We find solutions to your challenges, here’s how:
Well-capitalised FinTech company with a stable customer base and average 50 million day-by day in outstanding balance
Request
Challenge
To achieve higher earnings, the company calculates the average minimum balance over a specific period and invests approximately 30% of these funds in investment products.
With an average daily balance of 50 million transitioning to the model portfolio, the company places 15-20 million on the portfolio we offer.
This model portfolio consists of English government securities with maturities ranging from 1 to 6 months, yielding approximately 5% per annum on the 20-million portfolio. In approximate numbers, this prudent investment decision generates an additional 1 million per year or 85,000 per month, representing an impressive increase of 15-20% in monthly revenues.
FinTech company that is in the market for over 5 years and has a large and active client base, where clients are processing high-value payments using FX and are holding substantial balances on their accounts.
Request
Challenge
Considering the company’s current challenges with capitalisation, despite having a large base of active clients who make substantial payments and maintain significant balances, we propose a viable solution. To address the regulatory capital adequacy requirements, we suggest the company refer its largest clients to us. In turn, we will open investment accounts for these clients and implement the same proven liquidity management approach.
Our services include providing financial analysis, calculating average balances over a specific period, and offering the opportunity to invest a portion of their liquidity in high-liquidity conservative securities with equivalent returns.
While the FinTech company may not directly benefit from this arrangement, except for sharing in the returns generated from these clients, it significantly alleviates the burden on its own capital and balance sheet. This not only ensures compliance with regulatory requirements but also paves the way for attracting new clients and further expanding the business. By forging this partnership, we enable the company to thrive and grow in the long term.
Young FinTech company that experiences significant growth and has its own substantial capital reserves
Request
Challenge
For companies with sufficient capital of their own but experiencing rapid growth and a significant influx of new clients, managing capital becomes challenging.
Understanding the difficulty and time-consuming process of attracting additional capital while not wanting to turn away clients, they opt for a balanced strategy. This involves partially allocating their own funds (around 10-15% of average outstanding balance) and offering large clients individual placements under the supervision of an investment company.
This way, the FinTech retains the ability to monitor client activity, maintains direct contact with clients, and enhances client loyalty and attachment by providing additional earning opportunities.