Fintech
Mosaic Capital Corporation Reports Q2 2020 Financial Results
Calgary, Alberta–(Newsfile Corp. – August 5, 2020) – Mosaic Capital Corporation (TSXV: M) (TSXV: M.DB) (“Mosaic” or the “Company“) has released its unaudited consolidated financial results for the three months ended June 30, 2020. The Company’s financial statements and management’s discussion and analysis (“MD&A“) for the three and six months ended June 30, 2020 and 2019 can be accessed under Mosaic’s profile on SEDAR at www.sedar.com and on the Company’s website at www.mosaiccapitalcorp.com.
Selected Financial Highlights
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
| (in $000s, except as noted) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||
| CONTINUING OPERATIONS | |||||||||||||||||||
| Revenue | $ | 69,702 | $ | 103,086 | -32% | $ | 145,738 | $ | 184,378 | -21% | |||||||||
| Adjusted EBITDA (1) | $ | 12,347 | $ | 8,424 | 47% | $ | 17,782 | $ | 14,231 | 25% | |||||||||
| Net loss and comprehensive loss | $ | (19,320 | ) | $ | (782 | ) | -2,371% | $ | (15,342 | ) | $ | (4,581 | ) | -235% | |||||
| Free Cash Flow (1) | $ | 5,541 | $ | 2,727 | 103% | $ | 6,077 | $ | 3,483 | 74% | |||||||||
| DISCONTINUED OPERATIONS | |||||||||||||||||||
| Revenue | $ | 223 | $ | 13,768 | -98% | $ | 2,703 | $ | 28,584 | -91% | |||||||||
| Adjusted EBITDA (1) | $ | (753 | ) | $ | 1,369 | -155% | $ | (510 | ) | $ | 2,782 | -118% | |||||||
| Net (loss) income and comprehensive (loss) income |
$ | (4,230 | ) | $ | 519 | -916% | $ | (4,558 | ) | $ | 1,226 | -471% | |||||||
| Free Cash Flow (1) | $ | (851 | ) | $ | 823 | -203% | $ | (885 | ) | $ | 1,798 | -149% | |||||||
| AGGREGATE | |||||||||||||||||||
| Revenue | $ | 69,925 | $ | 116,854 | -40% | $ | 148,441 | $ | 212,962 | -32% | |||||||||
| Adjusted EBITDA (1) | $ | 11,594 | $ | 9,793 | 18% | $ | 17,272 | $ | 17,013 | 5% | |||||||||
| per share | $ | 1.08 | $ | 0.92 | 17% | $ | 1.62 | $ | 1.60 | 4% | |||||||||
| as a % of revenue | 16.58% | 8.38% | 11.64% | 7.99% | |||||||||||||||
| Net loss and comprehensive loss | $ | (23,550 | ) | $ | (263 | ) | -8,844% | $ | (19,900 | ) | $ | (3,355 | ) | -357% | |||||
| Net loss attributable to common equity holders | $ | (21,860 | ) | $ | (2,811 | ) | -678% | $ | (20,602 | ) | $ | (7,702 | ) | -111% | |||||
| Free Cash Flow (1) | $ | 4,690 | $ | 3,550 | 32% | $ | 5,192 | $ | 5,281 | 15% | |||||||||
| per share | $ | 0.44 | $ | 0.33 | 31% | $ | 0.49 | $ | 0.50 | 15% | |||||||||
| Preferred securities distributions declared | $ | 1,496 | $ | 1,496 | – | $ | 2,992 | $ | 2,975 | 1% | |||||||||
| Common share dividends declared | $ | – | $ | 1,128 | -100% | $ | 1,126 | $ | 2,242 | -50% | |||||||||
| per share | $ | – | $ | 0.105 | -100% | $ | 0.105 | $ | 0.210 | -50% | |||||||||
| TTM Preferred Distribution Payout Ratio (1) | 39% | 37% | 4% | ||||||||||||||||
| TTM Combined Payout Ratio (1) | 60% | 65% | -7% | ||||||||||||||||
| Weighted avg. common shares outstanding | 10,704,739 | 10,617,235 | – | 10,663,310 | 10,612,672 | – | |||||||||||||
Note:
(1) Adjusted EBITDA, Free Cash Flow, Trailing twelve-month (“TTM“) Preferred Distribution Payout Ratio and TTM Combined Payout Ratio are not a recognized measure under IFRS. Refer to “Non-GAAP Measures”.
