Fintech
Who’s tapping into the untapped potential of financial technology? | 2024-07-16 | Investment News
For those seeking new investment opportunities in the Canadian public market, the financial technology (fintech) sector is capturing the attention of respected analysts and firms.
From online banking to credit scores, Canada’s fintech sector encompasses a wide range of companies and initiatives focused on leveraging technology to improve and innovate financial services.
There are many unique companies in this space that are developing new ways to simplify and improve the way people manage, invest, and use their money.
A transformative player in the fintech game
Fintech Selection (TSXV:FTEC, OTC:SLXXF) has an established presence in the fintech sector, offering everything from innovative prepaid card programs to an online payment and cryptocurrency platform for point of sale (POS).
What sets Fintech Select apart is its in-house development, which has produced customizable solutions that can be adapted to the ever-changing needs of consumers and businesses.
At the heart of Fintech Select’s operations is its multilingual call center. This facility not only supports customers across all its platforms but also extends its services to third-party customers. The company said that integrating its core resources into distinct but harmonious divisions has created a synergistic environment that improves user experience and operational efficiency.
Financial Performance: Q1 2024
In the first quarter of 2024, Fintech Select recorded a net income of 313,000 Canadian dollars. This is a result that serves as a “report card” for the operational performance and strategic management of the team. The company attributed this success to a focused approach to operational efficiency, which led to positive cash flow and greater financial stability.
Fiscal Year 2023 Results
For the fiscal year ended 2023, Fintech Select reported net income of 329,212 Canadian dollarsprimarily driven by its operating activities. This result is a decrease from net income of C$1,196,385 in the prior fiscal year, which the company said was primarily impacted by a gain on the transaction.
Despite this decline, the company achieved a significant milestone in revenue generation, reaching C$3,822,182 for that fiscal year, compared to C$2,587,867 for 2022. This 47 percent increase year-over-year highlights Fintech Select’s ability to grow revenue through initiatives that work.
Strategic Outlook and Future Growth
A key Fintech Select platform to keep an eye on is Select coinsimplifies the process of buying and selling cryptocurrencies. Selectcoin can turn any POS terminal into a cryptocurrency exchange, providing greater convenience and accessibility.
At McKinsey & Company’s recent updateIt has been noted that 13 percent of Canadian banking consumers use fintechs, which, according to their analysts, “leaves enormous untapped potential.”
“Canadian banking revenues from retail and small and medium-sized businesses (SMEs), for example, reached C$135 billion in 2022, of which only 3 percent went to fintech,” the report continues. “This is about C$5 billion less than would be possible if penetration levels were similar to those in the United States, where fintech penetration is 8 percent.”
Final thoughts
Fintech Select presents an attractive opportunity for investors seeking exposure to the rapidly evolving fintech sector. The company’s consistent financial performance, innovative product offerings, and strategic growth plans position it well for future success. However, as with any investment, due diligence is critical. Potential investors should carefully evaluate Fintech Select’s financial health, market position, and growth prospects to make an informed decision.
Fintech Select’s ability to adapt and innovate in a competitive market makes it a noteworthy player in the fintech sector, poised to continue growing and creating value for its shareholders.
To stay up to date on the latest company news, visit fintechselect.com.
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