Fintech
Railtown Capital Corp. to Combine with Selten Metal Corp. Operator of the “THOR” Rare Earth Exploration Project Located in Clark County, Nevada
Vancouver, British Columbia–(Newsfile Corp. – March 28, 2022) – Railtown Capital Corp. (TSXV: RLT.P) (“Railtown” or the “Company“) and Selten Metal Corp. (“Selten Metal“), an arm’s length private company incorporated under the laws of British Columbia, announced today that they have signed a non-binding letter of intent dated March 17, 2022 to effect a transaction that will result in a reverse takeover of Railtown by Selten Metal (the “Transaction“). Trading in the common shares of the Company (the “Common Shares“) has been halted in accordance with the policies of the TSX Venture Exchange (the “TSXV“) and will remain halted until such time as all required documentation has been filed with and accepted by the TSXV.
The Transaction is not a Non-Arm’s Length Qualifying Transaction under TSXV Policy 5.4. Accordingly, Railtown will not be required to obtain shareholder approval of the Transaction.
About Selten Metal Corp.
Selten Metal was incorporated in May of 2021 and, pursuant to an option agreement (the “Option Agreement“) with NexOptic Technology Corp. (“NexOptic“) dated December 15, 2021, as amended on February 17, 2022 and March 17, 2022, holds an option to acquire up to a 100% interested in the THOR heavy and light rare earth project (“THOR” or the “THOR Project“), consisting of roughly 2,170 hectares located in Clark County, Nevada.
German for “rare,” the word “Selten” represents Selten Metal Corp’s desire to become a leading producer of heavy and light rare earth elements in the United States-as US sourced rare earths are becoming increasingly critical to the climate economy, modern technologies and for global geopolitical stability.
The THOR Heavy & Light Rare Earth Project
The THOR Project is situated 120km from Las Vegas in an active mining region in Southern Nevada, 26 kilometres from what was once the largest rare-earth element (“REE“) mine in the world, Mountain Pass. In 2017, Mountain Pass reopened as the largest REE mine in the Western Hemisphere, and the only REE mine in North America (operated by MP Materials Corp). Reference to mineralization on any properties beyond THOR isn’t necessarily indicative of mineralization on the THOR Project. Selten Metal is focused on sustainable exploration and development for the THOR Project.
Selten is in the process of having a current technical report on the THOR Project commissioned and further and more fulsome disclosure will be provided in subsequent news releases. The technical report will be filed on the Resulting Issuer’s (as defined below) SEDAR profile on completion of the Transaction.
Pursuant to the Option Agreement, in order for Selten to acquire an initial 75% interest in and to the THOR Project, Selten must: (a) make a cash payment of $1,100,000 to NexOptic by May 15, 2022 (the “Option Cash Payment“), (b) issue to NexOptic such number of common shares in its capital as will represent 9.5% of the issued and outstanding Selten shares post-issuance (on a pre-Transaction basis), (c) issue to NexOptic an additional 500,000 shares on the date which is 12 months following the date on which Selten is listed on a Canadian securities exchange (the “Listing Date“) and (d) issue to NexOptic a further additional 500,000 shares on the date which is 24 months following the Listing Date. If a Listing Date does not occur within 24 months of the date of the Option Agreement, the option contemplated thereunder will terminate. The Option Agreement provides that, upon the exercise of the initial option, Selten Metal will have the right (the “Second Option“) to acquire the remaining 25% interest in the THOR project, by issuing to NexOptic an additional 5,000,000 common shares, which issuance shall occur upon the date which is either 36 months following the Listing Date or 48 months following the Listing Date, at the discretion of Selten. For greater certainty, any and all share issuance obligations of Selten Metal under the Option Agreement will be satisfied through the issuance of an equal number of common shares of the Resulting Issuer, in the event the Transaction is consummated.
Resulting Issuer Board of Directors and Management
Upon completion of the Transaction, the board of directors and senior management of the Resulting Issuer is expected to be drawn largely from the current Selten Metal team and will be comprised of individuals with extensive experience in the development, financing and growth of public resource companies.
The following sets out the backgrounds of the persons who are currently expected to be directors and officers of the Resulting Issuer following completion of the Transaction.