For the three-month period ended and as at June 30, 2020, Mosaic:
-
implemented an action plan in response to the COVID-19 pandemic (“Pandemic“) that included initiatives to:
-
increase working capital efficiencies across Mosaic’s portfolio of companies;
-
reduce overall cost structures and capital spending levels;
-
access the Canada Emergency Wage Subsidy (“CEWS“) as implemented by the federal government;
-
suspend common share dividends; and
-
engage with the Company’s lenders and financial partners to ensure appropriate liquidity levels and access to capital.
-
-
generated $69.7 million in revenue from continuing operations which was 32% below the same period in 2019 largely due to the negative influences of the Pandemic;
-
generated Adjusted EBITDA from continuing operations of $12.3 million which exceeded the same period last year by 47% due to solid performances at certain portfolio companies and the receipt of CEWS funds;
-
reduced corporate overhead costs by 12% over the same period in 2019;
-
posted a trailing twelve-month Combined Payout Ratio of 60%. This represents an improvement from 73% as at March 31, 2020 and is the result of the combined impact from growth in Free Cash Flow and the Company’s decision to suspend common share dividends in reaction to the economic uncertainty caused by the Pandemic;
-
maintained a healthy balance sheet with $34.4 million in cash and $43.1 million in working capital. Mosaic was in compliance with all of its financial covenants highlight by Total Debt to Gross EBITDA leverage of 1.27;
-
incurred a $27.5 million impairment of goodwill and intangible assets related to certain portfolio companies that have been impacted by the Pandemic and depressed Energy sector fundamentals; and
-
decided to divest its ownership interest in Remote Waste to reduce further cash flow losses from the operating subsidiary.
Subsequent to June 30, 2020, Mosaic:
- reached an agreement with its secured lender to revise certain terms related to its $50 million revolving credit facility that included an extension of its maturity date to May 31, 2023 and a relaxation of financial covenants designed to provide additional flexibility, if it should be required, during Pandemic related uncertainty.
Segmented Financial Performance
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||||
| (in $000s, except as noted) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||
| Revenue: | ||||||||||||||||||
| Infrastructure | $ | 52,268 | $ | 71,186 | -27% | $ | 100,236 | $ | 126,523 | -21% | ||||||||
| Diversified | 17,285 | 31,197 | -45% | 44,952 | 56,886 | -21% | ||||||||||||
| Energy | 149 | 703 | -79% | 550 | 969 | -43% | ||||||||||||
| Corporate | – | – | – | – | ||||||||||||||
| Total revenue | 69,702 | 103,086 | -32% | 145,738 | 184,378 | -21% | ||||||||||||
| Adjusted EBITDA: (1) | ||||||||||||||||||
| Infrastructure | 9,665 | 4,883 | 98% | 12,898 | 8,581 | 50% | ||||||||||||
| Diversified | 3,766 | 4,571 | -18% | 6,975 | 8,056 | -13% | ||||||||||||
| Energy | (50 | ) | 148 | -134% | 21 | 132 | -84% | |||||||||||
| Corporate | (1,034 | ) | (1,178 | ) | 12% | (2,112 | ) | (2,538 | ) | 17% | ||||||||
| Total adjusted EBITDA | $ | 12,347 | $ | 8,424 | 46% | $ | 17,782 | $ | 14,231 | 25% | ||||||||
| as a % of revenue | 17.71% | 8.17% | 12.20% | 7.72% | ||||||||||||||
Note:
(1) Adjusted EBITDA is defined as earnings before finance costs, taxes, depreciation and amortization, and other non-cash items. Adjusted EBITDA is not a recognized measure under IFRS. Refer to “Non-GAAP Measures”.
Outlook
Management remains focused on the Company’s on-going plan to deal with the evolving nature and impact of the Pandemic. Mosaic’s second quarter 2020 financial results reflect constrained operating conditions as large parts of the economy were essentially halted in mid-March with widespread effects related to the Pandemic. Our individual portfolio companies within each business segment were impacted to varying degrees depending on government-imposed restrictions for their operations in the jurisdictions for where they operate, customer-driven changes in the requirement for the delivery of goods and services and implementation of Pandemic specific work-safe protocols to protect the active workforce. Partially offsetting this, certain portfolio companies were only minimally affected and delivered results that were consistent with the same period last year.
