Fintech
Hank Payments Provides Financial and Corporate Update; Record Gross Margins Approach 90%, Record ARR and 24% YOY Revenue Growth
Toronto, Ontario–(Newsfile Corp. – April 19, 2022) – Hank Payments Corp. (TSXV: HANK) (“Hank” or the “Company”), a North American leader in consumer FinTech Software-as-a-Service (SaaS) announced today record quarter-over-quarter organic revenue growth and Annualized Recurring Revenue (ARR), record gross margins and acceleration of its go-to-market strategy and growth of its position across all 50 States as the industry-leading SaaS platform for personal financial wellness, through automating critical payments management resulting in improved household cash flow and debt management and overall financial hygiene.
Headquartered in Canada with operations in the United States, Hank is on a mission to transform outmoded personal financial wellness and consumer financial technology through offering best-in-class payment management capabilities. Hank’s modern, elegant and proprietary Cloud based solution is revolutionizing the way both consumers and lenders manage payments and benefit from the resulting data (including the effects of rising inflation and interest rates) by bringing the entire process into the 21st century with speed, automation, ease-of-use and best-in-class service.
FINANCIAL HIGHLIGHTS
- Gross margins grew to an unprecedented 89.2%.
- Record Annualized Recurring Revenue.
- Revenue for the third quarter ended March 31, 2022, grew 24% year over year to $1.38 million.
- Record Liabilities Under Management (LUM).
- Revenue quarter over quarter grew 6% as the Company benefits from the recovery in the auto industry.
Hank has historically focused on the vehicle industry channel, where continuing inventory shortages and high demand for vehicles have had a significant impact on the cost of buying a new or used vehicle in 2021 and 2022 for consumers as evidenced by compelling data from Hank’s budgeting and cash management platform. For the fifth consecutive quarter, Hank’s data has shown that monthly payments have risen from U$521 to U$611, or 17.3%, before the effects of rising interest rates take hold. Hank expects its data to be highly valuable to emerging large-scale commercial lenders, originators, and servicers who wish to offer consolidation or other remediation type of loan facilities to assist consumers in improving their cash flow.
While these trends have been principally driven by inflation and vehicle chip shortages, it is anticipated that rising interest rates will amplify the problem through 2022 and beyond, putting considerable pressure on household cash flow. This is the problem Hank was designed to solve and we continue to improve the financial lives of consumers that use Hank to automatically manage their critical payments and cash flow.
In comparison, over the same period, the average monthly mortgage payments under Hank have remained steady at U$1,460, as consumers benefited from historically low-interest rates. Moving forward it is projected that mortgage payments will begin to mimic the rise in auto payments in an environment of steadily rising inflation and interest rates. Payments related to variable rate mortgages, credit card debt, student loans and vehicle finance rates are all expected to climb.
Hank’s services are uniquely positioned to address this economic trend and in particular, the emerging problems that consumers are facing as mortgage rates increase including as follows:
CORPORATE UPDATE
Hank is pleased to report that it is finalizing the acquisition of the previously announced Mortgage Payment Management platform to bring the power of Hank to consumers and channels already connected to that platform. Upon closing, management expects the Liabilities Under Management (LUM) and resulting revenue to climb quickly through leveraging Hank’s existing marketing and SaaS technology platforms that the target company is not benefitting from today. The migration of 600 mortgages announced March 08, 2022, continues on schedule and is expected to conclude in the coming weeks.
The Hank platform is emerging rapidly and is expected to include large customer and channel partnership arrangements that are expected to provide material customer growth in the following key market segments:
- Gig-Workers
- Banks and Lenders
- Debt Settlement
- Debt Management
- Credit Counseling
The Company is in various stages of discussions with enterprise sized companies in each category and those companies already have access to millions of consumers who can benefit from the Hank platform.
By powering channels that already serve consumers, Hank avoids material customer acquisition costs and dramatically increases access to consumers while preserving its attractive margin and long-term annual recurring revenue profile.
Strategic investments are being made to accommodate expected launches in the above categories. For example, Hank is advancing its multi-tenant platform structure to accommodate more data and API driven relationships including the ability for more Banks to power the treasury component of Hank for their own consumers allowing for distribution of deposits and processing. These important advancements will elevate Hank within the SaaS payment technology sector and we look forward to announcing key wins over the coming quarters.
