REG - Fiinu PLC - Business Update

FiinuAnnouncement

08/12/2022 07:01

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RNS Number : 9760I  Fiinu PLC  08 December 2022

8 December 2022

Fiinu Plc

("Fiinu", the "Company" or the "Group")

Business Update

Fiinu (AIM: BANK), a fintech company and creator of the Plugin Overdraft®,
announces a further update on the progress the Group is making and the Group's
current priorities for the remainder of the mobilisation phase.

Since the interim results announced on 29 September 2022, a number of the key
technology deliverables have been developed and in line with the Group plan.
The initial testing phase has commenced and will continue into the new year
with development on track to complete pilot testing in H1 2023. Grant Thornton
has been appointed to conduct an independent assurance programme in
preparation for exiting mobilisation.

In addition, Fiinu continues to make encouraging progress with the recruitment
of key staff. Charles Resnick has been approved by the regulators with effect
from 1 December 2022 to perform the Chief Finance (SMF2) function and will
shortly be appointed to the Board of Fiinu Bank( 1 ). Further announcements on
future developments in these areas will be made as and when appropriate.

Given the current economic environment Fiinu has spent some time refreshing
its approach to reflect the changes in inflation, cost of funds and customer
appetite for the product. As previously disclosed in the Company's admission
document, Fiinu's business plan is continuously analysed and updated
throughout mobilisation. This revised business plan incorporates the projected
average cost of funding and interest rate of overdraft borrowing, the spread
between which could now result in an average Net Interest Margin for Fiinu
Bank in excess of 15%, net of impairment.

Furthermore, as previously explained, in order for Fiinu Bank to satisfy its
regulators' conditions to lift its deposit-taking restrictions and commence
unrestricted operations, the Group will need, inter alia, to demonstrate that
it has sufficient regulatory and working capital to exit the mobilisation
period. Under its refined business plan, the Group is now estimating an
increased capital requirement of c.£35-40 million. This is due to a decision
to run some processes in parallel to accelerate technology development during
mobilisation and general cost inflation in respect of operating costs since
the original plan was agreed and implementation commenced.

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended. Upon the
publication of this announcement via a Regulatory Information Service, this
inside information is now considered to be in the public domain.

ENDS

 Enquiries:
 Fiinu plc                                                    via Brazil London (press office for Fiinu)

 Chris Sweeney, Chief Executive Officer

 Philip Tansey, Chief Financial Officer

 www.fiinu.com (http://www.fiinu.com)
 SPARK Advisory Partners Limited (Nomad)                      Tel:  +44 (0) 203 368 3550

 Mark Brady / Adam Dawes
 SP Angel Corporate Finance LLP (Joint Broker)                Tel:  +44 (0) 207 470 0470

 Abigail Wayne / Matthew Johnson
 Panmure Gordon (UK) Limited (Joint Broker)                   Tel:  +44 (0)207 886 2500

 Stephen Jones / Atholl Tweedie (Corporate Finance)

 Tom Scrivens / Charles Leigh-Pemberton (Corporate Broking)
 Brazil London (press office for Fiinu)                       Tel:  +44 (0) 207 785 7383

 Joshua Van Raalte / Christine Webb / Jamie Lester            Email: fiinu@agencybrazil.com

 

About Fiinu

Fiinu, founded in 2017, is a fintech group, including Fiinu Bank. Fiinu's
Plugin Overdraft® is an unbundled overdraft solution which allows customers
to have an overdraft with Fiinu Bank without changing their existing bank. The
underlying Bank Independent Overdraft® technology platform is bank agnostic,
allowing Fiinu Bank to serve all other banks' customers. Open Banking allows
Fiinu's Plugin Overdraft® to attach ("plugin") to the customer's primary bank
account, no matter which bank they may use. Fiinu's vision is built around
Open Banking, and it believes that it increases competition and innovation in
UK banking.

For more information, please visit www.fiinu.com (http://www.fiinu.com) .

 

( 1 ) Fiinu Bank Limited obtained its UK deposit-taking banking licence with
restrictions from the Prudential Regulation Authority (PRA) and with the
consent of the Financial Conduct Authority (FCA) in July 2022.

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