The federal government implemented several programs to support companies and mitigate the financial impact the Pandemic is having on their operations. To date, Mosaic has been eligible for the CEWS program which commenced on March 15, 2020. Importantly, because Mosaic qualified to receive CEWS funds, the Company was able to maintain staffing levels through this difficult period and began to ramp-up activity levels in response to increasing customer demand in the final weeks of the second quarter.
Moving into the third quarter of 2020, the negative operational influences of the Pandemic continue to wane for most of our operating subsidiaries evidenced by increasing activity levels and new busines inquiries. Unfortunately, the Pandemic compounded the already severely challenged energy sector fundamentals, which led to the Company’s decision to divest the operations of Remote Waste. With the exception of this operating subsidiary, management believes the remainder of portfolio operations are positioned to continue on a path to more normal activity and profitability levels.
Furthermore, on July 27, 2020, the federal government passed legislation extending the length and increasing the breadth of the CEWS program to November 21, 2020, which Mosaic believes it will likely continue to be eligible for. The magnitude of future subsidies is not determinable with relative certainty as it is dependent on the percentage of revenue decline experienced as compared to the prior year or period and employee wages incurred.
Mark Gardhouse, President and CEO commented “Mosaic’s prompt reaction to the Pandemic has proven to be appropriate and has positioned the Company to endure what could be a prolonged period of economic uncertainty. Our action plan has improved the Company’s liquidity and enabled us to maintain operational capacity as we continue to engage with our customers to accommodate their plans to increase activity levels. While we are mindful of the potential risks of a COVID-19 resurgence and the resultant economic impacts, our action plan and the strong level of support from our lenders has ensured we have suitable liquidity and covenant headroom to manage these potential challenges should they arise.”
Mosaic’s long-term growth strategy is centered on the acquisition of controlling equity interests in new portfolio companies with a specific focus on growing Free Cash Flow per share while maintaining a strong balance sheet. Supplementing this, Mosaic’s management team adds value with strong operational and strategic focus by actively engaging with its portfolio companies to improve results and capture growth opportunities.
Mosaic’s pipeline of high quality acquisition opportunities remains robust and the Company will continue to pursue its strategy to grow through acquisitions with a focus on building an increasingly diversified portfolio of private, mid-market companies that offer strong free cash flow while maintaining a healthy balance sheet.
Conference Call
Management will hold a conference call to discuss second quarter 2020 results on Thursday, August 6th, 2020 at 10:00 AM ET. All interested parties are invited to join the conference call by dialing 1-855-353-9183 from within Canada or the U.S. or 403-532-5601 from Calgary or internationally, then entering the participant Code 63121#. A recording of the conference call will be made available on Mosaic’s website at www.mosaiccapitalcorp.com.
ABOUT MOSAIC CAPITAL CORPORATION
Mosaic is a Canadian investment company that owns a portfolio of established businesses which span a diverse range of industries and geographies. Mosaic’s strategy is to create long-term value for its shareholders through accretive acquisitions, long-term portfolio ownership, sustained cash flows and organic portfolio growth. Mosaic achieves its objectives by maintaining financial discipline, acquiring businesses at attractive valuations, performing extensive acquisition due diligence, utilizing optimal transaction structuring and working closely with subsidiary businesses after acquisition.
FOR FURTHER INFORMATION PLEASE CONTACT:
Cam Deller
Vice President, Corporate Development
Mosaic Capital Corporation
400, 2424 – 4th Street SW
Calgary, AB T2S 2T4
T: (403) 930-6576
E: [email protected]
Reader Advisory
Non-GAAP Measures
Selected financial information for the three and six month period ended June 30, 2020 are set out above and includes the following measures that are not recognized under International Financial Reporting Standards (“IFRS“) and are non-generally accepted accounting principles (“Non-GAAP“) measures: Adjusted EBITDA, Free Cash Flow, Preferred Distribution Payout Ratio and Combined Payout Ratio. This information should be read in conjunction with the unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2020 and 2019 and Mosaic’s MD&A for the period ended June 30, 2020 available under Mosaic’s profile on SEDAR at www.sedar.com. Further information regarding these Non-GAAP measures is contained in Mosaic’s MD&A.
