Fintech
Green Panda Announces Proposed Qualifying Transaction
Toronto, Ontario–(Newsfile Corp. – April 1, 2022) – Green Panda Capital Corp. (TSXV: GPCC.P) (“Green Panda” or the “Company“) is pleased to announce that it has entered into a non-binding letter of intent dated March 15, 2022 (the “LOI“) with 1301666 B.C. Ltd. (“BC Company“), a private company that holds the rights to acquire an interest in two mineral exploration properties in Nevada. The LOI outlines the principal terms and conditions of a business combination by way of a share exchange, merger, amalgamation, arrangement, takeover bid, or other similar form of transaction (the “Proposed Transaction“), which will result in BC Company becoming a wholly-owned subsidiary of Green Panda, or otherwise combining its corporate existence with a wholly-owned subsidiary of Green Panda.
Green Panda is a Capital Pool Company and intends for the Proposed Transaction to constitute its Qualifying Transaction pursuant to the policies of the TSX Venture Exchange (the “TSXV“). In connection with the announcement of the LOI, the trading in the common shares of Green Panda (“Green Panda Shares“) has been halted pursuant to the policies of the TSXV. It is anticipated that Trading will remain halted until the completion of the Proposed Transaction. It is anticipated that the reporting issuer resulting from the Proposed Transaction (the “Resulting Issuer“) will qualify as a Tier 2 Mining Issuer pursuant to the requirements of the TSXV. Unless otherwise indicated, any capitalized term contained in this press release that is not defined herein has the meaning ascribed to such term in the policies of the TSXV.
Proposed Transaction Summary
Upon completion of the Proposed Transaction, the Resulting Issuer will carry on the business of BC Company. Pursuant to the Proposed Transaction, holders of the issued and outstanding common shares of BC Company (“BC Company Shares“) will exchange their BC Company Shares for common shares of the Resulting Issuer (“Resulting Issuer Shares“) on a one-for-one basis (the “Exchange Ratio“). Convertible securities of BC Company will be exercisable to acquire Resulting Issuer Shares at the Exchange Ratio. The final structure of the Proposed Transaction is subject to the receipt of tax, corporate and securities law advice for both Green Panda and BC Company.
As per the LOI, it is anticipated that concurrently with the closing of the Proposed Transaction, Green Panda or BC Company, as the case may be, will complete an equity financing (the “Concurrent Financing“) to raise gross proceeds of $2,000,000, or such other amount as is sufficient to meet the initial listing requirements of the TSXV, at a price to be determined in the context of the market, anticipated to be $0.50 per share after reflecting the Consolidation (as defined below).
Immediately prior to the closing of the Proposed Transaction, and subject to Green Panda shareholder approval, it is anticipated that Green Panda will undertake a share consolidation (the “Consolidation“) of the Green Panda Shares at a ratio to be based on the Concurrent Financing pricing, such that the outstanding common shares of Green Panda will have an aggregate deemed value of at least $1,000,000.
On closing of the Proposed Transaction, the board of the Resulting Issuer will be comprised of nominees of BC Company, and the Resulting Issuer is expected to change its name to “Falcon Butte Minerals Corp.” subject to Green Panda shareholder approval, or such other name as is determined by BC Company (the “Name Change“).
Closing of the Proposed Transaction will be subject to a number of conditions precedent, including, without limitation:
- receipt of all required regulatory, corporate and third-party approvals, including TSXV approval, and compliance with all applicable regulatory requirements and conditions necessary to complete the Proposed Transaction;
- completion of satisfactory results from due diligence investigations for each of the parties;
- completion of BC Company’s acquisition of the Properties (as defined below);
- completion of the Concurrent Financing; and
- other mutual conditions precedent customary for a transaction such as the Proposed Transaction.
The Proposed Transaction is not a Non-Arm’s Length Qualifying Transaction, is not subject to TSXV Policy 5.9, and it is not expected that the Proposed Transaction will be subject to approval by Green Panda’s shareholders. There are no Non-Arm’s Length Parties of Green Panda that are Insiders of BC Company.
About BC Company
BC Company was incorporated pursuant to the Business Corporations Act (British Columbia) on April 22, 2021. Since incorporation, BC Company has focused its efforts on acquiring interests in mineral exploration properties in Nevada and obtaining a listing on a Canadian stock exchange.
BC Company’s share capital consists of an unlimited number of BC Company Shares without par value. BC Company currently has a total of 46,801,131 BC Company Shares and 15,531,130 common share purchase warrants (the “BC Company Warrants“) outstanding. Each BC Company Warrant entitles the holder thereof to acquire a BC Company Share at an exercise price of $0.30 per BC Company Share until March 17, 2024. There are currently no Control Persons of BC Company; however, it is anticipated that Lion Copper and Gold Corp. (“Lion CG“), a British Columbia company listed on the TSXV will become a Control Person of BC Company upon the closing of the Butte Valley Agreement (as defined and as further described below).
