Fiinu Group (LON: BANK) has not been able to raise the funding that it requires to initiate full banking activity. This has slowed progress in gaining a full banking licence. A decision has been taken by the AIM-quoted fintech to withdraw its licence application and reapply in a few months.
Management will then focus on securing between £34m and £42m of cash. Once this is obtained the application process will be resumed. Friends and family testing of the Plugin Overdraft service will start when the process starts again. The other requirements are largely completed.
Fiinu has developed the Plugin Overdraft, which provides customers with an overdraft facility without the requirement to switch banks. An application for the overdraft via the Fiinu app provides permission for Fiinu to access the applicants account details at their bank. Fiinu can then assess whether they meet the requirements for the Plugin Overdraft. A phone-based App has been released.
Fiinu has converted £750,000 of loans with Dewscope Ltd, where Mark Horrocks is an indirect beneficiary, into shares at 13p each and issued 303,644 warrants exercisable at 20p each. That leaves a convertible loan of £750,000 with potential to draw down a further £990,000.
The share price slipped 11.8% to 11.25p.
