Mobile Deposits Rule!

Celent expects 62 million Americans will be using the mobile deposit offerings at 4,000 banks and credit unions by the end of this year.

Blog :: A Mobile Deposit Solution Expressly for Small Banks & Credit Unions :: Cachet Financial Solutions

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www.cachetfinancial.com

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Blockchain Progressing In 2017

Good read looking at developments in blockchain and fintech in 2017!

How Blockchain Will Evolve In 2017

This year promises to be a big one for blockchain technology…

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Machine Learning, AI and the Future of Data Analytics in Banking

Here’s why banks and credit unions should believe in artificial intelligence and invest in the power of advanced data analytics.Read Full Article

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Nasdaq plans venture arm to invest in financial technology: sources| Article [AMP]| Reuters

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Visa USA | Visa Everywhere | Innovation | Visa and IBM bring commerce to IoT

Visa USA | Visa and IBM collaborate to bring digital payments to the Internet of Things with connected devices, from appliances to cars.Read Full Article

It is amazing to speculate on what our future beholds with regard to digital payments and the Internet of Things (IOT)




Bank of America (BAC) On the Move Up +5% TODAY!

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Bank stocks continue their move higher today including Bank of America (BAC) which was up +5% today closing at $20.08.
Vista Partners LLC, founded in 2005, is a Registered Investment Advisor in the State of California. The firm’s professional staff has backgrounds in finance, corporate communications and investment banking.

Vista focuses on investing globally across all market sectors while providing considerations on publicly traded companies through a platform of stock research reports, newsletters, company specific webpages and daily commentary. This platform is designed to serve as a tool for investors to discover insights and information that aid in more profitable investment decisions with the goal to outperform small, mid and large cap equity indexes.

It is Vista’s belief that in rational markets deep fundamental value will be recognized and in periods of uncertainty, equities, without robust analyst coverage and following, will be valued inefficiently and can lead to positive returns by taking advantage of these inefficiencies. We further believe in identifying the right management teams, in the right business, at the right time and then seeking to create value by bringing forth strategic and advisory initiatives when possible. We further seek to build equity positions over time as businesses develop, management teams continue to meet or succeed against their published milestones and projections, and prices fluctuate periodically and ultimately and opportunistically seek to capture positive returns.




Fintech Firm Cachet Financial Solutions (CAFN) Reports Record Revenues in Q3!

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Cachet Financial Solutions, Inc. (CAFN), a leading mobile fintech provider to banks, credit unions and other financial services organizations, reported results for the third quarter ended September 30, 2016 today.

Q3 2016 Financial and Operational Highlights

  • Revenue increased 124% year-over-year to a record $2.3 million
  • Announced the deployment of Select Mobile Deposit solution for mobile-only banking start-up, Varo Money
  • Selected by Arbiter Sports to deliver an integrated game management and mobile money solution for sports game officials
  • Rolled out with Central Bank of Kansas City an end-to-end reloadable prepaid card program for banks, credit unions, and alternative financial services (AFS) providers
  • Partnered with Rapid Financial Solutions to integrate Select Mobile Money solution with Rapid’s payment processing platform
  • Appointed independent directors Ruth Owades, Robin O’Connell, Liyuan Woo, and Jim Spencer to the board of directors
  • Introduced two new major enhancements to Select Business Merchant Capture solution to improve efficiencies and reduce operating costs for banks, credit unions, and their business customers

Q3 2016 Performance Indicators

  • RDC Solutions Q3 2016 vs. Q2 2016 Change vs. Q3 2015 Change
  • Total Transactions 2,465,252 2,421,073 2 % 1,619,713 52 %
  • Cumulative Products Sold (at Quarter End) 788 685 15 % 491 60 %
  • Cumulative Live Product Implementations (at Quarter End) 550 492 12 % 354 55 %
  • Mobile Money Solutions Q3 2016 vs. Q2 2016 Change vs. Q3 2015 Change
  • Quarterly Active Users 188,842 155,575 21 % 93,709 102 %

Q3 2016 Financial Results
Revenue in the third quarter of 2016 increased 124% to a record $2.3 million from $1.0 million in the third quarter of 2015. The improvement was driven by an increase in recurring revenue from the company’s RDC products, increase in the number of transactions, and increase in the number of product and product enhancement deployments completed in the quarter.

Recurring revenue from the company’s RDC and Select Mobile Money products increased 76% to $1.5 million (64.8% of revenue) in the third quarter of 2016 from $847,000 (82.2% of total revenue) in the third quarter of 2015.

Cost of revenue in the third quarter of 2016 totaled $1.3 million (57.8% of revenue), compared to $945,000 (91.7% of revenue) in the third quarter of 2015.