Jenny-Claire M. Ganasi, CEO and Director, is a Chartered Professional Accountant with more than 15 years experience working with public companies. Prior to joining Selten Metal, Jenny-Claire spent six years on secondment in Norway supporting Teekay Offshore Partners (L.P. (now Altera Infrastructure L.P. owned by Brookfield Business Partners) (NYSE: ALIN) with corporate, management reporting and finance, planning and analysis for the executive leadership team and board of directors. Prior to this, Jenny-Claire spent four years with Teekay LNG Partners (NYSE: TGP) in Vancouver in corporate reporting and four years with PricewaterhouseCoopers LLP in Vancouver in both audit and assurance and tax groups. Jenny-Claire holds a bachelor of Technology in Accounting and a diploma in Financial Management, Advanced Taxation from British Columbia Institute of Technology, and a certificate in Sustainability Management from University of British Columbia.
Paul McKenzie, Director, is the CEO and a director of NexOptic and was the CEO of NexOptic’s predecessor Elissa Resources, the company that made the original rare earth discoveries on the THOR Project. Paul’s experience includes founder, co-founder, CEO, CFO and director roles for several successful public companies in the strategic minerals sector (including discoveries through to feasibility stage, green energy, and battery metals) and the technology sector (including software solutions and artificial intelligence). Paul has assisted in raising approximately USD $120 million in working capital for his affiliated corporations and has managed subsidiaries and projects in Canada, the United States, South Korea, Mongolia, and China. Paul has been directly involved in partnerships, joint ventures, asset sales, license agreements and mergers and acquisitions between his companies and numerous corporations ranging from start-ups to multinationals with market capitalization exceeding USD $600 billion.
Jim Guilinger, Director and Lead THOR Consultant, is a geologist with extensive REE expertise spanning more than 40 years. This includes project management and being a technical lead on rare earths projects throughout the USA including Wyoming, Nevada, and Arizona. Jim has completed numerous industrial and strategic minerals market studies, analysis, and investigations for clients and companies around the world. Jim is the Chief Operating Officer at Bradda Head Lithium and has been a private consultant for more than 20 years through World Industrial Minerals (“WIM“). Prior to forming WIM, Jim was a director of Exploration and Development in Mexico for Eldorado Gold and managed numerous industrial minerals, precious and base metal projects. Jim is a “qualified person” as such term is defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
Jessie Friend, Director, has overseen brand and business direction from start-ups to divisions of multinationals including Panavision and has assembled sales and marketing teams that continue to work globally. Jessie is also a fleet advisor for Boom & Bucket, a modern marketplace for everything heavy equipment for the mining industry, renewable energy companies, pipelines and more. Jessie brings to Selten Metal exceptional negotiating, business management, budgeting, financial reporting, and team building skills.
Jason Felsman, THOR Project Manager, is a geologist with over a decade of experience working as a consulting geologist and project manager to companies such as Agnico Eagle (NYSE: AEM), Newmont (NYSE: NEM) and others. His extensive REE experience includes senior geologist with Rare Element Resources (OTCQB: REEMF). Jason is an expert in project management including drill program planning and management and has extensive skills and experience in mineral property evaluation, project mapping and sampling. Jason is highly proficient in GIS: ArcGIS & QGIS and experienced in Petrographic and Micro-Analytical Techniques (SEM, LA-ICPMS, CL). Jason completed his geological studies at University of Arkansas: B.S., and University of Idaho: M.S.
James Clark, Senior Project Consultant, has more than 30 years of experience as an exploration geologist for a variety of commodities, including REE’s, industrial minerals, precious, base, and other specialty metals. James has extensive REE experience that includes working on 33 REE prospects across three continents. In 1998, James founded Applied Petrographics to provide petrographic and microanalytical services to the mining industry and clients include Barrick Gold (NYSE: GOLD), Newmont (NYSE: NEM), Hecla (NYSE: HL), AngloGold (NYSE: AU), CVRD, Quest Rare Minerals, and Rare Element Resources. Prior to this, James worked for a variety of mining companies, including Molycorp, Hecla, Newmont, and Rare Element Resources. During his time at Hecla he played a key role in identifying Rare Element Resources’ current Bear Lodge rare earth resource and the property’s underlying gold mineralization potential. While at Rare Element Resources, James served as VP of Exploration.
In addition, it is also anticipated that one of the current directors of Railtown will be appointed to the Resulting Issuer’s board of directors and a CFO and a corporate secretary will be appointed for the Resulting Issuer. Once determined, the identify of these individuals will be disclosed in a subsequent news release.