The Company remains devoted to its existing bread and butter channels with highly predictable growth and looks forward to amplifying growth through large scale strategic wins and transactions in this highly predictable small and medium sized business channel market.
“Hank houses years of valuable financial performance data and trends associated with many different loan types, and we look forward to bringing more intelligence to the market and our partners over time,” stated Michael Hilmer, Hank Chairperson and CEO. “We are delighted by the continued growth in revenue and gross margins and look forward to amplifying this growth as we close on the mortgage platform transaction and the many enterprise deals in our funnel.” He added, “From a company valuation perspective, two of the most critical value drivers for SaaS based companies are healthy gross margins and ARR growth rates1 and we tick both of those boxes. With gross margins approaching an industry leading 90%, and predictable healthy growth from our SMB channels, we are well situated to amplify shareholder value through continued organic growth and by layering on enterprise class wins.”
The Company looks forward to reporting its second-quarter financials at the end of May 2022.
1Source: SaaS Capital White Paper “What’s Your SaaS Company Worth?” www.saas-capital.com
About Hank Payments Corp.
Hank is a SaaS based consumer Fintech company. The industry leading Hank cloud-based software platform (the “Hank Platform“) acts as a consumer’s financial budget manager using powerful technology to automate a consumer’s personal cash flow and payments. Through its FDIC (Federal Deposit Insurance Corporation) insured bank partners in the U.S., Hank helps consumers in all 50 States find funds in their existing cash flow and speed up the retirement of liabilities. The Hank Platform instructs its banking partners to debit consumers when they have cash, store the money in FDIC insured accounts, then automatically pay bills and loans as they come due; often sooner than required. Approximately half of Hank’s customers are financially sound and use the Hank Platform for convenience, while the other half improve their payment performance through the Hank Platform. Hank’s customers pay setup and ongoing monthly processing fees while remaining on the Hank Platform for an average of three years. Hank continues to innovate and anticipates launching more expansive state of the art features to its expected growing customer base to provide greater visibility into their cash flow, credit performance, and viability to borrow or refinance at lower rates, including introducing Hank customers to interested lenders.
Forward-Looking Statements
This news release may contain forward-looking statements (within the meaning of applicable securities laws) which reflect the Company’s current expectations regarding future events. Forward-looking statements are identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may”, “estimate” and other similar expressions. These statements are based on the Company’s expectations, estimates, forecasts, and projections and include, without limitation, statements regarding the future success of the Company’s business. Financial performance figures in Canadian Dollars unless otherwise indicated by “U” representing United States Dollars.
The forward-looking statements in this news release are based on certain assumptions, including, without limitation, the Shares beginning trading on the TSXV. The forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Several factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
For more information regarding Hank Payments Corp., please contact: Jason Ewart, EVP Capital Markets, at 1-833-HANKPAY. For Investor Relations please contact [email protected] and visit the Company’s website at www.hankpayments.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Fintech
Fintech Pulse: Your Daily Industry Brief (Plaid, Warner Bros., TransUnion, Monevo, FinVolution, CreditTech, Glenbrook Partners)
Op-Ed: The Dawn of a Fintech Spring
As the financial technology sector continues to navigate the complex post-pandemic landscape, recent developments suggest a revitalized period of growth and innovation. Key players are making bold moves, partnerships are forming, and underserved markets are gaining attention. In this briefing, we explore the latest headlines and what they reveal about the industry’s trajectory.
Plaid Reports Growth in Revenue and Usage Rates
Plaid, the connective tissue of the fintech ecosystem, has shown remarkable resilience and growth. The company’s CEO recently highlighted a surge in both revenue and usage rates, describing the current period as a “fintech spring.” This growth comes as consumer demand for seamless financial solutions remains high, despite macroeconomic challenges.
Plaid’s ability to maintain relevance is tied to its strategic partnerships and continuous innovation. By enabling applications like Venmo and Robinhood to thrive, Plaid underscores the importance of integration in fostering user trust and utility.