Total operating expenses for the third quarter of 2016 increased 19% to $2.7 million from $2.3 million in the third quarter of 2015, driven primarily by additional hires to increase the sales efforts of the company’s solutions and services.

Net loss attributable to common stockholders in the third quarter of 2016 totaled $4.2 million or $(1.46) per basic and fully diluted share, compared to a net loss of $7.1 million or $(3.47) per basic and fully diluted share in the third quarter of 2015. The decrease in net loss was primarily due to improved operational performance and a decrease in certain non-cash charges.

Adjusted EBITDA loss (a non-GAAP term defined as net loss before interest, taxes, depreciation, amortization, stock-based compensation, and non-recurring items) for the third quarter of 2016 totaled $1.3 million, an improvement from an adjusted EBITDA loss of $1.6 million in the same year-ago period (see further discussion about the use of adjusted EBITDA, below).

Management Commentary
“After reporting a milestone quarter in Q2, we’re pleased to report yet another record quarter in Q3,” said Cachet Financial Solutions’ CEO Jeffrey Mack. “Revenue grew to its highest level ever, reflecting the continued growth of our core RDC business, as well as the expansion of our Select Mobile Money business, which is increasingly taking a larger share of the massive prepaid market. We also matched a company record for recurring revenue during the quarter and achieved new records in both transactions and total products sold. This last achievement, in particular, validates some of the work we’ve done over the year to build out our sales force and enhance our platform, so that we can take advantage of every market opportunity available to us.

“What’s perhaps most encouraging is that even though we increased our investments to support this higher level of growth, our topline continued to accelerate faster than our expenses, reaffirming once again the significant leverage in our business model. In fact, gross margins for the quarter reached a record 42.2%, beating our previous record of 27.3% reported in the prior quarter. On top of that, our adjusted EBITDA continued to improve, which shows that while we are focused heavily on growth, our business is set up to be profitable, once we scale our revenue and leverage our fixed costs even further.

“On the operational side, our Select Mobile Money Express, or SMM-X, solution continued to gain traction, both in bringing new opportunities into the pipeline and in getting some of our current customers closer toward full deployment. In fact, we recently completed the first ever deployment for our end-to-end prepaid mobile banking solution, with several more deployments expected to be completed in the fourth quarter. Additionally, we continued to add some new customers to our white-label Select Mobile Money platform and continued our progress in expanding beyond our core end markets and geographies.

“Our focus going forward will be on continuing to build our sales force, developing our channel partnerships, penetrating our existing client base, and expanding our presence beyond our core markets and geographies. We believe that these investments will position us for even stronger topline growth, which will help our bottom line, because of our relatively fixed cost structure. In addition, given our strong results for the first nine months of the year, we remain confident that we will achieve our 2016 revenue guidance of $8.0 million to $10.0 million. Although there is still a lot of work to be done, we have fortunately set up the right foundation to propel our growth in a way that’s both meaningful and sustainable.”

Minneapolis, MN based Cachet Financial Solutions is a leading cloud-based, SaaS technology provider serving the financial services industry with mobile money and remote deposit capture solutions for PC, Mac and mobile. Founded in early 2010, Cachet has quickly grown into a technology leader and trusted partner of some of the largest and most respected financial organizations. With remarkable growth, an impressive client base and award-winning technology, Cachet continues to drive innovation and deliver world-class solutions to financial institutions of all sizes. Cachet believes that its industry-leading solutions can help the company’s clients increase customer retention and revenue opportunities. Cachet’s cloud-based technology platform simplifies development, deployment and servicing of consumer and commercial solutions—minimizing cost and accelerating speed-to-market for Cachet’s clients. Enabled by Cachet’s suite of business and consumer solutions, financial institutions can better serve the needs of all their customers. For more information please visit the company dedicated page and download a FREE recent update report from Vista Partners.




Fintech Firm Cachet Financial Solutions Holding Q3 Earnings Call Thursday, Nov. 10 at 4:30 p.m. ET

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Cachet Financial Solutions, Inc. (CAFN), a leading mobile FinTech provider of cloud-based remote deposit capture (RDC) and mobile money solutions, will hold a conference call on Thursday, November 10, 2016 at 4:30 p.m. Eastern time (3:30 p.m. Central time) to discuss financial results for the third quarter ended September 30, 2016. Financial results will be issued in a press release prior to the call.

Cachet’s president and CEO, Jeffrey Mack, and EVP and CFO, Bryan Meier, will host the presentation, followed by a question and answer period.

Date: Thursday, November 10, 2016
Time: 4:30 p.m. Eastern time (3:30 p.m. Central time)
U.S. dial-in: 1-877-705-6003
International dial-in: 1-201-493-6725

Please call the conference telephone number 10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios at 949-574-3860.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through December 10, 2016.

