RE: Noting the change in RNS17 Sep 2025 09:52
HotChip
“ I think MFX is the winner here rather than BANK.”
The relative share price movements definitely show investor sentiment in the very short term.
“Signing an exclusivity deal for, I believe, 3 years?”
Yes, definitely three years.
“Prevents BANK from signing potentially a better deal(s) with bigger competitors, if any were or become available.”
It prevents alternative deals only within the British Isles. Fiinu can make similar deals with banks in Europe, with access to 95% of bank accounts in Europe. I expect that to happen, and in the near term.
“MFX is tiny although quite established in the IOM where I live.”
The bank is over 90 years old, so “quite established” doesn’t do it justice.
Tiny? Everything is relative and it is definitely small in comparison to the top uk banks, but its growth is accelerating. Jim Mellon is the chair and owns 18.83%.
“Manx Financial Group PLC has not reported specific customer growth figures, but growth in other metrics such as profit (41% in 2024), loans (9% in H1 2024), and customer deposits (23% in H1 2024) suggest positive customer activity and overall business expansion. The company's strategy includes both organic growth and strategic acquisitions to increase its market share and customer base.”
It’s the relative size and growth potential that makes this deal so exciting. Fiinu has rebadged their website as the Manx front end, which will be revealed tomorrow and they will be targeting their 1m Payment Assist customers.
That’s just the start, but will allow the parties to bed in the website, the software processing and the back office functions. Once Fiinu is happy with the system, it can quickly and efficiently clone that tried and tested system to UBS, Santander, or whoever they want on the continent.
“SP reflects disappointment here even in view of the recent fundraise at a c.33% premium to what was then the SP at the time of the announcement.”
Investors aren’t always the most sophisticated thinkers, although my investment buddy put that in very crude language. They think Barclays would be better than Manx, because it’s bigger. Well, firstly, Barclays is a behemoth. It would take forever to get any deal from them, but why would they bother? They are one of a cartel and they have enough captive customers to make money from. If they got into an interest rate scrap with the other majors, then ALL their profit margins would suffer!
Jim Mellon knows what he is doing, obviously. That’s why he’s a billionaire! Of course he sees this as a way of getting growth that he wouldn’t otherwise get, because the Fiinu plug-in is UNIQUE.
Fiinu gets the same access to the 100m UK accounts as it would by partnering with Barclays, but it gets that access NOW. The income from Manx, plus from any new deals in Europe, will fund Fiinu until it can get back its own banking licence, which it only lost due to market conditions and not b
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