Source: Bloomberg
Warner Bros. Discovery Strengthens Board with Fintech Leadership
Warner Bros. Discovery is diversifying its board by bringing in SoFi CEO Anthony Noto and outgoing IAC Chief Executive Joseph Levin. This move signals the increasing influence of fintech expertise beyond traditional financial sectors. With Noto’s leadership in digital banking and Levin’s extensive background in technology-driven enterprises, Warner Bros. Discovery is positioning itself for a future that seamlessly blends media and financial technology.
This cross-industry synergy could lead to innovative offerings, bridging gaps between entertainment platforms and fintech applications, such as micro-investing and personalized financial recommendations for content consumers.
Source: Reuters
TransUnion to Acquire Monevo
Credit reporting agency TransUnion has announced its plans to acquire Monevo, a leading credit prequalification and distribution platform. This acquisition aims to enhance TransUnion’s capabilities in the credit technology space, allowing it to offer more personalized and accessible financial solutions to consumers.
By integrating Monevo’s platform, TransUnion is expected to provide lenders with advanced tools to better assess creditworthiness while empowering consumers with prequalified loan offers. This development is particularly timely as consumers increasingly seek transparency and efficiency in credit processes.
Source: TransUnion Press Release
FinVolution Highlights CreditTech Opportunities in Southeast Asia
Ming Gu, Senior Vice President of FinVolution, emphasized the transformative potential of CreditTech in Southeast Asia during his address at the Asian Financial Forum. With a significant portion of the region’s population still underserved by traditional financial institutions, CreditTech presents a unique opportunity to bridge the gap.
Gu pointed out that leveraging AI and data analytics can help tailor credit solutions for diverse needs, ultimately fostering financial inclusion and economic growth in these emerging markets. FinVolution’s insights reaffirm the critical role of fintech in empowering underserved communities.
Source: PR Newswire
Glenbrook Partners Launches On-Demand Learning Program
Payments consultancy Glenbrook Partners has introduced an on-demand learning platform designed to educate professionals in the payments industry. This initiative is expected to address the growing need for skilled talent as digital payment ecosystems expand globally.
The program offers modular content covering foundational and advanced topics, catering to professionals at various stages of their careers. By equipping individuals with in-depth knowledge, Glenbrook is contributing to the industry’s sustainability and growth.
Source: PR Newswire
Analysis and Takeaways
These stories collectively highlight a few key trends shaping the fintech landscape:
- Resilient Growth: Plaid’s trajectory reaffirms that consumer-centric innovations drive sector resilience even during economic uncertainties.
- Cross-Industry Integration: Warner Bros. Discovery’s board appointments underline fintech’s permeation into traditionally non-financial domains.
- Strategic Acquisitions: TransUnion’s acquisition of Monevo showcases how established players are leveraging fintech to enhance service offerings.
- Global Inclusivity: Efforts by FinVolution and others highlight the role of fintech in addressing global financial disparities.
- Education and Skill Development: Initiatives like Glenbrook’s program reflect a proactive approach to fostering a knowledgeable workforce.
The post Fintech Pulse: Your Daily Industry Brief (Plaid, Warner Bros., TransUnion, Monevo, FinVolution, CreditTech, Glenbrook Partners) appeared first on News, Events, Advertising Options.
Fintech
io.finnet and Cede Labs Partner to Transform Multi-Exchange Portfolio Management for Institutions
io.finnet, a leader in digital asset infrastructure, has partnered with Cede Labs, to introduce a solution for centralized exchange (CEX) connectivity. This collaboration provides institutional clients with a streamlined, secure platform for comprehensive multi-exchange portfolio management. Through this integration, io.finnet clients can now access leading exchanges such as Binance, Coinbase, Bybit, OKX, Kraken and more with features tailored for institutional-grade governance and operational efficiency.
Institutional digital asset management faces increasing complexity as businesses demand more secure and efficient tools to oversee diverse portfolios. With 70% of institutional investors expecting a surge in digital asset-focused funds, the need for secure and efficient multi-exchange solutions has never been greater.
“Businesses require solutions that simplify the complexity of managing assets across exchanges while maintaining the highest standards of security.” said Jacob Plaster, CTO of io.finnet. “Through our partnership with Cede Labs, clients can seamlessly connect their exchange accounts and manage their entire portfolio within a unified, secure environment.”