U.S. replay dial-in: 1-844-512-2921
International replay dial-in: 1-412-317-6671
Replay ID: 13648697

About Cachet Financial Solutions, Inc
Cachet Financial Solutions is a leading cloud-based, SaaS technology provider serving the financial services industry with mobile money and remote deposit capture solutions for PC, Mac and mobile. Founded in early 2010, Cachet has quickly grown into a technology leader and trusted partner of some of the largest and most respected financial organizations. With remarkable growth, an impressive client base and award-winning technology, Cachet continues to drive innovation and deliver world-class solutions to financial institutions of all sizes.

Cachet’s industry-leading solutions can help the company’s clients increase customer retention and revenue opportunities. Cachet’s cloud-based technology platform simplifies development, deployment and servicing of consumer and commercial solutions—minimizing cost and accelerating speed-to-market for Cachet’s clients. Enabled by Cachet’s suite of business and consumer solutions, financial institutions can better serve the needs of all their customers. For more information, visit www.cachetfinancial.com or download a FREE Report at Vista Partners.




A Vista Partners Daily Commentary: “Fintech Firm Cachet (CAFN) Feeding Into Increased Consumer Appetite for Mobile & Online Banking”

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A new study recently released by the Federal Deposit Insurance Corporation (FDIC) reveals that consumers are increasingly turning to mobile and online banking to access and manage their accounts.

From 2013 to 2015, the population of U.S. consumers using online banking increased from 55% to 60%, and those using mobile banking grew at an ever greater pace, from 23% to 32%. The FDIC says consumers appreciate the greater control and convenience these channels provide.

The study also showed that the proportion of households that used a prepaid card in the past 12 months increased from 7.9% to 9.8%, with this growth seen broadly across socioeconomic and demographic groups.

FDIC says that about one in five households identified as “underbanked,” and that these households are more likely to rely upon their mobile device as their primary means of managing their financial accounts. The underbanked reported significant benefits from immediate access to account information, including reminders and balance alerts that help keep them on track with their finances.

The FDIC concluded that by providing better and more timely information on balances and transactions, mobile financial services give consumers an important element of control over their financial lives. Mobile financial services can also help address some of the underlying reasons consumers report becoming completely “unbanked,” such as wanting to avoid unexpected fees and worrying about low balances. According to the FDIC, the unbanked now represents more than 15 million adults or 7% of U.S. households.

Minneapolis-based Cachet Financial Solutions, Inc. (CAFN), purveyor of Select Mobile™ Money, the award-winning cloud-based SaaS platform used by financial institutions and alternative financial services (AFS) providers nationwide is feeding into the this increased appetite for mobile banking.

Select Mobile Money enables these organizations to offer their customers a full suite of mobile financial services, including prepaid general purpose reloadable debit and payroll cards, powered by an easy-to-use, multilingual mobile app available on both Apple iOS and Android devices.

Cloud-based services include account management, check-to-card fund loading with an option for “instant good funds,” card-to-card transfer and international remittance. The customizable app also features location-based technology that can pinpoint nearby ATMs and supports a national mobile coupon network of 150,000 merchants offering local deals. Powerful back-end analytics enable financial institutions to segment customers based on behavior, and send relevant marketing notifications that keep customers engaged. Apple Pay™ and Apple Watch™ integration is also available.

Cachet also offers several other consumer mobile financial solutions that provide greater consumer convenience, including: Select Mobile™ Deposit, which saves consumers a trip to the bank or credit union by allowing them to snap a photo of their check deposit and submit electronically via a tablet or smartphone; Select Mobile™ Account Opening, which eliminates cumbersome manual entry on a mobile enrollment form by enabling consumers to take a photo of their drivers license or ID with their mobile device and using the data to auto fill the form; and Select Mobile™ NowPay, which enables consumers to use their mobile device to snap a photo of their check payment and submit electronically versus dropping the payment off at a lender branch office or the post office.

Jeffrey Mack, President and CEO of Cachet stated, “Our easy-to-deploy products and services allow financial institutions to tap into larger, underserved populations without major capital expense or time-to-market. The power, flexibility and security of our products has allowed us to become a trusted partner of some of the world’s largest and most respected financial organizations.”

cachetfinancial_vistapartners_coverage
Cachet Financial Solutions is a leading cloud-based, SaaS technology provider serving the financial services industry with mobile money and remote deposit capture solutions for PC, Mac and mobile. Founded in early 2010, Cachet has quickly grown into a technology leader and trusted partner of some of the largest and most respected financial organizations. With remarkable growth, an impressive client base and award-winning technology, Cachet continues to drive innovation and deliver world-class solutions to financial institutions of all sizes. Cachet believes that its industry-leading solutions can help the company’s clients increase customer retention and revenue opportunities. Cachet’s cloud-based technology platform simplifies development, deployment and servicing of consumer and commercial solutions—minimizing cost and accelerating speed-to-market for Cachet’s clients. Enabled by Cachet’s suite of business and consumer solutions, financial institutions can better serve the needs of all their customers. For more information please visit the company dedicated page and download a FREE recent update report from Vista Partners.




