Fintech
ITOK Announces Entering into Letter of Intent with 2413017 Alberta Ltd. for Proposed Business Combination
Calgary, Alberta–(Newsfile Corp. – July 28, 2022) – ITOK Capital. Corp. (“ITOK” or the “Corporation“) is pleased to announce that it has agreed in principle to acquire (the “Transaction“) all of the issued and outstanding shares of 2413017 Alberta Ltd. (“241“), a private Alberta company whose wholly owned subsidiary (on a consolidated basis), FCRL Belize Ltd. (“FCB“), is actively engaged in onshore oil and gas development and exploration activities in Belize. ITOK and 241 have entered into a non-binding letter of intent with respect to the Transaction dated as of June 27, 2022 (“LOI“). The Transaction is expected to constitute the Qualifying Transaction of ITOK as defined in the policies of the TSX Venture Exchange Inc. (“TSXV“).
Summary of the Proposed Transaction
The LOI sets out the general terms of the Transaction as currently contemplated by the parties. The precise terms and conditions of the Transaction, including the structure of the Transaction, will be contained in a definitive transaction agreement to be negotiated and entered into by the parties. The parties have agreed to negotiate in good faith to reach the definitive agreement and it is anticipated that the Transaction will take the form of a share exchange whereby all of the outstanding securities of 241 will be acquired and exchanged for securities of ITOK. 241 has 6,105,002 issued and outstanding shares (each a “241 Share“) and ITOK has 6,862,338 issued and outstanding shares (each a “ITOK Share“). As part of the Transaction, it is anticipated that ITOK will issue 17,500,000 ITOK shares at a deemed price of $0.10 per ITOK Share to the existing shareholders of 241 on the basis of 2.86 ITOK Shares for each one 241 Share held. It is also expected that, subject to TSXV and shareholder approval, ITOK will issue a non-arm’s length finder’s fee of 650,000 ITOK Shares as part of the Transaction (“Finder’s Fee Shares“). Upon closing of the Transaction and assuming completion of the ITOK Private Placement and the 241 Private Placement (defined below) and issuance of the Finder’s Fee Shares, it is anticipated that there will be 46,512,338 issued and outstanding ITOK Shares and 4,651,234 ITOK stock options (being 10% of the issued and outstanding ITOK Shares).
It is anticipated that following completion of the Transaction, the Corporation (the entity following completion of the Qualifying Transaction being referred to herein as the “Resulting Issuer“) will continue to carry on the business of 241, being that of an oil and gas exploration company operating in Belize and will be listed as a Tier 2 oil and gas issuer pursuant to the policies of the TSXV. The Resulting Issuer will continue under the name of Macaw Energy Ltd. or such other name as is determined by 241, the 241 shareholders and the TSXV.
Conditions to the Completion of the Transaction
The obligations of ITOK and 241 to consummate the Transaction shall be subject to, among other things: (i) the receipt of all necessary regulatory and TSXV approval, including but not limited to, the approval of the Transaction as a Qualifying Transaction in accordance with the TSXV policies; (ii) the receipt of all necessary shareholder and board of director approvals; (iii) the due diligence review to the sole satisfaction of each of ITOK and 241 of the financial condition, business, properties, title, assets and affairs of the other party; and (iv) the entering into of a formal agreement between ITOK and 241 in such form as is mutually agreeable to the parties. The conditions listed above are for the benefit of, and maybe waived by, ITOK and 241 as it relates to the obligations of the other party to perform or obtain same.
The control persons of 241 are not (and their associates and affiliates are not) control persons of ITOK. Accordingly, the acquisition by ITOK of all the issued and outstanding shares of 241 is not a Non-Arm’s Length Qualifying Transaction as defined in and for the purposes of TSXV policies. As a result, it is anticipated that the Transaction will not be subject to approval of the shareholders of ITOK and therefore no meeting of the shareholders of ITOK will be required as a condition to the completion of the Transaction.
ITOK Private Placement
In connection with the Transaction, ITOK anticipates completing a brokered and/or non-brokered private placement of up to 4,000,000 ITOK Shares at a price of $0.10 per ITOK Share for gross proceeds of $400,000 (“ITOK Private Placement“). It is expected that ITOK will pay cash commissions and warrants to selling agents as part of the ITOK Private Placement. Proceeds from the ITOK Private Placement will be used to pay for the costs of the Transaction and for general working capital of the Resulting Issuer.
241 Private Placement
Prior to with the Transaction, 241 also intends to complete a brokered and/or non-brokered financing of up to 17,500,000 common shares of 241 (“241 Shares“) at an anticipated price of $0.05 per 241 Share for gross proceeds of approximately $875,000 (“241 Private Placement“).