The Transaction
It is intended that the Transaction will constitute the “Qualifying Transaction” of Railtown, as such term is defined in the policies of the TSXV. Upon completion of the Transaction, the shareholders of Selten Metal will become shareholders of Railtown, a publicly traded company listed on the TSXV. The resulting company after completion of the Transaction (the “Resulting Issuer“) will carry on the current business of Selten Metal and intends to be listed on the TSXV as a Tier 2 resource issuer.
The Transaction is proposed to be effected by way of a “three-cornered” amalgamation under which securityholders of Selten Metal will exchange their shares of Selten Metal for Common Shares. Shareholders of Selten Metal will be issued one Common Share at a deemed price of $0.20 per share for each common share held of Selten. In addition, upon completion of the Transaction, the Resulting Issuer will assume Selten Metal’s obligation to issue common shares to NexOptic pursuant to the terms of the Option Agreement.
On completion of the Transaction, Selten Metal will be a wholly-owned subsidiary of the Resulting Issuer. On closing (the “Closing“) of the Transaction, the Resulting Issuer’s name will be changed to “Selten Metal Corp.” or another name acceptable to Selten Metal.
Closing of the Transaction is subject to certain conditions, including but not limited to: (a) the completion of satisfactory mutual due diligence; (b) the receipt of all necessary approvals of the boards of directors of Railtown and Selten Metal; (c) the receipt of all required consents and approvals, including without limitation, approval of the Transaction by the TSXV as Railtown’s Qualifying Transaction; (d) the Resulting Issuer satisfying the initial listing requirements set by the TSXV for a Tier 2 mining issuer; (e) the entry into of a definitive agreement; (f) approval of the shareholders of Selten Metal; and (g) the completion of the Financing (defined below).
The Company also intends to issue 475,000 Common Shares to Canaccord Genuity Corp. at a deemed price of $0.20 per share in connection with the Transaction. The payment of the finder’s fee is subject to TSXV acceptance. Further details regarding the Transaction and any finder’s fees payable will be included in a subsequent news release once additional details become available.
Sponsorship
Railtown will be seeking an exemption from the sponsorship requirements of the TSXV pursuant to the provisions of section 3.4(a)(ii) of TSXV Policy 2.2.
Proposed Financing
In connection with the Transaction, Selten Metal intends to complete a private placement (the “Financing”) of 15,000,000 common shares at a price of $0.15 per share, for aggregate gross proceeds of $2,250,000. Finder’s fees may be paid to qualified finders in accordance with the Financing.
It is anticipated that $1,100,000 of the net proceeds from the Financing will be used towards the Option Cash Payment.
Further details regarding the Financing will be included in a subsequent news release once additional details become available.
Pro Forma Share Capital of the Resulting Issuer
Assuming the sale of all 15,000,000 shares pursuant to the Financing, it is anticipated that, on Closing of the Transaction, there will be 50,911,602 common shares of the Resulting Issuer issued and outstanding (52,711,602 common shares on a fully diluted basis), assuming the exercise of all outstanding options and warrants. It is expected that following the completion of the Transaction and the Financing, but assuming no exercise of the Second Option, existing Railtown shareholders will hold approximately 25.5% of the common shares of the Resulting Issuer, former shareholders of Selten Metal will hold approximately 35.5% of the common shares of the Resulting Issuer and NexOptic will hold approximately 9.5% of the common shares of the Resulting Issuer.
It is anticipated that a portion of the issued and outstanding Common Shares of the Resulting Issuer will be subject to the escrow and resale restrictions pursuant to the policies of the TSXV.
Selected Financial Information
The following table sets out selected financial information with respect to Selten as at and for the period noted. This information information has not been audited, and may be subject to adjustment:
| As at December 31, 2021 and for the period from incorporation on May 26, 2021 to December 31, 2021 (unaudited) |
|
| Total Revenues | Nil |
| Net Income (Loss) | $(117,842) |
| Total Assets | $130,305 |
| Total Liabilities | $28,147 |
Further financial information will be included in the listing application to be prepared in connection with the Transaction.
About Railtown
Railtown is publicly listed on the TSXV under the symbol RLT.P. Railtown was formed as a Capital Pool Company in accordance with policies of the TSXV in order to identify and evaluate businesses and assets for acquisition and financing.
The address of the Company’s registered and records office is 2200 – 885 West Georgia St., Vancouver, BC, V6E 3E8.
