Fintech Select – Solving payment problems for people in the ‘real’ economy
It is the nature of humans generally, and investors specifically, to be optimistic about the future. The dotcom boom, those bloody tulips and most recently, the dense cloud of sheer hope surrounding cryptocurrencies were just a few examples of times when investor optimism had run ahead of the market fundamentals.
But innovative, problem-solving companies with a focus on execution (think Amazon, eBay and Tesla) have made seemingly crazy promises, such as the internet and electric vehicles, into a reality. While it remains too early to tell which companies will “win” the cryptocurrency and blockchain revolution, there are many making positive strides.
Fintech Select Ltd. (TSXV: FTEC) (“Fintech Select”) is a truly rare company operating in the cryptocurrency space in that it has an established track record of almost two decades.
The company’s achievements are courtesy of two legacy ventures in prepaid card programs and financial payment services. These businesses have allowed the company to accrue over 18 years’ worth of experience in the payments space solving problems for real people in the economy.
While some investors prefer to put money behind completely unproven technology or management teams in the hope of a massive payoff, this is more akin to gambling than investing. To limit risk to your capital in the market while still preserving a similar upside, a simple yet effective filter can be to look for an experienced business and management team.
Businesses that have been in operation for some time are able to earn what some call “organizational memory”, which means that its employees are able to build on successes and avoid landmines much more effectively than newbies in the field. This organizational memory also allows companies to pivot to new businesses whenever the opportunities arise, which is exactly what Fintech Select has done.
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We mentioned earlier that Fintech Select already has two operating pillars that underpin its business. Recently, the management team, led by CEO Mohammad Abuleil, saw the opportunity to expand to a third business unit that allowed it to leverage the fastest growing trend in the financial world: cryptocurrency.
Specifically, Fintech Select solves the problem of how new investors in the crypto space can take their existing currency holdings or digital transaction accounts and use them to buy cryptocurrency. This is major simply because cryptos suffer from one of the biggest usability problems I’ve ever seen. Seamless integration with current currency assets is an absolute must if anyone is to profit from blockchain based currencies at this stage in the game.
The advantages of this model are numerous. First of all, unlike the scores of unlicensed or unregulated methods of purchasing crypto assets that have sprung up in the wake of the recent and totally insane rally, Fintech Select has almost two decades of experience in keeping customer funds safe and secure.
In addition, with the possibility to integrate the purchasing into an existing physical point of sale transaction network, customers can get an additional layer of security by not having to transact with wholly unknown entitles online.
While it is relatively new, the advantages of having exposure to the cryptocurrency boom could turn out to be similar to having exposure to Amazon, eBay and Tesla a decade or two ago. However, rather than betting on a possible “one in a million” company, it makes sense in these early stages to take a close look at those service providers in the industry that are likely to prosper no matter which cryptocurrencies emerge dominant.
It may be early in the race, by Fintech Select Ltd. has a considerable head start.