Forward-Looking Statements
This news release contains forward-looking information and statements within the meaning of applicable Canadian securities laws (herein referred to as “forward-looking statements“) that involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. All information and statements in this press release which are not statements of historical fact may be forward-looking statements. The words “believe”, “expect”, “intend”, “estimate”, “anticipate”, “project”, “scheduled”, and similar expressions, as well as future or conditional verbs such as “will”, “should”, “would”, and “could” often identify forward-looking statements. Forward-looking statements included in this news release include, but are not limited to:
- the overall business strategy and objectives of Mosaic;
- the Company’s expectation to successfully manage the current business environment;
- the Company’s ability to manage the impact of the Pandemic and its impact on operations;
- the Company’s eligibility for government financial assistance programs; and
- the Company’s expectation to be positioned to capture attractive investment opportunities in the future.
Such statements or information, if any, are only predictions and reflect the current beliefs of management with respect to future events and are based on information currently available to management. Actual results and events may differ materially from those contemplated by these forward-looking statements due to these statements being subject to a number of risks and uncertainties. Undue reliance should not be placed on these forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.
By their nature forward-looking statements involve assumptions and known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other things contemplated by the forward-looking statements will not occur. A number of factors could cause actual results to differ materially from the results stated in the forward-looking statements, including, but not limited to, the Pandemic impact, risks related to: general economic and business conditions; the failure to realize the anticipated benefits of Mosaic’s recent and future acquisitions; adverse fluctuations in commodity prices; competition for, among other things, capital, equipment and skilled personnel; the inability to generate sufficient cash flow from operations to meet current and future obligations; the inability to obtain required debt and/or equity capital on suitable terms; competition for acquisition targets; adverse weather conditions; seasonality and fluctuations in results; and limited diversification of Mosaic’s subsidiaries. Should any of the risks or uncertainties facing Mosaic and its subsidiaries materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance, activities or achievements could vary materially from those expressed or implied by any forward-looking statements contained in this news release.
Although Mosaic believes that the expectations represented by any forward-looking-statements contained herein are reasonable based on the information available to them on the date of this news release, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. Any forward-looking statements herein contained are made as of the date of this press release and Mosaic does not assume any obligation to update or revise them to reflect new information, events or circumstances, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/61154
In the fast-paced world of financial technology, shifts occur daily as companies strive for innovation, customer satisfaction, and enhanced market reach. Today’s briefing covers a spectrum of developments, from Visa Direct’s groundbreaking integration in Korea to challenges plaguing the app economy. We’ll also touch on recent acquisitions, strategic partnerships, and expansions in fintech ecosystems. Here’s what you need to know about today’s most pressing fintech trends.
Visa Direct’s Milestone in South Korea: SentBe’s Card Transfer Service Launch
South Korea’s fintech ecosystem has taken a notable leap forward with SentBe’s implementation of Visa Direct’s Card Transfer Service. This collaboration marks a milestone, positioning SentBe as the first Korean fintech company to offer card-to-card international money transfers, a feature in high demand given the rise in cross-border financial activities. Visa Direct’s real-time card-to-card transfers are a potential game-changer for consumers and businesses alike, facilitating faster and more secure global transactions.
The collaboration exemplifies Visa’s larger strategy of partnering with regional fintech players to broaden its influence across Asia’s dynamic fintech markets. By tapping into SentBe’s growing customer base and extensive user insights, Visa is embedding itself deeper into local markets, simultaneously offering Korean users a more streamlined and efficient money transfer experience.
The service’s design allows individuals and small businesses alike to benefit from quicker transaction processing times, marking a significant evolution from traditional remittance processes that rely on intermediary banks. The move is especially critical in a digital age where customer expectations lean heavily towards instant, seamless financial interactions.
Source: Electronic Payments International
Fintech App ‘Trap’ Enrages Consumers Struggling to Cancel Subscriptions
In the modern subscription-based economy, some fintech companies are facing backlash over what customers perceive as the ‘trap’ of endlessly renewable subscriptions that are nearly impossible to cancel. A recent expose revealed mounting frustrations among consumers who signed up for digital services but later found themselves locked into subscriptions they could not easily terminate. The piece highlights the darker side of user retention strategies deployed by some companies to mitigate churn by making cancellation processes intentionally convoluted.