Capitalization of the Resulting Issuer
The following table summarizes the proposed pro forma capitalization of the Resulting Issuer following completion of the Transaction, the ITOK Private Placement and the 241 Private Placement:
| After Giving Effect to the Transaction | |||
| Designation of Security | Number | Percentage (undiluted) |
Percentage (fully-diluted) |
| Resulting Issuer Shares | |||
| Shares Issued | |||
| ITOK Shares | 6,862,338 | 14.75% | 13.41% |
| ITOK Private Placement | 4,000,000(1) | 8.60% | 7.82% |
| 241 Shares | 17,500,000(2) | 37.62% | 34.20% |
| 214 Private Placement | 17,500,000(3) | 37.62% | 34.20% |
| Finder’s Fee Shares | 650,000 | 1.40% | 1.27% |
| Subtotal | 46,512,338 | 100% | 90.91% |
| Dilutive Securities | |||
| Reserved for issuance: | |||
| ITOK Stock Options | 4,651,234(4) | N/A | 9.09% |
| Subtotal | 4,651,234 | N/A | 9.09% |
| Total | 51,163,572 | 100% | 100% |
Notes:
(1) Assuming the issuance of an aggregate of 4,000,000 Company Shares as part of the ITOK Private Placement.
(2) 17,500,000 ITOK Shares to be issued to the 241 shareholders holding 6,105,241 241 Shares, on a basis of 2.86 ITOK shares for each one 241 Share held.
(3) Assuming the issuance of an aggregate of 17,500,000 214 Shares as part of the 214 Private Placement
(4) 4,651,234 ITOK stock options to be issued to directors, officers, employees and consultants of ITOK at the closing of the Transaction.
Proposed Directors and Officers
Concurrent with the completion of the Transaction, it is expected that Jonathan Gilbert and Gord Anderson, being current directors of ITOK, will resign from the Board of the Corporation. It is expected that the Board of Directors and management of the Resulting Issuer following completion of the Transaction will be composed of the following individuals.
Mohammad Fazil, – President, Chief Financial Officer, Corporate Secretary and Director
Mr. Fazil has been active in venture capital for over 35 years. He was employed by boutique investment dealers in Canada as a finance professional focusing on funding junior listed issuers on the TSX and TSX Venture exchange. During his career he has raised over $400 million for venture companies.
Mr. Fazil is the founder and President of Lion Park Capital, a private financial advisory firm helping companies raise funding and list on a Canadian stock exchange. He is the Chairman of the Calgary branch of the TSX Venture Exchange’s Listing Advisory Committee and a member of the National Advisory Committee.
Mr. Fazil is currently a director of Comprehensive Healthcare Systems Inc., listed on the TSX Venture Exchange. He is the President and CEO of ITOK Capital Corp. Mr. Fazil is the former CEO and a Director of Elephant Hill Capital Inc. which completed its reverse take over transaction with Real Luck Group, a fully licensed eSports betting platform which secured a $5 million financing for this transaction.
Mr. Fazil is also the former President and founder of Scythian Biosciences Corp. (now SOL Global Investments), listed on the TSX Venture Exchange, which is active in the US cannabis sector. Mr. Fazil was the founder and of CEO of Harbour Star Capital Inc. (now Eastwest Bioscience Inc., which is listed on the TSX Venture Exchange), a hemp manufacturing and marketing company. Mr. Fazil was also the founder and President of Bow Energy (was listed on TSX Venture Exchange), an Indonesia focused oil and gas exploration company which was sold to Petrolia Energy Corporation (listed in the US) in February 2018.
Allan Albertson, P.Eng – Chief Executive Officer
Mr. Albertson is a petroleum engineer with approximately 29 years of global experience in drilling, completions and production operations. He has successfully managed domestic and international operations in over 24 countries. Over the past 12 years with Fire Creek Resources Ltd. he has held various consulting, advisory and management roles at both private and public companies.
Mr. Albertson is a professional engineer in Alberta and graduated from Montana Tech with a Bachelor of Science in Petroleum Engineering. He holds patents involving subsurface technologies as well as authored several technical papers.
Achour (Jamal) Hadi, PhD, PGeol. – Director
Mr. Madi has over 35 years’ experience in the Canadian and international oil and gas industry. He has provided management, technical and operational leadership. His expertise encompasses exploration, basin analysis, petrophysics, reservoir characterization and resource assessments. He was instrumental in the discovery or oil and gas fields internationally. Among others, he has worked for Occidental Petroleum, First Calgary Petroleum, Petro Canada International and Madison PetroGas. He has a PhD in Carbonate Geology from Laval & McGill Universities and is the founder & President of Allied Petroleum Exploration (APEX) and Madison PetroGas.
