Fellow Finance announces new strategy and financial targets until end of 2023 – Significant product announcements in 2021
FELLOW FINANCE PLC COMPANY ANNOUNCEMENT 8.12.2020 AT 9:00 AM
With its new strategy and products, Fellow Finance responds to the current buying and payment trends, seeking profitable growth through continuous and lower-risk customers.
Fellow Finance Corporation's Board of Directors has today confirmed the company's strategy and financial targets until the end of 2023.
During the strategy period, the company is seeking strong growth by expanding its product range to comprehensively cover business and consumer financing and payment services. Crowdfunded payment methods, both in e-commerce and physical retail stores, offer a new alternative in buying and payments that is in line with the current trends.
The wider product range adds points of contact with business and consumer customers, supporting customer continuity and the company's profitability. Fellow Finance aims growth especially in lower-risk loan customers and steadily yielding fixed income investment products for loan investors.
Fellow Finance’s strategic priorities:
We expand our product range with new payment and e-commerce products
We are expanding our product range to offer better coverage of financial services for SMEs, as well as consumers' everyday payment transactions and purchases.
We seek growth with lower-risk products
We seek growth with competitively priced lower-risk products by focusing on customers with higher credit ratings and offering steadily yielding fixed income investment products.
We seek profitability through comprehensive and continuous customer relationships
We focus on profitability through providing more comprehensive service and through increasing the share of continuous customer accounts.
We focus on selected international markets
We are focusing more selectively on the international markets. We bring new products to the Finnish market first and after that launch them internationally.
"The buying and payment behavior of businesses and consumers is undergoing a major change, including a sharp increase in online shopping. This has created significant business opportunities for Fellow Finance, which we are seizing by launching several new products. The products are highly scalable in terms of both technology and capital requirements. First, we introduce the products in Finland and later also internationally," says Kai Myllyneva, Chairman of the Board of Fellow Finance.
"Continuous customer relationships have a significant impact on our profitability. We seek customer retention by providing more comprehensive and competitively priced services to both consumers and businesses. Examples of our products to be introduced next spring and later in 2021 include services for online shopping, online payments and credit cards. For loan investors, we offer lower-risk fixed income investment products, which enables us to offer loan products with more competitive pricing," says Teemu Nyholm, CEO of Fellow Finance.
Financial targets for 2023
The Board of Directors of Fellow Finance has set the following financial targets for 2023:
- Net sales approximately EUR 23 million
- A significant share of net sales from business finance and international markets
- Operating profit approximately 15% of sales
Fellow Finance is organizing a strategy information event today, 8 December 2020 at 10.00–11.00 a.m. (Finnish time). The event will be held in Finnish. Presentation materials and a recording of the webcast will be available on Fellow Finance's website after the event. The presentation can be followed at https://tv.streamfabriken.com/2020-12-08-fellow-financen-sijoittajatilaisuus.
Teemu Nyholm, CEO, Fellow Finance Plc, email@example.com, +358 50 577 1028
Certified advisor, Evli Bank Plc, tel. +358 40 579 6210
Fellow Finance Plc is a loan-based crowdfunding and peer-to-peer lending platform. The company’s mission is to transform the traditional financing and payments to direct transactions between people and businesses. Fellow Finance has intermediated consumer and business financing of more than 680 million euros in Finland, Sweden, Denmark, Germany, Poland and Czech Republic and served more than 900 000 customers. The company is regulated by the Financial Supervisory Authority of Finland as an Authorized Payment Institution and listed on the Nasdaq First North Growth Market Finland. www.fellowfinance.com