The app-based economy relies on recurring revenue, which remains a vital lifeline for startups and established firms alike. However, industry insiders argue that lack of transparency and difficult cancellation processes have an adverse impact on customer trust, leading to a growing dissatisfaction that may ultimately backfire on these companies. As consumers grow more savvy, fintechs relying on these practices could risk higher attrition rates, regulatory scrutiny, and brand erosion.
This emerging issue has raised questions about ethical standards and customer-centric models in fintech. As competition intensifies, companies must balance growth with transparent practices that foster customer loyalty, rather than coercion.
Source: Forbes
Pinwheel and Terafina Partner to Streamline Omnichannel Customer Onboarding
Pinwheel, a fintech infrastructure company known for its payroll and income data connectivity solutions, recently announced a partnership with Terafina, a leader in omnichannel sales and service platforms for financial institutions. This collaboration aims to simplify and enhance the onboarding process for new customers, providing them with seamless experiences across multiple channels, whether online, mobile, or in-branch.
The partnership combines Pinwheel’s data integration capabilities with Terafina’s expertise in customer onboarding, allowing financial institutions to create more personalized and flexible account opening processes. With consumer expectations evolving towards instant service and mobile-first access, this integration empowers banks and credit unions to meet these needs by delivering cohesive and smooth digital onboarding journeys.
In an industry where customer acquisition and retention are increasingly dependent on first impressions, the significance of streamlined onboarding cannot be overstated. By improving access to real-time employment and income data, this partnership enhances user verification and compliance while also allowing institutions to better assess applicants’ creditworthiness, which is crucial in today’s lending environment.
Source: PR Newswire
nCino Acquires FullCircl in $135 Million Deal: Expanding the Scope of Relationship Management
Fintech giant nCino recently completed its acquisition of FullCircl, a move that underscores its ambition to broaden its reach in the financial services sector. FullCircl, known for its focus on customer relationship management (CRM) solutions tailored to financial institutions, brings a robust set of tools that will allow nCino to enhance its cloud-based banking platform. The acquisition, valued at $135 million, positions nCino as a stronger player in the relationship management space, especially crucial for institutions looking to build deep, long-term client relationships.
With this acquisition, nCino aims to expand its footprint in Europe and boost its offerings in the CRM space, providing banks and credit unions with innovative tools for client engagement and retention. The integration of FullCircl’s CRM capabilities will also support nCino’s existing portfolio, which includes loan origination and digital banking solutions, strengthening its position as a one-stop platform for financial institutions.
This acquisition is part of a growing trend of consolidation in the fintech sector, where larger firms acquire specialized players to fill critical service gaps and offer more comprehensive solutions. By building a holistic platform that spans multiple functionalities, nCino is better equipped to compete in the increasingly crowded digital banking software market.
Source: The Paypers
DriveWealth’s European Expansion: A Strategic Base in Lithuania
DriveWealth, a digital brokerage technology firm, has chosen Lithuania as the launchpad for its European operations. By establishing a base within Lithuania’s burgeoning fintech hub, DriveWealth is strategically positioning itself to tap into the European market, leveraging the country’s favorable regulatory environment and proximity to major EU economies.
The expansion is particularly significant given the increasing demand in Europe for retail investing platforms that provide accessible and affordable market entry. DriveWealth’s solutions enable digital brokers and financial platforms to offer customers fractional shares and real-time trading experiences, which have proven highly popular in markets like the U.S. This move aligns with DriveWealth’s long-term growth strategy and its commitment to democratizing access to investing across the globe.
Lithuania’s supportive regulatory framework and well-developed fintech infrastructure make it an ideal location for DriveWealth’s entry into Europe. The country’s fintech-friendly policies allow innovative financial service providers to set up and scale efficiently. DriveWealth’s presence in Lithuania not only adds to the growing cluster of fintech firms but also reinforces the country’s reputation as a rising fintech powerhouse within the EU.
Source: Finance Magnates
Key Takeaways and Strategic Insights
As seen from today’s top stories, several overarching themes shape the fintech landscape:
- Global Partnerships and Local Expansion: Visa’s collaboration with SentBe exemplifies how partnerships enable fintech firms to break into regional markets by addressing specific customer needs.
- Transparency in Subscription Models: The customer backlash against difficult-to-cancel fintech services raises concerns about the sustainability of current subscription models.
- Innovation in Customer Onboarding: Pinwheel and Terafina’s partnership highlights the importance of streamlined onboarding processes as a means to increase customer satisfaction and improve retention.
