Interview

The agility of the Electronic Money Institution: paving the way for instant, low-cost payments around the globe

Wednesday 10 April 2024 08:47 CET | Editor: Mirela Ciobanu | Interview

Hidir Yildiz, Mergers and Acquisitions Manager at Finance Incorporated Limited (FIL), sheds light on the company's forward-thinking approach to expansion.

Based in Malta, FIL is a fintech company dedicated to pioneering advancements in payments and championing ethical and sustainable practices in the fintech realm.

 

What did the transition from traditional banking to an Electronic Money Institution mean to FIL?

Transitioning from traditional banking to an Electronic Money Institution (EMI) has been a profound shift for me personally and professionally. Having spent decades with an investment bank, I was accustomed to the bureaucratic structures, cumbersome processes, and fee-centric operations that often characterised traditional banking institutions.

However, joining Finance Incorporated Limited (FIL) introduced me to a whole new paradigm in finance. The rise of EMIs has fundamentally disrupted the traditional banking model, challenging established banks with their agile approaches and innovative solutions. In FIL, I immediately noticed the stark contrast between the two: whilst traditional banks struggled to adapt to the changing consumer demands and technological advancements, EMIs like FIL thrived on their ability to provide streamlined, cost-effective, and customer-centric financial solutions.

One of the most striking aspects of this transition has been witnessing how EMIs leverage technology to offer seamless user experiences. At FIL, our in-house developed platforms empower customers to conduct transactions, manage accounts, and access financial products with unprecedented speed and convenience, all from the comfort of their own devices. This emphasis on user experience has not only enhanced customer satisfaction but has also positioned EMIs as leaders in the rapidly evolving fintech landscape.

Moreover, the commitment to financial inclusion has been a driving force behind FIL's operations. By extending services to underserved and unbanked populations through mobile banking solutions and strategic partnerships, we play a pivotal role in promoting economic empowerment and reducing financial disparities.

Importantly, this transition resonates deeply with my personal values. The focus on ethical and sustainable finance aligns perfectly with my belief in the importance of serving humanity and contributing to a more equitable society. Moving to FIL has not only been more professionally rewarding but has also provided me with the opportunity to make a meaningful impact in the world of finance.

 

Where is Finance Incorporated Limited now?

Finance Incorporated Limited (FIL) continues to evolve as a leading fintech company, leveraging its EMI license to deliver innovative and accessible financial services across Europe.

Despite the industry’s competitive environment, FIL is ranked as one of the most valuable financial institutions in Malta having consistently demonstrated strong financial performance and maintaining its position as an EMI offering payment card solutions with both Mastercard and Visa. The Company has also maintained a positive EBITDA value since 2020, demonstrating its robust cash-generation capability and financial stability.

With the company’s strong financial structure and innovative fintech solutions, we remain well-positioned to capitalise on new growth opportunities in Europe. FIL's commitment to innovation is evident with its recent launch of the softPOS solution. This groundbreaking offering targets small business owners, empowering them to receive payments from customers using their mobile phones. The softPOS solution has garnered significant success, particularly in Germany and Malta, owing to its competitive fees and streamlined onboarding process.

 

What are Finance Incorporated Limited’s plans for growth and expansion?

Finance Incorporated Limited (FIL) has outlined strategic plans for growth and expansion, focusing on widening our licensable activities, expanding into the UK market, and solving challenges in cross-border payments.

We are working on expanding our license which will enable us to meet a wider range of financial needs of our clients in Europe, enhance our service offerings, and establish ourselves as a comprehensive financial institution.

Considering that it is necessary to expand into new markets, FIL is aware of the importance of trade volumes between Europe and the UK after Brexit and aims to benefit from this opportunity. The UK is distinguished from the EU by its nature and legislation, making it a unique market that requires a special approach. With this, a strategic move was needed to strengthen our presence and to start our operations in the UK. We are planning to acquire a UK-based company with an EMI licence, to accelerate its entry into the UK market. This strategic move will enable FIL to offer its suite of financial products and services to customers in the region and reap the benefits of operating without the bureaucracy associated with legacy banks.

In addition, FIL recognises the inherent challenges of traditional cross-border payments, such as being slow and expensive. We plan to overcome these challenges by offering more convenient and faster cross-border payment solutions in both the UK and Malta, after acquiring an EMI licensed company in the UK. We aim to expand into important markets such as India and Africa by facilitating faster and more convenient money transfers for foreigners working in Europe and the United Kingdom. FIL aims to capture opportunities in the global market and contribute to economic growth by focusing on innovation and efficiency in the cross-border payments segment.

Overall, FIL's growth and expansion plans reflect its commitment to meeting the changing needs of its customers in an increasingly interconnected world and contributing to economic development on a global scale.

 

What are Finance Incorporated Limited’s projections for the next three years?

We at Finance Incorporated Limited (FIL) have ambitious forecasts for the next three years, with a commitment to continuous innovation, diversification of services and global expansion.

If I had to list the prominent ones:

It is aimed to continuously renew and diversify the service portfolio over the next three years.

This may include developing new products internally or through partnerships with other fintech players who share FIL's values. The aim is to offer a comprehensive suite of services that meet customers' diverse financial needs, thereby reducing dependence on traditional banking institutions and their bureaucratic processes.

FIL is experiencing steady growth and has ambitions to expand beyond local borders.

The company is already launching successful products in markets such as Germany and aims to become a major player in ethical financial services worldwide within the next three years. This expansion will involve both broadening the product range and increasing its geographical presence, enabling FIL to reach a wider customer base and contribute to financial inclusion on a global scale.

We recognise the importance of collaboration; and so, FIL actively seeks innovative and reliable partners from different jurisdictions who share the same values.

These partners will play a pivotal role in supporting FIL's expansion efforts and contributing to the creation of a more inclusive and ethical financial environment globally. By collaborating with like-minded organisations, FIL aims to accelerate progress toward its long-term goals and create a legacy that future generations will be proud to inherit.

In summary, FIL's predictions for the next three years reflect its ambitious vision to become the leading player in ethical financial services globally. FIL aims to contribute to greater financial inclusion and empower individuals to reach their full potential through continuous innovation, global expansion, and strategic partnerships.

 

About Hidir Yildiz

Hidir joined Finance Incorporated Limited as Mergers and Acquisitions Manager in May 2023. He previously served as Capital Market Advisory at the Investment and Development Bank of Türkiye. His experience covers valuation modelling, risk management, and investor relations. Hidir spent most of its time in the finance and energy industries.

 

 

About Finance Incorporated Limited

Finance Incorporated Limited is an Electronic Money Institution based in Malta that operates the brands Paymix SoftPOS, Paymix Pro, iPaymix, and Paymix VIA, delivering accounts, payments, and card services to corporate and retail clients, as well as to financial institutions. It is licensed by the Malta Financial Services Authority as a financial institution in terms of the Financial Institutions Act (Chapter 376 of the Laws of Malta). The Company is also a participant of the SEPA Payment network, a member of the European Payment Institutions Federation, a member of NACHA Payments Innovation Alliance, a member of SMI – Sustainable Markets Initiative, and a proud supporter of Terra Carta. Learn more at www.financeincorp.com.



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Keywords: mobile payments, EMI licence, ecommerce, cross-border payments, fintech
Categories: Payments & Commerce
Companies: Finance Incorporated Limited
Countries: World
This article is part of category

Payments & Commerce

Finance Incorporated Limited

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