BC Company holds the rights to acquire from TUVERA Exploration Inc. (“TUVERA“) its majority interest of 65% in the Island Mountain property, a Carlin-style gold deposit located in Elko County, Nevada (the “Island Mountain Property“) and from Lion CG its 100% option interest in the Butte Valley property, a porphyry-skarn copper prospect, located in eastern Nevada about 40 miles north of Ely in north-central White Pine County (the “Butte Valley Property” and collectively with the Island Mountain Property, the “Properties“).
Island Mountain Agreement BC Company entered into an asset purchase and sale agreement dated August 21, 2021, as amended on January 2, 2022 (the “Island Mountain Agreement“), with TUVERA and TUVERA’s subsidiary, pursuant to which TUVERA agreed to sell its interest in the Island Mountain Property to BC Company or its designated nominee in consideration for BC Company agreeing to:
a. pay TUVERA the following cash consideration;
- $170,000 (the “Closing Cash Payment“) on the closing date of the asset purchase (the “Island Mountain Closing“);
- $100,000 on or before the 12 and 24 month anniversaries of the date of the Island Mountain Agreement; and
- $150,000 on or before the 36, 48 and 60 month anniversaries of the date of the Island Mountain Agreement.
b. issue TUVERA the following Resulting Issuer Shares:
- $750,000 of Resulting Issuer Shares (the “Closing Share Issuance“) on the Island Mountain Closing, subject to adjustment, with a deemed price per Resulting Issuer Share equal to the issue price of the Resulting Issuer Shares issued in the Concurrent Financing;
- $200,000 of Resulting Issuer Shares upon completion of a preliminary economic assessment technical report on the Island Mountain Property, with a deemed price per Resulting Issuer Share equal to the volume-weighted average price of the Resulting Issuer Shares on the TSXV for a 10-day trading period ending two trading days before the date of issuance, subject to the minimum pricing requirements of the TSXV (the “VWAP“); and
- $400,000 of Resulting Issuer Shares upon completion of a feasibility study technical report on the Island Mountain Property, with a deemed price equal to the VWAP; and
c. on the Island Mountain Closing, reserve a 2% net smelter returns royalty (the “NSR“) on the unpatented mining claims of the Island Mountain Property, subject to BC Company’s right to repurchase the NSR as follows: (i) $1,300,000 for each 1% of the NSR, or (ii) $2,400,000 for the entire NSR, payable in cash or Resulting Issuer Shares, or a combination of both, with a deemed price equal to the VWAP.
To date, BC Company has made advance cash payments to TUVERA in the aggregate amount of $45,000, which will be credited against the Closing Cash Payment on the Island Mountain Closing. BC Company has agreed to complete the following additional advance cash payments to TUVERA, which will also be credited against the Closing Cash Payment:
- $15,000 to be paid on or before April 30, 2022; and
- $10,000 to be paid on or before May 31, 2022.
Subject to the terms and conditions in the Island Mountain Agreement including the completion of the obligations of BC Company set out above, on the Island Mountain Closing, BC Company will acquire TUVERA’s majority interest in the Island Mountain Property upon the exchange of closing documents, including the delivery of the balance of the Closing Cash Payment and the Closing Share Issuance to TUVERA.
Pursuant to the terms of the Island Mountain Agreement, BC Company has agreed to complete the following cash payments and issuances of Resulting Issuer Shares calculated based on the then-applicable VWAP to TUVERA, for achieving the following mineral resource milestones on the Island Mountain Property after the Island Mountain Closing:
- $900,000 cash and $200,000 of Resulting Issuer Shares for completion of a technical report estimating at least 750,000 ounces of gold or gold equivalent mineral resources on the Island Mountain Property;
- $200,000 cash and $200,000 of Resulting Issuer Shares for completion of a technical report estimating at least 1,000,000 ounces of gold or gold equivalent mineral resources on the Island Mountain Property;
- $200,000 cash and $500,000 of Resulting Issuer Shares for completion of a technical report estimating at least 1,500,000 ounces of gold or gold equivalent mineral resources on the Island Mountain Property;
- $700,000 cash and $1,000,000 of Resulting Issuer Shares for completion of a technical report estimating at least 2,000,000 ounces of gold or gold equivalent mineral resources on the Island Mountain Property; and
- $1,200,000 cash and $1,500,000 of Resulting Issuer Shares for completion of a technical report estimating at least 3,000,000 ounces of gold or gold equivalent mineral resources on the Island Mountain Property.