Dean Casorso – Chief Operations Officer and Director
Mr. Casorso is an engineer with 25 years of experience working on 4 continents. He has worked throughout North American and internationally and has experience in business and technical aspects of upstream oil and gas and helium business. He has a Petroleum Engineering Technologist Diploma from SAIT & Masters of Business Administration from the University of Calgary. President of Fire Creek Resources Ltd. & FCRL Belize Ltd.
Tariq Chaudhary – Director
Mr. Chaudhary has over 25 years of experience with public and private companies. His expertise includes strategic planning, corporate governance, equity financing, acquisition due diligence, and financial reporting for both Canadian and American public companies with international subsidiaries. He is currently the President of Altair Energy Ltd. and Executive vice president at Blue Sky Resources Ltd. He was a Senior Cost Specialist with Canadian Natural Resources Ltd, Business Manager at Syncrude Canada SERP project (a division of Exxon Mobil), and Controller at Saba Petroleum Company (California).
Mr. Chaudhary holds a Bachelor of Commerce degree (Accounting) and M.B.A. (Finance) from CCU, California, along with several other financial services certifications, including a diploma in Oil & Gas Accounting from the UOD (Texas, USA).
About ITOK Capital Corp.
ITOK is a Capital Pool Company as defined by the policies of the TSXV that was incorporated under the Business Corporations Act (Alberta) on January 21, 2005. As of May 24, 2022, the Corporation had 6,862,338 issued and outstanding ITOK Shares. ITOK’s principal business activity is to identify and evaluate opportunities for acquisition of assets or business. The Corporation is headquartered in Calgary, Alberta and is in the process of applying to the TSXV to have its ITOK Shares re-listed for trading on the TSXV.
About 2413017 Alberta Ltd.
241 is a private company incorporated on March 5, 2022 under the Business Corporations Act (Alberta) is an emerging, junior, petroleum and natural gas exploration, development and production company headquartered in Calgary, Alberta. On January 28, 2020, 241’s wholly owned subsidiary (on a consolidated basis) FCB, signed a Production Sharing Agreement (“PSA“) with the Government of Belize. Shortly thereafter the force majeure provisions pursuant to the PSA were invoked due to the worldwide COVID-19 pandemic. These force majeure provisions are expected to be lifted with an effective date of January 15, 2022.
The following is a summary of FCB’s properties in Belize:
- The PSA covers 180,000 acres including a discovery called South Canal Bank (“SCB“)
- There are drill ready targets within the PSA with previous operators reportedly spending approximately $17 million on initial exploration costs including 4 wells of which 3 were drilled on structure and tested oil
- Through extensive technical evaluation of the previously acquired data set, FCB has identified multiple potential stacked pay intervals
- Based on this technical evaluation, the SCB structure has the likelihood of significant additional volumes that have yet to be discovered. The SCB oilfield is located in the North Peten Basin, on trend with Guatemala’s largest oilfield (Xan which has an estimated 400 million bbl of original oil in place) and the Belize producing fields of Spanish Lookout and Never Delay
- Multiple existing options for marketing oil sales
- First operation to re-enter one of the existing cased wellbores that is currently abandoned. The identified potential bypassed pay zones will be perforated and flow tested. This operation will determine the commercial viability and potential future field development plan which the company believes will be horizontal wells with potential implementation of FCB’s patented multilateral system
- The project benefits from low development costs due to existing infrastructure and shallow nature of the play
- Large land base with additional prospects outside of SCB area identified as future step out exploratory drilling opportunities
Reserve Report
Chapman Petroleum Engineering Ltd. prepared an evaluation of the proved and probable light and medium oil, heavy oil, natural gas and natural gas liquids reserves and the net present value of those reserves for the petroleum and natural gas interests of FCB as of March 31, 2022[1]. The reserve estimates and future net revenue forecasts were prepared and presented in accordance with the Association of Professional Engineers, Geologists and Geophysicists of Alberta (“APEGGA“) – Practice Standards for Evaluations of Oil and Gas Reserves for Public Disclosure; the APEGGA Code of Ethics; the Canadian standards set out in the Canadian Oil and Gas Evaluations Handbook and National Instrument 51-101 (“NI 51-101“). Chapman Petroleum Engineering Ltd. is a qualified reserves evaluator in accordance with NI 51-101. The properties evaluated include essentially all of FCB’s conventional petroleum and natural gas interests in the country of Belize.