Unlike traditional offerings, io.finnet’s integration with Cede Labs introduces secure account-linking capabilities, allowing clients to effortlessly connect and unlink their exchange accounts while adhering to strict governance protocols. Unified tracking capabilities further enhance this solution, enabling users to monitor their portfolios across all connected exchanges in real-time. This includes the ability to oversee spot and trading wallets, derivatives positions, and sub-accounts under a single pane of glass, a feature few competitors offer at this scale.
Pierre Ni, CEO of Cede Labs, highlighted the impact on institutional workflows: “We are proud to collaborate with io.finnet to redefine digital asset custody and management. By unlocking new use cases for corporates, market makers, liquid funds, foundations, and fintechs through CEX connectivity, we believe io.finnet can grow to become one of the top self-custody players.”
This partnership is particularly timely as market demand for interoperable solutions continues to rise. The integration will eliminate the need to navigate multiple platforms and provide institutions with real-time visibility across their digital asset holdings, enabling seamless exchange connectivity and enhanced risk management.
io.finnet is committed to enhancing its exchange connectivity capabilities with deposits, withdrawals, trades, and sub-account transfers to further streamline asset management workflows. Stay tuned for exciting updates as we expand the possibilities of our Exchange Connectivity feature.
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Welcome to Blocks & Headlines, your comprehensive daily briefing on the transformative world of blockchain. Today, we explore groundbreaking partnerships, economic innovations, and blockchain-powered initiatives redefining the future.
Sony Ventures Into Blockchain With New Identity Solutions
Sony has unveiled its latest blockchain-based digital identity solution designed to enhance privacy and security in the online space. This innovative system uses decentralized technology to manage digital credentials, making identity verification seamless and secure.
Sony’s venture reflects a broader trend among tech giants exploring blockchain’s potential to reshape data privacy and authentication systems.
Source: Sony Press Release
TRON’s Daily Revenue Skyrockets 119% in 2024
TRON has reported a staggering 119% increase in daily revenue, a testament to its innovative blockchain economic models. By leveraging smart contracts and a scalable infrastructure, TRON continues to attract developers and businesses seeking cost-efficient blockchain solutions.
This growth positions TRON as a leading player in the competitive blockchain ecosystem, setting benchmarks for others to follow.
Source: Bitcoin.com
MIGMIG Partners With XT.com to Bring Blockchain Rewards
MIGMIG, a blockchain gaming and rewards platform, has partnered with XT.com to expand its reach and user engagement. This collaboration aims to deliver unique blockchain-powered rewards while enhancing the gaming experience for users worldwide.
The partnership highlights the increasing intersection of blockchain technology and entertainment, opening new avenues for user interaction.
Source: Bitcoinist
Nano Labs Supports the Inaugural Presidential Crypto Ball
Nano Labs has announced a partnership with the Inaugural Presidential Crypto Ball, emphasizing its commitment to fostering blockchain awareness. This high-profile event aims to bridge the gap between blockchain innovators and policymakers, paving the way for broader adoption.
The initiative underscores the importance of collaboration between the blockchain community and governmental bodies to shape the future of digital assets.
Source: PR Newswire
Bybit Card Partners With EnTravel for Luxury Travel Perks
Bybit has teamed up with EnTravel to offer its cardholders exclusive discounts on luxury travel experiences. This partnership integrates blockchain-powered payment solutions with high-end travel services, providing users with unparalleled convenience and value.
The move exemplifies how blockchain technology can enhance traditional industries, offering innovative solutions tailored to modern consumer needs.
Source: PR Newswire
Key Insights and Industry Trends
- Decentralized Identity: Sony’s blockchain-based solution addresses growing concerns over online security and privacy.
- Economic Innovations: TRON’s revenue surge highlights the profitability of scalable blockchain networks.
- Gaming and Blockchain: Partnerships like MIGMIG and XT.com showcase the potential of blockchain in entertainment.
- Policy and Collaboration: Nano Labs’ involvement in the Crypto Ball underscores the importance of industry-government dialogue.
- Luxury Integration: Bybit and EnTravel demonstrate blockchain’s ability to enhance traditional services.
The post Blocks & Headlines: Today in Blockchain ( appeared first on News, Events, Advertising Options.
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