- Mergers and Acquisitions to Fill Service Gaps: nCino’s acquisition of FullCircl illustrates a broader trend of consolidation, where fintech companies acquire specialized players to broaden their product portfolios.
- Regional Hubs as Strategic Launch Pads: DriveWealth’s decision to establish a base in Lithuania underscores the importance of regional fintech hubs in providing a supportive environment for global expansion.
Today’s roundup underscores the adaptability of fintech companies as they navigate emerging challenges and opportunities. From addressing regional financial needs to innovating customer experience, fintech firms continue to redefine what it means to engage in modern finance. As the industry grows, so too does the necessity for ethical practices, robust infrastructure, and agile customer solutions. In this competitive environment, the companies that prioritize transparency, customer satisfaction, and strategic expansion will set the standard for the future of finance.
The post Fintech Pulse: Your Daily Industry Brief – Breaking Trends and Insights in Fintech appeared first on HIPTHER Alerts.
Fintech
Fintech Pulse: A Snapshot of Global Expansion, Regulatory Moves, and Transformative Tech in Fintech
In today’s fast-paced fintech ecosystem, the global narrative is pivoting towards integration, regulation, and technological advancement as new entrants aim for U.S. markets, emerging startups seek growth capital, and financial giants align with innovative trends. Here’s a breakdown of recent developments that underline the dynamism in fintech and the paths to profitability and compliance as technologies reshape financial services globally.
Singapore’s MAS Advocates for a Borderless Fintech Network
The Monetary Authority of Singapore (MAS) recently emphasized the importance of cross-border collaboration in the global fintech ecosystem, with chairman Ravi Menon outlining a vision for a seamless fintech network. This network would transcend geographic and regulatory boundaries, allowing Singapore and its fintech entities to engage in mutually beneficial partnerships worldwide. Menon highlighted that Singapore’s strategic geographic position and regulatory environment make it a natural hub for fintech collaborations that advance financial inclusion and foster innovation.
This call for a borderless approach underscores the need for interoperability among financial systems globally, particularly as digital payments and decentralized finance become increasingly prevalent. Singapore’s initiatives signal that regions with supportive fintech policies can potentially drive new growth avenues in the digital economy.
Source: Channel News Asia
Thredd’s McCarthy to Fintech Entrants: Be Sponsor-Bank Ready for the U.S. Market
Fintech firms eyeing the U.S. market face a challenging regulatory landscape. John McCarthy of Thredd advises that those looking to enter the U.S. market should prioritize establishing sponsor-bank partnerships. The U.S. regulatory framework mandates that fintech companies collaborate with sponsor banks to access the financial system, making this step a critical milestone for fintechs aiming to operate stateside.
McCarthy’s guidance highlights an increasingly common barrier for fintech companies: navigating complex regulatory requirements to gain a foothold in the lucrative U.S. financial sector. For many, this means rethinking business models to comply with financial regulations, even as they innovate. This approach has led several fintech firms to secure sponsorship deals with established banks, enabling them to deliver compliant financial services to U.S. consumers.
Source: PYMNTS
Spidr Fintech Lands Funding to Drive Growth with Wells Fargo Backing
Spidr, a rising fintech star, has successfully raised capital, attracting the attention of Wells Fargo and other financial institutions. The fresh funding will fuel Spidr’s ambitious expansion plans, further positioning it as a formidable player in the fintech space. This backing from Wells Fargo represents a trend where major financial institutions are investing in or partnering with fintech startups to gain a competitive edge and meet evolving consumer expectations.
For Spidr, the capital injection aligns with a robust strategy for market penetration, and it’s an opportunity to leverage Wells Fargo’s extensive network and resources. Spidr’s latest round of funding signifies that traditional banks are increasingly open to collaborations with fintech entities, a trend that is reshaping the financial services landscape as banks seek to stay competitive in the digital age.
Source: Charlotte Business Journal
Elphinstone’s Trikl: Innovating Digital Payments in MENA
Elphinstone, a digital payments startup based in MENA, is introducing its innovative solution, Trikl, aimed at transforming payments across the region. The startup’s recent developments underscore its commitment to creating accessible and user-friendly payment systems tailored for the MENA market’s unique dynamics. By addressing specific needs such as currency exchange complexities and local payment preferences, Trikl is positioning itself as a key player in the digital payments landscape.