Viamericas, a Portfolio Company of the IFC – World Bank Group, Partners with Fintech Firm Cachet to Provide Secure Mobile International Money Transfers

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Viamericas Corporation offers money transfer, bill payment, check processing and top-up services at agent locations across the United States, online at viamericas.com and a network of thousands of pay-out locations throughout Latin America, India and Asia. Viamericas provides easy, fast and safe international payments and superior customer service. The International Finance Corporation (IFC) – member of the World Bank Group – is Viamericas’ largest institutional shareholder. For more information, visit www.govianex.com.

Today Cachet Financial Solutions (CAFN), a leading mobile FinTech provider of cloud-based remote deposit capture (RDC) and mobile money solutions, announced that it has partnered with Viamericas Corporation to integrate Viamericas’ top-ranked international money transfer capabilities into Cachet’s award-winning Select Mobile™ Money SaaS solution.

Viamericas’ global network provides cash payout or same-day direct deposits from the U.S. to Mexico, Central and South America, the Caribbean, the Philippines, India and other countries. The network includes thousands of bank and nonbank payout locations in both urban centers and remote rural communities.

Cachet’s Select Mobile Money cloud-based SaaS platform allows hundreds of financial institutions and alternative financial service (AFS) providers across the U.S. to provide their prepaid cardholders a full suite of convenient financial services in one easy-to-use mobile companion app. Available for both iOS or Android mobile devices, Select Mobile Money helps users better manage their prepaid cards and personal funds, including account management, transaction history, card-to-card transfer, check-to-card loading with immediate good funds option, and other convenient services.

The app also features location-based technology that can pinpoint nearby reload locations and ATMs, as well as a national mobile coupon network with local deals. Advanced features include fingerprint authentication and multi-language support.

The integration with Viamericas adds fully-integrated, seamless and secure international money transfer capabilities, including single sign-on, complete transaction histories and easy repeat transactions with previously saved recipients, all of which are available through Viamericas’ Vianex Money Transfer as a Service (MTaaS) platform.

Paul Dwyer, CEO of Viamericas stated, “Our partnership with Cachet and the integration of our platforms brings the convenience and efficiency of international mobile money transfer to the banked and unbanked alike. By integrating our MTaaS platform with Cachet’s award-winning prepaid card app, this partnership furthers our mission to unite immigrant families globally and help them achieve their goals by providing low-cost, reliable and secure international remittance through the channels most used by our customers.”

Jeff Mack, President and CEO of Cachet Financial Solutions commented: “In today’s mobile world, people expect mobile access to the financial services they rely upon every day, which means not having to make a special trip to a bank or service location just to send money to family or friends abroad. For both new and as an upgrade on existing deployments, we can now offer this service on our Select Mobile Money platform as an easy to use, fully-integrated international money transfer feature powered by Viamericas.”

For prepaid card program providers, adding this new international money transfer feature can broaden the appeal of a prepaid card and further extend its life, and thereby create stickier, more profitable customer relationships. Powerful back-end analytics also enable card program providers to segment card users, allowing them to send relevant push notifications and in-app messages that can keep users engaged.

As a unique ‘white label’ offering with multi-tenant capabilities, Select Mobile Money enables quick and easy deployment of a variety of branded cards and matching companion mobile apps — all managed by a singular backend platform. To learn more about Select Mobile Money, visit www.cachetfinancial.com or email info@cachetfinancial.com.

Vista Partners recently updated coverage on Cachet Financial Solutions, Inc. (Ticker: CAFN) (“The Company” or “Cachet”) with a twelve-month price target of $21.50.

John Heerdink, Managing Director at Vista Partners, stated, “Cachet enjoys a highly scalable financial technology (“fintech”) SaaS business model with expanding product offerings, recurring revenue streams, extensive cross-sell & upsell opportunities within an existing diverse client base of financial organizations.” Mr. Heerdink concludes, “Cachet’s 2016 revenue guidance reflects an organic revenue growth rate of 84% to 132% year-over-year and after reporting Q2 2016 in August management believes they are on track as they realized 100% YOY revenue growth vs. Q2 2015.”

To download a FREE copy of the Cachet Financial Solutions, Inc. (Ticker: CAFN) research report, please visit http://www.vistapglobal.com and click the “download research” icon to gain access to the report.