The future net revenues and net present values presented below were calculated using forecast prices and costs based on the light and medium oil, heavy oil, natural gas and natural gas liquids prices with inflation of both operating and capital costs and are presented in Canadian dollars. Unless otherwise stated, all units are listed in Standard Imperial Units.
241’s share of proved remaining and probable additional light and medium oil, heavy oil, natural gas and natural gas liquids reserves as of March 31, 2022 and the respective net present values assigned to these reserves based on forecast prices and costs were estimated to be as follows.
FCB’S SUMMARY OF OIL AND GAS RESERVES
AS OF MARCH 31, 2022
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7007/132207_c789346804da5b79_002full.jpg
A summary of 241 and FCB’s financial information will be included in a subsequent press release as it is not available at this time.
Sponsorship
ITOK plans to request that the TSXV exempt or waive the requirement for a Sponsorship Report in connection with the Transaction. There are no guarantees that the TSXV will accept ITOK’s request to exempt or waive the Sponsorship Report requirement, in which case ITOK will engage a Sponsor to prepare such a report.
Re-instatement of Trading and Further Press Release(s)
The process to re-list the ITOK Shares is currently taking place with the TSXV and the ITOK Shares will not begin trading until the Transaction is complete or the TSXV accepts the re-listing at which time the ITOK Shares may be halted due to the proceedings of the Transaction. ITOK will issue further press release(s) as soon as further details are available regarding, among other things, the re-instatement of trading and/or the Transaction and the re-listing requirements and more specifically that ITOK provide securityholders with full and complete disclosure regarding the Corporation’s past conduct/activities (for example: non-compliance with the undertaking per TSXV Policy 2.4, s. 3.3 and disclosing the rights that securityholders should have been afforded pursuant to that said undertaking), as may be required by applicable laws and/or TSXV Policies.
Additional Information
A comprehensive press release with further particulars relating to the Transaction, including further particulars of the Resulting Issuer, the ITOK Private Placement and the 241 Private Placement, will follow in accordance with the policies of the TSXV.
All information contained in this press release with respect to the Corporation and 241 was supplied, for inclusion herein, by the respective parties and each party and its directors and officers have relied on the other party for any information concerning the other party.
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.
Neither the TSXV nor the TSX has in any way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this news release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities 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 unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
For Further Information, please contact:
ITOK Capital Corp.
Mohammad Fazil, President, CEO and Director
Phone: (403) 613-7310
Email: [email protected]
241 and FCB
Dean Casorso, Director
Phone: (403) 860-9891
Email: [email protected]
Oil and Gas Measures & AbbreviationsBarrels of Oil Equivalent – This news release discloses certain production information on a barrels of oil equivalent (“boe“) basis with natural gas converted to barrels of oil equivalent using a conversion factor of six thousand cubic feet of natural gas (“Mcf“) to one barrel (bbl) of oil (6 Mcf:1 bbl). Condensate and other Natural Gas Liquids (“NGLs“) are converted to boe at a ratio of 1 bbl:1 bbl. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 bbl is based roughly on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at sales point. This conversion conforms with Canadian Securities Regulators’ National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities. Although the 6:1 conversion ratio is an industry-accepted norm, it is not reflective of price or market value differentials between product types. Based on current commodity prices, the value ratio between crude oil, NGLs and natural gas is significantly different from the 6:1 energy equivalency ratio. Accordingly, using a conversion ratio of 6 Mcf:1 bbl may be misleading as an indication of value.
Other technical abbreviation measurements referenced in the tables above include Thousands of Stock Tank Barrels of oil (oil volume at 60 F and 14.65 psia) (“MSTB“), Thousands of barrels (“Mbbls“), and Millions of standard cubic feet of gas (gas volume at 60 F and 14.65 psia) (“MMscf“).
Cautionary Note Regarding Forward-Looking Information
Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements such as the estimates of reserves, the references to 241’s exploration program and drilling program and capital expenditures relating to, and timing of, such programs are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. There are uncertainties inherent in forward-looking information, including factors beyond 241’s and ITOK’s control, and no assurance can be given that the programs will be completed on time, on budget or at all. In addition, there are numerous uncertainties inherent in estimating reserves, including many factors beyond 241’s and ITOK’s control, and no assurance can be given that the indicated level of reserves or the recovery thereof will be realized. In general, estimates of reserves are based upon a number of factors and assumptions made as of the date on which the estimates were determined, such as geological and engineering estimates which have inherent uncertainties. The reserves estimates for the properties described in this news release may not reflect the same confidence level as estimates of reserves for all of 241’s properties, due to the effects of aggregation. Further, estimates of net present value do not represent fair market value. ITOK undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in ITOK’s filings with Canadian securities regulators, which filings are available at www.sedar.com.