The Island Mountain Closing is subject to a number of conditions precedent, including, but not limited to, BC Company meeting certain capital requirements, the concurrent closing of the Proposed Transaction and the Resulting Issuer entering into a consulting agreement with TUVERA for TUVERA to make available two directors and officers of TUVERA, to provide advice on the development of the Island Mountain Property in consideration for the payment $50,000 in cash and $300,000 in Resulting Issuer Shares on the Island Mountain Closing and an annual consulting fee of $50,000.
Asset Information Summary – Island Mountain Property
The Island Mountain Property is located in Elko County, Nevada, on the Independence Gold Trend and in close proximity to the Jerritt Canyon Trend, approximately 113 kilometres north of the city of Elko. The Island Mountain Property is composed of 78 unpatented lode mineral claims on public land plus 8 patented claims leased from private individuals, covering an aggregate of approximately 592 hectares.
The style of mineralization at the Island Mountain Property is a Carlin-type, commonly hosted by carbonate strata near normal and thrust faults that may have served as hydrothermal feeder conduits and/or as aquitards that channeled mineralization into favourable-structured prepared zones or receptive beds. There also is a common association with dikes of felsic to mafic composition. Carlin-type gold mineralization is generally accompanied by a characteristic suite of pathfinder elements (arsenic, antimony, bismuth, mercury, and in places barium, tungsten, and thallium). Both oxide and sulphide gold mineralization occur on the Property.
Initial drilling on the Island Mountain Property was conducted by Cordex Exploration Syndicate in 1982, and through the 1990s a number of property holders conducted further exploration programs, including 225 drill holes. A further exploration programs in 2003 and 2004 included 80 reverse circulation (“RC“) drill holes and 10 diamond drill holes. Exploration programs in 2012 and 2013 included 26 RC holes and six diamond drill holes. Total past drilling on the Island Mountain Property includes 348 holes covers 8,094 metres. The Company has commissioned a technical report on the Island Mountain Property, that the Company anticipates will include a current mineral resource estimate.
Butte Valley Agreement
BC Company entered into a property acquisition agreement dated January 26, 2022 (the “Butte Valley Agreement“) with a subsidiary of Lion CG (“Lion Subco“) pursuant to which Lion Subco agreed to sell to BC Company its interest in the Butte Valley Property, which consists of two options to acquire a 100% interest in: (a) 78 unpatented mining claims located in White Pine County, Nevada and certain data, subject to an underlying 2% NSR (the “NS Property“); and (b) 600 mining claims located in White Pine County, Nevada, subject to an underlying 2.5% NSR (the “NorthEx Property“), in consideration for BC Company agreeing to:
- pay a cash payment of US$500,000 as reimbursement of explorations costs payable on the closing date of the Proposed Transaction, or earlier in certain circumstances;
- issue 15,750,000 BC Company Shares to Lion Subco or Lion CG, at a deemed price of $0.20 per BC Company Share, subject to adjustment; and
- grant a 1.5% NSR on each of the NS Property and NorthEx Property, subject to a buy-down to a 1% NSR with payment of US$7,500,000 per property.
Lion Subco’s interest in the underlying agreements with respect to the NS Property and the NorthEx Property, as described below, will be assigned to BC Company on the closing of the Butte Valley Agreement. Upon the closing of the Butte Valley Agreement, BC Company may acquire a 100% interest in the NS Property and the NorthEx Property by completing the option payments described below.
The closing of the Butte Valley Agreement is subject to LCG obtaining the approval of the TSXV, and completion of a private placement by BC Company for gross proceeds of not less than $2,000,000.
NS Agreement
Lion Subco entered into an option agreement dated December 3, 2019 (the “NS Agreement“) with Nevada Select Royalty, Inc. (“Nevada Select“), whereby Nevada Select granted to Lion Subco an option to purchase a 100% interest in the NS Property, for a five-year option period, in consideration for the following cash payments to Nevada Select:
- US$15,000 on December 3, 2019 (complete);
- US$24,711.61 reimbursement for 2020 claim fees and staking costs on December 3, 2019 (complete);
- US$35,000 on or before December 3, 2020 (complete);
- US$50,000 on or before December 3, 2021 (complete);
- US$50,000 on or before December 3, 2022;
- US$50,000 on or before December 3, 2023; and
- US$50,000 on or before December 3, 2024.
Upon exercise of the option to acquire the NS Property, Nevada Select will be granted a 2% NSR on the NS Property, with a buyback right to reduce the NSR to 1% for the payment of US$10,000,000 to Nevada Select.
