Tipping the IceBerg in Fintech and Payments

We truly seem to be tipping the proverbial iceberg when it comes to fintech and payments globally. Innovation for mobile and online commerce sees to be continuing to drive this rapidly changing landscape. In fact, eMarketer “estimates sales will top $27 trillion in 2020” which is further driving this push. With companies like Paypal, Visa and small companies like Cachet Financial Solutions (CAFN) & Varo pushing the fintech charge, it will truly be interesting to see how it all plays out, but do expect change as the one true constant.

How Fintech and Payments Innovations Will Disrupt Global Ecommerce

The safe movement of money across borders is having a revolutionary effect on how and where businesses operate…


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JPMorgan Getting Further Automated

JPMorgan continues to find ways to streamline and automate to further increase its abilities to compete in this ever changing world. A new software program called COIN is making the process of interpreting commercial loan agreements significantly more efficient for them.

This software does in seconds what took lawyers 360,000 hours

At JPMorgan, a learning machine is parsing financial deals that once kept legal teams busy for thousands of hours. The program, called COIN, for Contract Intelligence, does the mind-numbing job of interpreting commercial-loan agreements that, until the project went online in June, consumed 360,000 hours of lawyers? time annually. The software reviews documents in seconds, is less error-prone and never asks for vacation…


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The Beginning of the FinTech Revolution

FinTech offers investors a unique opportunity. Large financial institutions have initially been resistant to technological change, but this is to be expected. Being highly regulated, the financial industry is naturally highly conservative. Change happens slowly. However, the marketplace is becoming a place where traditional financial institutions can’t compete. The majority is using their smartphone and online sources for their financial needs. Millennials are growing up without ever writing a check, or conducting a transaction inside a bank.

FinTech will inevitably be a driving force in the future of the financial industry and should be highly considered when pulling together a portfolio. Check out this article for a more in depth look.

3 Reasons FinTech Is Thriving

Technology is transforming finance. The established, cautious institutions will indeed change how they do things. It cannot help but happen. FinTech firms are innovative, daring, and increasingly successful. They are thriving, and they represent the future of finance…


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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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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

Banks & Credit Unions definitely need to take notice of AI and further implement fintech in all facets of their business!

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

This move by Nasdaq to create a venture arm focused on fintech seems to be a logical evolution given their current work supporting many companies in the space.

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!

Bank stocks continue their move higher today including Bank of America (BAC) which was up +5% today closing at $20.08.
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Fintech Firm Cachet Financial Solutions (CAFN) Reports Record Revenues in Q3!


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.