[1] Reserve and Economic Evaluation Oil Property, South Canal Bank Corozal Basin, Belize owned by FCRL Belize Ltd. as of March 31, 2022 prepared by Chapman Petroleum Engineering Ltd. and dated May 27, 2022
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 DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/132207
In the fast-paced world of financial technology, shifts occur daily as companies strive for innovation, customer satisfaction, and enhanced market reach. Today’s briefing covers a spectrum of developments, from Visa Direct’s groundbreaking integration in Korea to challenges plaguing the app economy. We’ll also touch on recent acquisitions, strategic partnerships, and expansions in fintech ecosystems. Here’s what you need to know about today’s most pressing fintech trends.
Visa Direct’s Milestone in South Korea: SentBe’s Card Transfer Service Launch
South Korea’s fintech ecosystem has taken a notable leap forward with SentBe’s implementation of Visa Direct’s Card Transfer Service. This collaboration marks a milestone, positioning SentBe as the first Korean fintech company to offer card-to-card international money transfers, a feature in high demand given the rise in cross-border financial activities. Visa Direct’s real-time card-to-card transfers are a potential game-changer for consumers and businesses alike, facilitating faster and more secure global transactions.
The collaboration exemplifies Visa’s larger strategy of partnering with regional fintech players to broaden its influence across Asia’s dynamic fintech markets. By tapping into SentBe’s growing customer base and extensive user insights, Visa is embedding itself deeper into local markets, simultaneously offering Korean users a more streamlined and efficient money transfer experience.
The service’s design allows individuals and small businesses alike to benefit from quicker transaction processing times, marking a significant evolution from traditional remittance processes that rely on intermediary banks. The move is especially critical in a digital age where customer expectations lean heavily towards instant, seamless financial interactions.
Source: Electronic Payments International
Fintech App ‘Trap’ Enrages Consumers Struggling to Cancel Subscriptions
In the modern subscription-based economy, some fintech companies are facing backlash over what customers perceive as the ‘trap’ of endlessly renewable subscriptions that are nearly impossible to cancel. A recent expose revealed mounting frustrations among consumers who signed up for digital services but later found themselves locked into subscriptions they could not easily terminate. The piece highlights the darker side of user retention strategies deployed by some companies to mitigate churn by making cancellation processes intentionally convoluted.
The app-based economy relies on recurring revenue, which remains a vital lifeline for startups and established firms alike. However, industry insiders argue that lack of transparency and difficult cancellation processes have an adverse impact on customer trust, leading to a growing dissatisfaction that may ultimately backfire on these companies. As consumers grow more savvy, fintechs relying on these practices could risk higher attrition rates, regulatory scrutiny, and brand erosion.
This emerging issue has raised questions about ethical standards and customer-centric models in fintech. As competition intensifies, companies must balance growth with transparent practices that foster customer loyalty, rather than coercion.
Source: Forbes
Pinwheel and Terafina Partner to Streamline Omnichannel Customer Onboarding
Pinwheel, a fintech infrastructure company known for its payroll and income data connectivity solutions, recently announced a partnership with Terafina, a leader in omnichannel sales and service platforms for financial institutions. This collaboration aims to simplify and enhance the onboarding process for new customers, providing them with seamless experiences across multiple channels, whether online, mobile, or in-branch.
The partnership combines Pinwheel’s data integration capabilities with Terafina’s expertise in customer onboarding, allowing financial institutions to create more personalized and flexible account opening processes. With consumer expectations evolving towards instant service and mobile-first access, this integration empowers banks and credit unions to meet these needs by delivering cohesive and smooth digital onboarding journeys.
In an industry where customer acquisition and retention are increasingly dependent on first impressions, the significance of streamlined onboarding cannot be overstated. By improving access to real-time employment and income data, this partnership enhances user verification and compliance while also allowing institutions to better assess applicants’ creditworthiness, which is crucial in today’s lending environment.
Source: PR Newswire
nCino Acquires FullCircl in $135 Million Deal: Expanding the Scope of Relationship Management
Fintech giant nCino recently completed its acquisition of FullCircl, a move that underscores its ambition to broaden its reach in the financial services sector. FullCircl, known for its focus on customer relationship management (CRM) solutions tailored to financial institutions, brings a robust set of tools that will allow nCino to enhance its cloud-based banking platform. The acquisition, valued at $135 million, positions nCino as a stronger player in the relationship management space, especially crucial for institutions looking to build deep, long-term client relationships.
With this acquisition, nCino aims to expand its footprint in Europe and boost its offerings in the CRM space, providing banks and credit unions with innovative tools for client engagement and retention. The integration of FullCircl’s CRM capabilities will also support nCino’s existing portfolio, which includes loan origination and digital banking solutions, strengthening its position as a one-stop platform for financial institutions.