NorthEx Agreement
Lion Subco entered into a mining lease with an option to purchase agreement dated August 22, 2019, as amended on December 6, 2019 and July 30, 2021 (the “NorthEx Agreement“) with North Exploration, LLC (“NorthEx“) pursuant to which: (i) NorthEx leased the NorthEx Property to Lion Subco for aggregate lease payments of up to US$605,000 to maintain the lease up to August 1, 2025; and (ii) NorthEx granted an option to Lion Subco to purchase a 100% interest in the NorthEx Property at any time during the term of the lease for an amount equal to US$600,000 less the sum of the amounts previously paid to maintain the lease. To date, US$55,000has been paid to NorthEx under the NorthEx Agreement to maintain the lease until August 1, 2022. Upon exercise of the option to acquire the NorthEx Property, NorthEx will be granted a 2.5% NSR on the NorthEx Property, with a buyback right to reduce the NSR to 1.5% for the payment of US$1,000,000 to NorthEx, and a right to further reduce the NSR to 1% for the payment of US$5,000,000 to NorthEx within 10 years after the exercise of the option.
Asset Information Summary – Butte Valley Property
The Butte Valley property is a porphyry copper-gold property located in White Pine County, near Ely, Nevada. Over its recent history, there have been seventeen holes drilled on the Butte Valley Property, and geophysical studies including heli-MAG and Induced Polarization (IP) have been completed. To date a mineral resource has not been established, however the Butte Valley Property has the potential to contain a magnetite-rich copper skarn deposit.
Sponsorship for the Proposed Transaction
Sponsorship for the Qualifying Transaction of a Capital Pool Company is required by the TSXV, unless exempt in accordance with TSXV policies. The Company intends to apply for a waiver from the requirement to obtain a Sponsor for the Proposed Transaction, however, there can be no assurance that a waiver will be obtained. If a waiver from the sponsorship requirement is not obtained, a Sponsor will be identified at a later date. An agreement to act as Sponsor in respect of the Proposed Transaction should not be construed as any assurance with respect to the merits of the Proposed Transaction or the likelihood of its completion.
Filing Statement
In connection with the Proposed Transaction and pursuant to the requirements of the TSXV, Green Panda intends to file on SEDAR (www.sedar.com) a filing statement (or an information circular in the event that the Proposed Transaction requires approval by the shareholders of Green Panda), which will contain details regarding the Proposed Transaction, Green Panda, BC Company and the Resulting Issuer.
Further Information
Green Panda intends to issue a subsequent press release in accordance with the policies of the TSXV providing further details in respect of the Proposed Transaction, including information relating to the transaction structure, the definitive agreement, descriptions of the proposed Principals and Insiders of the Resulting Issuer, as well as the Concurrent Financing. In addition, a summary of BC Company’s financial information will be included in a subsequent news release.
For further information, please contact:
Green Panda Capital Corp.
Xin (Richard) Zhou
President and Chief Executive Officer
[email protected]
On behalf of the board of directors of BC Company:
Stephen Goodman, President
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. The securities of the Company and BC Company have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws unless pursuant to an exemption from such registration.
Cautionary Note
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.
C. Travis Naugle, QP-MMSA, a qualified person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects, is the Chairman and CEO of BC Company, and has reviewed and approved the scientific and technical disclosure in this press release.
Cautionary Statement Regarding Forward-Looking Information
This news release contains certain forward-looking statements, including statements relating to the Proposed Transaction and certain terms and conditions thereof, the ability of the parties to enter into a definitive agreement and complete the Proposed Transaction, the Consolidation, the Exchange Ratio, the Name Change, the Resulting Issuer’s ability to qualify as a Tier 2 Mining issuer, the TSXV sponsorship requirements, shareholder, director and regulatory approvals, obtaining TSXV approval, completion of the Concurrent Financing, BC Company’s acquisition of an interest in the Properties, the potential exercise of the options under the NS Agreement and the NorthEx Agreement, the duration of the halt in respect of the Green Panda Shares, planned future press releases and disclosure, and other statements that are not historical facts. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These risks and uncertainties include, but are not limited to geological risks, risks associated with the effects of COVID-19, the financial markets generally, the ability of BC Company to acquire an interest in the Properties, the results of the due diligence investigations to be conducted in connection with the Proposed Transaction, the ability of the Company to complete the Proposed Transaction or obtain requisite TSXV acceptance and, if applicable, shareholder approvals. As a result, the Company cannot guarantee that the Proposed Transaction will be completed on the terms described herein or at all. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/118980
Fintech
Fintech Pulse: Your Daily Industry Brief – Breaking Trends and Insights in Fintech
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
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Fintech
Fintech Pulse: Today’s Key Industry Developments, Appointments, and Regulatory Challenges
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)
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