For further information, please contact:
Railtown Capital Corp.:
Cameron White, Chief Executive Officer
Phone: 604-765-2601
Email: [email protected]
Selten Metal Corp.:
Jenny-Claire Ganasi, Chief Executive Officer
Email: [email protected]
www.seltenmetal.com
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the terms and conditions of the proposed Transaction; the Company’s objectives, goals or future plans; Selten Metal’s objectives, goals or future plans; statements regarding issuing subsequent news releases; completion of the Financing; payment of the Option Cash Payment; statements regarding the Second Option; the composition of the board of directors and management of the Resulting Issuer; statements regarding obtaining a waiver to the sponsorship requirements of the TSXV; further financial information being included in the listing application to be prepared in connection with the Transaction; the receipt of the requisite approvals with respect to the Transaction and the business and operations of the Resulting Issuer following the completion of the Transaction. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in Railtown’s public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although Railtown believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, Railtown and Selten Metal disclaim any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Reader Advisory
Completion of the Transaction is subject to a number of conditions, including but not limited to TSXV acceptance and, if applicable pursuant to TSXV requirements, majority of the minority shareholder approval. Where applicable, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.
The TSXV has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this press release.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility of the adequacy or accuracy of this release.
Not for distribution to U.S. news wire services or dissemination in the United States
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/118485
Fintech
Fintech Pulse: Industry Updates on Regulatory Pressures, Fraud Prevention, Humanitarian Finance, and Strategic Sales
As fintech companies continue to shape the global financial landscape, regulatory pressures, fraud prevention, human-centered financial services, and high-stakes acquisitions are front and center. Today’s briefing dives into the most recent developments impacting the fintech ecosystem. The following op-ed reflects on these shifts, bringing an analytical view of the news from regulatory frictions to strategic partnerships, framed within the complex interplay between technology, finance, and global regulations.
Lawmakers Sound the Alarm on Fintech Regulatory Overreach
In the evolving U.S. fintech landscape, a tug-of-war between federal and state regulators is heating up. Lawmakers have raised concerns about regulatory overreach, warning that fragmented federal and state frameworks could hinder fintech innovation and growth. Federal agencies, particularly the Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB), have clashed with state regulatory bodies. These frictions have emerged over issues like state licensing requirements, the use of “true lender” rules, and the boundaries of federal preemption.
As fintech firms work to innovate, they often encounter a regulatory quagmire where state and federal rules overlap or contradict each other. For instance, the “true lender” doctrine continues to provoke disputes on jurisdiction, as it can dictate the level of oversight a fintech lender might face. States argue that fintech companies leveraging national banking charters to circumvent state regulations are violating consumers’ rights and disrupting fair financial access.
From an op-ed perspective, it’s clear that this regulatory tug-of-war has significant implications for fintech firms and the consumers they serve. State-level regulators have a point: a more localized approach might better protect consumers from predatory practices and opaque pricing. However, the federal approach offers a harmonized path that could encourage interstate fintech expansion. The tension, however, threatens to stall industry innovation, leaving companies in regulatory limbo and consumers with uneven protections.
Source: PYMNTS News, October 2024
Fraud and AML Losses Increase, Pressuring Fintechs to Adapt
In a recent report by Unit21, the scale of fraud and anti-money laundering (AML) losses within the fintech sector has come into stark relief. The report highlights an estimated annual loss of billions for fintech companies due to fraud and AML breaches. Key issues range from inadequate identity verification processes to evolving cyber threats, which bad actors exploit to perpetrate fraud.
Unit21’s findings suggest that while fintech companies invest heavily in technology, they often fail to keep up with the agility of fraud tactics. The report underscores how fraudsters adapt to changes in fraud-detection protocols faster than expected, using techniques like synthetic identity fraud, account takeovers, and elaborate money laundering schemes. This has intensified the need for robust Know Your Customer (KYC) and AML mechanisms, as traditional defenses prove ineffective against modern fraud techniques.
From an op-ed lens, the impact of fraud losses on fintechs isn’t limited to financial losses. It also erodes trust, one of the most valuable assets for fintech platforms. To maintain consumer confidence, companies must take a more proactive stance in combating fraud. Advanced solutions incorporating AI and machine learning are pivotal for effective fraud detection and prevention, yet they must be implemented carefully to avoid false positives that frustrate legitimate users. The report’s insights remind us that innovation without security measures is an open invitation for exploitation.
