Fintech
Moomoo’s Parent Company Futu Announces Investment Grade Rating Reaffirmed by S&P Global Ratings
Moomoo’s parent company Futu Holdings Limited (Nasdaq: FUTU, “Futu”), a leading tech-driven online brokerage and wealth management platform, announced that its long-term issuer credit rating “BBB-” has been reaffirmed with a stable outlook by major global rating agency Standard & Poor’s (S&P). Meanwhile, S&P also maintained Futu’s “bbb” GCP (group credit profile) rating.
Last year, Futu was granted a BBB- long-term issuer credit rating by S&P, marking the first Hong Kong brokerage to independently receive BBB- rating from S&P.
Being one of the three major global rating agencies, S&P offers third-party forward looking opinions about a company’s relative creditworthiness ranging from AAA to D. Companies rated BBB- or higher by S&P are considered investment-grade, and are believed to have adequate capacity to meet financial commitments and relatively low credit risk.
In its recent report, S&P highlighted Futu’s very strong capitalization, adequate risk controls and expansion strategy on international market, and it expected Futu to maintain the risk appetite, underwriting standards and good loan quality while expanding the business scope and international outreach over the next 24 months.
S&P also underscored Futu’s satisfactory share of about 3% of Hong Kong’s fragmented brokerage market, and its improvements on the diversification of its product offerings and geographic reach. S&P believed that Futu has started to diversify its funding structure and liquidity sources in recent years.
S&P commented in the report that internationalization will be the main strategy for Futu in the next two to three years, as the company is looking to expand the presence in Hong Kong SAR, the U.S., Singapore, Australia and potentially other new markets. As of the end of first quarter, Futu recorded more than 80% of its newly acquired paying clients from Hong Kong SAR, the United States, Singapore and other international markets in first quarter this year.
Having established its presence in Hong Kong in 2012, Futu has led the way in the local brokerage industry for almost ten years and its app Futubull is now a household name in Hong Kong. Futu’s registered Hong Kong users number accounted for approximately one third of Hong Kong adults’ population.
Since July 2020, Futu had become the first retail brokerage included in Category A Stock Exchange Participants by the Hong Kong Exchange, ranking among top 14 brokerage houses together with other top tier global investment banks, in terms of market shares in Hong Kong.
Since Futu made its debut in Singapore last year, its flagship app moomoo has quickly become a technology brokerage platform recognized by local investors. As of June 2022, the number of Futu’s Singapore users accounted for more than 20% of the Singapore’s population aged between 20 to 70. In June 2022, Moomoo Financial Singapore Pte. Ltd officially became the first digital brokerage to receive full memberships from Singapore Exchange, strengthening its leading position in the industry.
In the U.S. market, moomoo continues to gain interest from traders who seek better tools to trade like a pro. With strong technology supports, moomoo provides investors with seamless trading experience, timely financial information, and powerful investment analysis tools that used to be available only to institutional investors.
Moomoo also announced its official launch in Australia in March 2022, providing trading access of stocks and ETFs listed in the U.S. and Australia to Australian investors. Moomoo is rapidly expanding its presence in Australia by sharing investing knowledge and market insights in financial forums and events, putting responsible investing into practice.
Apart from brokerage business, Futu sharpens edges of its product diversification. In terms of enterprise service business, Futu had 258 IPO and IR clients as well as 459 ESOP clients by the end of first quarter, climbing up 69.7% and 129.5% YoY, respectively.
Additionally, Futu Money Plus has partnered with 64 world’s well-known financial institutions to offer wealth management services, including five new partners – Wellington Investment, Fullerton Fund Management, Lion Global Investors, Nikko Asset Management and UOB Asset Management in first quarter. According to its first quarter earnings report, the total client assets amount reached HK$20.9 billion ($2.7 billion), an increase of 59.1% YoY.
As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.
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