Fintech Group Fiinu has reportedly had its shares admitted to trading on AIM, with a valuation of around £53 million.
Fiinu has obtained its deposit-taking bank license from the Bank of England (BoE).
The issuing of the bank license/authorization from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), concludes a journey that began about 5 years ago for the firm.
The company’s management confirmed that it would keep working with UK regulatory authorities, external auditors, investors and its Board to “mobilize” the bank.
Fiinu is getting ready to bring to market the “first” Plugin Overdraft®, which is reportedly funded by an FSCS guaranteed fixed term deposits of up-to £85,000.
The “unbundled” overdraft solution assists clients with getting access to a third-party overdraft from Fiinu while also building up their credit score, which cannot be said many of the available non-bank / unregulated alternatives that are negatively impacting the credit files of clients.
Fiinu’s Open Banking powered platform connects to the client’s bank accounts without requiring them to switch between current accounts.
Clients may keep using their existing bank accounts like before and take advantage of Fiinu’s overdraft service and product which is reportedly outside of their existing bank risk appetite.
Chris Sweeney, CEO of Fiinu Plc, said:
“Today heralds the start of a new era in banking. Our unique Plugin Overdraft® is the gateway to better financial inclusion and a welcome addition of a product made possible through open banking. With the cost-of-living crisis in full effect, we are working hard to bring the Plugin Overdraft® to market as quickly as possible. We are grateful for the support of our financial regulators who see the role that a new innovative retail bank can play for the UK’s hard-pressed customers.”
As noted in the update, the admission to trading on AIM is the result of a reverse takeover and completion of the acquisition of Fiinu Holdings Limited by Immediate Acquisition Plc, which will be changing its official name to Fiinu Plc, in an “all-share transaction.”
Fiinu has secured £14 million capital and debt, including a £1 million additional investment from its primary shareholder and founder, Dr. Marko Sjoblom.
The fundraise allowed Fiinu 2 Limited (soon to be renamed Fiinu Bank), its bank subsidiary, to acquire its license from the PRA and FCA and address its regulatory capital needs.
Dr. Marko Sjoblom, Fiinu’s Founder remarked:
“We chose the London Stock Exchange as the UK Government is highly supportive of the fintech industry. Since Brexit, some British companies have chosen New York for their IPO but we are here for long-term. What also makes this step exciting is the start of a new generation of Plugin product opportunities, enabled by the OBIE initiative. It has been a vision of mine for a long-time that one day our Bank Independent OverdraftÒ platform will create a new market where unbundled overdrafts will increase financial fairness and freedom for everyone, everywhere.”