in 2013

Payments start-ups raise $1.2 billion across 193 deals in 2013

10 January 2014  |  11469 views  |  0 comments | 34 tweets | 17 linkedin
New fintech investment opportunities surface at Money2020

New fintech investment opportunities surface at Money2020

08 October 2013  |  9601 views  |  0 comments | 9 tweets | 4 linkedin
Fintech innovation VCs Anthemis Group and Life.Sreda team up

Fintech innovation VCs Anthemis Group and Life.Sreda team up

04 September 2013  |  7242 views  |  0 comments | 6 tweets | 3 linkedin
BBVA sets up $100 million fintech venture fund

BBVA sets up $100 million fintech venture fund

25 January 2013  |  17054 views  |  1 comments | 12 tweets | 4 linkedin
Sberbank sets up $100 million fintech start-up fund

Sberbank sets up $100 million fintech start-up fund

19 October 2012  |  13623 views  |  0 comments | 3 tweets | 1 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.capgemini.com/worldreportsvisit dh.comvisit vasco.com/news/PSD2-compliant-solutions

Top topics

Most viewed Most shared
BBVA launches Open API marketplaceBBVA launches Open API marketplace
15056 views comments | 54 tweets | 82 linkedin
R3 raises $107mR3 raises $107m
7987 views comments | 17 tweets | 16 linkedin
Digital payments to drive social justiceDigital payments to drive social justice
7924 views comments | 25 tweets | 12 linkedin
Bank of America preps data sharing serviceBank of America preps data sharing service
7831 views comments | 21 tweets | 19 linkedin
TransferWise launches multi-currency business bank accountsTransferWise launches multi-currency busin...
7818 views comments | 13 tweets | 22 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job