Fintech firm Fiinu further updated the market on its recent progress on Thursday, as well as its current priorities for the rest of its “mobilisation phase”.
The AIM-traded firm said that, since its interim results on 29 September, a number of the key technology deliverables had been developed, in line with its plan.
It said the initial testing phase had started, and would continue into the new year, with development on track to complete pilot testing in the first half of 2023.
Grant Thornton had been appointed to conduct an independent assurance programme in preparation for exiting mobilisation.
“In addition, Fiinu continues to make encouraging progress with the recruitment of key staff,” the board said in its statement.
It noted that Charles Resnick had been approved by the regulators with effect from 1 December to perform the chief finance function, and would shortly be appointed to the board.
“Given the current economic environment Fiinu has spent some time refreshing its approach to reflect the changes in inflation, cost of funds and customer appetite for the product.
“As previously disclosed in the company’s admission document, Fiinu’s business plan is continuously analysed and updated throughout mobilisation.
“This revised business plan incorporates the projected average cost of funding and interest rate of overdraft borrowing, the spread between which could now result in an average net interest margin for Fiinu Bank in excess of 15%, net of impairment.”
Additionally, as it had previously explained, the board said that in order for Fiinu Bank to satisfy the regulators’ conditions to lift its deposit-taking restrictions and start unrestricted operations, it would need to demonstrate sufficient regulatory and working capital to exit the mobilisation period.
“Under its refined business plan, the group is now estimating an increased capital requirement of £35m to £40m.
“This is due to a decision to run some processes in parallel to accelerate technology development during mobilisation and general cost inflation in respect of operating costs since the original plan was agreed and implementation commenced.”
At 1148 GMT, shares in Fiinu were down 1.96% at 12.5p.