This acquisition is part of a growing trend of consolidation in the fintech sector, where larger firms acquire specialized players to fill critical service gaps and offer more comprehensive solutions. By building a holistic platform that spans multiple functionalities, nCino is better equipped to compete in the increasingly crowded digital banking software market.
Source: The Paypers
DriveWealth’s European Expansion: A Strategic Base in Lithuania
DriveWealth, a digital brokerage technology firm, has chosen Lithuania as the launchpad for its European operations. By establishing a base within Lithuania’s burgeoning fintech hub, DriveWealth is strategically positioning itself to tap into the European market, leveraging the country’s favorable regulatory environment and proximity to major EU economies.
The expansion is particularly significant given the increasing demand in Europe for retail investing platforms that provide accessible and affordable market entry. DriveWealth’s solutions enable digital brokers and financial platforms to offer customers fractional shares and real-time trading experiences, which have proven highly popular in markets like the U.S. This move aligns with DriveWealth’s long-term growth strategy and its commitment to democratizing access to investing across the globe.
Lithuania’s supportive regulatory framework and well-developed fintech infrastructure make it an ideal location for DriveWealth’s entry into Europe. The country’s fintech-friendly policies allow innovative financial service providers to set up and scale efficiently. DriveWealth’s presence in Lithuania not only adds to the growing cluster of fintech firms but also reinforces the country’s reputation as a rising fintech powerhouse within the EU.
Source: Finance Magnates
Key Takeaways and Strategic Insights
As seen from today’s top stories, several overarching themes shape the fintech landscape:
- Global Partnerships and Local Expansion: Visa’s collaboration with SentBe exemplifies how partnerships enable fintech firms to break into regional markets by addressing specific customer needs.
- Transparency in Subscription Models: The customer backlash against difficult-to-cancel fintech services raises concerns about the sustainability of current subscription models.
- Innovation in Customer Onboarding: Pinwheel and Terafina’s partnership highlights the importance of streamlined onboarding processes as a means to increase customer satisfaction and improve retention.
- Mergers and Acquisitions to Fill Service Gaps: nCino’s acquisition of FullCircl illustrates a broader trend of consolidation, where fintech companies acquire specialized players to broaden their product portfolios.
- Regional Hubs as Strategic Launch Pads: DriveWealth’s decision to establish a base in Lithuania underscores the importance of regional fintech hubs in providing a supportive environment for global expansion.
Today’s roundup underscores the adaptability of fintech companies as they navigate emerging challenges and opportunities. From addressing regional financial needs to innovating customer experience, fintech firms continue to redefine what it means to engage in modern finance. As the industry grows, so too does the necessity for ethical practices, robust infrastructure, and agile customer solutions. In this competitive environment, the companies that prioritize transparency, customer satisfaction, and strategic expansion will set the standard for the future of finance.
The post Fintech Pulse: Your Daily Industry Brief – Breaking Trends and Insights in Fintech appeared first on HIPTHER Alerts.
Fintech
Fintech Pulse: A Snapshot of Global Expansion, Regulatory Moves, and Transformative Tech in Fintech
In today’s fast-paced fintech ecosystem, the global narrative is pivoting towards integration, regulation, and technological advancement as new entrants aim for U.S. markets, emerging startups seek growth capital, and financial giants align with innovative trends. Here’s a breakdown of recent developments that underline the dynamism in fintech and the paths to profitability and compliance as technologies reshape financial services globally.
Singapore’s MAS Advocates for a Borderless Fintech Network
The Monetary Authority of Singapore (MAS) recently emphasized the importance of cross-border collaboration in the global fintech ecosystem, with chairman Ravi Menon outlining a vision for a seamless fintech network. This network would transcend geographic and regulatory boundaries, allowing Singapore and its fintech entities to engage in mutually beneficial partnerships worldwide. Menon highlighted that Singapore’s strategic geographic position and regulatory environment make it a natural hub for fintech collaborations that advance financial inclusion and foster innovation.
This call for a borderless approach underscores the need for interoperability among financial systems globally, particularly as digital payments and decentralized finance become increasingly prevalent. Singapore’s initiatives signal that regions with supportive fintech policies can potentially drive new growth avenues in the digital economy.
Source: Channel News Asia
Thredd’s McCarthy to Fintech Entrants: Be Sponsor-Bank Ready for the U.S. Market
Fintech firms eyeing the U.S. market face a challenging regulatory landscape. John McCarthy of Thredd advises that those looking to enter the U.S. market should prioritize establishing sponsor-bank partnerships. The U.S. regulatory framework mandates that fintech companies collaborate with sponsor banks to access the financial system, making this step a critical milestone for fintechs aiming to operate stateside.