Source: The Paypers, November 2024
Internet Computer Protocol Supports “Fintech for Humanity” at Singapore Fintech Festival 2024
At this year’s Singapore Fintech Festival, Internet Computer Protocol (ICP) announced its support for the “Fintech for Humanity” initiative, highlighting the role of digital financial solutions in addressing global humanitarian challenges. As part of this event, ICP has focused on creating scalable, decentralized technologies aimed at providing financial services to underserved communities globally.
This initiative aligns with a growing trend in fintech—harnessing technology to promote social impact. ICP’s endorsement of “Fintech for Humanity” underscores a commitment to financial inclusivity, promoting a decentralized financial ecosystem that extends beyond the traditional banking infrastructure. By leveraging blockchain technology, ICP seeks to empower populations without bank access, addressing social issues from poverty alleviation to emergency financial aid.
In an industry often accused of prioritizing profit over people, “Fintech for Humanity” serves as a refreshing counter-narrative. The backing from a player like ICP brings credibility and visibility to humanitarian fintech efforts, paving the way for innovations aimed at social good. This shift is likely to inspire other fintech companies to explore similar initiatives, recognizing the need for ethical considerations in the financial technology space.
Source: PR Newswire, November 2024
Strategic Acquisition: One Equity Partners Sells Dragonfly Financial Technologies to FIS
In a strategic move, One Equity Partners has completed the sale of Dragonfly Financial Technologies to FIS, marking a significant consolidation within the fintech landscape. Dragonfly, known for its payments solutions, has developed an extensive suite of technology that enhances real-time payments capabilities, an increasingly sought-after service in today’s fast-paced financial environment. This acquisition is expected to bolster FIS’s digital payment infrastructure, as they integrate Dragonfly’s offerings into their extensive portfolio.
The transaction points to a broader trend of consolidation in fintech, where established players acquire specialized firms to expand their service offerings and remain competitive. FIS’s acquisition of Dragonfly is particularly timely, as the demand for streamlined payment solutions grows. Real-time payments are becoming more critical, not only for enhancing the user experience but also for responding to regulatory demands for greater transparency and security.
From an op-ed perspective, FIS’s strategic acquisition of Dragonfly is indicative of a maturing industry. Mergers and acquisitions (M&A) activity in fintech is a double-edged sword. While it consolidates resources and expertise, it also reduces market competition, potentially stifling smaller players. As the industry evolves, M&A will likely intensify, challenging regulators to balance fostering innovation with maintaining competitive fairness.
Source: Business Wire, November 2024
AZA Finance Secures PSP License in Nigeria, Marking Milestone for Fintech Expansion in Africa
AZA Finance has announced that its subsidiary has been granted a Payments Service Provider (PSP) license by the Central Bank of Nigeria. This license authorizes AZA Finance to offer digital payment solutions within Nigeria, an emerging market with a rapidly growing demand for financial services. The PSP license enables AZA Finance to expand its presence in Africa’s fintech ecosystem, supporting digital transformation across the continent.
This development underscores Nigeria’s commitment to digital finance, especially as the country works toward achieving broader financial inclusion. AZA Finance’s PSP license enables the company to leverage its cross-border payments solutions, which are designed to streamline transactions in diverse African markets. This milestone is not only significant for AZA Finance but also for Nigeria, as the license positions the country as a regional fintech hub.
Looking forward, Nigeria’s regulatory environment will play a critical role in shaping fintech’s impact on the economy. The Central Bank’s move to grant PSP licenses is commendable, signaling a welcoming stance for fintechs. However, maintaining robust oversight will be essential to prevent issues related to money laundering and ensure consumer protection as fintech expands.
Source: Business Wire, November 2024
Conclusion
In today’s fast-paced fintech environment, companies are navigating complex regulatory landscapes, tackling evolving fraud threats, expanding social impact initiatives, consolidating through acquisitions, and making strategic moves in emerging markets. This briefing provides an overview of the latest developments, reflecting the diverse and rapidly shifting priorities within the fintech industry. Regulatory clarity, technological vigilance, and ethical considerations are increasingly pivotal as fintech firms redefine the boundaries of finance on a global scale.
The post Fintech Pulse: Industry Updates on Regulatory Pressures, Fraud Prevention, Humanitarian Finance, and Strategic Sales appeared first on HIPTHER Alerts.
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.
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