Trikl’s approach is particularly noteworthy as it caters to the MENA market’s diverse consumer base and taps into the region’s growing appetite for digital financial services. This development represents a promising advancement in digital payment solutions, fostering greater financial inclusion and enabling smoother transactions across borders in MENA.
Source: Menabytes
Hong Kong Sets Rules on Responsible AI to Get Ahead of Disruptive Tech
Hong Kong has unveiled regulatory guidelines on responsible AI use, a proactive move that places it among the leading jurisdictions in AI governance. This development signals Hong Kong’s recognition of the transformative impact of AI on financial services, as it sets clear boundaries on how AI can be used responsibly in financial applications. With AI continuing to disrupt financial services, responsible usage is becoming a priority, particularly in regions where financial systems are heavily reliant on technology.
These guidelines aim to balance innovation with accountability, addressing concerns over data privacy, ethical considerations, and risk management. Hong Kong’s stance on AI regulation reflects its commitment to safeguarding both consumers and financial institutions, setting a high standard for other regions to emulate in terms of regulatory foresight.
Source: South China Morning Post
The post Fintech Pulse: A Snapshot of Global Expansion, Regulatory Moves, and Transformative Tech in Fintech appeared first on HIPTHER Alerts.
The Changing Landscape of Global Fintech
The financial technology (fintech) industry continues to evolve at a rapid pace, making headlines worldwide. Today’s briefing dives into transformative moves and strategic shifts within fintech companies across diverse geographies. From innovative alliances to prominent executive appointments and ambitious expansions into banking, the industry is positioning itself for a future that intertwines financial inclusivity, regulatory compliance, and customer-centric technology. Let’s unpack these developments.
XTransfer’s Hong Kong Fintech Week Entry: Scaling Financial Access in China
XTransfer, a Shanghai-based cross-border financial services firm, has joined the Hong Kong Fintech Week to showcase its solutions, marking a significant milestone in its journey to bridge financial gaps for small and medium-sized enterprises (SMEs) in China. Founded in 2017, XTransfer addresses common barriers faced by Chinese SMEs in accessing international financial networks due to regulatory complexities. The firm’s platform facilitates smoother cross-border transactions by helping businesses navigate regulatory and compliance challenges seamlessly.
The strategic choice to participate in Hong Kong Fintech Week highlights XTransfer’s commitment to strengthening connections within the Asian financial hub. The firm seeks to tap into the region’s wealth of potential clients and partners, as Hong Kong continues to be a pivotal gateway for businesses engaging in cross-border trade with China. The move is also symbolic of the broader fintech community’s push to create inclusive and accessible financial networks, even amid evolving regulatory landscapes.
Source: XTransfer Joins Hong Kong Fintech Week to Expand Global Presence (Yahoo Finance)
Propelld’s New Chief Business Officer: Driving Growth and Product Innovation
Propelld, an Indian ed-finance company, recently appointed Manoj Shetty as its new Chief Business Officer (CBO), signaling a strong commitment to enhancing its market penetration and product offerings. Known for his extensive experience in fintech, particularly in business development and scaling, Shetty is expected to spearhead Propelld’s ambitions to bring tailored financing solutions to India’s education sector.
Propelld focuses on providing student loans and education financing to underserved sections of India, leveraging advanced data analytics to assess borrowers’ potential rather than conventional credit scores. Shetty’s addition to the leadership team suggests that Propelld aims to double down on its innovative data-driven model to better serve the unique financial needs within education.
As the industry grows more competitive, having a seasoned executive like Shetty could be instrumental for Propelld to fortify its unique value proposition. His track record indicates a capacity for handling the nuanced needs of financial services catering to niche markets, and he may well position Propelld to scale sustainably in the expanding ed-finance space.
Source: Propelld Names Manoj Shetty as Chief Business Officer (IBS Intelligence)
Solo Funds Faces Legal Hurdles: The Class-Action Lawsuit Dilemma
In a move that could impact peer-to-peer lending’s regulatory path, Solo Funds faces a class-action lawsuit, alleging that the company’s lending practices breached consumer protection laws. As a platform designed to offer emergency loans to consumers facing cash flow issues, Solo Funds charges “tips” rather than conventional interest rates, a tactic intended to circumvent traditional lending regulations. However, plaintiffs argue that these tips effectively function as disguised interest, making Solo Funds’ practices deceptive and exploitative.