McCarthy’s guidance highlights an increasingly common barrier for fintech companies: navigating complex regulatory requirements to gain a foothold in the lucrative U.S. financial sector. For many, this means rethinking business models to comply with financial regulations, even as they innovate. This approach has led several fintech firms to secure sponsorship deals with established banks, enabling them to deliver compliant financial services to U.S. consumers.
Source: PYMNTS
Spidr Fintech Lands Funding to Drive Growth with Wells Fargo Backing
Spidr, a rising fintech star, has successfully raised capital, attracting the attention of Wells Fargo and other financial institutions. The fresh funding will fuel Spidr’s ambitious expansion plans, further positioning it as a formidable player in the fintech space. This backing from Wells Fargo represents a trend where major financial institutions are investing in or partnering with fintech startups to gain a competitive edge and meet evolving consumer expectations.
For Spidr, the capital injection aligns with a robust strategy for market penetration, and it’s an opportunity to leverage Wells Fargo’s extensive network and resources. Spidr’s latest round of funding signifies that traditional banks are increasingly open to collaborations with fintech entities, a trend that is reshaping the financial services landscape as banks seek to stay competitive in the digital age.
Source: Charlotte Business Journal
Elphinstone’s Trikl: Innovating Digital Payments in MENA
Elphinstone, a digital payments startup based in MENA, is introducing its innovative solution, Trikl, aimed at transforming payments across the region. The startup’s recent developments underscore its commitment to creating accessible and user-friendly payment systems tailored for the MENA market’s unique dynamics. By addressing specific needs such as currency exchange complexities and local payment preferences, Trikl is positioning itself as a key player in the digital payments landscape.
Trikl’s approach is particularly noteworthy as it caters to the MENA market’s diverse consumer base and taps into the region’s growing appetite for digital financial services. This development represents a promising advancement in digital payment solutions, fostering greater financial inclusion and enabling smoother transactions across borders in MENA.
Source: Menabytes
Hong Kong Sets Rules on Responsible AI to Get Ahead of Disruptive Tech
Hong Kong has unveiled regulatory guidelines on responsible AI use, a proactive move that places it among the leading jurisdictions in AI governance. This development signals Hong Kong’s recognition of the transformative impact of AI on financial services, as it sets clear boundaries on how AI can be used responsibly in financial applications. With AI continuing to disrupt financial services, responsible usage is becoming a priority, particularly in regions where financial systems are heavily reliant on technology.
These guidelines aim to balance innovation with accountability, addressing concerns over data privacy, ethical considerations, and risk management. Hong Kong’s stance on AI regulation reflects its commitment to safeguarding both consumers and financial institutions, setting a high standard for other regions to emulate in terms of regulatory foresight.
Source: South China Morning Post
The post Fintech Pulse: A Snapshot of Global Expansion, Regulatory Moves, and Transformative Tech in Fintech appeared first on HIPTHER Alerts.
The Changing Landscape of Global Fintech
The financial technology (fintech) industry continues to evolve at a rapid pace, making headlines worldwide. Today’s briefing dives into transformative moves and strategic shifts within fintech companies across diverse geographies. From innovative alliances to prominent executive appointments and ambitious expansions into banking, the industry is positioning itself for a future that intertwines financial inclusivity, regulatory compliance, and customer-centric technology. Let’s unpack these developments.
XTransfer’s Hong Kong Fintech Week Entry: Scaling Financial Access in China
XTransfer, a Shanghai-based cross-border financial services firm, has joined the Hong Kong Fintech Week to showcase its solutions, marking a significant milestone in its journey to bridge financial gaps for small and medium-sized enterprises (SMEs) in China. Founded in 2017, XTransfer addresses common barriers faced by Chinese SMEs in accessing international financial networks due to regulatory complexities. The firm’s platform facilitates smoother cross-border transactions by helping businesses navigate regulatory and compliance challenges seamlessly.
The strategic choice to participate in Hong Kong Fintech Week highlights XTransfer’s commitment to strengthening connections within the Asian financial hub. The firm seeks to tap into the region’s wealth of potential clients and partners, as Hong Kong continues to be a pivotal gateway for businesses engaging in cross-border trade with China. The move is also symbolic of the broader fintech community’s push to create inclusive and accessible financial networks, even amid evolving regulatory landscapes.
