For those looking for a new opportunity in investing in the Canadian public marketplace, the financial technology (fintech) industry is catching the attention of respected analysts and firms.
From digital banking to credit scores, Canada’s fintech industry encompasses a broad range of companies and initiatives focused on leveraging technology to improve and innovate financial services.
This industry contains many unique companies that are developing new ways to streamline and enhance how people manage, invest and use their money.
A transformative player in the fintech game
Fintech Select (TSXV:FTEC, OTC:SLXXF) has an established presence in the fintech sector, offering everything from innovative pre-paid card programs to an online payment and point-of-sale (POS) cryptocurrency platform.
What sets Fintech Select apart is its in-house development, which has produced customizable solutions that can be tailored to consumers’ and businesses’ ever-changing needs.
At the heart of Fintech Select’s operations is its multilingual call centre. This facility not only supports customers across all of its platforms but also extends its services to third-party clients. The company has said the integration of its core assets into distinct, yet harmonious divisions has created a synergistic environment that enhances user experience and operational efficiency.
Financial performance: Q1 2024
In Q1 2024, Fintech Select reported a net income of C$313,000. This is an achievement that serves as a “report card” for the team’s operational performance and strategic management. The company attributed this success to a focused approach on operational efficiency, which resulted in positive cash flow and enhanced financial stability.
Fiscal year 2023 results
For the fiscal year ending in 2023, Fintech Select reported a net income of C$329,212, primarily driven by its operational activities. This result is a decrease compared with the net income of C$1,196,385 in the previous fiscal year, which the company stated was mainly influenced by a gain on settlement.
Despite this decline, the company achieved a significant milestone in revenue generation, reaching C$3,822,182 for that fiscal year, up from C$2,587,867 in 2022. This 47 per cent year-over-year increase highlights Fintech Select’s ability to grow revenue through initiatives that work.
Strategic outlook and future growth
A key platform from Fintech Select to watch is Selectcoin, it simplifies the process of buying and selling cryptocurrencies. Selectcoin can transform every POS terminal into a cryptocurrency exchange, offering more convenience and accessibility.
In McKinsey & Company’s recent update, it was noted that 13 per cent of Canadian banking consumers use fintechs, which their analysts said, “leaves huge untapped potential.”
“Canadian banking revenues from retail and small and medium-size enterprises (SMEs), for example, reached C$135 billion in 2022, of which just 3 per cent went to fintech,” the report continues. “That’s about C$5 billion short of what might be possible were penetration levels similar to those in the United States, where fintech penetration is 8 per cent.”
Final thoughts
Fintech Select presents a compelling 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 crucial. Potential investors should thoroughly 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 space, poised for continued growth and value creation for its shareholders.
To keep up with the latest from the company, visit fintechselect.com.
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