- FEXD’s aggressive expansion plan not only lines up with its core mission but is also a step toward carving out a significant market share in the global fintech market, which is projected to hit $500 billion in valuation by 2028
- The company is exploring blockchain technology, banking on how easier access to mobile phones has helped make money transfers more accessible
- FEXD is also optimistic that the technology it will not only cut down on the cost of transactions but also significantly grow its annual revenues
- Its management is confident in this approach, citing that the investments so far will give the company a “solid competitive position”
Fintech Ecosystem Development (NASDAQ: FEXD), a special purpose acquisition company (“SPAC”), is constantly exploring new ways to grow and improve the financial sector, specifically in line with creating and growing a global financial services ecosystem that addresses unmet mobile needs. Its focus has been on industrialized and developed countries and markets, all built on the understanding that digital money is fast replacing physical cash.
To this effect, FEXD has embarked on an aggressive acquisition plan that has seen the announcement of definitive agreements for business combinations with companies such as Rana Financial Inc., a Georgia corporation, and Mobitech International LLC, a limited liability company organized in the United Arab Emirates. These acquisitions are not only in line with the company’s core mission but also a step in the direction of carving out a significant market share in the global financial technology market, which is currently valued at $194 billion and projected to grow to nearly $500 billion by 2028, representing a CAGR of 18.97%.
One area that FEXD is exploring is blockchain technology, an advancement in tech that is changing the remittance industry by doing away with intermediaries in the money transfer process, ultimately making transactions cheaper, faster, and more secure.
Blockchain has reduced processing times from days to minutes, particularly given that traditional processes involve different intermediaries such as payment systems, foreign exchanges, and sender banks. With the remittance market showing signs of incredible growth in the coming years, there is a growing need for players in this space to devise and adopt new ways of conducting their operations, and blockchain is proving to be the best way forward (https://ibn.fm/xtJd4).
FEXD’s focus on this technology is reflective of the general direction that the industry is taking. Key players in this space have made significant strides in blockchain adoption, with a handful of traditional remittance entities partnering to allow crypto recipients to cash out digital currencies conveniently. Some have even built a stable coin-based platform for money transfers. Other players in this industry have launched their crypto offerings, allowing people to send money to recipients, primarily in African countries, where they can then be converted and withdrawn in the receiver’s local fiat currency, providing instant liquidity.
The average cost of sending $200 was 6.01% in the second quarter of the 2022 calendar year, falling short of the Sustainable Development Goal (“SDG”) target of 3% (https://ibn.fm/3Vl6C). FEXD acknowledges that one way this SDG target can be achieved is through the adoption of blockchain technology. Given how easier access to mobile phones has played an integral role in making money transfers more accessible, the company is optimistic that this access will be a perfect avenue for implementing and deploying blockchain technology for the consumer’s benefit.
FEXD plans to adopt this technology by making strategic acquisitions which it is confident will also significantly help its annual revenues.
“We are seeking to acquire and merge with high growth global fintech acquisition targets primarily operating in South Asia with a high volume of customers and a large network of agents,” noted FEXD’s official communication.
FEXD’s management is confident that this approach and these investments will give the company a “solid competitive position,” especially in the emerging Fintech 3.0 global markets, allowing it to provide neo-banking services in the U.S., Mexico, Brazil, and India.
For more information, visit the company’s website at www.FintechEcoSys.com.
NOTE TO INVESTORS: The latest news and updates relating to FEXD are available in the company’s newsroom at https://ibn.fm/FEXD
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