Source: XTransfer Joins Hong Kong Fintech Week to Expand Global Presence (Yahoo Finance)
Propelld’s New Chief Business Officer: Driving Growth and Product Innovation
Propelld, an Indian ed-finance company, recently appointed Manoj Shetty as its new Chief Business Officer (CBO), signaling a strong commitment to enhancing its market penetration and product offerings. Known for his extensive experience in fintech, particularly in business development and scaling, Shetty is expected to spearhead Propelld’s ambitions to bring tailored financing solutions to India’s education sector.
Propelld focuses on providing student loans and education financing to underserved sections of India, leveraging advanced data analytics to assess borrowers’ potential rather than conventional credit scores. Shetty’s addition to the leadership team suggests that Propelld aims to double down on its innovative data-driven model to better serve the unique financial needs within education.
As the industry grows more competitive, having a seasoned executive like Shetty could be instrumental for Propelld to fortify its unique value proposition. His track record indicates a capacity for handling the nuanced needs of financial services catering to niche markets, and he may well position Propelld to scale sustainably in the expanding ed-finance space.
Source: Propelld Names Manoj Shetty as Chief Business Officer (IBS Intelligence)
Solo Funds Faces Legal Hurdles: The Class-Action Lawsuit Dilemma
In a move that could impact peer-to-peer lending’s regulatory path, Solo Funds faces a class-action lawsuit, alleging that the company’s lending practices breached consumer protection laws. As a platform designed to offer emergency loans to consumers facing cash flow issues, Solo Funds charges “tips” rather than conventional interest rates, a tactic intended to circumvent traditional lending regulations. However, plaintiffs argue that these tips effectively function as disguised interest, making Solo Funds’ practices deceptive and exploitative.
This lawsuit is a critical test for the burgeoning peer-to-peer lending segment, which has grown immensely in recent years as consumers seek alternatives to traditional financial institutions. The outcome may force similar platforms to reassess how they balance operational flexibility with regulatory compliance, potentially reshaping the industry’s approach to short-term lending.
With growing scrutiny on fintech lending platforms, the legal proceedings could also open a wider debate on how fintech firms should transparently operate within the bounds of financial laws. If Solo Funds is found liable, it may prompt stricter regulatory frameworks, affecting peer-to-peer platforms that rely on nontraditional models to attract users.
Source: Lending Fintech Solo Funds Faces Class-Action Lawsuit (TechCrunch)
Slice’s Transformation: A Fintech Company’s Foray into Traditional Banking
India-based Slice, originally a credit-based fintech, has announced its transition into a full-fledged bank, allowing it to offer conventional banking services in addition to its credit solutions. By securing regulatory approval to operate as a bank, Slice aims to expand its product range and deepen its relationship with a fast-growing consumer base in India. This move exemplifies a larger trend of fintech firms seeking to bridge the gap between traditional banking and innovative financial services.
Slice’s venture into banking will also set an intriguing precedent for other fintech companies in India and beyond. The company has successfully carved a niche among young users with its simple, digital credit products. As a bank, it can now offer savings accounts, lending products, and other services, thus creating a one-stop platform that could enhance customer retention and lifetime value.
The expansion to full banking status raises questions about how effectively Slice will manage its dual roles as a fintech innovator and a traditional bank, especially in a market as large and complex as India’s. It also marks a pivot point in the narrative of fintech companies morphing into full-service financial institutions, a trend that is gaining traction globally.
Source: India Fintech Slice Expands to Become a Bank (TechCrunch)
FullCircl’s 2025 Identity Verification Report: Insights into Compliance Challenges
FullCircl, a leading regulatory technology provider, recently released its “2025 State of Identity Verification” report, shedding light on the evolving landscape of identity verification and the challenges businesses face in maintaining compliance. As financial crimes become more sophisticated, firms increasingly invest in identity verification tools to stay ahead. According to the report, over 75% of financial institutions rank identity verification as a critical priority, citing the surge in fraudulent activities as a prime concern.
The report also highlights an industry-wide push towards digital identity systems and the use of artificial intelligence in detecting fraud patterns. As regulatory demands tighten and compliance risks rise, firms are urged to adapt swiftly. FullCircl’s findings underscore a need for seamless, real-time verification solutions that do not compromise customer experience—a delicate balance to maintain as identity verification protocols become more stringent.
The insights from FullCircl’s report reveal a heightened industry focus on ensuring robust identity frameworks that foster trust without hindering the ease of digital transactions. This growing demand aligns with broader trends where digital trust is crucial in retaining customers and enhancing their satisfaction.
Source: FullCircl Releases 2025 State of Identity Verification Report (PR Newswire)
The post Fintech Pulse: Today’s Key Industry Developments, Appointments, and Regulatory Challenges appeared first on HIPTHER Alerts.
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