This lawsuit is a critical test for the burgeoning peer-to-peer lending segment, which has grown immensely in recent years as consumers seek alternatives to traditional financial institutions. The outcome may force similar platforms to reassess how they balance operational flexibility with regulatory compliance, potentially reshaping the industry’s approach to short-term lending.
With growing scrutiny on fintech lending platforms, the legal proceedings could also open a wider debate on how fintech firms should transparently operate within the bounds of financial laws. If Solo Funds is found liable, it may prompt stricter regulatory frameworks, affecting peer-to-peer platforms that rely on nontraditional models to attract users.
Source: Lending Fintech Solo Funds Faces Class-Action Lawsuit (TechCrunch)
Slice’s Transformation: A Fintech Company’s Foray into Traditional Banking
India-based Slice, originally a credit-based fintech, has announced its transition into a full-fledged bank, allowing it to offer conventional banking services in addition to its credit solutions. By securing regulatory approval to operate as a bank, Slice aims to expand its product range and deepen its relationship with a fast-growing consumer base in India. This move exemplifies a larger trend of fintech firms seeking to bridge the gap between traditional banking and innovative financial services.
Slice’s venture into banking will also set an intriguing precedent for other fintech companies in India and beyond. The company has successfully carved a niche among young users with its simple, digital credit products. As a bank, it can now offer savings accounts, lending products, and other services, thus creating a one-stop platform that could enhance customer retention and lifetime value.
The expansion to full banking status raises questions about how effectively Slice will manage its dual roles as a fintech innovator and a traditional bank, especially in a market as large and complex as India’s. It also marks a pivot point in the narrative of fintech companies morphing into full-service financial institutions, a trend that is gaining traction globally.
Source: India Fintech Slice Expands to Become a Bank (TechCrunch)
FullCircl’s 2025 Identity Verification Report: Insights into Compliance Challenges
FullCircl, a leading regulatory technology provider, recently released its “2025 State of Identity Verification” report, shedding light on the evolving landscape of identity verification and the challenges businesses face in maintaining compliance. As financial crimes become more sophisticated, firms increasingly invest in identity verification tools to stay ahead. According to the report, over 75% of financial institutions rank identity verification as a critical priority, citing the surge in fraudulent activities as a prime concern.
The report also highlights an industry-wide push towards digital identity systems and the use of artificial intelligence in detecting fraud patterns. As regulatory demands tighten and compliance risks rise, firms are urged to adapt swiftly. FullCircl’s findings underscore a need for seamless, real-time verification solutions that do not compromise customer experience—a delicate balance to maintain as identity verification protocols become more stringent.
The insights from FullCircl’s report reveal a heightened industry focus on ensuring robust identity frameworks that foster trust without hindering the ease of digital transactions. This growing demand aligns with broader trends where digital trust is crucial in retaining customers and enhancing their satisfaction.
Source: FullCircl Releases 2025 State of Identity Verification Report (PR Newswire)
The post Fintech Pulse: Today’s Key Industry Developments, Appointments, and Regulatory Challenges appeared first on HIPTHER Alerts.
-
Fintech5 days agoFintech Pulse: Today’s Key Industry Developments, Appointments, and Regulatory Challenges
-
Fintech PR3 days agoThe Rise of Insurance Third Party Administrator Market: A $544.67 Billion Industry Dominated by Tech Giants – Sedgwick, Crawford and Company and CorVel Corp | The Insight Partners
-
Fintech2 days agoFintech Pulse: Your Daily Industry Brief – Breaking Trends and Insights in Fintech
-
Fintech3 days agoFintech Pulse: A Snapshot of Global Expansion, Regulatory Moves, and Transformative Tech in Fintech
-
Fintech PR3 days agoMinisters and Global Executives to Converge at the Second Edition of Gateway Gulf in Bahrain
-
Fintech PR2 days agoROYAL CANADIAN MINT WINS TWO INTERNATIONAL ASSOCIATION OF CURRENCY AFFAIRS’ 2024 EXCELLENCE IN CURRENCY AWARDS
-
Fintech PR2 days agoXinhua Silk Road: Financial co-op for global common dev’t under spotlight at forum held in E. China’s Shanghai Jing’an
-
Fintech PR4 days agoXlence Launches Cutting-Edge Trading Platforms with MetaTrader 4 Integration